ERP transformations typically involve significant financial investments in terms of software, hardware, implementation services, training, and ongoing maintenance. A well-structured business case demonstrates to stakeholders, including executives and decision-makers, that the investment is justified by outlining the expected returns and benefits.
The business case ensured that the ERP transformation aligned with the client's strategic objectives and long-term goals. It provided a framework for evaluating how the project supported broader business strategies, such as improving operational efficiency, improving working capital and expanding into new markets.
The business case included a cost-benefit analysis that quantified the financial and non-financial advantages of the ERP transformation. This analysis provides a clear picture of the project's ROI, helping in decision-making.
2. Cost breakdown: Spektra Analytics detailed all of the cost elements that formed the baseline for the business case. This included both operational and implementation costs. Operational cost was estimated based on Spektra Analytics' extensive knowledge about the ERP market, and extrapolated from peers and Spektra Analytics database. All costs ranging from the infrastructure cloud cost, new licenses and implementation projects with external partners were included in the full baseline.
3. Business case template: Spektra Analytics combined the cost and benefit sides to create a full overview of the business case, including all of the key assumptions used in the analysis. This allowed for an easy overview of the full business case, including key metrics such as ROI, IRR and pay-back years.
4. Consolidated documents for key stakeholders: To ensure final validation of the business case, Spektra Analytics helped with a consolidated overview to be presented for key stakeholders. The documents created transparency and created confidence in the estimates for the total business case.
2. Risk assessment: By thoroughly analysing the project's risks and potential challenges, a business case allows for the identification of potential roadblocks and provides an opportunity to develop strategies to mitigate these risks. This proactive approach helps in minimizing disruptions and ensuring a smoother project implementation.
3. Clear decision making: Ultimately, the business case was used by decision-makers to assess whether the ERP transformation project should proceed or not. It provides a structured and evidence-based rationale for committing resources to the project, which is especially important for large, complex initiatives. The business case serves as a communication tool, ensuring that all stakeholders have a shared understanding of the project's objectives, benefits, and risks. It promotes transparency and accountability throughout the lifecycle.