Yeah, he's got the terms flipped in the last slide. That's why it's confusing. He should have Benefits on Top and Costs on Bottom. It's not wrong, just unnecessarily confusing. What he is actually showing is the Benefit to Cost ratio.
This was very informative. Thank you for creating this video. I am doing a Diploma of Project Management and I am performing a cost benefit analysis of my project. You have a new subscriber!
I think it is an error to calculate the cost benefit ratio. We should be considering the net benefit, which is NB = Total Benefit - Total Cost. Proportions do not matter, money is valued in absolute terms. Getting $10 000 worth of benefits for $1 000 costs (CB ratio = 10, net benefit = $9000) is not better than $15 000 worth of benefits for $2 000 costs (CB ratio=7.5, net benefit=$13 000).
Good afternoon Mr O'Loughlin Firstly, thank you very much for your videos, they have helped me immensely. I have no technology knowledge at all so apologise in advance for what is possibly a very simple question but has caused me huge headaches not to mention time wasting. Every month I have a spreadsheet 42 rows down and 54 columns wide, now my problem is that the data in only a quarter of those columns (not all the same either) change every month so how do I "lock" the cells that must not be altered and get my cursor to automatically jump to the next correct cell? Thanking you in advance Sharon
Could you please tell that how you calculate the benefit for a software? I have no idea the financial impact by installing a new software in organization
Choosing solution B from that table because it has the highest BC ratio is not necessarily correct and that is a flawed analysis method. You have to look at the incremental BC ratios on a challenger-defender basis to actually determine the most efficient alternative.
The presentation is really good. Can i have some insight about the time period being considered for the analysis. As cost will be quite instant with training and AMC over a period of time but benefit accrues and increases gradually.kindly comment...
Hi Satya, You'll need to visit your library to study this some more - in the example in the video no time period is being considered. You may find another one of my videos which takes into account the time value of money useful: "How To... Calculate Net Present Value (NPV) in Excel 2003 ". In UA-cam search for the watch code "dqc5n4nMbVI". Dr E.
22nd Edition of Global Telecoms Executive Forum Series European CTO Telecoms Forum - Radisson Blu Hotel Amsterdam, the Netherlands 5th - 6th October 2015 “Maximise Business Opportunities through Advanced Technologies and Robust Business Strategies” Greetings to IT Experts. I hope you’re doing fine. This forum is being organised exclusively for CTOs and Senior Network Executives of Tier 1 and Tier 2 Western European telecommunication service providers and operators, currently considering investing in different areas to maximise business opportunities through advanced technologies and robust strategies. In the Forum you will be one of only two companies with same solutions per category. You will be having 24 one-to-one formal meetings with technology executives from participating companies. You will be given a profile of participating investors two weeks prior to the event, and be given the opportunity to select which client interests you most. You will also be given the opportunity to present your solution to the general audience of attending executives. Similarly, attending executives will have access to your profile and request meetings with you. Each meeting is scheduled once mutual interest between yourself and the investor is aligned, giving you the best possible outcome. We are a pre qualifying the attendees extensively, based on Annual company revenue of € 500 Million or higher, minimum availability of € 3 Million spending budget specifically allocated for the next 6-12 month and their ability to sign off contracts. There was great feedback from our client’s only 1min videos. FYI In Less than a Minute: On our 11 year partnership with marcus evans vimeo.com/marcusevans/review/128886621/e2248319ab In Less than a Minute: On meeting 30 to 40 companies of this calibre in 3 days vimeo.com/marcusevans/review/128882168/bcba101bff In Less than a Minute: On USD 2 million actual businesses per year vimeo.com/marcusevans/review/128857018/db266ca630 In Less than a Minute: On the 4 million dollar order vimeo.com/marcusevans/review/124015026/5e12805c95 In Less than a Minute: The benefits of partnering with marcus evans vimeo.com/marcusevans/review/125273240/2032de11cc In Less than a Minute: How much of our marketing budget we're spending with marcus evans Summits vimeo.com/marcusevans/review/125459085/11e05f6922 In Less than a Minute: How summits work and the mutual benefits for buyers and sellers vimeo.com/marcusevans/review/125469371/c95853a27b In Less than a Minute: Why it's worth the time and investment vimeo.com/marcusevans/review/125466387/1cea40d8b8
Yeah, he's got the terms flipped in the last slide. That's why it's confusing. He should have Benefits on Top and Costs on Bottom. It's not wrong, just unnecessarily confusing. What he is actually showing is the Benefit to Cost ratio.
Really clear and straightforward information. Thank you!
This was very informative. Thank you for creating this video. I am doing a Diploma of Project Management and I am performing a cost benefit analysis of my project. You have a new subscriber!
so simple, clear, and useful. i used this link for my report. thanks!
Nice! I hope you could also make a discussion about benefit to cost analysis using utility function as a financial measure of benefits :)
Great help!
well said. Clear and concise
simple, quick , effective ..........thanks a lot
Very Clear And To The Point Explanation 👍 .Thanks
Super analysis. I hope it may useful for all all categories
Thanks for the clear explanation, sir. Much appreciated
Thank you!
its KISS, Keep It Simple and Smart
thank you and best regards
I think it is an error to calculate the cost benefit ratio. We should be considering the net benefit, which is NB = Total Benefit - Total Cost. Proportions do not matter, money is valued in absolute terms. Getting $10 000 worth of benefits for $1 000 costs (CB ratio = 10, net benefit = $9000) is not better than $15 000 worth of benefits for $2 000 costs (CB ratio=7.5, net benefit=$13 000).
Great video! Saved my day 😃
Wonderful video
Good afternoon Mr O'Loughlin
Firstly, thank you very much for your videos, they have helped me immensely.
I have no technology knowledge at all so apologise in advance for what is possibly a very simple question but has caused me huge headaches not to mention time wasting.
Every month I have a spreadsheet 42 rows down and 54 columns wide, now my problem is that the data in only a quarter of those columns (not all the same either) change every month so how do I "lock" the cells that must not be altered and get my cursor to automatically jump to the next correct cell?
Thanking you in advance
Sharon
Could you please tell that how you calculate the benefit for a software? I have no idea the financial impact by installing a new software in organization
how do you go about putting values costs and benefits that don't have an intrinsic value?
Based on what do you set the numbers of the benefits? Is it just estimation?
Good day sir. I have a question. how you get the benefit in monetary value? how you quantify? any methods that you used?
13 years later and wow👏
The main question I have is how did you convert the benefits into money?
Yesss
That was My question too :)
Choosing solution B from that table because it has the highest BC ratio is not necessarily correct and that is a flawed analysis method. You have to look at the incremental BC ratios on a challenger-defender basis to actually determine the most efficient alternative.
Xcellence
The presentation is really good. Can i have some insight about the time period being considered for the analysis. As cost will be quite instant with training and AMC over a period of time but benefit accrues and increases gradually.kindly comment...
Hi Satya,
You'll need to visit your library to study this some more - in the example in the video no time period is being considered.
You may find another one of my videos which takes into account the time value of money useful: "How To... Calculate Net Present Value (NPV) in Excel 2003 ". In UA-cam search for the watch code "dqc5n4nMbVI".
Dr E.
Thanks for your instant reply and suggestion... Look forward to more studies in the similar fashion...
22nd Edition of Global Telecoms Executive Forum Series European CTO Telecoms Forum - Radisson Blu Hotel Amsterdam, the Netherlands 5th - 6th October 2015
“Maximise Business Opportunities through Advanced Technologies and Robust Business Strategies”
Greetings to IT Experts.
I hope you’re doing fine.
This forum is being organised exclusively for CTOs and Senior Network Executives of Tier 1 and Tier 2 Western European telecommunication service providers and operators, currently considering investing in different areas to maximise business opportunities through advanced technologies and robust strategies.
In the Forum you will be one of only two companies with same solutions per category. You will be having 24 one-to-one formal meetings with technology executives from participating companies. You will be given a profile of participating investors two weeks prior to the event, and be given the opportunity to select which client interests you most. You will also be given the opportunity to present your solution to the general audience of attending executives. Similarly, attending executives will have access to your profile and request meetings with you. Each meeting is scheduled once mutual interest between yourself and the investor is aligned, giving you the best possible outcome.
We are a pre qualifying the attendees extensively, based on Annual company revenue of € 500 Million or higher, minimum availability of € 3 Million spending budget specifically allocated for the next 6-12 month and their ability to sign off contracts.
There was great feedback from our client’s only 1min videos.
FYI
In Less than a Minute: On our 11 year partnership with marcus evans
vimeo.com/marcusevans/review/128886621/e2248319ab
In Less than a Minute: On meeting 30 to 40 companies of this calibre in 3 days
vimeo.com/marcusevans/review/128882168/bcba101bff
In Less than a Minute: On USD 2 million actual businesses per year
vimeo.com/marcusevans/review/128857018/db266ca630
In Less than a Minute: On the 4 million dollar order
vimeo.com/marcusevans/review/124015026/5e12805c95
In Less than a Minute: The benefits of partnering with marcus evans
vimeo.com/marcusevans/review/125273240/2032de11cc
In Less than a Minute: How much of our marketing budget we're spending with marcus evans Summits
vimeo.com/marcusevans/review/125459085/11e05f6922
In Less than a Minute: How summits work and the mutual benefits for buyers and sellers
vimeo.com/marcusevans/review/125469371/c95853a27b
In Less than a Minute: Why it's worth the time and investment
vimeo.com/marcusevans/review/125466387/1cea40d8b8
politicians use CB analysis a lot and they consider much more than finance, it doesn't work very well when they do but they do use it.