3 FINANCIAL CASES AND BUSINESS CASES

OBJECTIVES

When you have studied this chapter you should be able to:

  • explain why organisations should attempt to quantify both the benefits and costs of a proposed investment;
  • explain the difference between a financial case and a business case;
  • describe some ways in which it may be possible to quantify ‘intangible benefits’;
  • list four kinds of financial benefit;
  • describe the difference between cash flow and profit, and explain why cash flow is usually regarded as the fundamental basis for investment decision-making.

The achievement of these objectives is a necessary prerequisite for understanding how to build a financial case to justify a proposed IT investment.

COST CASES

The financial case that we considered ...

Get Finance for IT Decision Makers, 3rd Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial