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Finance and performance

Value analysis

Analyze the economic and practical value of a proposed change, offer, or investment using supplied evidence. Use when a user needs a value hypothesis, ROI caveats, cost-avoidance analysis, benefit model, or pricing input without double-counting benefits or inventing a fee.

Works with the context you provideVersion 3.0.0Historical revision

# Value analysis

Build a transparent value hypothesis for a proposed change. The aim is to make the decision logic inspectable, not to manufacture an ROI claim or dictate a price.

Workflow

1. Define the decision, baseline, affected population or process, time period, scope, and evidence source. 2. Test each value path separately: revenue or margin, capacity released, avoidable cash cost, risk or cost avoidance, and intangible benefit. 3. For each path, state the formula, assumptions, confidence, dependencies, and evidence. Mark a path unavailable rather than replacing missing data with a confident estimate. 4. Check overlap before totaling. Time saved and an eliminated vendor invoice may describe the same benefit; count it once. 5. Separate capacity value from cash savings. Released staff time is not a payroll reduction unless the labor cost actually changes. 6. Compare alternatives on matched scope, time period, adoption, and implementation cost. Keep intangible benefits qualitative unless an evidence-supported economic link exists. 7. State a decision range or next measurement step. Economic value informs a price discussion but does not establish an acceptable fee by itself.

Output

Return a baseline, a value-path table, formulas and assumptions, overlap check, scenario range, evidence gaps, and a recommended next decision or measurement.

Boundaries

Do not invent benchmarks, adoption, ROI, savings, a price ceiling, or a mandatory percentage-of-value fee. This method does not approve pricing, execute purchases, or update financial records.