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This chapter is from the book

The Business Case

Ultimately the calculation of ROI compares the financial impact of different options over time. The time context is essential. Without it, an ROI is meaningless. Typically it starts with a question of the form,

“Should we spend $1,000,000 to develop part of the system over two years or $1,500,000 to develop all of the system over three years?”

The answer to a question such as this emerges from the construction of a business case. A business case is best described as a financial story based on facts, structured assumptions, and logic. It provides a vehicle by which the financial impact of the options can be examined and conclusions drawn.

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