Business leaders now know they need to digitise their business and pursue a digital transformation strategy of some form just to stay relevant. Often these decision makers will also have a range of good ideas on how they could digitise. Whether that be a new website, digital experience, mobile application, digital kiosks or check outs, digital signage, digital sensors for operations, or installing a range of IOT appliances. The digitisation options are endless. What business owners and executives typically need help with is developing a digital business case that helps determine which of their ideas or digital initiatives should be the priority and whether the expected benefits will justify an investment.
A Business Case for Digital Transformation
A digital business case is a tool that helps business leaders make digital investment decisions by making it easier to understand the financial impact of digitisation on their business. A business case for digital transformation:
- should be developed whenever a major digital expenditure decision needs to be made regarding a new digital initiative;
- is typically developed during the planning stage of a digital project to realise or justify a strategic direction and define and help an operating strategy;
- describes how the results of a new digital initiative will be delivered;
- provides an understanding of which digital initiatives create the most amount of value for a business, supports decision-making, and helps track the performance of initiatives;
- clearly communicates the overall impact of a digitisation decision, as well as the logic and methodology used to derive the expected results; and
- can be used to sell, justify and defend a digital transformation strategy to business partners, investors or executives.
8 Step Process to Developing a Business Case:
Below is a simple diagram of our 8 step process for developing a digital transformation business case: