Business Analysis Tools - Part 2
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This document provides an overview of three business analysis tools: SWOT analysis, gap analysis, and cost-benefit analysis. For each tool, there are brief definitions and links to external resources for additional information. The document focuses on cost-benefit analysis, providing steps for conducting one along with an example comparing costs and benefits of expanding office space over a one year period. It calculates that the cost-benefit ratio for this example project is 0.46 of a year, or approximately 5.5 months.
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Business Analysis Tools - Part 2
- 1. Business Analysis Tools Part 2 Cornelius Mellino Project Manager Wincor Indonesia PS
- 2. © Wincor Nixdorf International GmbH ToC 1. SWOT Analysis 2. Gap Analysis 3. Cost-Benefit Analysis
- 3. © Wincor Nixdorf International GmbH SWOTANALYSIS 3
- 4. © Wincor Nixdorf International GmbH SWOT Analysis http://en.wikipedia.org/wiki/SWOT_analysis
- 5. © Wincor Nixdorf International GmbH SWOT Analysis
- 6. © Wincor Nixdorf International GmbH SWOT Analysis http://www.mindtools.com/pages/article/newSTR_89.htm
- 7. © Wincor Nixdorf International GmbH SWOT Analysis
- 8. © Wincor Nixdorf International GmbH GAPANALYSIS 8
- 9. © Wincor Nixdorf International GmbH Gap Analysis http://www.mindtools.com/pages/article/gap-analysis.htm
- 10. © Wincor Nixdorf International GmbH Gap Analysis http://www.mindtools.com/pages/article/gap-analysis.htm
- 11. © Wincor Nixdorf International GmbH Gap Analysis http://www.amazon.com/The-Knowledge-Management-Toolkit-Orchestrating/dp/013009224X
- 12. © Wincor Nixdorf International GmbH COST-BENEFITANALYSIS 12
- 13. © Wincor Nixdorf International GmbH Cost Benefit Analysis Step One: Brainstorm Costs and Benefits Step Two: Assign a Monetary Value to the Costs Step Three: Assign a Monetary Value to the Benefits Step Four: Compare Costs and Benefits http://www.mindtools.com/pages/article/newTED_08.htm total cost / total revenue (or benefits) = length of time (payback period)
- 14. © Wincor Nixdorf International GmbH Cost Benefit Analysis Category Details Cost in First Year Lease 750 square feet available next door at $18 per square foot $13,500 Leasehold improvements Knock out walls and reconfigure office space $15,000 Hire two more designers Salary, including benefits Recruitment costs Orientation and training $75,000 $11,250 $3,000 Two additional workstations Furniture and hardware Software licenses $6,000 $1,000 Construction downtime Two weeks at approximately $7,500 revenue per week $15,000 Total $139,750 Costs
- 15. © Wincor Nixdorf International GmbH Cost Benefit Analysis Benefit Benefit Within 12 Months 50 percent revenue increase $195,000 Paying in-house designers $15 an hour, versus $50 an hour outsourcing (100 hours per month, on average: savings equals $3,500 a month) $42,000 10 percent improved productivity per designer ($7,500 + $3,750 = $11,250 revenue per week with a 10 percent increase = $1,125/week) $58,500 Improved customer service and retention as a result of 100 percent in-house design $10,000 Total $305,500 Benefits
- 16. © Wincor Nixdorf International GmbH Cost Benefit Analysis CB Ratio = $139,750 / $305,500 = 0.46 of a year, or approximately 5.5 months. Cost-Benefit Ratio
- 17. © Wincor Nixdorf International GmbH See you in Part 3… 17