Many companies are trying to curb costs but not all investment decisions can be postponed indefinitely. Even before, planning and executing projects was a matter of careful consideration. Today, it is essential for business survival to minutely assess the chances for success for each and every project. This is where proper cost-utility analysis comes into play.
Cost-benefit analysis vs. Cost-utility analysis
Compared to the common cost-benefit analysis, a cost-utility analysis has a crucial advantage: It delivers the foundation for decisions that are not or only partially based on quantitative, monetary criteria. By that, we specifically refer to choosing or prioritizing projects that have benefits which cannot immediately be tied to a Return on Investment (e.g. in the areas of R&D or IT).
Proper cost-utility analysis as a planning method allows for project scoring, i.e. comparing the advantages and disadvantages of different projects as well as the systematic preparation for complex decision-making situations that are subject to numerous different criteria. You can even use this method to compare your status quo to any planned changes to your operations, e.g. the replacement of your process management system.
Software support for cost-utility analysis and project scoring
Specialized software can be of invaluable support in your analysis and project scoring effort by guaranteeing that all quantitative and qualitative elements of the decision-making process are considered. Serviceware Performance not only enables you to analyze different projects, but also to rank and prioritize them based on their utility. You can define decisive criteria for and against the consideration of projects, measure and weigh them differently, and them compare the advantages and disadvantages of all alternatives and put them side by side in a detailed decision overview.
An assessment of all available data for each project allows you to devise a watertight project strategy
Comprehensive, simple, and flexible
Detailed visualizations make sure you do not lose track of the various projects and choices on your agenda. A comment function allows you to provide extra information, file attachments, or explanations for qualitative criteria. This is particularly useful when there are multiple decision makers since all subjective assessment of the process can be made transparent and understandable for all stakeholders.
Thanks to the easy-to-use interface and self-service options, you can evaluate potential plans of action in a quick and simple manner and, furthermore, you can create additional ad-hoc analyses if you need them. Additionally, Serviceware Performance offers the flexibility you need to adjust criteria and choice alternatives to all of your requirements at any point in time.
Ideal, fact-based preparation for all decisions
In-depth cost-utility analysis and project scoring are a valuable support method for all sorts of investment scenarios, especially when it comes to the consideration of hard facts and soft facts. Serviceware Performance helps you with the necessary adaptability, flexibility, transparency, and comprehensiveness – all you need to do is make the final call.
Beyond cost-utility analyses and project scoring, business intelligence and performance management are cornerstones of growing your business. Get in touch for a free demo of Serviceware Performance tailored to your specific business use case and learn more about how you can leverage our solutions and consultancy services to optimize your planning and budgeting.