Justify Your Project Value With Our SAP Business Case Builder Tool

Your SAP Business Case Builder

Are You Asking Yourself How to Justify a Project

Our Business Case Tool Works For Any Project, Not Just SAP Projects

With experience creating business plans for SAP business warehouse projects for over 20 major companies using our business case development process, we were able to develop a tool that will simply and effectively gauge the value of any project investment.  It works not just for SAP BW projects but for any business case, SAP or otherwise.  When developing a rock-solid SAP business case, SAP projects provide plenty of KPIs  (Key Performance Indicators) you can focus on, but there are only a few you actually need to worry about when it comes to developing the financial justification of your project.

Execute Proper Value Management of Your SAP Project with our Business Case Builder Tool. Prove ROI, by Converting a Projects Value into the Equivalent Sales Rate.

Our Business Case Development Tool will:

  • Help validate your project's business case based on cost reduction or revenue increase (or both).
  • Provide you with a ready made business case calculation template
  • Our business case calculator will guide you to proper value management implementation.
  • Comes with an example business case to support business case projects
  • Support any project approach or project management method such as Prince2 or PMBoK.
  • Provide you with a highly visual, interactive dashboard to keep your project stakeholder(s) onboard with your project.
  • Provides you with a compelling method to convert your numbers into an equivalent sales number.

If you're faced with providing a business case justification for key project stakeholders, in particular for complex SAP systems, then you need a way to simplify the business case.  This tool will allow you to quickly inform relevant project stakeholders of the key business case numbers for your project.   If you are responsible for value proposition & business case development and have access to the SAP VLM tool, (Value Lifecycle Management), then you have especially powerful benchmarking information you can use to support you business case.

Ties The Following Key Business Case Metrics Together

  • Sales Equivalency
  • Break-Even Point
  • Net Present Value - NPV
  • Return on Investment - ROI
  • Internal Rate of Return - IRR

Business Case Value Tracking

As part of a Project and Portfolio value management systems approach, our business case generator can easily be used to keep track of value across your project portfolio.  This is part of our suite of business case tools we offer.  Though we call it a sap value calculator, it is by no means limited to just a SAP business case.  It is solidly based on the concepts of consultative selling and thus, applies cross industry.

Discover how to define your project goals by downloading our Equivalent Sales Business Case Builder today.

Business Case Builder

What is Consultative Selling

Consultative selling is an approach to sales that focuses on building relationships with customers by providing them with solutions to their problems. It involves understanding the customer's needs, asking questions to uncover their pain points, and providing them with personalized solutions. The financial business case is an essential part of the consultative selling approach, as it allows salespeople to demonstrate the financial benefits of their proposed solutions to customers. By using a business case calculator, salespeople are able to provide their customers with a clear understanding of the return on investment (ROI) and other key financial metrics associated with their proposed solution. This not only helps customers make informed decisions but also helps build trust and credibility between the salesperson and the customer. In summary, consultative selling with the use of financial business case tools, such as this Sales Equivalent Business Case Builder, is an effective approach to building strong customer relationships and closing sales.

Effective Business Case

The business case process is a critical step in justifying a project and gaining acceptance from stakeholders. To ensure success, it's important to have a comprehensive project business case checklist that includes all the details project stakeholders will need to make informed decisions. This should include key metrics such as sales equivalency, break-even point, net present value (NPV), return on investment (ROI), internal rate of return (IRR), and business case value tracking. To obtain these items, it's essential to have a reliable business case development tool that simplifies the process and provides a clear understanding of the project's financial benefits. Our Business Case Builder Tool is one such solution, designed to work for any project, not just SAP. With our tool, you'll have access to a ready-made business case calculation template, visual interactive dashboard, and an example business case to support your project. By executing proper value management and using proven and highly accepted consultative selling techniques, you'll be able to prove ROI and build strong relationships with your customers. Download our Equivalent Sales Business Case Builder today and discover how to define your project goals effectively.

Business Growth Value Builders

Having a business case for each business investment is key to ensuring that business value builders are consistently identified and funded as part of a smart business investment strategy. It's important to have a reliable business case development tool that simplifies the process and provides a clear understanding of the project's financial benefits. Our Business Case Builder Tool is designed to work for any project, not just SAP, and provides a ready-made business case calculation template, visual interactive dashboard, and an example business case to support your project. By executing proper value management and using proven and highly accepted consultative selling techniques, you'll be able to prove ROI and build strong relationships with your customers.

Key Project Management Tool

With our project value tool, you'll have access to key metrics such as sales equivalency, break-even point, Net Present Value (NPV), Return on Investment (ROI), Internal Rate of Return (IRR), and Business Case Value Tracking. By tying these metrics together, you'll have a comprehensive project business case checklist that includes all the details project stakeholders will need to make informed decisions. Download our Equivalent Sales Business Case Builder today and discover how to define your project goals effectively to achieve business growth.

Used by Both External Vendors and Internal Employees

Having a common business case language is crucial for both external vendors selling a complex, expensive product to a customer and internal employees who are pitching their own projects that also require a project business case. This allows senior executives to evaluate proposed expenditures more objectively. With our Business Case Builder Tool, you'll have access to a comprehensive project business case checklist that includes key metrics such as sales equivalency, break-even point, Net Present Value (NPV), Return on Investment (ROI), Internal Rate of Return (IRR), and Business Case Value Tracking. 

Business Case Terms and Definitions

When it comes to developing a rock-solid business case for any project, there are several common financial metrics that you need to take into consideration. Our Business Case Builder Tool simplifies this process by providing you with a ready-made business case calculation template and a visual interactive dashboard to keep your project stakeholders onboard with your project. The key metrics that we tie together in our project value tool include sales equivalency, break-even point, net present value (NPV), return on investment (ROI), internal rate of return (IRR), and business case value tracking. Sales equivalency is the process of converting project value into a sales number, while the break-even point is the point at which the project generates enough revenue to cover its costs. NPV is the sum of the present values of all the cash inflows and outflows associated with the project, while ROI is the percentage return on investment. IRR is the discount rate that makes the NPV of the project equal to zero, and business case value tracking allows you to keep track of value across your project portfolio. By using our Business Case Builder Tool, you'll be able to execute proper value management, prove ROI, and build strong relationships with your customers.

Common Business Case Terms and their Definitions

Sales Equivalency - means, given the company's net profit margin, how much sales would need to be made to equal the cost reduction and or sales increase of a proposed project investment. 

Break-Even Point -The break-even point is the level of sales at which a company's total revenues are equal to its total costs, meaning that there is no net income (profit or loss). 

How to Calculate Break-Even Point: To calculate the break-even point, divide the fixed costs by the contribution margin per unit. 

The contribution margin per unit is calculated by subtracting variable cost per unit from selling price per unit. 

Break-Even Point = Fixed Costs / Contribution Margin Per Unit 

For example, if a company has fixed costs of $1,000 and variable costs of $500 per unit, with a selling price of $750 per unit, then the break-even point can be calculated as follows: 

Break-Even Point = $1,000/$250 (contribution margin) = 4 units

Contribution Margin Contribution Margin is a measure of profitability that tracks the amount of sales revenue left over after all variable costs have been subtracted. It is calculated by subtracting total variable costs from total sales revenue.

Net Present Value (NPV): Net Present Value (NPV) is a valuation method used to measure the profitability of an investment. It looks at cash flows in and out of a project at different points in time to determine its overall value. NPV looks at the present value of future cash flows discounted by an appropriate rate of return, thus making it a metric for assessing the potential of investments. To calculate NPV, you need to find the present values of all expected cash inflows and outflows associated with the project and then subtract the initial cost from that total. The result is the Net Present Value which indicates whether or not the investment should be accepted.

Discount Cash Flow (DCF): Discounted Cash Flow (DCF) is a valuation method used to estimate the value of an investment. It looks at the potential cash flows that are expected to be generated by an investment, and discounts them back to their present value using a discount rate. This helps to determine the amount of money that would have to be invested in order to generate those future cash flows. The goal of DCF analysis is to arrive at Net Present Value (NPV), which is the present value of all future cash flows minus any initial investments required. In other words, NPV represents how much more or less you will have today if you invest in a given project. By subtracting the initial cost from the present value of all future cash flows, you can determine whether a project is worth investing in or not.

Return on Investment (ROI):  Return on Investment (ROI) is a measure of how much money an investor will gain (or lose) as a result of investing money in a particular project. It is typically expressed as a percentage calculated by dividing the net profit generated by the investment by the total amount invested. 

ROI is closely related to Net Present Value (NPV) and Discounted Cash Flow (DCF). NPV and DCF are both methods used to evaluate an investment by taking into account the time value of money, i.e., that a dollar today is worth more than one tomorrow. ROI can be seen as another way of looking at the same data and comparing it to the initial investment made. The higher an investment's ROI, the more profitable it is.

Internal Rate of Return (IRR): Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment or project. It is a measure of the rate of return on an investment over its expected life, calculated as the discount rate that sets the present value of future cash flows from the investment equal to its initial cost. IRR is often compared to Net Present Value (NPV) which discounts cash flows at a constant rate based on the cost of capital.

IRR is commonly used along with NPV, Discounted Cash Flow (DCF), and Return On Investment (ROI) when assessing project investments. NPV discounts estimated future cash flows by a certain rate while IRR calculates the annualized return earned from each dollar invested in a project. ROI measures the absolute profit generated from an investment relative to the amount invested and DCF looks at how much value has been created for all stakeholders over time. Each metric provides important information about potential investments but taken together they form a powerful tool for evaluating whether or not to invest in a project.

Weighted Average Cost of Capital (WACC):  The Weighted Average Cost of Capital (WACC) is a measure of the overall cost of financing for a company. It is calculated by taking into account the cost of both debt and equity financing. Generally speaking, the higher the WACC, the more expensive it is for a company to finance its operations. 

The WACC is typically provided to a business case builder team by financial advisors or consultants. It serves as an important input into building a business case by providing an indication of the cost of capital needed to fund any given project or initiative. This number helps provide insight into how much it will cost for a company to finance its operations, investments and projects in order for them to be profitable and successful. Furthermore, it can also help identify areas where costs may need to be adjusted in order to keep financing costs low and maximize return on investment.