Benefit Analysis

The profitability of projects - Analyze whether the benefits justify the monetary expenditure

The implementation of a larger IT project is usually preceded by an investment decision. For this purpose, the expected benefit is compared to the effort involved or an ROI calculation is performed. In the case of large, complex change projects,

especially the benefit-influencing variables are multi-layered and often not easily measurable, as they are of a qualitative nature. The aim is to first structure and record the expected benefits and costs.

Benefits are recorded on the basis of the following positions:

  • Quantitatively measurable benefits with a direct monetary effect  (tangible benefits) – e.g. reduction of outstanding payments or their duration, extension of supplier payment targets or discountability, reduction of personnel costs, reduction of inventories
  • Quantitatively measurable benefits with indirect monetary effects (intangible benefits) – e.g. reduction of delivery and throughput times, time savings by using integrated systems and processes
  • Qualitative, hardly measurable benefit
    (intangible benefits) – z. e.g. reduction of error frequencies, increase in employee and customer satisfaction, transparency in the process organization
  • Cost items that are directly expensed
    (OpEx – Operational Expenditures)
  • Cost items to be capitalized
    (CapEx – Capitalized Expenditures)

These items are measured in monetary terms in the benefit area on the basis of valid assumptions as far as possible and presented over an agreed period of time. This provides the basis for determining the net present value (NPV) as the final indicator of the expected result of the investment. A decisive factor in achieving this planned value is that the initially estimated and planned benefit and cost values are

consistently and regularly collected during the course of the project and especially after its completion. Especially the subsequent benefit analysis is often neglected or missed. The consequence is that no suitable reference data is available for further investments and no sound statement can be made as to whether a project has paid off as planned.

Our experts support you in particular with the following services:

  • Collection and analysis of the possible benefit positions
  • Derivation of the monetary benefit over time
  • Compilation of the NPV calculation according to the specifications
  • Establishment of mechanisms for continuous measurement of benefit generation after completion of the project to validate the investment calculation

You benefit from the following advantages:

  • Continuous measurement of benefit generation
  • Reliable reference data for further investments
  • Validated investment calculation
  • Information on the profitability of projects

We support you with many years of expertise.

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[Translate to English:] Projekt-Controlling