Purchasing business case template

In this section, you can also include the justification for how you determined to buy new software as opposed to developing a custom solution in-house or hiring an external software development team. This might not be relevant for your company depending on your IT environment.

Cost overview: In the template below, implementation cost, total cost of ownership, and the return on investment calculation are the numbers highlighted. But these can be intimidating and confusing numbers to calculate. Summary of software benefits: Highlight the expected benefits and tangible gains, such as time and money saved, as well as the intangible benefits, such as increased collaboration and improved risk management protocols.

This section should focus on the business benefits as opposed to the technical benefits. Your executives will have trouble valuing the need for new software if you focus on benefits such as reducing technical debt or streamlining system architecture.

But they will see the value in, for example, increasing speed and accuracy across the sales and leads process. Execution timeline : Outline the timeline for implementing the software solution. This timeline can vary significantly based on where you are in the software selection process, so be clear on what actions will be taken and when.

Project governance : Name each person and their role on the project. Yes, use names, not just job titles, in order to make sure everyone is clear on the resources needed. Click here to download. To calculate this number, break down the costs associated with the software purchase and implementation. Finding the TCO is often the starting point for calculating return on investment ROI and comparing vendor price quotes.

This involves totaling the upfront costs for each solution, calculating the net present value of recurring costs over the expected lifespan of the tool, and then totaling the upfront costs and present value of future costs. Source: Gartner full content available to Gartner clients. Other numbers you may need to factor in include the salary for any new employees required to maintain the software e. True ROI is often hard to measure and even harder to guarantee.

Outline the potential costs. Your vendors should be able to offer a ballpark price. Remember to ask about any variables that may change including number of users, projects and content storage.

If RFP software is rolled out to other departments for security questionnaires or due diligence questionnaires, you want to have a full picture of how the increase in users will impact the prices. Offer an overview of your anticipated benefits.

Be sure to include estimated improvements to efficiency, collaboration and consistency. Download the ebook Measuring the value of RFP software to see the full list of benefits including:.

While not required for every business case, including an initial project plan may be helpful. Include a timeframe for deployment, key roles and responsibilities, impact on other departments and any IT considerations. You can use this example to build your own business case for RFP software or download it as a template.

While your business case makes its way through the approval process, explore ways to take action today. Business case background What is a business case and why do they matter? Who does a business case for RFP software involve? Benefits of creating a business case 7 elements of a business case Business case for RFP software template and example. Project sponsor The business case starts with a project sponsor.

Stakeholders Getting buy-in from stakeholders can be key to success. Decision makers This is the person or group of people that holds the fate of your project in their hands.

Benefits of creating a business case While it would be great to be able to skip the procurement process and jump straight to the purchase, creating a business case often has unexpected benefits. Building the foundation for a successful project Beyond winning budget from executives, building an RFP software business case forces you, as the project sponsor, to carefully consider all aspects of the project.

Professional development Learning how to write a business case is a skill that will serve you well throughout your entire career. Executive summary A business case should be short and to the point. Impact examples Inaccurate or out-of-date information in proposals may pose a risk to the business An inefficient RFP process limits the number of opportunities the proposal team can respond to which can stall revenue growth Data is difficult to collect manually.

Consequently, analysis and optimization of winning responses is impossible, so the business misses the opportunity to improve their win rate Ineffective collaboration between proposal managers and subject matter experts causes tension, tight deadlines and poor morale 4. Costs Outline the potential costs. Benefits Offer an overview of your anticipated benefits. Download the ebook Measuring the value of RFP software to see the full list of benefits including: Improved win rates across the business Increased proposal response volume Reduced time required to prepare proposals Optimized content based on successful responses Reduced risk of sending out incorrect proposal responses Better visibility to changes and updates to proposal content Time saved selecting correct answers based on usage data 7.

Initial project plan While not required for every business case, including an initial project plan may be helpful. Focus your business case on big outcomes rather than the intricacies of how the software works.

How does the software help the business achieve their goals? Are you ready for what comes next? Go to Top. The level of detail required in each of the following components is scalable and will depend on the level of complexity and estimated contract value.

The procurement business case structure lists a range of factors that may be relevant in preparing a case to justify going to market, allocating resources and committing funds. This guide accompanies the goods and services supply policies. There are 5 supplies policies:. This guide supports the market analysis and review policy. Access a Microsoft Word version of the creating a procurement business case - goods and services procurement guide in the goods and services document library.

For more information about procurement complexity and how to assess it, please contact the goods and services policy team. Skip to main content. Home Policies Goods and services procurement policies Market analysis and review — goods and services policy and guides Creating a business case.

Creating a procurement business case — goods and services procurement guide Find out how to create a procurement business case for goods and services procurement.

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