GenAI Business Case
How to Create a Decision Aid for Your GenAI Use Case
Large enterprise CFOs seek a compelling business case for Generative AI (GenAI) that aligns with their strategic priorities. These executives recognize that GenAI has the potential to revolutionize operations, enhance productivity, and drive innovation across various business functions.
However, these tools must create tangible value for organizations, beyond cost savings. A credible business case is the 'full story' -- demonstrating the financial ROI and broader value creation benefits of a GenAI use case.
By presenting a holistic view of GenAI's anticipated impact, the business case enables CFOs to make informed decisions that support long-term strategic goals while justifying the investment required for implementation.
This guide provides a structured approach to compiling a value-creation story, addressing the quantitative and qualitative aspects of GenAI deployment and adoption in large enterprises.
We include the development methodology and example content for each section of the business case. The content can serve as a template for GenAI tool vendors and prospective enterprise customers.
Executive Summary
Begin with a concise overview of the business case, highlighting key points and recommendations. This section should be no more than one page and capture the essence of your GenAI use case proposal.
Example content:
This business case proposes the adoption of [GenAI Tool Name], as a viable solution, to enhance our content creation capabilities, streamline operations, and drive business growth. Our analysis predicts a 30 percent increase in productivity and a potential ROI of 250 percent over three years.
We recommend a phased implementation approach, starting with our marketing department, to maximize benefits while minimizing disruption in our business operations.
Background and Context
Provide relevant background information about the organization's immediate situation (current state) and the need for a Generative AI tool to enable a desired business outcome (future state).
Example content:
[Company Name] has experienced a 20 percent year-over-year increase in content demands across all channels. Our manual processes struggle to keep pace, resulting in missed opportunities and potential market share loss. Implementing a Generative AI tool presents a strategic opportunity to address these challenges, rectify the situation, and position ourselves as recognized industry leaders.
Problem Statement
Clearly explain the specific challenge or opportunity the Generative AI tool will address.
Example content:
Our content creation process is currently:
1. Time-consuming, requiring an average of 8 hours to produce a single blog post.
2. Inconsistent in quality and brand voice across different product team members.
3. Unable to scale and meet demand across multiple go-to-market channels.
4. Limiting our ability to personalize content for different key stakeholders.
Proposed Solution
Describe the Generative AI tool being considered and how it addresses identified issues.
Example content:
[GenAI Tool Name] offers a comprehensive solution to our content creation needs:
Reduces content creation time by up to 75 percent, on average.
Ensures consistency in quality through precise language models.
Scales effortlessly to produce new content for multiple formats.
Enables personalization through GenAI-driven audience insights.
Creates customized industry-specific narratives for each archetype.
Cost-Benefit Analysis
Present a detailed breakdown of costs and anticipated benefits (This section is crucial for executive decision-makers.). Include both direct and indirect costs associated with implementing the chosen Generative AI tool.
Project Costs
Quantify the estimated project costs over three years.
Example content:
1. Software licensing: $150,000
2. Implementation and integration: $50,000
3. Training and change management: $30,000
4. Ongoing support and maintenance: $60,000
Total estimated project cost: $290,000
Project Benefits
Quantify the expected benefits, both tangible and intangible, over three years.
Example content:
1. Productivity increase: $500,000 (based on time savings and increased output).
2. Tailored content quality improvement: $200,000 (reduced errors and rework).
3. Revenue growth: $300,000 (increased content production and personalization).
4. Cost avoidance: $150,000 (reduced need for external content creation services).
Total estimated benefit: $1,150,000
Intangible benefits from Generative AI tool adoption:
5. Improved employee retention by reducing repetitive tasks.
6. Increased agility in responding to market trends.
7. Enhanced customer-centered brand value.
Return-On-Investment Calculation
Provide a clear ROI calculation based on the associated project costs and benefits.
Example content:
ROI = (Net Benefit / Total Cost) x 100
ROI = ($1,150,000 - $290,000) / $290,000 x 100 = 297 percent
The ROI over three years is 297 percent, with a payback period of approximately 9 months.
Project Implementation Plan
Outline a phased approach for implementing the Generative AI tool use case. Show the full story.
Example content:
Phase 1 (Months 1-3): Pilot implementation in the marketing department.
Phase 2 (Months 4-6): Expand to sales and customer success teams.
Phase 3 (Months 7-12): Full-scale implementation across all departments.
Risk Assessment and Mitigation
Identify all potential project risks and propose mitigation strategies.
Example content:
1. Data security concerns: Implement robust encryption and access controls.
2. Employee resistance: Develop a comprehensive change management and training program.
3. Integration challenges: Conduct full compatibility testing and allocate additional IT resources.
Success Metrics
Define clear metrics to measure the success of the Generative AI tool implementation.
Example content:
Key Performance Indicators (KPIs):
1. Content production volume: 50 percent increase in the first year.
2. Time-to-market for new content: 40 percent workflow reduction.
3. Engagement rates: 25 percent improvement across channels.
4. Cost per content piece: 30 percent immediate savings.
Conclusion and Recommendation
Summarize the key points and provide a clear project recommendation.
Example content:
Based on our comprehensive analysis, we strongly recommend the implementation of [GenAI Tool Name]. The anticipated ROI of 297 percent over three years -- plus significant productivity improvements and superior content quality -- justifies this investment as a strategic imperative for [Company Name]'s continued digital business growth and market leadership. Competitors are already using these tools.
The GenAI Business Case Imperative
By following this guide and customizing it with specific data and market insights relevant to your organization, you can create a compelling business case for selecting a best-fit Generative AI tool.
This structured approach will empower your executive decision-makers with the full story they will require to make an informed decision for approving this transformative Generative AI use case.
Learn more about how to create a compelling business case > Contact us now