Cost-Benefit Analysis (CBA)
Last updated
Last updated
Strategic Decision-Making in Design
Design managers must often make decisions that balance user needs with business viability. This is where tools like Cost-Benefit Analysis (CBA) become essential. A CBA helps evaluate the trade-offs between different design decisions by quantifying their expected costs and benefits. For example, a design manager might use CBA to decide whether implementing a complex design feature is worth the development costs compared to its potential benefits, such as improved user satisfaction or increased revenue. While the design manager may not conduct the CBA themselves, they collaborate with stakeholders, product managers and business analysts to ensure that design decisions and choices contribute to overall financial and non-financial goals and are grounded in strategic considerations.
In short, a Cost-Benefit Analysis (CBA) is a systematic process used in decision-making to evaluate the financial and non-financial pros and cons of a project, policy, or investment. It involves quantifying the expected costs and benefits over a defined period and comparing them to determine if the project is economically viable. CBA helps assess whether the benefits outweigh the costs, aiding in rational resource allocation and decision-making.
