What results does a Cost Benefits analysis provide?

What results does a Cost Benefits analysis provide?
If you understand the costs and benefits of a proposed solution, or the whole project, you'll be better able to ensure that the business has the right set of expectations for what benefits will result, as well as how those benefits stack up against the costs. You'll want to be sure the benefits (increased revenue, reduced expenses, increased satisfaction, reduced risk) outweigh the costs associated with the project work (staffing costs, external consulting costs, purchase of hardware or software, etc.). You can also use the Cost Benefits Analysis of various project activities to help sequence and prioritize them—to do the right work at the right time.

If the costs of a solution far outweigh the benefits, you'll need to de-prioritize that alternative. But if the solution's benefits far outweigh the costs, you can move full-speed ahead with the recommendation. Project costs are nearly always tangible (X hours * $Y per hour = $Z) but the benefits are often intangible. The business analyst must help identify the costs and compare them with the anticipated benefits. They are also responsible for carrying a continually updated, accurate picture of the costs and benefits throughout the project, and communicating it to others.











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