6. Benefits Management and Realisation

Question 1

What is meant by ‘Benefits Realisation’?

Answer 1

Its a process that is concerned with the delivery of the predicted business benefits defined in the buisness case

Question 2

What are the 4 categories of benefits?

Answer 2

Observable
Measureable
Quantifiable
Financial

Question 3

Name some tangible benefits and some intangible benefits

Answer 3

Tangible:

Cost savings
Increased revenue
Time savings
Increased productivity
Faster response time

Intangible:
Increased job satisfaction
Improved morale
Improved image
Better information

Question 4

What are the 3 Investment Appraisal techniques are provide a brief summary of each?

Answer 4

1. Payback ( Cashflow forecast for th einvestment using current values)
2. Discounted cashflow ( to take into account that money is worth less in the future)
3. Internal rate of return (Calculation of percentage discount rate that returns a Net Present Value of zero)

Question 5

What is a Balanced Business Scorecard?

Answer 5

It is used to ensure both financial and non-financial measures of performance are captured.

There are four parts:
Financial
Customer
Process
Learning and Growth