- Applications and ROIs
- Why ROIs Matter
- The Business Case
- Cash Flow ProjectionsThe Business CaseWhy ROIs Matter
- Payback Time
- Breakeven Time
- Net Present Value
- Breakeven Time
- Internal Rate of ReturnBreakeven Time
- Summary of the Terms
- An Example
- Incorporating MMFs into the Financial Case
- Comparing the MMF-based ROI with the Classic ROI
- Taking the Risks into Account
- The Impact of MMF Ordering
- Summary
- References
The Impact of MMF Ordering
In the previous simplified example, there were only a few MMFs, and they were easy to identify, were all equally valuable in revenue terms, and all took the same amount of time to develop. In this idealized scenario the question of which MMF to develop first does not arise.
In the real world, things are usually quite different. The task of grouping use cases to create MMFs is to some extent both an art and a methodological process. Furthermore, the order in which MMFs are developed can radically affect the financial model of the project. At the very least, it can determine whether the project is self-funding or not.
This subject is explored in the next chapter.