Understanding The Business Case With PRINCE2

During the ‘Initiating of a project’, stage of a project, the Business Case is elaborated and further additions are made to it and as a result of it. The Business Case is an important part of PRINCE2 as it will guide the project.  It will answer some of the crucial questions, designed to pin down the motive of starting the project, the pros and cons of the project, the risks associated with the project and the expenditure of the project.

Through reading and understanding the Business Case, the goals of the project are made clear to professionals. Professionals are assigned different duties so that they play their respective role during particular stage of the project.  A Business Case developed through PRINCE2 lays emphasis on making the control specific, measurable and controllable. The Business Case in PRINCE2 consists of the mandate, project background, scope, risk analysis, and cost benefit.

• The project mandate is the first aspect of the Business Case in PRINCE2 in which the information about the product to be made is clear to the team members. The basic layout of the project is prepared which will serve as guide for the execution of the project.
• The Project Background highlights the need and the features of the project. It will inform the team members about the brief history, use, end users and other important information about the product. In this part of PRINCE2 project other information like market demand and the quality control law followed by it can also be added.
• Scope is that part of business case in PRINCE2 project which will shed light on the horizon of the PRINCE2 project. The Scope defines the characterization of the PRINCE2 project. It is essential to review changes during the project. If the Scope is clear at the starting up of the project, all team members know what exactly is demanded by stakeholders. A clear Scope definition is useful to prevent undesirable changes. The Scope describes the horizon of PRINCE2 project which includes the aspects like likeability, competition in particular areas etc. The profoundness of the PRINCE2 training project is also of utmost importance. It will take closer look on the PRINCE2 project. It will make sure whether the new methodologies developed are implemented or not.
• Risk analysis is the next aspect of the business case in most PRINCE2 projects. This aspect will highlight the risk areas. It includes delivery of the product at the proper time and the operational risk that the enterprise runs while introducing a product. The scenario analysis determines the effect on the Business Case in terms of resources used and the consumed in the completion of the PRINCE2 project. Towards the end one can construct scenarios for various risks, such as the extension of the time. In addition to the risk analysis, it also lays down the mitigation steps to minimize or limit risks.
• The cost benefit analysis aspect of the PRINCE2 project deals with ensuring proper delivery of the product. This aspect will describes the cash flow of the project, the Net Present Value (NPV), the Internal Rate of Return (IRR), the payback period and the foundation of the costs and benefits. It is the only aspect of PRINCE2 project in which the results of the analyses are recorded.