In our IT innovation projects, it is often our job to help the customer define and justify the investment. Everyone has heard of use case and business case. But what exactly do these terms stand for and how do they differ?
The more technical the challenge, the more it can be categorised as a use case (solves a technical problem/challenge). The more it quantifies the impact on costs or profit, the more it can be categorised as a business case. The boundaries here are fluid, as one does not exclude the other.
The latter is often more complex to set up, as it also requires the involvement of financial analysts, controllers and accountants, in addition to the IT department and the specialist department that will ultimately use the results of the project.
So why do you do a business case? Clearly because it is much easier for the company to decide whether to invest in the project at all - if you compare the costs and the benefits gained.
Here is a comparison of the different objectives and areas of application of the use case and business case:
Definition and goal
A use case describes how a user utilises a system to achieve a goal. It focuses on technical requirements and functionalities.
A business case shows the economic justification of a project, analyses costs, benefits and alternatives.
Focus and content
Use cases are technical in nature and process-orientated. They document scenarios, stakeholders, interactions and expected results.
A business case is strategic and business-orientated. It contains problem descriptions, cost-benefit analyses as well as risks and recommendations.
Integration into the project life cycle
Use cases are used in the requirements phase to guide development and testing.
Business cases are used in the initiation phase to support decisions on project launches.
Complexity and creation
A use case is often less complex and focusses on a clearly defined use case.
A business case requires more in-depth analyses, such as ROI calculations and risk assessments, and is therefore more complex.
Practical examples
Use case: An employee uses a time recording system to document working hours.
Business case: Introduction of a new system that reduces administrative costs by 20%.
Conclusion
Use cases specify technical requirements, while business cases demonstrate the business benefits of a project. Both are essential for the success of an IT project.
Overview of the difference between use case and business case:
Use case | Business case | |
Definition and goal | Describes how a user utilises a system to achieve a goal. | Economic justification of a project; analyses costs, benefits and alternatives. |
Focus | Technical and process-orientated. | Strategic and business-orientated. |
Creation process | Created by business analysts and developers. | Created by project managers, financial analysts and managers. |
Contents | Scenarios, actors, interactions, expected result. | Problem, solution, cost-benefit analysis, risks, recommendation for action. |
Integration into project | Used in the requirements phase to define requirements. | In the initiation phase to decide whether to start the project. |
Complexity | Relatively simple, especially with a limited scope. | More complex, as economic models and strategic analyses are required. |
Example content | Scenarios with clearly defined steps and results. | ROI, payback period, SWOT analysis, alternatives analysis. |
Decision-making | Clarifies technical requirements. | Supports senior management in approving the project. |
Sustainability | Living document that is customised during the project. | Reviewed to assess whether the expected benefits have been realised. |
Examples from practice | How an employee uses a time recording system. | Justification of the introduction of a new system to reduce administrative costs. |
Conclusion
Use cases specify technical requirements, while business cases demonstrate the business benefits of a project. Both are essential for the success of an IT project.
We at Datasense Consulting deal with this topic. We are happy to help you realise the full potential of your investment.
Get in touch with us - we will be happy to advise you!
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