Open Science Research Excellence

Open Science Index

Commenced in January 2007 Frequency: Monthly Edition: International Publications Count: 31181

Select areas to restrict search in scientific publication database:
Long Term Examination of the Profitability Estimation Focused on Benefits
Strategic investment decisions are characterized by high innovation potential and long-term effects on the competitiveness of enterprises. Due to the uncertainty and risks involved in this complex decision making process, the need arises for well-structured support activities. A method that considers cost and the long-term added value is the cost-benefit effectiveness estimation. One of those methods is the “profitability estimation focused on benefits – PEFB”-method developed at the Institute of Management Cybernetics at RWTH Aachen University. The method copes with the challenges associated with strategic investment decisions by integrating long-term non-monetary aspects whilst also mapping the chronological sequence of an investment within the organization’s target system. Thus, this method is characterized as a holistic approach for the evaluation of costs and benefits of an investment. This participation-oriented method was applied to business environments in many workshops. The results of the workshops are a library of more than 96 cost aspects, as well as 122 benefit aspects. These aspects are preprocessed and comparatively analyzed with regards to their alignment to a series of risk levels. For the first time, an accumulation and a distribution of cost and benefit aspects regarding their impact and probability of occurrence are given. The results give evidence that the PEFB-method combines precise measures of financial accounting with the incorporation of benefits. Finally, the results constitute the basics for using information technology and data science for decision support when applying within the PEFB-method.
Digital Object Identifier (DOI):


[1] F. Alkaraan and D. Northcott, “Strategic capital investment decisionmaking: A role for emergent analysis tools?,” Br. Account. Rev., vol. 38, no. 2, pp. 149–173, 2006.
[2] V. M. Papadakis, “Do CEOs shape the process of making strategic decisions? Evidence from Greece,” Manag. Decis., vol. 44, no. 3, pp. 367–394, Mar. 2006.
[3] Gorzeń-Mitka and M. Okręglicka, “Improving Decision Making in Complexity Environment,” Procedia Econ. Finance, vol. 16, pp. 402– 409, 2014.
[4] C. Carr and C. Tomkins, “Context, culture and the role of the finance function in strategic decisions. A comparative analysis of Britain, Germany, the U.S.A. and Japan,” Manag. Account. Res., vol. 9, no. 2, pp. 213–239, Jun. 1998.
[5] C. Carr, “Strategic investment decisions: the importance of SCM. A comparative analysis of 51 case studies in U.K., U.S. and German companies,” Manag. Account. Res., vol. 7, no. 2, pp. 199–217, 1996.
[6] F. T. Rothärmel, Strategic management, Second edition. New York, NY: McGraw-Hill Education, 2015.
[7] T. M. Alessandri, D. N. Ford, D. M. Lander, K. B. Leggio, and M. Taylor, “Managing risk and uncertainty in complex capital projects,” Q. Rev. Econ. Finance, vol. 44, no. 5, pp. 751–767, Dec. 2004.
[8] K. D. Miller and H. G. Waller, “Scenarios, Real Options and Integrated Risk Management,” Long Range Plann., vol. 36, no. 1, pp. 93–107, Feb. 2003.
[9] R. Slagmulder, W. Bruggeman, and L. van Wassenhove, “An empirical study of capital budgeting practices for strategic investments in CIM technologies,” PROECO Int. J. Prod. Econ., vol. 40, no. 2, pp. 121–152, 1995.
[10] R. W. Adler, “Strategic investment decision appraisal techniques: The old and the new,” BUSHOR Bus. Horiz., vol. 43, no. 6, pp. 15–22, 2000.
[11] H. Siegwart and U. Singer, “Neues Verfahren für die Wirtschaftlichkeitsbeurteilung von Investitionen in neue Produktionstechnologien” Kostenrechnungspraxis Krp, vol. 2, pp. 63– 70, 1991.
[12] M. Schönheit, Wirtschaftliche Prozeßgestaltung: Entwicklung Fertigung Auftragsabwicklung. Springer-Verlag, 2013.
[13] O. Itanyi, U. J. F. Ewurum, and W. I. Ukpere, “Evaluation of decision making criteria with special reference to quantitative and qualitative paradigms,” Afr. J. Bus. Manag., vol. 6, no. 44, pp. 11110–11117, 2012.
[14] P. F. Drucker, The Effective Executive: Effektivität und Handlungsfähigkeit in der Führungsrolle gewinnen. München: Vahlen, 2014.
[15] J. DuBrin: Leadership: research findings, practice, and skills. Boston: Houghton Mifflin, 2001.
[16] J. Bonito, Interaction and influence in small group decision making. 2014.
[17] O. Negulescu and E. Doval, “The Quality of Decision Making Process Related to Organizations’ Effectiveness,” Procedia Econ. Finance, vol. 15, pp. 858–863, 2014.
[18] E. Savelsberg, Innovation in European freight transportation basics, methodology and case studies for the European markets. Berlin; London: Springer, 2008.
[19] D. Weydandt, Beteiligungsorientierte wirtschaftliche Bewertung von technischen Investitionen für prozessorientierte Fertigungsinseln. Aachen: Shaker, 2000.
[20] G. Sandahl and S. Sjögren, “Capital budgeting methods among Sweden’s largest groups of companies. The state of the art and a comparison with earlier studies,” Int. J. Prod. Econ., vol. 84, no. 1, pp. 51–69, Apr. 2003.
[21] A.-D. Socea, “Managerial Decision-Making and Financial Accounting Information,” Procedia - Soc. Behav. Sci., vol. 58, pp. 47–55, Oct. 2012.
[22] R. Dekkers, “Impact of strategic decision making for outsourcing on managing manufacturing,” Int. J. Oper. Prod. Manag., vol. 31, no. 9, pp. 935–965, Aug. 2011.
[23] T. Baines, “An integrated process for forming manufacturing technology acquisition decisions,” Int. J. Oper. Prod. Manag., vol. 24, no. 5, pp. 447–467, May 2004.
[24] G. Frank, D. V. S. de Souza, J. L. D. Ribeiro, and M. E. Echeveste, “A framework for decision-making in investment alternatives selection,” Int. J. Prod. Res., vol. 51, no. 19, pp. 5866–5883, Oct. 2013.
[25] P. Miller and T. O’Leary, Capital budgeting, co-ordination and strategy: A field study of inter-firm and intra-firm mechanisms. Oxford University Press Oxford, 2005.
[26] F. H. M. Verbeeten, “Do organizations adopt sophisticated capital budgeting practices to deal with uncertainty in the investment decision?,” Manag. Account. Res., vol. 17, no. 1, pp. 106–120, Mar. 2006.
[27] N. Bryson, “Group decision-making and the analytic hierarchy process: Exploring the consensus-relevant information content,” Comput. Oper. Res., vol. 23, no. 1, pp. 27–35, Jan. 1996.
[28] E. Wallace and R. Rijamampianina, “Strategic decision making with corporate emotional intelligence,” Probl. Perspect. Manag., vol. 3, pp. 83–91, 2005.
[29] H. Dincer, G. Gencer, N. Orhan, and K. Sahinbas, “The Significance of Emotional Intelligence on the Innovative Work Behavior of Managers as Strategic Decision-Makers,” Procedia - Soc. Behav. Sci., vol. 24, pp. 909–919, 2011.
[30] Kengpol and P. Boonkanit, “The decision support framework for developing Ecodesign at conceptual phase based upon ISO/TR 14062,” Int. J. Prod. Econ., vol. 131, no. 1, pp. 4–14, May 2011.
[31] D. Golmohammadi and M. Mellat-Parast, “Developing a grey-based decision-making model for supplier selection,” Int. J. Prod. Econ., vol. 137, no. 2, pp. 191–200, Jun. 2012.
[32] F. Herrera, L. Martı́nez, and P. J. Sánchez, “Managing nonhomogeneous information in group decision making,” Eur. J. Oper. Res., vol. 166, no. 1, pp. 115–132, Oct. 2005.
[33] Palomares, R. M. Rodríguez, and L. Martínez, “An attitude-driven web consensus support system for heterogeneous group decision making,” Expert Syst. Appl., vol. 40, no. 1, pp. 139–149, Jan. 2013.
[34] M. B. Barfod, K. B. Salling, and S. Leleur, “Composite decision support by combining cost-benefit and multi-criteria decision analysis,” Decis. Support Syst., vol. 51, no. 1, pp. 167–175, Apr. 2011.
[35] K. Nagel, Nutzen der Informationsverarbeitung: Methoden zur Bewertung von strategischen Wettbewerbsvorteilen, Produktivitätsverbesserungen und Kosteneinsparungen. München (u.a.): Oldenbourg, 1988.
[36] H. J. Ott, “Wirtschaftlichkeitsanalyse von EDV-Investitionen mit dem WARS-Modell am Beispiel der Einführung von CASE,” Wirtschaftsinformatik, vol. 35, no. 6, pp. 522–531, 1993.
[37] R. Sell and R. Schimweg, Probleme lösen: in komplexen Zusammenhängen denken ; mit 19 Tabellen. Berlin (u.a.): Springer, 2002.
[38] S. Printz, R. Vossen, and S. Jeschke, “Adaption of the profitability estimation focused on benefits due to personal affection,” presented at the Workshop on Assessment methodologies - energy, mobility and other real world applications, Coimbra, to be published 2016
Vol:15 No:04 2021Vol:15 No:03 2021Vol:15 No:02 2021Vol:15 No:01 2021
Vol:14 No:12 2020Vol:14 No:11 2020Vol:14 No:10 2020Vol:14 No:09 2020Vol:14 No:08 2020Vol:14 No:07 2020Vol:14 No:06 2020Vol:14 No:05 2020Vol:14 No:04 2020Vol:14 No:03 2020Vol:14 No:02 2020Vol:14 No:01 2020
Vol:13 No:12 2019Vol:13 No:11 2019Vol:13 No:10 2019Vol:13 No:09 2019Vol:13 No:08 2019Vol:13 No:07 2019Vol:13 No:06 2019Vol:13 No:05 2019Vol:13 No:04 2019Vol:13 No:03 2019Vol:13 No:02 2019Vol:13 No:01 2019
Vol:12 No:12 2018Vol:12 No:11 2018Vol:12 No:10 2018Vol:12 No:09 2018Vol:12 No:08 2018Vol:12 No:07 2018Vol:12 No:06 2018Vol:12 No:05 2018Vol:12 No:04 2018Vol:12 No:03 2018Vol:12 No:02 2018Vol:12 No:01 2018
Vol:11 No:12 2017Vol:11 No:11 2017Vol:11 No:10 2017Vol:11 No:09 2017Vol:11 No:08 2017Vol:11 No:07 2017Vol:11 No:06 2017Vol:11 No:05 2017Vol:11 No:04 2017Vol:11 No:03 2017Vol:11 No:02 2017Vol:11 No:01 2017
Vol:10 No:12 2016Vol:10 No:11 2016Vol:10 No:10 2016Vol:10 No:09 2016Vol:10 No:08 2016Vol:10 No:07 2016Vol:10 No:06 2016Vol:10 No:05 2016Vol:10 No:04 2016Vol:10 No:03 2016Vol:10 No:02 2016Vol:10 No:01 2016
Vol:9 No:12 2015Vol:9 No:11 2015Vol:9 No:10 2015Vol:9 No:09 2015Vol:9 No:08 2015Vol:9 No:07 2015Vol:9 No:06 2015Vol:9 No:05 2015Vol:9 No:04 2015Vol:9 No:03 2015Vol:9 No:02 2015Vol:9 No:01 2015
Vol:8 No:12 2014Vol:8 No:11 2014Vol:8 No:10 2014Vol:8 No:09 2014Vol:8 No:08 2014Vol:8 No:07 2014Vol:8 No:06 2014Vol:8 No:05 2014Vol:8 No:04 2014Vol:8 No:03 2014Vol:8 No:02 2014Vol:8 No:01 2014
Vol:7 No:12 2013Vol:7 No:11 2013Vol:7 No:10 2013Vol:7 No:09 2013Vol:7 No:08 2013Vol:7 No:07 2013Vol:7 No:06 2013Vol:7 No:05 2013Vol:7 No:04 2013Vol:7 No:03 2013Vol:7 No:02 2013Vol:7 No:01 2013
Vol:6 No:12 2012Vol:6 No:11 2012Vol:6 No:10 2012Vol:6 No:09 2012Vol:6 No:08 2012Vol:6 No:07 2012Vol:6 No:06 2012Vol:6 No:05 2012Vol:6 No:04 2012Vol:6 No:03 2012Vol:6 No:02 2012Vol:6 No:01 2012
Vol:5 No:12 2011Vol:5 No:11 2011Vol:5 No:10 2011Vol:5 No:09 2011Vol:5 No:08 2011Vol:5 No:07 2011Vol:5 No:06 2011Vol:5 No:05 2011Vol:5 No:04 2011Vol:5 No:03 2011Vol:5 No:02 2011Vol:5 No:01 2011
Vol:4 No:12 2010Vol:4 No:11 2010Vol:4 No:10 2010Vol:4 No:09 2010Vol:4 No:08 2010Vol:4 No:07 2010Vol:4 No:06 2010Vol:4 No:05 2010Vol:4 No:04 2010Vol:4 No:03 2010Vol:4 No:02 2010Vol:4 No:01 2010
Vol:3 No:12 2009Vol:3 No:11 2009Vol:3 No:10 2009Vol:3 No:09 2009Vol:3 No:08 2009Vol:3 No:07 2009Vol:3 No:06 2009Vol:3 No:05 2009Vol:3 No:04 2009Vol:3 No:03 2009Vol:3 No:02 2009Vol:3 No:01 2009
Vol:2 No:12 2008Vol:2 No:11 2008Vol:2 No:10 2008Vol:2 No:09 2008Vol:2 No:08 2008Vol:2 No:07 2008Vol:2 No:06 2008Vol:2 No:05 2008Vol:2 No:04 2008Vol:2 No:03 2008Vol:2 No:02 2008Vol:2 No:01 2008
Vol:1 No:12 2007Vol:1 No:11 2007Vol:1 No:10 2007Vol:1 No:09 2007Vol:1 No:08 2007Vol:1 No:07 2007Vol:1 No:06 2007Vol:1 No:05 2007Vol:1 No:04 2007Vol:1 No:03 2007Vol:1 No:02 2007Vol:1 No:01 2007