Research the Problem
Add depth to the Business Case by researching the root cause of the problem which the project hopes to address by implementing a suitable solution. Complete a “Root Cause Analysis” exercise to identify the underlying cause of the problem by performing the following steps:
- Data Collection. Gather all of the information required to gain a thorough understanding of the problem
- Data Analysis. Analyze the information gathered and identify any gaps and deficiencies in knowledge
- Identify Contributing Factors. Then identify the events which led to the problem, and identify the possible contributing factors for those events
- Identify the Root Cause. After all of the contributing factors have been identified, describe the reasons for them occurring. These reasons form the “root cause” of the problem.
Examples of common business problem areas include:
- Business Direction (e.g. a lack of a vision may cause inefficiencies in the business)
- Business Structure (e.g. the existing structure may not be appropriate for new business processes)
- Business Growth (e.g. rapid growth may mean that premises are no longer sufficient to hold staff)
- Business Competencies (e.g. a change in business direction may lead to a mismatch in staff skills)
- Business Performance (e.g. the business may not be achieving the objectives set)
- Business Processes (e.g. some areas of the business may have inefficient processes)
- Business Location (e.g. the existing premise may not match the new corporate image)
- Business Technology (e.g. the existing technology does not support changes in the business)
Research the Opportunity
Although projects are often initiated to solve a business problem, you may also initiate a project to “realize” (i.e. take up on) a business opportunity. Complete the following research to identify the underlying basis for the opportunity, by performing the following steps:
- Data Collection. Gather all of the information required to gain a thorough understanding of the opportunity
- Data Analysis. Analyze the information gathered and identify any gaps and deficiencies in knowledge
- Identify Contributing Factors. Then identify the events which led to the opportunity and identify the possible contributing factors for those events
- Identify the Underlying Reason. After all of the contributing factors have been identified, describe the reasons for them occurring. These reasons form the “underlying basis” for the opportunity
Examples of business opportunities include:
- A new market demand which is identified for a specific product or service offering
- A competing company closes or changes in business direction
- You identify new ideas for products or services within your market segment
- You identify new potential premises for your business
- New technologies are identified which will give you a competitive edge
- You have identified a new target market for sourcing skilled workers
- There have been changes in legislation or regulation