ROI, payback, and benefits
On This Lesson 4 topics
This lesson is planned. The outline below lists the topics it will cover. The full lesson has not been published yet.
In this lesson
estimate ROI and payback with explicit assumptions.
Planned topics
- Benefits: revenue growth, cost reduction, risk reduction, avoided cost; each has an owner in the business.
- ROI: net benefit divided by cost; payback: when cumulative benefit exceeds cumulative cost (discounting and NPV are used by finance; verify their method).
- Benefits nobody owns will not be delivered or tracked.
- Test sensitivity: what if adoption is half, delivery 6 months late, or cost 20 percent higher.
Draft outline details
Demonstration
a benefits table: benefit, owner, measure, baseline, target, year, confidence; plus a cumulative cash chart with payback year.
Check your understanding
What is wrong with a benefit that has no owner?
Show answer
Nobody is accountable for delivering or measuring it.
Practice
Apply this lesson with the module's lab, exercises and quiz.
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