Intangible benefits

AkhilaShell
Tera Contributor

Dear Community folks,

 

Just checking how do you guys compute Intangible benefits i.e., Non Monetary benefits. How does that compute to Net Present Value in ServiceNow.

 

Regards

Akhila 

3 REPLIES 3

Vinay3
ServiceNow Employee
ServiceNow Employee

Hi @AkhilaShell Net Present Value works only for monetary benefit plans

I agree but do you compute non monetary benefits in anyway? i.e., taking probability, likelihood, impact a threshold etc.., any best practices around this? 

 

phil_bool_unifi
Tera Guru
Tera Guru

This is something that comes up in conversation quite a lot.  How does a certain task being easier, or a certain situation being less stressful actually equate to net value? 

For many companies, otherwise intangible benefit may be experienced in ways that appear remotely connected, but are in fact consequences of intangible changes, like staff retention or reduction in lost hours due to sickness, stress or travel. 

For example, in manufacturing, reduction in delays, accidents and errors may actually represent improvements in working environment, community spirit, communication between colleagues, rota management or scheduling.

Non-monetary benefits in the Demand and Project record won't actually update the NPV in a record, but capturing them and articulating them might help you align work to value beyond NPV, and capture financial benefits at the same time.