Cost-Benefit Analysis Framework for Proposals PPT


This PPT slide, part of the 67-slide Strategic Portfolio Management PowerPoint presentation, outlines key components of Phase 2 in a project proposal development process, specifically focusing on calculating costs and benefits. It is structured into 4 main sections, each addressing critical aspects of project evaluation.

The first section, "Developed Solution," highlights the foundational elements of the proposed system, including system and application architecture. This indicates a structured approach to defining the technical framework that will support the project. It suggests that understanding these architectures is essential for assessing the feasibility and effectiveness of the proposed solution.

Next, the slide discusses estimating pure implementation costs. This involves a meticulous deduction of additional expenses associated with the proposed solution. The emphasis on exploring alternative options indicates a proactive stance in identifying cost-effective strategies, which is crucial for budget management.

The third section, "Estimate Total Costs," expands on the previous point by detailing a comprehensive cost model. This model encompasses various elements such as implementation expenses, integration of new technologies, and ongoing support expenditures. This holistic view of costs is vital for stakeholders to understand the full financial implications of the project.

Finally, the slide concludes with a focus on calculating project net worth. It suggests the use of a specific model to determine the payback value of the project. This is an essential step for decision-makers, as it provides a quantitative basis for evaluating the project's financial viability.

Overall, this slide serves as a roadmap for understanding the financial aspects of project proposals, guiding potential customers in making informed decisions regarding investment and resource allocation.



This slide is part of the Strategic Portfolio Management PowerPoint presentation.

This toolkit is created by trained McKinsey, BCG, and Porsche Consulting consultants and is the same used by MBB, Big 4, and Fortune 100 companies when performing Portfolio Management Initiatives.

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