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Introduction on PRINCE2 Business Case

The purpose of a prince2 business case

The purpose of the business case a theme is to establish mechanisms to judge whether the project is and remains desirable viable and achievable. As a means to support decision-making in its continued investment. This means that no project should be started unless it has business justification. As a project progress is in change occurs the justification as documented in the business case needs to be reviewed to make sure the project is still justified and that justification is based on desirability which is how the cost benefit and risk balance looks.

Do we stand to gain enough by completing this project continuing with this project to make it worthwhile Viability, can the project actually deliver the products of the project going to produce and finally achievability, can the products provide the benefits that were ultimately looking to get from successfully completing this project.


  • The senior user is responsible for specifying and subsequently realizing the benefits of the project.

  • The executive is responsible for making sure that the benefits represent value for money are aligned to corporate objectives and are capable of being realized.

The business cases developed at the start of the project and maintained throughout its life and the biggest cases formally verified by the project bulled at various key points during the project. Sometimes corpora all program management may provide a pre-existing business case. So in those cases the project gets a business case handed down to it and opposing the project is responsible for making sure that that provided business case and the project stay in line from that point on words. Suppose an instance if an exam question which will ask you who is responsible for the business case. The answer to that and that is the executive and against executive you'll see responsible for the business case for the duration of the project. But you may have full for example that the project manager was responsible for now because if you look up project manager you'll see that it says prepare the business case on behalf of the executive. So although the project manager may actually do the work all preparing the business case and that's quite a common situation is the executive that's responsible for it. These are the kinds of subtle differences that's important to get used to, because exam questions will quite often need you to understand those distinctions.

What is a business case

The business case contains the optimum mix of information whereby continuing project desirability viability and achieve ability can be assessed. The project board and stakeholders of 20 more about stakeholders later need to be confident of continuing project viability at all times and the business case needs to be updated throughout the life of the project and should always contain current information on costs risks and benefits. Projects should be evaluated on their contribution to corporate objectives and on their benefits in comparison with their costs and risks.

  • An output is any one of a project's products that is handed over to a user and we are talking about outputs here we are not talking about management products so this excludes the sort of reports and documents that we use to manage the project.

  • The outputs here are products that are produced by the project of course a products may well be a document but it will be for example summing like the user Manual kind of thing.

  • An outcome is the result of change normally affecting real world behavior and or circumstances. Outcome on desire when a change is conceived their achieved as a result of the activities undertaken to effect a change and benefits

A Benefit is the measurable improvement resulting from an outcome that is perceived as an advantage by one or more stakeholders. The outcome the result of the change is sales orders a process more quickly and accurately. The benefit which is the measurable improvement again looking at the manual costs are reduced by 10%a volume is increased by 15% and revenues increased by 10% annually. Very often, the most confusing difference between outcome and benefit a key points is that benefit is measurable it must be a measurable improvement and this shows the relationship between outputs outcomes and benefits. The top of the forget you have project outputs which in able business changes. And if you go down from side effects and consequences they can result in this benefits that are actually perceived as being negative. But those side effects and consequences can also realize for the benefits and benefits in general will help to achieve one or more strategic objectives.

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