Final answer:
The first step in creating a business case for IT initiatives is assessing the business requirements. This step is foundational in ensuring that the project addresses the core business challenges before any cost/benefit analysis is performed.
Step-by-step explanation:
The first step in creating a business case for IT initiatives is A. Assessing the business requirements. Before determining the costs and benefits or preparing a value proposition, it is crucial to understand what the business needs.
A thorough assessment of these needs will guide the scope and objectives of the IT project and ensure that the proposed solution addresses the core business challenges.
A cost/benefit analysis is later employed to compare the sacrifices and gains associated with the IT initiative. This involves creating a T-shaped chart where costs, such as money, effort, and other sacrifices, are listed on one side and contrasted against the benefits, which include gains in money, time, experience, and other improvements, on the other side.