Business Need
A Business Need is the driving force behind any organizational change initiative. It serves as the justification for why a new portfolio component, program, or project is being considered. The Business Need can arise from various situations such as an existing problem that needs to be solved, an opportunity to be seized, or a mandate to be fulfilled.
Here are some key points about Business Need:
Impetus for Change: Business Need is essentially the catalyst that triggers the necessity for a change within the organization. It could stem from market demands, technological changes, legal requirements, or any internal or external factor that demands action.
Rationale for Initiative: The Business Need provides the rationale for initiating a new project, program, or portfolio component. It forms the foundational reasoning behind why organizational resources should be allocated for a particular change effort.
Guides Goals and Objectives: The Business Need serves as a guide for formulating the business goals and objectives that the organization aims to achieve through the portfolio component, program, or project. The goals and objectives are effectively the organization's response to the Business Need.
Context for Future State: Once the Business Need is clearly defined, it provides the context for discussing what the future state of the organization should look like. This includes discussing various solution options and their alignment with business requirements.
Data Source for Future State Formulation: The Business Need not only triggers the change but also provides essential information and data that are used to formulate what the desired future state of the organization should be. This could include specifications, constraints, and criteria that the future state must meet.
Alignment with Business Case: The Business Need is often a critical component of the Business Case, providing the why behind the initiative. The Business Case elaborates on the Business Need to include cost-benefit analyses, options appraisal, and risk assessments among other things.
The Business Need is a critical element in the business analysis process, serving as the foundational reason for why a change initiative is undertaken. It sets the stage for everything that follows in the portfolio component, program, or project, from defining goals and objectives to developing a business case and choosing between solution options.