182599079.

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23 October 2013

Business Case
Project Name: Date: Author: Owner: Client: Configuration item 001 Number: Note: This document is only valid on the day it was printed and should be checked against its configuration item record for the latest version SmartPhone App January Release: Outline Executive delegated responsibility to the PM Ideally the projects executive or sponsor

Revision History
Revision Date Initiation Previous Revision Date

Date of next planned revision:

Summary of Changes Will be updated with more accurate time and cost information when the project plan has been prepared Changes reviewed by:

Approvals
This document has the following approval records Quality Document references Approver Register Entry Number Date of QR Version approved

Quality Criteria of the Business Case

Project Assurance should check this document against the following quality criteria: The reasons for the project should be linked to a corporate or programme strategic objective The Project Plan and Business Case are aligned The benefits should be clearly measurable and justified Relationships between outputs, outcomes and benefits are shown The selected business option is agreed with the project board Alternative options show why they have been rejected Do Nothing has been evaluated The necessary funding source has been identified Operations and maintenance costs have been identified, in addition to project costs The Business Case conforms to organizational standards (e.g. break-even analysis and cash flow conventions) The major risks faced by the project are stated in terms of cause, event and effect, along with any proposed responses.

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Executive Summary
Key points, which should include benefits and any planned return on investment (ROI)

Reasons
The market place expects every organisation to have an APP available so that customers can communicate with us whilst on the move, our existing website does not work well on smartphones so we are facing a loss of customers if we do not exploit this opportunity.

Business Options
Option 1. Do Nothing, remain with the existing website and hope that customers are happy to use their Smartphone browsers, this has been rejected as the senior managers have requested an APP be available as soon as possible Option 2. Improve and simplify the existing website and hope that customers will once again use their smartphone browsers, but with a reduced functionality automatically detecting the use of a smartphone to present the website but without an APP to download. This has been rejected as senior managers have desires to use the new APP as a marketing tool. Option 2 Build an APP for smartphones, allowing new and existing customers to access a limited range of services via their smartphones, it should allow on-line secure purchasing and registration, it should also have a fun element to attract new customers

Expected Benefits
10% increase in online sales within 6 months A percentage of the 79p sale price for every APP downloaded 30 new customers each month for the next 12 months as a result of the APP

Expected Dis-benefits
IT department will need to manage the APP over time and add functionality, this will increase their workload by a very small amount

Timescale
For the project is expected to run for 3 months and the benefits will start to be delivered after the project completes, a few existing customers may be keen to trial the APP and may place some early orders.

Costs
The executive has a small 5000 budget for the entire project, the expected costs will be better understood when a project plan is prepared during initiation. Ongoing IT operations and maintenance costs will include hosting fees and commissions. Funding for additional post-project costs will need to be arranged via the normal IT budgeting process.

Investment Appraisal
A detailed cost/benefit analysis will be completed during Initiation, it may include a cash flow statement, Return on investment, net present value (NPV), internal rate of return (IRR) the Project Manager will discuss the corporate business case standards with the Executive later.

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Major Risks
No major risks have been identified at the moment, this situation will be monitored closely. A summary of the key risks associated with the project together with the likely impact and plans should they occur. These will usually be accompanied by a summary risk profile to allow the project board to see how risky the project is (see Risk Management Strategy for a full description)

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