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Update Business Justification

A preliminary business justification was developed during the Prepare Preliminary Business Justification for the Need topic of the Conceptualize Need task of Process Step 1: Identify Needs. It is updated during the Decide on Make vs. Buy task. This phase focuses on assessing whether the preliminary business justification was realistic. The updated business justification should be accurate and complete and must provide all the information required for senior management to make an informed investment decision.

The aims of updating a business justification are to:

Establish that the preferred option (make vs. buy) meets the business need

Justify the need for investment

Produce an effective supplying strategy

Demonstrate that the preferred solution represents value

Confirm that the planned investment is affordable

When updating a business justification, it is necessary to build on the factors of strategic fit, achievability, affordability, business options, and commercial availability.

Strategic Fit

Strategic fit explains not only how the scope of the proposed project fits within the existing business strategies of the Client organization but also the compelling case for change in terms of the existing and future operational needs of the organization. Contents within the strategic fit category help answer the questions of "why must this be done?" and "what are the objectives that this project will support?" The following should be analyzed during this stage:

Business need - reexamine the business need that will be met by the project and further explain why the project is needed at the present time.

Key benefits to be realized - should be realistic and align to the Client organization's strategic objectives.

Key risks - outline the main business risks such as continuing need for the project and changes in the business direction; service risks such as the lack of internal skills to implement the required projects; and external risks such as changes in the supplier market.

Critical success factors - determine what will constitute success for the project.

Key stakeholders - reexamine the key stakeholders and their contribution to the project. Identify any potential conflicts between different stakeholders and their concerns.

Detailed assessments should include reviews to ensure that objectives are specific, measurable, achievable, and realistic.

A detailed discussion of Manage Risks can be found in the Decide on Make vs. Buy task of Process Step 1: Identify Needs.

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Achievability is concerned with the capability of both the Client and other Postal Service organizations to manage a successful business project. This section presents the actions that will be taken to support the achievement of intended outcomes mentioned in the preliminary business justification document. Detailed assessment within this aspect should include project planning, risk management, benefit realization, purchase strategy, and training strategy.


Affordability confirms whether the planned investment is affordable. Revision of estimates is based on information provided during the Decide on Make-vs.-Buy task, taking into account any changes in requirements for internal costs in light of different solutions.

Estimates of the projected total cost of ownership (TCO) should be considered when analyzing the topic of affordability, including:

What are the expected costs

When costs will be incurred

How costs will be monitored

Who will be responsible for each cost

Business Option Appraisal

This component of the business case investigates business options for meeting the need with the highest ratio of benefits to cost, combined with appraisal of risk. Key selection criteria for a particular option include:

Meeting the investment objectives

Aligning with the business strategy

Achieving a return on investment in terms of economy, efficiency, and effectiveness

Making best use of both Client and Postal Service organizational capabilities and capacities

Matching resource and funding capabilities

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Commercial Availability

Commercial availability carefully reexamines options for sources to meet the business need (i.e., partnerships, existing supplier arrangement, or recruiting new suppliers).

Other Topics Considered

Prepare Preliminary Business Justification for the Need topic, Conceptualize Need task, Process Step 1: Identify Needs

Manage Risks topic, Decide on Make vs. Buy task, Process Step 1: Identify Needs

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