Policy and Planning

Large Project Oversite

Guidelines for Developing a Project Business Case

ITD Standard STD009-98 requires that agencies submit a business case for large projects to ITD following management approval and prior to project start up. These guidelines have been developed to help agencies document the business case for large projects. ITD will review the business case and provide feedback to the agency.

The business case should include the first three sections listed below. The signature of the agency head should be included in the business case or on a cover letter attached to the document.

Business Requirements:

• There should be a clear statement of the business problem that the project is trying to address.
• The project should be described in the agency ’s IT plan.
• Identify other projects or systems that may be effected by this project.
• Business requirements for the project should be identified including implications for customer service or gains in efficiency.
• This section should identify the assessment method that will be used to determine if the project was successful, i.e., Was the problem solved? Did customer service improve?
• Business requirements for the project should be linked to the business plan and mission for the agency.
• Identify the effect on partners such as other agencies or political subdivisions.
• The business requirements should answer questions such as:
• Why is the agency doing this project?
• Why is the agency using technology to do this?
• Who will benefit from this project?
• Why do the project now?
• How will the agency measure the success of the project?

Cost/benefit Analysis:

• The cost/benefit analysis should identify both tangible and intangible project benefits.
• Quantify benefits whenever possible. Benefits may be expressed in terms of dollars saved, hours saved, turn-around time reduced (in weeks),etc.
• At least two viable alternatives to solve the problem should be identified. These may include non-technology solutions. For example, compare:

Current situation (do nothing)	versus	Implement technology
Enhance current system	versus	Build new system
Implement manual solution	versus	Implement technology
Build from scratch	versus	Purchase a vendor solution

• Each alternative should be analyzed based on how well the alternative solves the problem and how much it costs.
• The alternative chosen should be identified and the choice justified.
• The total project cost for each alternative needs to be identified. This includes programming/analysis, telecommunications, testing, training, documentation, hardware, software, and human resources for development, support and maintenance.
• Identify the cost to other partners or customers.
• Identify the basis for the costs estimate, e.g. vendor response, project of similar scope or pilot project results.
• The cost/benefit analysis should answer these questions:
• How much will this project cost to implement and maintain?
• How much will this project save?
• Is this the best approach to get the highest quality results for the lowest cost?
• Is this project worth doing?

Risk Analysis:

• The risk analysis should identify constraints on the project in terms of budget, schedule, scope and quality. A plan to minimize the impact of these constraints should be identified.
• Describe how the project manager will identify issues or risks during the project life.
• Known risks to the successful completion of the project should be identified and plans to minimize those risks should be outlined.
• The risk analysis should answer this questions:
• What are the chances that this project will be successful?
• What will be done to maximize the chances for success?
• Is there enough contingency in the budget and schedule?

Agency Commitment:

• The business case should include the signature of the agency director to indicate the commitment of agency resources and support for the project. This may be included in a cover letter if desired.