The business case provides the reasoning for initiating a particular task or project management scheme. The business case is a type of document that describes information of a particular business to determine if the project is worth the investment. It is presented as a well-structured document which includes information such as the background of the project, expected commercial benefits, gap analysis, risks and expected cost.
There are many reasons why a business case is created and these include the market demand, organizational requirements, technological advancements, expansion, legal requirements, social needs and ecological impacts to name a few.
Everyone is involved in creating the business case. The business case is completed by the project manager or business analysts based on the inputs of the stakeholders. Moreover, it is the responsibility of the sponsors to agree on the scope and limitation of the project.
Business cases are created in order to aid decision-makers compare alternative initiatives based on the indicated benefits and objectives in the document as well as measure performance indicators and use them to realize different aspects of the business’ project management design.
This term is defined in the 5th edition of the PMBOK.