Business Case Analysis
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Conducting Life Cycle Assessment (LCA) and Life Cycle Costing (LCC) will give a product specific solution (i.e., which design or which process has the minimum impact to the environment and the lowest cost among many alternatives). However, businesses have family products manufactured at different locations to meet the customer needs throughout the world. In addition, businesses have to consider continual changes in competitive environment, product obsolescence due to frequent technological changes, political and economical uncertainties etc. in their decisions. Although sound decision making is the core of all managerial functions, one need to make the decision making process as objective as possible to create corporate memory and to improve the decision making process based on lessons learnt.
Business Case Analysis (BCA) is a structured methodology where alternatives are compared by examining business impacts (in terms of financial and non-financials), risks, and sensitivities. BCA looks at the enterprise wide perspective and assesses the holistic impact of the decision. Other names for a BCA are Economic Analysis, Cost-Benefit Analysis, and Benefit-Cost Analysis.
Similar to LCA and LCC, conducting BCA requires specialized skill and significant amount of time. Some of the fundamental building blocks to conduct a thorough BCA include: