8. COMPARE COST OF INVESTMENT TO RETURN ON INVESTMENT:

COI = X %
IR

9. The BUSINESS CASE DETERMINES THE ACCEPTABLE VALUE OF ‘X’.

Whether ‘X’ is 5% or 50% may be irrelevant, but the value must make sense to a limit derived by the business case:

X% ≤ limit

10. BASE THE DECISION TO IMPLEMENT THE PLAN ON THE BUSINESS CASE. IF IMPLEMENTING TAKES PLACE, FOCUS AND STICK TO IT.

A decision to go forward should be made based on the analytical results obtained through the canonical process listed above. ‘Gut feel’ can be a good indicator for a decision, but a company is never sure of the technical, organizational or financial risks. A process such as that outlined herein will give basis to the presumed risks and, thus, verify ‘gut feelings’.

Product Cycle(S) ...

The service or product stages of conception, development, promotion, production, distribution, support, and disposal comprise the process cycles as shown in Figure 1. Note that Cost Reduction is considered a non-recurring cost (NRC) which belongs within the revenue enhancement cycle.