A business case is a crucial document that outlines the rationale and justification for initiating an Industrial IoT (IIoT) project or investment. It is essential to secure funding, approval, or support from senior management, stakeholders, or investors. However, there are several myths and misconceptions about what an IIoT business case is and how to create one. In this blog post, we will debunk three of these myths and highlight the realities behind them.
Myth #1: You don't need to create an IIoT business case since you are already committed.
Reality: An IIoT business case helps you decide whether you should commit to the project by using a structured process.
Some people may assume that once they have an IIoT project idea, they don't need to create a business case. They may believe they already know the benefits and costs of the project and have the full support of their organization. However, this can be a risky and costly mistake. An IIoT business case helps you validate your assumptions, quantify your expected outcomes, and compare them with alternative options. It also enables you to identify and mitigate potential risks, challenges, and uncertainties that may affect the success of your IIoT project. By creating an IIoT business case, you can ensure that your project is aligned with your strategic goals, has a clear scope and deliverables, and has a realistic budget and timeline. An IIoT business case can also help you communicate your value proposition and secure buy-in from your key stakeholders.
Myth #2: The IIoT business case is only for obtaining finance for the project.
Reality: The IIoT business case should also outline the why, what, and how of the project in clear terms to guide the entire team harmoniously.
Another myth is that the IIoT business case is only a financial document that shows the return on investment (ROI) or net present value (NPV) of the project. While these are critical metrics to demonstrate the economic viability of the project, they are not the only ones. An IIoT business case should also include other aspects of the project, such as:
The problem or opportunity that the project aims to address
The objectives and benefits that the project will deliver
The scope and requirements of the project
The stakeholders and their roles and responsibilities
The assumptions and constraints that affect the project
The risks and issues that may impact the project
The alternatives and options that were considered and rejected
The implementation plan and schedule of the project
The monitoring and evaluation plan of the project
By including these elements in your IIoT business case, you can provide a comprehensive and coherent picture of your project to your team members, sponsors, customers, and other parties involved. This can help you align their expectations, gain their trust and commitment, and resolve any conflicts or misunderstandings that may arise during the IIoT project.
Myth #3: The IIoT business case is only an academic exercise, and no one will use it.
Reality: The IIoT business case should outline alternatives, project risks, contingency plan, change management, and enable effective decisions and execution.
The final myth is that the IIoT business case is only a theoretical document that is created at the beginning of the project and then forgotten or ignored. Some people may think that once they have secured the approval or funding for their IIoT project, they don't need to refer to or update their IIoT business case anymore. However, this can be a fatal error. An IIoT business case is not a static document that collects dust on a shelf. It is a dynamic tool that should be used throughout the life of the project and used as a reference for future projetcs.
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