02.7.6 · Skill in Business models
Return on investment
Comparing what a piece of work returns with what it costs.
ROI asks whether an investment pays back, in revenue, saved costs or time. It applies to features, infrastructure and internal tools alike. Rough estimates are fine, as long as the team actually checks the outcome afterwards.
Resources
3- articleStart hereRICE: simple prioritization for product managers ↗Sean McBride (Intercom) · 2018 · 7 min
The original write-up of reach, impact, confidence and effort scoring, from the team that created it.
- articleGo deeperCost of delay and CD3 prioritisation at scale ↗Joshua Arnold (Black Swan Farming) · 9 min
Dividing cost of delay by duration to order work, as applied across a large portfolio.
- articleGo deeperSaaS Metrics 2.0: a guide to measuring and improving what matters ↗David Skok · 2013 · 35 min
The standard long-form reference for MRR, churn, LTV and CAC, with the formulas and the reasoning behind them.
Tools
none yetTools for this topic are being researched.