Is Business Value a tangible or intangible concept?
George LewisProgram/Project Manager| DXC Technology CompanyHeredia, Costa Rica
PMBOK 1.6 Defines Busines Value, but is this value tangible or intangible? Saving Changes...
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George LewisProgram/Project Manager| DXC Technology CompanyHeredia, Costa Rica
Comments? Saving Changes...
Eric SimmsSenior Program ManagerBaltimore, Maryland, United States
According to the definition ‘business value’ is both tangible and intangible. An example of tangible business value would be an organization’s $700 million dollar data center, while an example of its intangible business value would be the knowledge and experience of its Data Center Manager, which helps the organization maximize efficiency while minimizing costs. Saving Changes...
Intangibles business value are multiple, increase user experience would go in there.
Tangible are the obvious one, you would "see" them. Saving Changes...
Drew CraigSr. Agile & Product Coach| VanguardPhiladelphia, Pa, United States
Rolling up BV into measurable categories - Cost Reduction, Risk Reduction, Increased Efficiency - these all add value as a return in [some] time. There also could be an acquisition to gain a competitive edge of perception to stakeholders.
I would also say that sometimes the intangible become tangible, and vice-versa. Saving Changes...
BV is Tangible as well as Intangible . If we could convert and quantify the intangible in measurable value,that will reach the lowest person of the organization. Saving Changes...
Cheikh FAYE Microsoft Dynamics 365 Business Expert, CEO and owner| Eurêka TechnologiesDakar, Senegal
Business value is both tangible and intangible as Eric explained very well in the case of the Data Center, it means some kind of handsome
return from any investment. Saving Changes...
Projects are more likely to have intangible value, while products should have tangible value.
The reason I say this is that finishing a project and turning a product over to the business does not guarantee revenue. The project creates the potential for value, and then the business takes ownership of using the product to generate tangible value. This is not always successful, but it is the goal. Saving Changes...
Anton OosthuizenSenior Business Analyst / Project Manager| Self EmployedPretoria, Gauteng, South Africa
I think everybody agrees that business value is both tangible and intangible. But it is important to remember that no intangible value remain like that. Intangible value such as increase customer satisfaction, or experience, translated directly into a tangible value such increased revenue. If this does not happen then your intangible value is not positive, which btw brings up an interesting phenomena - We always just assume that when we mention value we are referring to a positive aspect, but a bad project can actually add no or negative value i.e. distracting from the economic contribution. If you consider that then an intangible value without a direct correlation to a tangible value is in itself a negative value. Saving Changes...
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