How to make a business case for digital investment

If you want senior leaders to invest in digital, you need to put together a strong business case. This is a proposal for why a charity should adopt and integrate digital into its operations. As well as the why, an effective business case will explain what the work will achieve, how much it will cost, and what the value will be.

 

 

Why a business case is important

 

A business case presents a structured argument to help senior leaders understand the benefits, costs, and risks of investing in digital. It will help them to evaluate whether it’s worth the charity’s time, effort, and money.

 

By putting a strong business case for digital together, you will give leaders the confidence to invest in digital. They will see that the proposal is well thought out and not based on assumptions.

 

Here’s how to build an effective business case for digital investment.

 

 

Define the problem or opportunity

 

Be clear about the problem you are trying to solve by investing in digital or the opportunity digital presents to the organisation.

 

If you’re wanting to develop a new website, for example, talk about the issues with your existing website. For instance, it may not be optimised for mobile phones.

 

Then tell them what the opportunity is for the charity by investing in a new website.

 

 

Align digital with organisational goals

 

To convince your senior leadership to approve an investment in digital, you need to align it with the charity’s goals. This means clearly demonstrating how digital will help the charity to reach its goals.

 

If you do this, senior leaders are more likely to invest in digital. If there is no tangible value to the organisation, leaders won’t see the point of committing to digital.

 

 

Estimate costs and resources

 

Think about the resources you need to invest in digital. This includes the skills you need staff to have, how many staff you need to work on digital projects, how much money you need to invest in digital, the time it will take to fully integrate digital, and what new technology you will need.

 

It’s important to provide a clear overview of all the costs involved with investing in digital. For example, the cost of training staff in new digital skills.

 

 

Assess risks

 

Carry out a thorough risk assessment and share the findings in your business case.

 

Think about all the risks associated with using digital and integrating it into the charity’s operations. Then develop ways to mitigate these risks.

 

By proactively managing these risks, you will ensure a smoother transition when you adopt digital. By seeing this all mapped out in a business case, senior leaders will feel more confident and reassured about investing in digital.

 

 

Show return on investment

 

Senior leaders will want to understand what the return on investment will be when investing in digital. The returns are the benefits of investing in digital, such speeding up tasks through automation.

 

It can take time to see the returns on digital transformation, so measure the long-term return on investment – and continue to do this periodically.

 

When calculating return on investment, consider the costs involved in investing in digital. For example, buying new hardware and software and maintenance and support costs.

 

 

Use KPIs

 

In the business case, explain what key performance indicators (KPIs) you’ll use to measure the success of the project. This shows clarity around project goals and creates accountability, which will give leaders confidence in what you’re proposing.

 

 

Put a timeline in place

 

Make sure you include a timeline for how long it will take to adopt and integrate digital into the charity’s operations. Include any key milestone dates that need to be considered. This will give senior leaders an idea of what to expect if they invest in digital.

 

 

Choose the right time

 

Make sure you submit your business case at the right time. For example, if there are issues going on internally this could distract from investing in digital.

 

Also, share key elements of the proposal for investing in digital before presenting the full business case to senior leaders. This will help to prepare them and prevent any surprises. Leaders will already have some information and then you can present the finer detail.