In the ever-evolving tech landscape, constant investment is the name of the game. Whether it’s “dialing for dollars” to keep aging systems secure and operational or making the case for funding an innovative new technology, staying at the forefront often requires investments in new tools, systems, and strategies. However, securing approval for these investments necessitates more than just a good idea; it demands a well-structured and compelling business case. In this exploration, we dive into the art of developing a rock-solid technology business case—a persuasive document that not only justifies IT investments but also speaks the language of finance and corporate leadership.
It’s easy to consider a business case to be an administrative formality and little more than a box to be checked on the way to more important activities. However, both the process of creating a business case and the document itself will help you develop a compelling justification for investment that might just find you getting more resources and attention than you’d thought possible.
The Anatomy of a Business Case
While dozens of templates and styles of business cases exist, and your company may well have a preferred format, consider the following sections and ensure you incorporate the essence of each section, even if you don’t follow this exact structure.
1. Create an Executive Summary
Rather than attempting to summarize the entire business case into a few bullets, use the Executive Summary to lay out the vision for the future that is created when this investment materializes. Consider what one or two conclusions, feelings, or actions you want the reader of the business case to come away with, and crisply articulate a vision and supporting themes that will stick with the reader.
Try to encapsulate the essence of your proposal. Begin with a concise description of the proposed technology investment and the benefits it promises to deliver to the organization. Keep it high-level, emphasizing the positive impact it will have versus the interesting nuances of the tech.
Weave in anecdotes or real-life examples of how this investment will solve a real problem within your organization. You want the reader to be thinking, I’ve seen this problem with my own eyes, and it’s one that I’d like to solve.
2. Define the Problem Statement
Paint a clear picture of the current challenges or inefficiencies that the organization is facing. Use vivid descriptions and visual language to immerse your readers in the issues at hand, and don’t be afraid to “tell a tale” about real examples from your organization or similar companies. Pose thought-provoking questions to encourage introspection and engagement.
Using both anecdotes and hard data, demonstrate the size of the harm or opportunity presented by the problem statement, and the various groups that it impacts, both directly and indirectly. For example, an inefficient invoicing system obviously impacts the accounting department, but it might also impact customer service and marketing by damaging your brand or forcing talented individuals to spend much of their time correcting invoices rather than helping customers. The goal of this section is to clearly define the problem that’s being addressed, or the opportunity that is being exploited, leaving the reader personally invested in resolving the problem statement.
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3. Set Objectives and Goals
Outline the specific objectives and goals of the technology investment. Make them measurable and aligned with the organization’s overall strategic direction. Seek to demonstrate that you, as a leader, not only understand the organization’s broader strategy but are also actively looking for investments to bring it to life. Use analogies or comparisons to elucidate complex ideas and enhance relatability.
Ideally, the objectives and goals of the investment will impact other business units and strategic objectives. Don’t be afraid to continue the storytelling theme by relating the anecdotes you used in previous sections to concrete measurements and impacts on the company strategy.
4. Provide a Solution Overview
Describe the technology or solution you are proposing. Explain how it addresses the identified challenges and achieves the outlined objectives. Avoid the temptation to start by focusing on what’s new and novel or technically interesting about each component. Rather, focus on the logical systems and what role each plays in enabling the objectives you previously outlined. Ground your content in informed perspectives, using well-researched insights and data-driven observations to support your arguments rather than hyperbolic marketing copy from tech vendors.
5. Present a Cost–Benefit Analysis
Present a comprehensive examination of the costs associated with the technology investment and the expected benefits. A “secret weapon” of a highly-effective business case is preempting any “devil’s advocates” by showing several alternatives that were carefully considered, and why they were ultimately eliminated from consideration.
By highlighting several competing problem statements and alternative solutions, you’ll show that you’ve done your homework before proposing a solution, and that you’re being a good steward of company resources.
6. Propose an Implementation Plan
Lay out a clear and detailed plan for how the proposed technology will be implemented. Include timelines, milestones, and responsible parties, both internal and external. If you’re suggesting an untried technology, or using a sprint-based methodology like Agile, explain why this approach is superior to what might be more familiar or comfortable to your stakeholders.
Clearly define the key risks you anticipate and how your risk management strategy will mitigate the anticipated risks, and also accommodate and manage the unforeseen risks that invariably arise. Generally, the approach, sequencing, and resourcing of the implementation plan is more important than the exact dates and durations when developing the business case. It’s easier to debate and adjust resource allocations and durations than to address fundamental concerns about the approach you’re using to execute.
7. Consider a Risk Assessment
While risk management should be introduced as part of the implementation plan, for complex or high-risk projects it merits a specific section of the business case. Identify potential risks and challenges that may arise during the implementation of the technology investment. Discuss mitigation strategies and contingency plans to demonstrate a proactive approach to risk management.
If you’ve accounted for the foreseeable risks, and also presented a sound approach to identifying, quantifying, and mitigating unforeseen risks, you’ll further demonstrate that you thoroughly understand how to address your problem statement and are once again being a diligent and thoughtful steward of corporate resources.
8. Wrap up with a Conclusion and Call to Action
Summarize the key points of your business case, reiterating the benefits of the technology investment and the value it brings to the organization. End with a compelling call to action, perhaps reiterating the future state enabled by your program and the need for support both from an organizational and a financial perspective.
Articulate how you’ll keep key stakeholders informed as you progress from the business case into funding and project startup and ask for their support in the immediate and long term.
Crafting a Winning Business Case
Now that we’ve dissected the components of a business case, let’s dive into the process of crafting a business case that not only gets funded but also creates passionate advocates for its success:
Start with Research
Begin your journey by immersing yourself in research. Understand not only the technology or solution you’re proposing but also the industry trends, competitors’ strategies, and potential impacts on your organization.
Consider your key stakeholders and audience as you assemble data. A fellow tech exec might be swayed by a Forrester recommendation, while a colleague in marketing may have never heard of them.
Engage Stakeholders
Collaboration is key. Engage with stakeholders across your organization to gather insights, feedback, and ensure that your business case aligns with broader strategic objectives.
This is also a great opportunity to identify anecdotes and stories that support your business case. Not only do these real-life “mini case studies” lend credibility to your conclusions, but they also link the outcomes of your initiative to the people and teams that will be impacted. Being able to drive quantifiable outcomes and impacts to individuals and company culture is an unbeatable combination.
Embrace Data and Evidence
Back your arguments with data and evidence. Use facts, figures, and case studies to illustrate the potential benefits of your proposal. Consider seeking external validation through industry benchmarks or expert opinions.
Reread your company’s annual report or most recent investor guidance to identify links to the metrics that are most important to your organization.
Tell a Compelling Story
Craft your business case as a compelling narrative. Weave together the elements we discussed earlier, infusing your unique voice and style into the document. Make it engaging, thought-provoking, and, above all, persuasive.
There’s no harm in using good old-fashioned storytelling mechanics, painting the problem statement as the fantastical dragon that can only be slain by the metaphorical “knight in shining armor” that’s described in your business case.
Test Your Case
Before presenting your business case, test it on a diverse group of colleagues. Gather feedback and refine your arguments. Ensure that your document is both technically sound and accessible to a non-technical audience.
The risk of testing a business case with colleagues is that they’ll not want to disappoint you with negative feedback. Rather than asking a nonspecific question like, What did you think?, ask this sample group what key takeaways they were left with after reading the business case. You might identify some interesting points that you should further emphasize or determine that your readers are missing a key element of your case that should be reworked.
For tech leaders, a solid business case is not just a document; it’s a powerful tool that can shape the future of your organization. A compelling business case not only justifies your IT investments but also inspires confidence and shared strategic vision with your colleagues in finance and corporate leadership.
Rather than an administrative roadblock to future funding, a well-executed business case provides a showcase for how technology—driven by your leadership—drives the organization forward. Repeatedly demonstrating that tech is a relatable means to solving real organizational problems and advancing the broader company agenda, will turn technology from a cost to a sought-after strategic enabler.
Furthermore, after two or three thoughtful and well-constructed business cases, you’ll find future documents being received with anticipation and excitement rather than languishing in someone’s inbox.
Not only will you find your initiatives are funded but you may also be invited to further shape the organization’s strategy, with technology taking a more central role in the process. Of course, all of this is moot without competent execution and delivering on the premise and value outlined in the business case. Therefore, why not start the initiative from a position of strength, support, and excitement rather than skepticism and fatigue?
