The Business Case: What is it and why is it so important?

Following on from our first article last week, which gave an overview of ServiceNow's NowCreate methodology, we are unsurprisingly going to take a detailed look at the first stage of the project lifecycle, Initiate. Over the coming weeks, as we provide some insight and analysis on some of the key activities and considerations during this stage, it will hopefully become abundantly clear why we provide our opinion that this is the most critical stage for any successful project. This article will explore the foundation that the whole project is based upon, and why it is so important.

What is a business case?

For the avoidance of any doubt or argument, we have provided the Association for Project Management definition of a business case below.

A business case provides justification for undertaking a project, programme or portfolio. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution.

Much like any other technical or non-technical business case, the key purpose of a ServiceNow business case is to persuade stakeholders to invest in a new product or major changes to the existing product. This is typically achieved by presenting compelling evidence of its feasibility, value proposition, and cost-benefit analysis.

What are the key compents of a good business case and why are they important?

1. Problem Statement: The most fundamental, and quite basic, question that you need to answer as part of the business case is "What problem are we trying to solve?". For example, are employees wasting time on manual tasks that could be automated? Are there bottlenecks in your processes that are slowing down the delivery of services to customers? A clear definition of the problem, including current pain points and limitations, will ensure that you can demonstrate the need for a ServiceNow solution. and will be able to convince all stakeholders that time spent on this will be worthwhile in the long-run.
2. Objectives: Once the problem statement is defined, the next step is to set clear and measurable objectives for the project. This helps in establishing the expected outcomes and the impact of the project on the business. Too often, projects exit the Initiate phase without understanding and capturing the objectives. This can leave the project team and key stakeholders questioning the value of the project and whether the solution will meet their objectives later in the project, when change fatigue has settled in.
3. Solution Description: Although this can be a dangerous and controversial step, it is important to provide a high-level overview of the proposed solution and how ServiceNow can address the challenges and inefficiencies you’ve identified. This could include automating manual tasks, streamlining processes, improving communication and collaboration, or providing a single platform for managing all aspects of your business.
4. Benefits: This section of the business case highlights the potential benefits of the project, including cost savings, process improvements, increased productivity, and improved customer/employee satisfaction. It is important to quantify these benefits as much as possible to demonstrate the value proposition of the project for sign-off. However, once approved, these benefits can provide a cornerstone for the communication strategy and how to get all impacted users on board.
5. Implementation details and timeline: It’s important to provide a clear plan for implementing ServiceNow, including the resources and budget required. As best as you can, prior to the more detailed planning in the next phase, outline the steps involved in the implementation process, as well as the expected timeline for completion. This could change wildly once you dig into the details of the project, however, this can be managed through a strong change control process and should be minimised through a strong business case.
6. Cost-Benefit Analysis (CBA): Although this can be tricky and based on a range of assumptions, a financial analysis of the project, including the costs involved in implementing the solution and the expected benefits over a specified period, is imperative. This could include both tangible and intangible benefits, such as cost savings from automation, increased efficiency, and improved customer satisfaction. In order to increase the accuracy of the analysis, where possible, use data and evidence to support your calculations. Budget is usually the breaking point for most projects, so providing a rigorous CBA up-front is imperative to ensuring that it is financially viable and worth spending any further time progressing.
7. Risks and Mitigation Strategies: Arguably the least glamorous section of the business case, but just as important as any other. All projects come with some level of risk, and it is important to identify and assess these risks in the business case. This includes an assessment of the potential impact of the risks and the strategies to mitigate them and ensure that ongoing business operations are not impacted throughout the project and after go-live. Once established these should be reviewed regularly and managed through the project governance activities, which we will cover in later articles.
8. Alternatives considered: Although we'd love to say that ServiceNow can solve all your problems, it’s important to consider and address any potential alternative solutions that might meet the same business needs. For example, could the challenges you’re facing be addressed through internal process improvements, or other technologies? Alternatively, is the best alternative to do nothing? By comparing the benefits and costs of these alternatives, you can provide further validity to the business case and justify the investment in a ServiceNow implementation.
9. Recommendation: Finally, the ServiceNow business case concludes with a recommendation for or against the project, based on the analysis of the key aspects. This includes a summary of the findings and a conclusion on the viability of the project. All good projects should have an exit strategy, and there is no harm in pulling the emergency parachute at this stage in favour of maintaining the status quo.

As you can see, a lot of thought, time and effort will have to go into a business case. However, it is essential for securing buy-in and justifying the funding for a ServiceNow implementation. Unfortunately, we have experienced a large amount of implementation projects that have proceeded with incomplete business cases, or even no business case at all. Without a strong business case, organisations lose the anchor on what the project is based on. All projects experience ups and downs, and a well-thought-out business case with a strong set of benefits can reinforce the purpose and provide renewed enthusiasm to achieve the anticipated benefits at later stages.

Through our extensive experience delivering digital transformation projects, The Process Play can help guide you through this critical step and accelerate you on your path to implementing ServiceNow within your organisation. if you want to discuss your ServiceNow implementation or resource requirements then please do not hesitate to contact us via https://www.theprocessplay.com/ or [email protected].