Two Perspectives, One Project: How Business Cases Differ Between Organizations and Vendors

Carol Porter
2 days ago
3 min read

When embarking on a software implementation project, the business case becomes the cornerstone of decision-making. It defines the why, what, and how much behind the investment—and sets the stage for success or failure. Yet, depending on who authors it, a business case can look dramatically different.

There are two primary perspectives:

The organization’s project team, focused on internal value, risk, and outcomes.
The software vendor, focused on solution benefits, adoption, and speed to value.

Understanding these differences can help leaders create balanced, credible, and actionable business cases.

Purpose and PerspectiveOrganization’s Business Case:

An internal project team’s business case begins with strategic alignment. Its primary goal is to justify why the software investment supports business objectives such as cost reduction, compliance, or digital transformation. The focus is on organizational impact and accountability—how the investment delivers measurable value within existing operations.

Vendor’s Business Case:

A vendor’s version is a sales enabler. It emphasizes how their product fulfills the buyer’s needs and achieves a compelling ROI, often with optimistic timelines and best-case assumptions. The vendor’s purpose is persuasion: to demonstrate the product’s value proposition and accelerate purchase approval.Financial Metrics and KPIs

Internal Team:

The organization’s case typically uses conservative, evidence-based financial models. It integrates real cost structures—licensing, training, integration, and change management—and focuses on Total Cost of Ownership (TCO), Return on Investment (ROI), and payback period grounded in actual data.

Key KPIs might include:

Reduced manual processing time
Improved compliance rate
Increased operational efficiency
User adoption rates

Vendor:

The vendor’s financial model often emphasizes potential ROI and “value uplift.” Assumptions may include industry benchmarks or idealized process improvements. KPIs are geared toward demonstrating product performance rather than enterprise transformation, such as:

Average time-to-deploy
Benchmark-based ROI (e.g., “customers achieve 30% efficiency gains”)
Subscription renewal potential

Scope and Assumptions

Internal Business Case:

Organizations consider cross-functional impact—how the implementation affects IT, operations, finance, and end users. They document dependencies, risks, and required process changes.

Assumptions are specific and traceable, often validated through pilot data or stakeholder input.

Vendor Business Case:

Vendors tend to focus on the product’s functional scope and often assume best-case organizational readiness. Their assumptions typically exclude internal constraints such as culture, legacy integration, or staffing limitations.Risk Management and Governance

Internal Perspective:

Risk identification is central. The organization’s business case will outline mitigation plans for issues such as:

Data migration challenges
User resistance
Budget overruns
Change management demands

It typically defines governance roles—executive sponsor, steering committee, and project controls.

Vendor Perspective:

Risk is usually framed as manageable through vendor expertise, emphasizing implementation methodology and customer success support. Governance is described at a high level, focusing on vendor deliverables rather than internal accountability.Decision-Making and Ownership

Internal Business Case:

Owned by the business, this document drives funding decisions and becomes the foundation for project planning and post-implementation evaluation. Success is measured internally, and accountability resides with executives and project sponsors.

Vendor Business Case:

Owned by the vendor’s sales or pre-sales team, this document supports proposal approval and deal closure. Once the contract is signed, its purpose is largely fulfilled.The Ideal Approach: A Collaborative Business Case

The strongest business cases merge both perspectives. By combining the vendor’s insights on technology capability with the organization’s financial realism and operational understanding, stakeholders can produce a balanced view that: