In the context of a business case, what is meant by an indicative investment?

An indicative investment refers to an approximate estimate of the investment required, based on preliminary analysis. This type of investment figure is not definitively precise and serves as a guideline for stakeholders to understand the range of potential costs associated with a project. It allows project teams and decision-makers to gauge the financial implications at an early stage, aiding in the assessment of project feasibility and helping to inform further analysis and decision-making processes.

The focus on preliminary analysis means that the estimate is likely to be adjusted as more detailed investigations are conducted, and thus it supports initial discussions about resource allocation and budgeting without committing to exact amounts at this point in time. This reflective approach acknowledges the inherent uncertainties in early project stages and emphasizes the need for further refinement as more solid information becomes available.