How can you analyze market trends and customer needs to justify program investment?

1 Market analysis

A market analysis is an assessment of external factors that can impact the potential and performance of your program. It helps you identify opportunities and threats in the market, the size and growth of the market, the competitive landscape, and key drivers and trends. You can use the analysis to answer questions such as what problem or need your program is trying to solve or address, who your target customers are, and what alternatives or substitutes exist for your program's outcomes. Additionally, you can use various sources of data and information, such as industry reports, market research, customer surveys, competitor analysis, SWOT analysis, PESTEL analysis, Porter's five forces analysis, and scenario planning. Frameworks and tools such as the market opportunity analysis (MOA), the market segmentation analysis (MSA), the value proposition canvas, and the business model canvas can help organize and present findings. A market analysis can help you understand how attractive and profitable the market is for your program, what barriers to entry and exit exist, how it is changing, and what implications these changes have for your program.

3 Business case

A business case is a document that summarizes the rationale and justification for investing in a program. It describes the problem or opportunity that the program addresses, the objectives and benefits of the program, the costs and risks of the program, the alternatives and options for the program, and the recommendations and actions for the program. This document can help you answer questions such as what is the strategic alignment and value proposition of your program, what are its scope and deliverables, assumptions and constraints, financial and non-financial benefits, costs and resources required, risks and uncertainties, criteria and methods for evaluating it, as well as governance and stakeholder management. You can use various formats and templates to develop a business case, such as an outline, summary report or presentation. Additionally, frameworks such as benefit-cost analysis (BCA), return on investment (ROI), net present value (NPV), internal rate of return (IRR), payback period or sensitivity analysis can be used to support and communicate your business case.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?