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Value Return On Investment

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A good way to explain how Decision Lens works through resource allocation is "benefit cost analysis" -- a concept that almost everyone easily understands. Value Return On Investment, or VROI, is Decision Lens' unique measure of benefit / cost ratio. Using resource allocation, you can create a funding recommendation that is intrinsically based on each project's benefit / cost performance (within any scenario constraints), and explain the results using the Value-ROI (VROI) Chart.

The Value-ROI chart shows the "bang for the buck" or Priority Value per resource spent. This is constructed by plotting the normalized Benefit/Cost index for each alternative being considered, as well as the individual indices of both the benefit score, and the alternative costs used to establish the ratio. The actual benefit scores and costs can be seen by placing your mouse over any element in the graph.

Interpretation of the chart:

Alternatives with high Benefit to Cost ratio (nearer to 1, left on the chart) are considered stronger options then those with lower Benefit to Cost ratios (right on the chart). This chart shows: - The relative value of each alternative - The relative costs of each alternative - The trend of the most beneficial alternatives for the cost to the least.

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