Business Case Template
This is an example of a generated business case, structured to justify a project and secure internal funding or resources.
Project: SiteWatch AI Drone
1. Executive Summary
This document proposes the development and deployment of "SiteWatch AI," an autonomous drone system for construction site security. The project aims to reduce annual losses from theft and vandalism by over 60% and improve safety compliance, leading to an estimated ROI of 250% within three years through reduced security costs, lower insurance premiums, and minimized project delays.
2. Problem Statement
Our company currently loses an estimated S$1.5 million annually across our major projects due to theft of materials and equipment, as well as vandalism. Current security measures, relying on human guards, are costly (S$300,000 per year for top 5 sites) and ineffective at providing comprehensive overnight coverage, leading to significant financial losses and project delays.
3. Proposed Solution
SiteWatch AI is a "drone-in-a-box" system that provides fully autonomous, intelligent monitoring. A drone will live in a self-charging station on-site and conduct automated patrols using thermal and visual cameras. An onboard AI will detect unauthorized personnel, safety hazards, and potential fires, sending real-time alerts to the site manager. This provides superior coverage at a lower operational cost than human guards.
4. Market & Strategic Alignment
This project aligns directly with the corporate strategic goal of leveraging technology to improve operational efficiency and safety. By developing this technology in-house, we not only solve a critical internal problem but also create a potential new revenue stream by commercializing the solution to other construction firms in the future.
5. Analysis of Costs & Benefits
Costs:
- Phase 1 (Prototype & Pilot): S$150,000
- Phase 2 (Deployment to 5 sites): S$250,000
- Annual Operating Cost (per site): S$15,000
Benefits (Annual, for 5 sites):
- Reduced Security Guard Costs: S$225,000
- Reduction in Theft Losses (60%): S$900,000
- Potential Insurance Premium Reduction: S$50,000
- Total Annual Benefit: S$1,175,000
6. Implementation Plan & Timeline
Q1: Finalize prototype development. (3 months)
Q2: Pilot program at Jurong construction site. (3 months)
Q3-Q4: Phased rollout to four additional high-value sites. (6 months)
7. Recommendation
We recommend approving the Phase 1 budget of S$150,000 to proceed with the pilot program. Success in this phase will validate the projected ROI and provide a clear path to company-wide deployment.