3 FINANCIAL CASES AND BUSINESS CASES
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.
The financial case that we considered ...