Business Case

Introduction

Milestone 5: Business Case is part of the GTM Execution Phase of the Value Accelerator GTM Blueprint.

This is an optional Milestone. It becomes relevant when the customer organization needs to formally evaluate the investment in the vendor’s offering by assessing expected business impact, return on investment, and alignment with strategic objectives.

In smaller engagements, where alignment can be reached quickly through direct communication, this Milestone can be skipped or integrated into earlier Milestones.

In these cases, business case presentation and buying decisions often happen more informally.

A clear, compelling business case helps drive internal alignment and secure decision-maker commitment.

Purpose

The Business Case Milestone aligns vendor and customer on the financial impact of the proposed offering. This includes the vendor’s pricing, but more importantly, the quantifiable value the offering is expected to deliver for the customer organization.

While pricing is usually well-defined inside most vendor organizations, many vendors still struggle to calculate, validate, and communicate the customer business case: the financial benefits and expected return on investment.

This Milestone provides practical guidance to:

• structure and quantify the customer business case
• validate key assumptions with customer stakeholders
• build alignment on expected outcomes and financial returns

The goal is to help the customer justify the investment internally and secure stakeholder buy-in, especially in complex decisions involving multiple business units, procurement, and finance.

A business case only works when the customer actively participates in building it. Even the strongest model will fall short without shared ownership. This Milestone emphasizes collaboration so the business case reflects customer priorities, context, and success criteria.

Co-creating the business case strengthens the vendor position as a strategic partner and increases credibility of the proposed value.

Methodology

Customer Business Case

The customer business case quantifies the financial benefit the customer expects from adopting the vendor’s offering.

It is calculated as the difference between the customer business opportunity (the monetizable value created) and the sales price (what the customer pays):

For the business case to be attractive the following rule must be true:

This is more than a formula.

It is the basis for gaining finance approval and executive commitment.

A strong customer business case positions the vendor’s offering as an investment, not an expense.

The customer business case should always be expressed in monetizable terms.

Showing impact in dollars, euros, or other currency units creates clarity and credibility, especially for cost reduction, revenue upside, or avoided spend.

To build a credible customer business case, define four inputs:

1. Quantitative Value Proposition (value hypothesis)
2. Customer current situation
3. Time horizon
4. Customer future situation

Refer to the sections below for details.

1. Quantitative Value Proposition (value hypothesis)

The quantitative value proposition, also called the value hypothesis, defines the measurable business impact the vendor’s offering is expected to deliver.

It is the financial backbone of this Milestone and the starting point for building the customer business case.

A strong quantitative value proposition expresses value in clear, quantifiable terms and links impact to four areas:

• Time: faster execution, fewer delays, improved time to value
• Money: cost reduction or revenue upside tied to priority challenges
• Resources: more efficient use of labor, assets, or materials
• Risk: reduced exposure to operational, financial, or compliance risk costs

Build the quantitative value proposition using experience from similar customers, industry benchmarks, or PoC results.

Whenever possible, validate estimates with real customer data.

When data is not available, document the hypothesis, explain the underlying logic, and validate assumptions with customer stakeholders.

Example:

“18% reduction in annual energy consumption based on post implementation results from three comparable industrial sites.”

2. Customer Current Situation

The customer current situation is the baseline before the vendor’s offering is implemented.

The customer should provide the operational and financial data that describes today’s performance. This keeps the business case grounded in the customer’s reality, not in abstract assumptions, and it makes it easier to validate impact later.

Capture the baseline in a way that links clearly to the four quantitative value proposition factors:

• Time: current cycle times, delays, time spent on key activities
• Money: current costs, revenue leakage, avoidable spend
• Resources: current labor effort, asset utilization, material consumption
• Risk: current incident rates, compliance gaps, outage exposure, penalty history

Example:

“Average energy consumption over the past five years: 2,000,000 kWh annually.”

3. Time Horizon

The time horizon defines the period used to calculate and evaluate the value created by the vendor’s offering.

A longer horizon increases cumulative value, but only if the assumptions remain realistic and defensible. In most B2B engagements, a typical horizon is 1 to 5 years, depending on the scope of the offering, adoption speed, contract length, and how quickly benefits can be realized.

Example:

“Three year evaluation period for the deployment of an energy optimization system.”

4. Customer Future Situation

The customer future situation describes the expected state within the defined time horizon, once the Quantitative Value Proposition has been applied to the customer current situation.

In most business cases, improvements do not compound every year. Instead, the customer typically sees a one-time step change (for example, an 18% reduction), and that improvement is then sustained each year.

A simple and realistic model is:

This keeps the business case easy to explain and easy to validate with customer stakeholders.

Example of Business Case Calculation

Inputs

• Customer current situation: 2,000,000 kWh per year
• Quantitative Value Proposition: 18% reduction in energy consumption
• Electricity cost: $0.20 per kWh
• Investment cost: $45,000 (one-time)

Step 1: Calculate the future situation

Calculate the future energy use when applying the Quantitative Value Proposition.

Applying the formula:

2,000,000 × (1 − 0.18) = 2,000,000 × 0.82 = 1,640,000 kWh per year

Step 2: Calculate the annual savings in kWh

Calculate the annual savings.

Applying the formula:

2,000,000 − 1,640,000 = 360,000 kWh per year

Step 3: Convert savings into money

Calculate the annual savings value.

Applying the formula:

360,000 × $0.20 = $72,000 per year

$72,000 is the yearly business value created by the offering, expressed in monetizable terms.

Step 4: Compare value to investment and calculate payback

Payback period answers a simple question:

“How many months of savings are needed to recover the investment?”

Calculate the average monthly savings.

Applying the formula:

$72,000 ÷ 12 = $6,000 per month

Calculate the payback period:

Applying the formula:

$45,000 ÷ $6,000 = 7.5 months

Result

In this example, the customer invests $45,000 and generates average savings of $6,000 per month.

The investment is recovered in 7.5 months.

Practical notes to keep it realistic

• If savings start only after rollout, calculate savings only for the months where savings actually occur.
• If there is an annual subscription fee, subtract it from the annual savings before calculating payback.
• If the customer expects the 18% reduction only after tuning and adoption, model Year 1 with a lower percentage and Year 2 onward with the full value.

Best practices

• Use customer data whenever possible. If data is not available, use benchmarks as hypotheses to validate.
• Use conservative assumptions. Understated projections build credibility and reduce perceived risk.
• Keep it simple. Use straightforward math and highlight the three numbers that matter most: total value, investment, and payback period.
• Lead with the top figures. Open with the most decision relevant metrics, then group smaller values to avoid distraction.
• Pressure test internally. Review assumptions and calculations with finance and technical stakeholders before sharing anything externally.
• Anticipate questions. Be ready to explain methodology, assumptions, and data sources in plain language.
• Use visuals when helpful. Prefer clean tables or charts over complex formulas to speed up understanding and decisions.

Refer to Sales Enablement Artifacts for supporting materials.

Execution

The Business Case Milestone consists of the following activities:

1. Select customer problems with financial impact
2. Collect customer data
3. Calculate customer cost of inaction
4. Calculate sales price
5. Calculate customer business case
6. Draft the business case presentation
7. Run a commercial coaching session
8. Hold a business case validation meeting

Execution is led by the sales rep, and requires active customer collaboration, especially to provide baseline data and to validate assumptions.

The sections below provide detailed guidance for executing each activity.

1. Select Customer Problems With Financial Impact

Start by selecting and prioritizing the customer challenges that have a clear and measurable financial impact.

These challenges are typically identified in earlier Milestones, starting in Milestone 1: Value Discovery, then refined through Value Presentation, and deepened through the Value Design Workshop and Value Demonstration.

At this point, clarity should exist on:

• the customer problems that matter most
• why they matter now
• which vendor offering capabilities can address them

Example

A customer is experiencing elevated energy costs that are eroding profit margins. Pricing cannot be increased without risking competitiveness, and leadership has profitability commitments toward shareholders. This makes energy efficiency a top priority.

In this case, anchor the business case on one core problem: reducing energy costs*, and link it explicitly to the customer’s strategic objectives and financial priorities.*

2. Collect Customer Data

Once the priority problems are selected, gather the data needed to quantify their financial impact.

Use what already exists:

• inputs captured in earlier Milestones
• internal vendor sources from similar engagements
• public customer sources such as annual reports and investor presentations

When direct customer data is not available, build an initial estimate using benchmarks or reference cases, then validate it with customer stakeholders.

The goal is not precision on day one.

The goal is a credible baseline that the customer recognizes as realistic.

Run a focused business case data conversation to confirm the key inputs required for calculation.

In that session:

• explain that the purpose is to quantify value and reduce uncertainty for internal approval
• request transparency on baseline metrics, cost drivers, and operational data tied to the selected use case
• document assumptions and confirm which ones are verified versus estimated

Example

If the business case is centered on energy savings, a baseline such as $200,000 annual energy spend becomes a core input for calculating value.

Also capture indirect impact where it is material.

In the same example, rising energy costs may reduce margin, weaken competitiveness, or delay investment in growth.

If these effects can be estimated credibly, include them as an additional value lever.

Close this step with a documented set of inputs:

• direct baseline data
• agreed assumptions where data is missing
• any indirect impact included, with clear rationale

3. Calculate Customer Cost of Inaction

The cost of inaction estimates what the customer keeps losing by not addressing a priority problem.

It shifts the conversation from “Why buy?” to “What happens if nothing changes?”

This creates urgency and strengthens the case for change.

Start with two inputs:

• Customer baseline data from the previous step, such as current spend, current performance, or current loss
• Quantitative Value Proposition (value hypothesis), based on reference outcomes, benchmarks, published research, or PoC results

If the value hypothesis is not yet validated, use third-party research as an estimate, explain the logic behind it, and align it with customer stakeholders.

Improve it over time with results from delivered projects.

Keep this step independent from sales price.

The purpose is to establish the size of the problem and the value of acting, before discussing commercial terms.

Example

Inputs:

• Current annual energy spend: $200,000
• Expected reduction with the offering: 18%
• Time horizon: 3 years

Calculations:

• Avoidable cost per year = $200,000 × 18% = $36,000 per year
• Cost of inaction over 3 years = $36,000 × 3 = $108,000

Summary statement:

“If nothing changes, the organization continues to spend about $36,000 per year on avoidable energy cost, or about $108,000 over three years.”

4. Calculate Sales Price

To complete the Business Case Milestone, calculate the sales price for the offering and document it clearly.

The sales price typically includes:

• CapEx: one-time costs to deploy the offering
• OpEx: recurring costs to operate and support the offering

This Milestone does not go into pricing calculation details, since pricing is typically a well established practice within the vendor organization.

Best practices

• Minimize CapEx when possible to reduce adoption friction.
• Make OpEx transparent and easy to justify, tied to clear outcomes and service levels.
• Validate pricing internally with finance, delivery, and product management before sharing it with the customer.
• Whenever possible, position the price using a value based pricing logic, anchored to the measurable value quantified in the business case.

5. Calculate Customer Business Case

Once the customer business opportunity and sales price are defined, consolidate them into the customer business case. Use cost of inaction to reinforce urgency and prioritization.

The goal is simple: show the financial upside of acting now versus the investment required to achieve it, so customer stakeholders can make a confident decision.

Before sharing the business case with the customer, validate it internally:

• confirm the expected value exceeds the investment by a meaningful margin
• confirm the payback and return are strong enough to justify prioritization
• confirm assumptions and delivery scope are realistic and aligned with vendor capability

6. Draft the Business Case Presentation

Once the customer business case is calculated and validated internally, create a short presentation to communicate it clearly to customer stakeholders.

This presentation is not a binding offer. It is a decision support artifact used to summarize the logic, confirm assumptions, and help customer sponsors drive internal alignment.

Here below the key information to be added into the Business Case Presentation.

6.1 Recap of prior milestones

• Summary of the commercial insight introduced during Milestone 2: Value Presentation
• Key outputs from prior Milestones relevant to the business case.
• Customer stakeholder list and roles involved so far

6.2 Customer business case

• Customer cost of inaction
• Customer business opportunity
• Sales price overview
• Business Case representation (for example ROI or payback period)
• Data sources and main assumptions
• Customer stakeholders who provided data or validated assumptions

6.3 Sales price overview

• CapEx and OpEx split
• Short explanation of what is included in scope
• Reference to value based pricing when applicable

6.4 High-level delivery plan

• Summary of the offering and what will be delivered
• Key milestones and indicative timeline
• Major dependencies and customer inputs required

6.5 Commercial model and terms

• Commercial model (for example subscription, one-time purchase, services)
• Any non standard terms that require attention
• Billing and licensing logic at a high-level

6.6 Next steps

• Actions required to complete internal customer approval
• Expected customer stakeholders for review (for example procurement, IT, legal, finance)
• Target timeline for feedback and a decision milestone

7. Run a commercial coaching session

Before presenting the business case to the full buying group, schedule a one-to-one coaching session with a key customer stakeholder, typically the mobilizer or champion.

The purpose is to pressure test the business case, refine the storyline, and equip the customer stakeholder to drive internal alignment.

Customer role in the coaching session

Invite the customer stakeholder to:

• Review the presentation and give feedback on clarity, structure, and relevance
• Flag missing elements needed for internal approval, such as KPIs, cost detail, or an executive summary
• Confirm strategic and financial alignment with current priorities
• Identify the internal stakeholders who must be involved, including budget owners and final decision-makers
• Align on how to set up the business case validation meeting with the wider group

Sales rep role in the coaching session

Use the session to enable the customer stakeholder to become an internal advocate:

• Explain the typical internal approval path, including procurement, legal, IT, and finance steps when relevant
• Equip the customer stakeholder to communicate the business case without the vendor in the room

Final refinement and next steps

Incorporate the feedback, share an updated version, and confirm readiness for the broader business case presentation.

Once confirmed, the customer stakeholder should lead the internal scheduling and ensure the right decision-makers are in the room.

8. Hold a business case validation meeting

The business case validation meeting is the final activity of the Business Case Milestone. In this session, present the business case to a broader set of customer stakeholders, typically including decision-makers, budget owners, and process influencers.

Objectives of the meeting

Use the meeting to:

• Validate the customer business case with the key stakeholders
• Confirm budget alignment and budget ownership
• Clarify who owns the next steps in procurement and internal approvals
• Agree on the next steps, owners, and target dates

Final approval is rarely granted in this meeting.

In most cases, an internal follow-up discussion happens afterward, led by the mobilizer or another internal advocate.

That internal conversation often happens without the vendor and is where the buying decision is finalized.

Typical progression

Commercial approval usually requires multiple touchpoints:

1. Validation meeting: present the business case to the core stakeholder group
2. Internal customer alignment: mobilizer drives internal discussions and builds consensus
3. Vendor follow-up: answer questions, refine assumptions, and keep momentum
4. Final decision: customer confirms approval path and next steps, such as procurement, legal review, or formal commitment

For guidance on the steps after validation, refer to Milestone 6 of the Value Accelerator GTM Blueprint.

Quality Gates

• Customer business case is calculated.
• Customer approves the Business Case in writing.
• Customer communicates the next steps of the buying process.

Sales Enablement Artifacts

Register for free on the Value Accelerator website to download templates and tools that support execution of this Milestone.