What is a business justification example?


Quick Answer

About.com reports that business justification, or business case, explains the reasons to move forward with a proposed project or solution. The business justification delineates how the project or task meets the organization's needs or goals.

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Full Answer

One example of a business justification includes multiple analyses of the project, solution proposal and validation of the solution, according to MyMG. It is important to analyze several aspects of the proposed project or solution. Environmental analysis, alternatives analysis, impact analysis, financial analysis and risk analysis are key components to a business justification. A cost-benefit analysis or return-on-investment analysis is needed to prove that the initial cost to the project brings in additional profit over time. An alternatives analysis is needed to show that all potential solutions were considered before justifying the proposed solution. A risk analysis attempts to identify, measure and mitigate potential project risks. It allows the project initiator to provide a proactive approach to any constraints encountered in the project.

Once all analyses are complete, the project initiator compiles the work into a single, concise report and submits the report to the project sponsor. The project sponsor then reviews the business justification report to validate all analyses performed and approves the project for funding, notes MyMG.

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