Evaluate and Deliver Project Benefits and Value Flashcards
Business Value
An informal term comprising economic value as well as shareholder, customer, and channel partner value, and employee knowledge.
Benefits Management Plan
A document that describes how and when the benefits of a project will be derived and measured.
Disciplined Agile
A hybrid tool kit that harnesses hundreds of agile practices - agile, lean, and traditional sources- to guide you to the best way of working for your team or organization.
Benefit Cost Analysis
A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings. Also called cost-benefit analysis.
Return on Investment
A financial metric of profitability that measures the gain or loss from an investments relative to the amount of money invested. Sometimes called the rate of return. Usually expressed as a percentage. A positive ROI is interpreted as a good investment, and a negative ROI is a bad investment.
Present Value (PV)
The current value of a a future sum of money or stream of cash flows given a specific rate of return.
Net Present Value (NPV)
The present value of all cash outflows minus the present value of all cash inflows. NPV is a financial tool used in capital budgeting. NPV compares the value of a currency unit today to the value of the same currency unit in the future, after taking inflation and discount rate into account.
Internal Rate of return (IRR)
The interest rate that makes the net present value of all cash flow equal to zero. IRR is also a financial tool often used in capital budgeting. IRR is the discount rate at which the NPV of the projects is zero. It is calculated iteratively, by setting up the NPV calculation in a spreadsheet or other software and changing the discount rate until the NPV equals zero.
Monte Carlos Simulation
An analysis technique in which a computer model is iterated many times, with the input values chosen at random for each iteration driven by the input data, including probability distributions and probabilistic branches.
Simulation
An analytical technique that models the combines effect of uncertainties to evaluate their potential impact on objectives.
Decision Tree Analysis
A diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty.
