How would you build a business case for a new system or process change?
What the interviewer wants to hear
- Define the problem and current cost with data
- Compare options, including doing nothing
- Estimate costs, benefits, risks and assumptions
- Use financial measures like payback, ROI or NPV
- Define how benefits will be measured
Model answer
I start by defining the problem clearly with data, for example manual invoice processing takes 15 minutes per invoice and has a 5 percent error rate, costing a certain amount every year. Then I describe options, always including doing nothing, plus for instance improving the current process or buying an automation tool. For each option I estimate one-time and ongoing costs, and benefits such as hours saved, fewer errors, faster payments and better compliance. I am honest about intangible benefits and about assumptions and risks. I use simple financial measures like payback period and ROI, and NPV for larger investments, working with finance to check the numbers. I recommend an option with clear reasons. Finally I define how and when we will measure the benefits after implementation.
Can you answer it under time pressure?
Take a timed hard round and get scored on every answer.
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