Framework for Cost-Benefit Analysis in Proposals PPT

This PPT slide, part of the 67-slide Strategic Portfolio Management PowerPoint presentation, outlines a structured approach for calculating costs and benefits during the proposal development phase of a project. It is divided into 4 main sections: Developed Solution, Estimate Pure Implementation Costs, Estimate Total Costs, and Calculate Project Net Worth.

The "Developed Solution" section highlights 2 key components: System Architecture and Application Architecture. This indicates a focus on the technical frameworks that will support the proposed solution, suggesting that a thorough understanding of both system and application layers is essential for effective implementation.

In the "Estimate Pure Implementation Costs" section, the focus is on identifying and deducting all additional expenses associated with the proposed solution. This includes exploring alternative options that may or may not require new investments. The emphasis here is on a meticulous evaluation of costs to ensure that only necessary expenditures are accounted for, which is crucial for accurate budgeting.

The "Estimate Total Costs" section expands on this by detailing a comprehensive cost model. It encompasses not only implementation expenses, but also the integration of new technologies and ongoing support expenditures. This holistic view ensures that all potential costs are considered, providing a clearer financial picture.

Finally, the "Calculate Project Net Worth" section suggests using a model to assess the payback value of the project. This is critical for decision-making, as it allows stakeholders to evaluate the financial viability and potential return on investment of the proposed initiative.

Overall, this slide serves as a practical guide for executives looking to understand the financial implications of their proposals, ensuring that all relevant costs and benefits are thoroughly analyzed.

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