Consulting solutions

Development of business cases

A business case examines a particular business scenario in terms of its profitability of an investment opportunity. It serves to present and weigh the projected financial and strategic effects of the investment. Thereby a comparison of different options for action takes place. An always given action option is the maintenance of the status quo.

In practice, a business case is often used in the run-up to a project to examine the economics of the project and explain its impact on the business. By analyzing benefits, expenses and risks, it helps to focus companies’ resources on the most promising projects.

The business case has many characteristics. Common synonyms are:

  • Cost-benefit analysis
  • Economy bill
  • Yield calculation
  • Capital budgeting

None of these terms is used universally or is standardized. A business case is not a business plan. This evaluates business goals, while a business case examines the goals of a project, a project or an investment.