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Benefit Analysis: Criteria, Weighting & Decision Matrix

Master benefit analysis (NWA): must-have vs. should-have criteria, weighting, evaluation scales, sensitivity analysis, and decision matrices.

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schutzgeist

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Benefit Analysis: Criteria, Weighting & Decision Matrix

Utility Value Analysis

This post is a term definition for Utility Value Analysis (UVA) – including exam questions, examples, and tags.

In a Nutshell

Utility Value Analysis is a multi-criteria method for evaluating alternatives when quantitative and qualitative criteria must be considered. The result is a traceable ranking based on weighted point values.

Compact Technical Description

UVA orders alternatives based on:

  • Criteria catalog (incl. must/knockout criteria)
  • Weighting (sum of weights = 1)
  • Normalized evaluations (e.g., 0–10)

The overall utility value is calculated as the sum of weight × partial utility per criterion. Sensitivity analyses check whether the ranking remains stable if weights/evaluations change.

Important: Perform knockout checks first so that inadmissible alternatives are not “extrapolated.”

Exam-Relevant Key Points

  • Clearly separate must/knockout vs. should criteria
  • Weight sum must equal 1
  • Scale consistency: “higher = better” (invert cost criteria)
  • IHK: Justify and document weighting + data sources
  • Manipulation risk: Four-eyes principle
  • Coupling with TCO/ROI possible
  • Documentation requirement: matrix, assumptions, versioning, approval

Core Components

  1. Goal definition
  2. Criteria catalog incl. knockout
  3. Scales/utility functions
  4. Weighting methods (pairwise comparison/percentage)
  5. Evaluation matrix
  6. Normalization + aggregation
  7. Sensitivity analysis
  8. Visualization (bar/spider/heatmap)
  9. Roles/approvals
  10. Plausibility check

Simple Practical Example

Alternatives: Framework A, B, C
Criteria: Performance, Maintainability, License Costs, Community
Weights: 0.35, 0.30, 0.20, 0.15
Evaluations (0–10), cost criterion inverted
Ranking: highest weighted sum wins

Advantages and Disadvantages

Advantages

  • Combines hard and soft criteria
  • Transparent decision process
  • Sensitivity analysis possible
  • Combines well with TCO/ROI

Disadvantages

  • Subjective weights
  • Scale choice can distort
  • Compensation problem (very good can offset very bad)

Typical Exam Questions (with Brief Answers)

  1. What is utility value analysis used for? Structured selection from alternatives based on weighted criteria.
  2. Must vs. Should? Must/knockout criteria exclude; should criteria flow into the score.
  3. How is utility value calculated? Sum of (weight × evaluation), weight sum = 1.
  4. Why sensitivity analysis? Checks ranking stability.

Free Response

UVA is ideal for software/tool/architecture decisions. Key factors are clear criteria, traceable weighting, consistent scales, and complete documentation.

Learning Strategy

  1. Choose a selection problem from everyday life and gather criteria.
  2. Sketch the UVA process as a flow.
  3. Calculate a complete matrix under time pressure.
  4. Check scale consistency + weight sum.

Further Information

  1. https://de.wikipedia.org/wiki/Nutzwertanalyse
  2. https://wirtschaftslexikon.gabler.de/definition/nutzwertanalyse-39520
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