Business Case Summary Process

When to Use

• User needs to compile business case summary report
• User asks to prepare investment decision documents
• User wants to summarize cost-benefit analysis results
• User needs to create business case approval workflow
• User asks for investment recommendation documentation

Business Case Summary Process

Step 1: Collect Module Analysis Results

Required Input Documents:

Document Type	Document ID	Status Check
Cost Analysis	SYS-PI-BC-001~003	Must be completed
Benefit Analysis	SYS-PI-BC-004~006	Must be completed
ROI Calculation	SYS-PI-BC-007~008	Must be completed
Financial Indicators	SYS-PI-BC-009~010	Must be completed
Sensitivity Analysis	SYS-PI-BC-011~013	Must be completed

Data Collection Checklist:

• [ ] Total investment cost
• [ ] Total expected benefits
• [ ] ROI calculations (optimistic/base/conservative)
• [ ] NPV calculations
• [ ] IRR calculations
• [ ] Payback period
• [ ] Risk-adjusted ROI
• [ ] Sensitivity coefficients
• [ ] Scenario analysis results

Step 2: Summarize Cost Analysis

Cost Categories to Summarize:

Cost Category	Typical Components	Output Format
Development Cost	Personnel, software, testing, contingency	Table with breakdown
Operation Cost	Personnel, cloud resources, licenses	3-year projection
Other Costs	Training, migration, consulting	One-time costs

Key Calculations:

Total Investment = Development Cost + Operation Cost + Other Costs
Cost Breakdown % = (Category Cost / Total Investment) × 100%

Step 3: Summarize Benefit Analysis

Benefit Categories to Summarize:

Benefit Category	Typical Sources	Measurement Approach
Direct Benefits	Efficiency gains, time savings	Quantifiable metrics
Indirect Benefits	Data quality, management efficiency	Qualitative + quantitative
Strategic Benefits	Digital transformation, capability building	Long-term value

Key Calculations:

Total Benefits = Direct Benefits + Indirect Benefits + Strategic Benefits
Benefit Breakdown % = (Category Benefit / Total Benefits) × 100%

Step 4: Summarize Financial Indicators

Financial Indicators Table:

Indicator	Optimistic	Base	Conservative	Expected
ROI
NPV
IRR
MIRR
Payback Period (Static)
Payback Period (Dynamic)

Expected Value Calculation:

Expected Value = (Optimistic × 20%) + (Base × 60%) + (Conservative × 20%)

Step 5: Summarize Risk Analysis

Risk Summary Components:

1. Key Risk Factors:

   • List top 3-5 sensitive variables
   • Include sensitivity coefficients
   • Identify risk levels

2. Scenario Analysis Summary:

   • Optimistic scenario (20% probability)
   • Base scenario (60% probability)
   • Conservative scenario (20% probability)

3. Risk-Adjusted Metrics:

   • Risk-adjusted ROI
   • Risk-adjusted NPV
   • Risk-adjusted IRR

Step 6: Compile Business Case Summary Report

Report Structure:

# Business Case Summary Report

## 1. Executive Summary
- Project overview
- Investment recommendation
- Key conclusions

## 2. Project Background
- Business context
- Project objectives
- Project scope

## 3. Cost Analysis Summary
- Investment costs
- Cost breakdown analysis
- Cost control measures

## 4. Benefit Analysis Summary
- Expected benefits
- Benefit realization path
- Benefit tracking mechanism

## 5. Financial Indicators Summary
- Core financial indicators
- Risk-adjusted indicators
- Industry benchmark comparison

## 6. Risk Analysis Summary
- Key risk factors
- Scenario analysis conclusions
- Risk mitigation strategies

## 7. Investment Decision Recommendation
- Investment recommendation
- Implementation recommendations
- Follow-up actions

## 8. Appendix List

## 9. Review Records

Step 7: Internal Review

Review Participants:

• Product Manager (lead)
• Project Manager
• Technical Lead

Review Checklist:

• [ ] Data accuracy verified
• [ ] Logical consistency checked
• [ ] Conclusions supported by data
• [ ] Format compliance confirmed
• [ ] Appendices complete

Review Outputs:

• Internal review record
• Revision list (if needed)

Step 8: Financial Review

Reviewer: Finance Lead

Review Focus:

• Cost data accuracy
• Benefit estimation reasonableness
• Financial indicator calculations
• Discount rate selection

Review Results:

• Approved: Proceed to investment decision
• Rejected: Revise financial data and resubmit

Step 9: Investment Decision Approval

Approver: Project Sponsor

Decision Criteria:

1. Financial indicators meet investment standards
2. Risks are controllable
3. Strategic value is clear
4. Resources can be secured

Approval Outcomes:

• Approved: Proceed to implementation
• Rejected: Project termination
• Need More Info: Supplement and resubmit

Output: Business Case Approval Form (SYS-PI-BC-015)

Step 10: Develop Follow-up Action Plan

Action Plan Components:

1. Immediate Actions (1 week):

   • Formal project initiation
   • Team assembly
   • Kick-off meeting

2. Short-term Actions (1 month):

   • Detailed project plan
   • Benefit tracking mechanism
   • Risk management plan
   • Supplier selection

3. Medium-term Actions (3 months):

   • Requirements analysis
   • System design
   • Development environment setup
   • Development start

Key Formulas

Investment Efficiency

ROI = (Total Benefits - Total Investment) / Total Investment × 100%

Risk-Adjusted ROI

Risk-Adjusted ROI = (Risk-Adjusted Benefits - Risk-Adjusted Investment) / Risk-Adjusted Investment × 100%

Expected Financial Indicator

Expected Value = Σ(Scenario Value × Probability)

Output Templates

Cost Summary Table

Cost Category	Amount	Percentage	Notes
Development			One-time
Operation			3-year
Other			One-time
Total

Benefit Summary Table

Benefit Category	3-Year Amount	Percentage	Realization Path
Direct
Indirect
Strategic
Total

Financial Indicators Summary

Indicator	Optimistic	Base	Conservative	Industry Benchmark
ROI
NPV
IRR
Payback Period

Investment Recommendation Format

Recommendation: [Strongly Recommend / Recommend / Not Recommend]

Key Reasons: 1. 2. 3.

Risk Warnings:

Implementation Suggestions: 1. 2. 3.

Quality Control

Data Quality Requirements

• All source documents must be completed and approved
• Data must be consistent across all modules
• Calculations must be verified
• Assumptions must be documented

Review Quality Requirements

• Internal review must be completed before financial review
• Financial review must be completed before approval
• All review comments must be addressed
• Final approval must be documented

Related Documents

Input Documents

• Cost Analysis Documents (SYS-PI-BC-001~003)
• Benefit Analysis Documents (SYS-PI-BC-004~006)
• ROI Calculation Documents (SYS-PI-BC-007~008)
• Financial Indicators Documents (SYS-PI-BC-009~010)
• Sensitivity Analysis Documents (SYS-PI-BC-011~013)

Output Documents

• Business Case Summary Report (SYS-PI-BC-014)
• Business Case Approval Form (SYS-PI-BC-015)

Process Documents

• Business Case Overall Process
• Module-specific Process Standards