Investigating a Process Approach on Business Cases

Abstract

Strategic information technology (IT) enabled investments are among other types of IT investments, characterised by the highest level of uncertainty and the highest potential for value creation. They are often associated with product/service innovation, new business models or an enterprise-wide transformation (e.g. Enterprise Resource Planning (ERP) investment). Although these may deliver operational excellence and a competitive advantage, it is a risky endeavour with high failure rates. One of the critical factors to achieve a successful outcome is to develop a sound business case. Many organisations perceive a business case as a valuable instrument for investment justification and decision-making, yet other organisations still do not develop a business case due to insufficient knowledge. In response to this knowledge gap, Ward, Daniel, and Peppard (2008) designed a business case development process that ends on investment approval. Others scholars however call for a continuous usage of business cases throughout the entire investment life cycle. The present research responds to this call with an exploratory case study in order to identify multiple business case tasks that complement the process of Ward et al. (2008). The paper starts with a description of background literature on what constitutes a business case whereof the authors derive a new definition. The authors then set the context and structure for an initial business case process based on the contribution by (Ward et al., 2008). The findings of the exploratory case study and the initial business case process are discussed.

Enterprise Governance of Information Technology

“…A process approach on business cases can be conceived as a business process which attempts to transform the formal business case document into a living document (Franken et al, 2009 ). We therefore defi ne such a business case process as a set of logically related tasks that affect a business case and supports continuous business case usage with the intent to enable well-founded investment decision-making and to ultimately increase investment success (Maes, De Haes, & Van Grembergen, 2014 ).…”