Вы находитесь на странице: 1из 2

Key metrics for each department and the linkage between the same:


Output related metrics to look for:

What is ROI? (If it is 10% for 100 Rs you will get 10 Rs. If many projects are presented to the Finance
dep they will choose the project which has highest ROI)

What is Break even time? (Time taken to get back the investment. If it is 24 months , it means it will
take 24 months for the company to get back it investment. Again shorter the Breakeven time better
the project)

Also study about IRR, mIRR, payback period

What is the additional cash flow generated from the project? Is it high or low?

What is the increased % of profit for the company if they launch this project?

Input related metrics:

What is the total amount or budget needed for this project?

How long these projects need to be funded? (Is it updated year over year or is it one time product) { it is
info marketing & sales dep should be knowing}

What is the chance of variance ( estimated budget vs actual budget)

Did we have sufficient fund to sponsor this project?

Will it is a worth project to invest on (Opportunity cost)

Operations dep:

Do we have enough resources to manufacture this project? If not where to procure? How long it will
take, if it takes long will it affect breakeven time?

Are we going to make or are we going to outsource? If we are making do we have the capability to
do so( manufacturing line, labour skills, etc). If we are about to outsource will it affect the quality , if
it is affected our customers will not buy more and the whole investment will be in soup

If we manufacture or outsource how we are going to manager the inventory?

If it distributed what is the distribution channel? Are we going to supply it along with our existing
products? If we do so is there any chance for cannibalization?

If there is any defect how the reverse logistics work? How we are going to collect the feedback from
the market( Through retailers, distributors)
Marketing Dep

What is the market potential? ( In terms of either $ or #)

Are we trying to introduce a brand new concept or a updated version or slightly better version than
competitor? Because based on this answer you need to decide how your marketing strategy will
work? How long it will take competitors to imitate the same. Also based on this answer test the
customer retention, brand loyalty and switching cost?

Brand new – What is the growth strategy

Updated version – Profitability

Better version than competitor- Competitor response

For ex: I introduce a brand new 125 cc Scooter with Bluetooth connectivity. It will take 2
years for the competitors to copy me. Is two year is enough for me to achieve the breakeven. Within
2 years can I establish the strong customer base

What is the penetration %

What is the product life cycle time in year or months? How you are gonna to map it with the ROI &
Breakeven period

What are the assumptions about the customer market & external business environment

If the underlying assumption changes what will be the impact on finance department


Why we are launching this project ? What exactly we want achieve by launching this product? (
Customer retention, market share, profit etc etc)

Whatever goal we are going to achieve how sustainable it is ?

How this product will fit in the company overall portfolio?

How this product will fit in customer basket?

Do we have the capability to execute?