What is a necessary component for any new product or service according to best practices?

A formally agreed upon business case is essential for any new product or service as it acts as a foundational document that outlines the rationale and justification for the investment. This business case serves multiple purposes: it details the expected benefits, costs, risks, and alignment with the organization’s strategic objectives. Having a well-defined business case ensures that all stakeholders are on the same page regarding the goals and expectations of the project, facilitating informed decision-making and resource allocation.

Furthermore, the business case helps to secure the necessary stakeholder support and formal approvals required to move forward with a project. It establishes clear metrics for success and helps to guide the project from initiation through to delivery, ensuring that the intended value is realized.

While factors such as budget, public perception, and market demand are critical components to consider, they are often included as part of the broader analysis within the business case itself. The business case synthesizes various aspects of the project, including financial assessments and market research, to provide a comprehensive outlook on the viability and strategic fit of the new product or service.