Option appraisal/value for money analysis/return on investment: Difference between revisions

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NB CBA= cost/benefit analysis
# Identify if you need this section in your business case, or exactly what type of appraisal is required.  Depending on your organisation's approach to business cases you may need to:
* ignore this section - some business case templates do not require you to describe different options; instead you may simply make a recommendation for action
* list different options for funding and action; you may need to describe costs and benefits of each option (often called a cost-benefit analysis)
* only describe a 'do nothing' option - ie what would happen if your business case is not funded (and no action is taken).


==Process==
# Some business case templates use an explicit methodology for options appraisal - which may involve assessing implementation costs, ongoing costs, savings resulting from the investment, or other criteria specific to your organisationThis is likely to be the case for large capital projects but may not be needed for business cases which require a smaller level of invetment.
# Identify if you need this section in your business case, or exactly what type of appraisal is requiredPossible options:
## your business case template does not require you to describe different options
## you need to list business case options and show costs for each
## you have to describe a 'do nothing' option - ie what would happen if your business case is not funded (and no action is taken)
## you need to do a full cost/benefit analysis (CBA) for a number of different business case options


==Content==
# You may need to research further.  There are lots of resources that can help with options appraisal and/or cost-benefit analysis.  There are also resources that can help with quantifying, or at least measuring, intangible benefits.  There's a list of resources below - choose the ones that will help you address the needs of your business case.
''This should describe the contents or structure of the business case, resulting from following the Process above''


==Scenarios==
  ==Resources==
''Thoughts on how to adapt the content of this section to particular scenarios that the business case is focused on. Eg: CBA for creating a repository system, or CBA for new DP staff''
 
==Communications==
''Notes relevant to tailoring this section to the appropriate audience and communicating the the business case to that audience''
 
==Resources==
''These are external resources of relevance to this section. Links can be incorporated into the text above if that is more useful''
''These are external resources of relevance to this section. Links can be incorporated into the text above if that is more useful''


[https://dspace.gla.ac.uk/handle/1905/691 eSPIDA - Expressing project costs and benefits in a systematic way for investment in information and IT]
[https://dspace.gla.ac.uk/handle/1905/691 eSPIDA - Expressing project costs and benefits in a systematic way for investment in information and IT]

Revision as of 10:34, 1 August 2013

  1. Identify if you need this section in your business case, or exactly what type of appraisal is required. Depending on your organisation's approach to business cases you may need to:
  • ignore this section - some business case templates do not require you to describe different options; instead you may simply make a recommendation for action
  • list different options for funding and action; you may need to describe costs and benefits of each option (often called a cost-benefit analysis)
  • only describe a 'do nothing' option - ie what would happen if your business case is not funded (and no action is taken).
  1. Some business case templates use an explicit methodology for options appraisal - which may involve assessing implementation costs, ongoing costs, savings resulting from the investment, or other criteria specific to your organisation. This is likely to be the case for large capital projects but may not be needed for business cases which require a smaller level of invetment.
  1. You may need to research further. There are lots of resources that can help with options appraisal and/or cost-benefit analysis. There are also resources that can help with quantifying, or at least measuring, intangible benefits. There's a list of resources below - choose the ones that will help you address the needs of your business case.
==Resources==

These are external resources of relevance to this section. Links can be incorporated into the text above if that is more useful

eSPIDA - Expressing project costs and benefits in a systematic way for investment in information and IT