PMP - 2.1 Business Case (economic feasibility study)

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PS: half a month without updating the document, because it is a little single-threaded, in the process of finishing the content group and start the planning process group, in the range of group planning procedures, schedule, cost, resources are very closely associated with the part, but also the project management process content is the most attention, so we put together a complete idea only begun to complete the blog content, although less views, but worried that there are so few really concerned about this baby doll do not see that this baby will be updated to give up.
Project management is the industry wanted this baby always insisted on something, because I changed a lot, to the boss assured that the baby is not going to give up. Like you can point wave concern, anchor déjà vu, ha ha.
Now return to Hangzhou, Alipay green code can be smooth, hope the epidemic in the past as soon as possible.
I wish you getting better and better.

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In this section we begin the formal start of the process of project management processes specific documentation, tools, technical details of the content, and not only summarize theoretical framework.

"Business Case" project as the starting end , the purpose is to demonstrate the economic viability of the project, the ultimate goal is to do the project in order to obtain benefits, financial or strategic objectives (see details of the project objectives in section 1.4).

So I call "business case" for the documentation of the economic feasibility study.

First, the document outlines the background

1. The project sponsor needs to be documented

(1) needs analysis

(2) feasibility report

(3) Business Case Report

Case (4) to be processed project description

(5) assuming that log (business case assumptions in higher-level needs)

2. Project launched stakeholders

The project initiated by external influences or internal business needs. Project initiator or sponsor should have a certain authority, to obtain funding for the project and provide resources.
　　

It contains the following parties

(1) sponsor

(2) project set

(3) PMO

Chairman of the Committee (4) portfolio management

(5) its authorized representative

3. Project Business Case Execution Time

　　(1) project started before , by making the business case will continue / termination decision project.

　　(2) project started after , the entire project life cycle use, and require regular audits .

4. Application of the Business Case

　　 For selected still lack a well-defined plan of benefits validity argument is based on the subsequent start of project management.

5. Role

　　(1) Business Case From a business perspective description of the necessary information, and decide accordingly expected results of the project is worth the investment required , lists the project start and project objectives and rationale of the business objectives of information contributions.
(2) higher than the project level managers and executives are often used as a business case basis decisions (Go / project) .
　　(3) commercial demonstration project is a follow-up project based management.
　　(4) contribute to the end of the project in accordance with project objectives to measure project success.
　　(5) In general, the business case will include business needs and cost-benefit analysis of the project in order to demonstrate the rationality and determine the project boundary .
　　(6) business case and benefits management plans are in before the start of the project preparation, and after the completion of the project to become evaluate project success basis.

6. Leader

(1) The project sponsor is usually responsible for the commercial demonstration project document development and maintenance (update or revise ) .

(2) The project manager is responsible for providing advice and insights , the project business case, the success of standard project management plan, project charter and project management plan benefits phase consistent with the purpose and objectives of the organization remain the same .

(3) project managers need to ensure that project management approach closely linked to the intention of business documents .

Second, the contents of the file

1. business needs

(1) determine action to promote motivation, expectations

(2) note, recording a pending business problem or opportunity , including the ability for the organization to create value

(3) identify the affected parties

(4) determining the range

(5) the required investment

2. formal analysis

(1) determine the organizational strategy, goals and project objectives

The projects usually start out with one or several strategic considerations:

• • • • <1> Market demand
      • <2> Strategic opportunity / business needs
      • <3> social needs
      • <4> environmental considerations
      • <5> customer requirements
      • <6>  technological progress
      • <7>  law or regulation
      • <8> conventional problems or unforeseen problems

(2) determine the problem triggers the root cause or opportunity

(3) analysis of the project required between the capacity and capability of existing tissue gap

(4) identify known risk

(5) identify the success of key factors

(6) may be used to determine the assessment of various actions of decision criteria

• • Form of analysis criteria
    • • <1> Required . Must practice guidelines, you can deal with the problem or opportunity.
      • <2> expected . I want to practice guidelines, can deal with the problem or opportunity
      • <3> Optional . Non-essential criterion. This case practice guidelines could be a factor to distinguish between alternative courses of action in

(7) a scheme for determining the business problem or opportunity program
　　  business case may provide a number of options, business case provides the following three options:

• • • • <1> does not take any action . Also known as "business as usual" program. This program will select projects not authorized.
      • <2> to make minimal efforts to address the problem or opportunity . Minimal effort possible to determine the series refers to deal with the problem or opportunity in terms of crucial established guidelines
      • <3> in an effort to deal with the problem or opportunity more than the minimum . This program meets minimum criteria and some or all of the other documented guidelines.

3. Recommended

(1) A project for a given specification of proposals

Content (2) of the specification may include (but are not limited to):

• • • <1> analysis of potential solutions
    • <2> Potential program constraints, assumptions, risks and dependencies
    • <3> success criteria (see Section 1.4 goals)

　　　　(3) implemented method may include (but are not limited to):

• • • <1> Milestones
    • <2> dependencies
    • <3> Roles and Responsibilities

　　4. Evaluation

　　　　A description of the specification to measure the effectiveness of project delivery plan should be included after the initial implementation, any ongoing operational level options .

　　5. Financial measure

The agreed financial measure recorded in the Business Case (optional standard)
These financial measure may include (but are not limited to):

(1) Net Present Value (NPV)

(2) return on investment (ROI)

(3) Internal Rate of Return (IRR)

(4) payback period (PBP)

(5) benefit cost ratio (BCR)