A cost-benefit analysis is a tool or technique that compares the expected costs and benefits of a project or an investment. It helps to determine the value of a business case by estimating the net present value (NPV) of the project, which is the difference between the present value of the benefits and the present value of the costs. A positive NPV indicates that the project is worth pursuing, while a negative NPV suggests that the project should be rejected. A cost-benefit analysis can also calculate the return on investment (ROI) of the project, which is the ratio of the net benefits to the net costs. A higher ROI implies a higher value of the business case. A cost-benefit analysis can also consider the qualitative aspects of the project, such as the risks, assumptions, constraints, and opportunities12.
A variance analysis is a tool or technique that compares the actual performance of a project with the planned or expected performance. It helps to identify and explain the deviations or differences between the actual and planned results, such as costs, schedule, scope, quality, and benefits. A variance analysis can also provide corrective actions or recommendations to improve the project performance and align it with the business case13.
A SWOT analysis is a tool or technique that evaluates the strengths, weaknesses, opportunities, and threats of a project, a business, or a situation. It helps to identify the internal and external factors that can affect the success or failure of the project or the business. A SWOT analysis can also provide strategies or actions to leverage the strengths and opportunities, and to overcome or mitigate the weaknesses and threats14.
A feasibility analysis is a tool or technique that assesses the viability and practicality of a project or a solution. It helps to determine if the project or the solution can be implemented within the available resources, time, budget, and technology. A feasibility analysis can also evaluate the potential benefits and risks of the project or the solution, and compare it with other alternatives15.
References: 1 PMI Professional in Business Analysis (PMI-PBA)® Examination Content Outline, page 10-11; 2 Business Analysis for Practitioners: A Practice Guide, page 123-124; 3 Business Analysis for Practitioners: A Practice Guide, page 125-126; 4 Business Analysis for Practitioners: A Practice Guide, page 127-128; 5 Business Analysis for Practitioners: A Practice Guide, page 129-130
