Fundamentals II: Benefits

Wolfgang Messner
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Wolfgang Messner: MYRA School of Business, GloBus Research

Chapter 4 in Making the Compelling Business Case, 2013, pp 160-197 from Palgrave Macmillan

Abstract: Abstract Next to estimating costs, looking at potential benefits is the second fundamental aspect of any investment decision-making process. While costs bring down the business case, benefits support the suggested investments. As simple as this may sound, identifying, evaluating, and estimating business benefits are three challenging tasks. In the business case process, they are perceived by many as akin to predicting the future by looking into a crystal ball. Getting only one of these tasks wrong can lead to financial disaster. Not knowing what benefits to expect is a sure-fire way for the investment not to deliver any benefits at all. And what is worse, this disaster will not be immediately visible; instead, it will hide beneath the surface. It is only long after the investment has been commissioned and when management suddenly begins to notice that benefits are not being reaped according to the forecast that people begin to question the original business case again.

Keywords: Cash Flow; Business Case; Customer Segment; Monetary Benefit; Decision Participant (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-34057-3_4

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DOI: 10.1057/9781137340573_4

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