Finops.World
3S2

Cost-Delay-Quality Decision Scenarios

Key role(s)

Objectives

Implement an decision-making policy based on factual impact criteria

Benefits

Facilitating decision-making

This is a major objective of a global FinOps approach, helping to achieve the right trade-off between the 3 dimensions: Cost, Speed, Quality.

Illustration of cost, speed and quality
Illustration of cost, speed and quality

To be able to make the right choices, it may be useful to set up a scoring of optimization opportunities based on weighted impacts including :

  • Costs
  • Time-to-Market
  • Quality
  • Reliability
  • Resilience
  • Business impact

Let's take an example with 3 scenarios:

IMPACTSPOIDSSC. 1SC. 2SC. 3
Coûts20421
Time-to-Market101-10
Qualité25-112
Fiabilité20012
Résilience10012
Business15-101
TOTAL1005085145

By comparing each score for each dimension we can see for example that scenario A represents the best impact on costs and time-to-market.

Radar Graph comparing solutions
Radar Graph comparing solutions

But by calculating the weighted scores we realize that, in our specific case, scenario C is the best, in terms of total score but also because it has only positive or neutral impacts.

Graph comparing solutions by dimension and with their combined score
Graph comparing solutions by dimension and with their combined score

With a representation of this type, one can compare for each dimension but also the total. It is also a demonstration that one must remain vigilant in the way information is presented, in order to be able to make the right choices adapted to the company.

See previous card

Management of business objectives, critical success factors and KPIs

ID 3S1

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Budgeting & Forecasting

ID 3G1

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