4 Key Steps to Build a Strong Business Case to Fund Your Enterprise Tech Purchase

Teams of cross-functional stakeholders vet most enterprise tech purchases today and building a compelling business case is critical to securing funding, especially in times of economic uncertainty, whether you’re scoping net-new technology or looking to replace or upgrade incumbent systems.

The best way to justify the spend is to build a business case that demonstrates how the chosen technology or solution will meet stakeholder expectations and organizational priorities and drive business outcomes. To do that, you’ll need to show the full value of the purchase across costs, value and risk, and convey that value through simple but compelling storytelling.

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Here are four steps to achieving success.

The buying team’s first job is to verify stakeholder priorities and expectations. Don’t just seek input from representatives on the buying team; solicit and capture feedback from budget owners and the broader organization to understand the needs and goals of those who will be directly or indirectly impacted by any change. Ensure that any tool or solution aligns with and advances enterprise mission-critical priorities and values and can achieve expected outcomes.

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To demonstrate impact, measure projected outcomes in terms of the business value being created or delivered — within a specific timeframe. Consult with your stakeholders to know which metrics matter most to them so you can evaluate and articulate the value of the proposed investment in terms of their priorities and the organization’s mission or strategy. 

Clear, business-driven metrics (ideally monitored through enterprise or IT dashboards) are especially important in gaining support for innovations or emerging technology investments for which the hard-dollar business case is less clear.

Look beyond initial costs or upfront investments when articulating the expected value and return on investment from the proposed tech purchase. Gather data and evidence that expresses the overarching value of the deployed technology or solution through a more balanced approach that addresses:

• Total cost of ownership (TCO) — including so-called “downstream” technology implications and support requirements, management, maintenance and end-user training costs.

• Tight alignment to the organization’s strategic values.

• Risks — not only of investing in the proposed solution, but also the competitive costs and risks of doing nothing.

Document all findings and analysis into a business case that begins with a problem statement. Use storytelling tactics to clearly explain why addressing that problem or need through the recommended software or technology is critical to your organization. 

Show all activities that you expect to optimize through the solution. Discuss those that indicate performance and can be translated into impacts on your organization’s key performance indicators and outcomes. 

Always craft your story in the language of your audience or stakeholders, especially when referring to outcomes, but avoid overly technical or functional jargon. Remember to address the role that people and processes will play in implementation success.

In short: 

• Crafting a compelling business case in plain business language will help your tech purchase team win funding and budget support from stakeholders.

• Strike a balance between showing cost, value and risk of your proposed technology or software investment.

• Use storytelling tactics to clearly explain why addressing your organization’s challenges with the recommended software or technology is essential for success.

Colin Reid, VP of Product Management, leads Gartner teams in scoping, building, shipping and managing global SaaS applications, including BuySmart. Previously, as a Gartner analyst, he helped clients design, build, integrate, operate and optimize all aspects of marketing and content technology and their operations. Mr. Reid also has experience as a CMO, COO and team leader at client marketing organizations, marketing agencies and global technology providers.