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Business Case Analysis (BCA): Example & Format

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  • 0:04 Introduction to BCA
  • 0:49 Business Case Analysis Defined
  • 1:52 Business Case Analysis Format
  • 3:58 Lesson Summary
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Lesson Transcript
Instructor: Brianna Whiting
In this lesson, we'll explore the process of business case analysis. We'll define the phrase and explain the different steps to take when developing a business case analysis.

Introduction to BCA

Let's imagine that you work for a large corporation. Your job is pretty straightforward; you type up reports and file them away. After a few years of working for the company, you realize there's a much easier way to classify and file the reports. Your idea would be more efficient and would provide a system that would make finding the report at a future date more achievable. While you would love to just switch over and file the reports your way, you know there is a protocol in place and you need approval first. But how do you get this approval? Well, after some consideration you realize that perhaps some sort of proposal that explains why your way of classifying and filing the reports would be beneficial would be a great place to start. So you decide to prepare a business case analysis for the corporation to review and analyze.

Business Case Analysis Defined

So, what is a business case analysis? A business case analysis, or BCA for short, is a tool that offers an argument for a business to consider to help decide whether some sort of action should be taken. This tool can provide information about financial aspects and plausible consequences of actions or decisions. In other words, it's a way for a company to ask itself what will happen if it takes some sort of action. It's important to use the word 'case' because it helps a business recognize that a proposal or argument for why an action should be made is being introduced. Keep in mind that the action itself is not the only important aspect of the business case analysis. The case you are trying to make is just as important. If the case doesn't explain why the action is important or beneficial to the company, it's unlikely that the action will ever be approved.

Let's apply this concept to the example from earlier. If your new system will definitely help make filing reports more efficient and easier to access at future dates but you fail to make it clear how, your case and your new system will likely not be approved.

Business Case Analysis Format

Let's take a look at the format of a business case analysis:

First is the introduction. This is where you explain what the case is about and how it will be used. It provides objectives and answers questions like who will use it and why. Following our example, your introduction would explain that you're presenting a case about the filing system. You would then explain who might use this system and why it's important.

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