Why Every Technology Investment Needs a Business Case — And What Yours Should Include
Before you commit budget to software, hardware, or cloud — make sure it’s justified.
In today’s tech-driven world, investing in software, hardware, or cloud infrastructure is inevitable. But smart spending? That’s a choice.
Whether you're upgrading a critical system, adopting a new tool, or expanding cloud capacity, these decisions require real money — and real scrutiny. Yet too often, organizations commit capital or operating expense dollars without a consistent process to evaluate the investment.
At Practical, we’ve seen this firsthand:
Technology investments move forward without alignment, without clarity, and without financial accountability.
The result? Uncontrolled spending, missed expectations, and leadership asking, “What are we actually paying for?”
The fix is simple — but powerful: a formal, right-sized business case review process built specifically for technology investments.
Why Business Cases Matter
A business case isn’t just a form to fill out — it’s a thinking tool. It forces teams to slow down just enough to ask the right questions before spending the budget.
When done well, a business case ensures your technology investment is:
Justified with financial and strategic reasoning
Aligned with enterprise priorities and capacity
Reviewed for risks, timing, and tradeoffs
Clear in terms of ownership, impact, and accountability
Well-researched, contract-aware, and technically sound
It connects the dots between IT, Finance, and the business — before any dollars are committed.
What a Strong Technology Business Case Should Include
At Practical, we guide clients through a structured but straightforward format. Here are the core components every business case should cover:
1. The What
What exactly is being proposed? Define the scope clearly — whether it’s new software, hardware upgrades, or additional cloud services. What are you buying or building?
2. The Why
Why is this necessary? Link the investment to a specific business goal, risk, inefficiency, or opportunity. Is it solving a pain point? Unlocking new growth? Meeting compliance requirements?
3. The Risks
What are the financial, operational, and delivery risks? What’s the fallback plan if things don’t go as planned? A solid business case doesn’t just promote the upside — it demonstrates a real understanding of potential risks and how they’ll be mitigated.
4. The Cost
Don’t just drop a number — break it down. Include upfront capital costs, ongoing expenses, potential savings, and any internal resource requirements (like staff time or training).
And don’t stop at year one — consider how the technology will scale or shift your cost structure in the future. Will it grow efficiently? Will support costs increase over time? Are there potential downstream impacts?
5. The Timing
Why now? Assess the urgency, the impact of delay, and how the proposal fits within your broader roadmap, available budget, and organizational capacity.
6. The Vendor Agreement
What’s in the contract? The business case should reflect a clear understanding of vendor rights and obligations, termination clauses, renewals, data protections, and service-level guarantees. You should know exactly how you’re protected — and where you’re exposed.
7. The Due Diligence
Have you evaluated the technology itself? Why this solution over others? How is it being architected? Is it scalable, secure, and aligned with existing infrastructure?
A strong business case shows that the presenter has done their homework — and can confidently speak to why this is the right move, how it will work, and what to expect.
The Cost of Skipping the Process
Skipping a formal review may save a few hours up front — but it often leads to:
Tools that don’t deliver on their promise
Overlapping or duplicative spend
Budget overruns and missed forecasts
Unfavorable contract terms you didn’t fully understand
Leadership frustration and loss of trust
If you’re spending six or seven figures on technology — you can’t afford to make decisions based on assumptions or gut instinct.
How Practical Helps
At Practical, we work with small to mid-sized enterprises that are growing their technology footprint — often spending millions on software, hardware, or cloud without a consistent framework to guide those investments.
We help build repeatable, right-sized business case templates and review processes that bring discipline, structure, and transparency to every technology decision.
Our approach ensures that:
Only well-vetted, high-impact investments move forward
Finance, IT, and leadership are aligned on value, risk, and timing
Contracts are reviewed with clarity — before signature
Technology decisions are grounded in both financial logic and technical due diligence
Let’s Talk
If your technology investments lack a clear, consistent review process, we can help. Let’s set up a quick, no-pressure consultation to walk through your current approach and identify where a bit of structure could go a long way.
Ready to bring clarity to your IT investment process?