Which option best reflects information that must be captured before you create the business case?

Question

Options

• Acustomer's budget and expectations for ROI
• Bestimate of investment required: initial investment, recurring for each period, and specific to
• Cassessment of the customer's procurement process
• Ddetailed analysis of cost savings that results from a pilot

• A
  15% (8)
• B
  77% (41)
• C
  6% (3)
• D
  2% (1)

Explanation

Option B is correct because a business case fundamentally requires a structured financial foundation: you must capture the initial investment, ongoing periodic costs, and any period-specific costs before you can build a credible case for moving forward - without these, you cannot calculate ROI, justify the project, or compare alternatives.

Why the distractors are wrong:

• A is backwards - the customer's budget and ROI expectations are inputs you use to validate the business case, not prerequisites you capture before building it. ROI is calculated within the business case itself.
• C (procurement process) is operational context relevant to executing a purchase, not to building the financial justification for one.
• D (detailed pilot cost-savings analysis) comes after a pilot has run - you don't have this data before the business case; a pilot is often authorized by the business case.

Memory tip: Think of the business case as a financial blueprint. You can't draw blueprints without knowing the cost of materials first - Option B gives you the raw cost structure (initial + recurring + period-specific) that every other calculation in the business case depends on.

No community discussion yet for this question.