Investor Presentaiton
Backup
Best Practice: Prioritization logic differentiated between categories
Category
Growth
Efficiency/
costs
Legal
Revenue-/capacity-increasing investments, e.g.,
•
New investments
Investments in portfolio
Investments to improve operations, e.g.,
W/o revenue increase
Mostly with P&L effect
Mandatory investments due to, e.g.,
Legal requirements
Contractual obligations
Example: Fire protection
Maintenance of existing infrastructure under
consideration of target lifespan
Maintenance
Example: Replace machinery
Prioritization logic
Evaluate projects by profitability, strategic fit, risk, and status
Rank projects based on scoring model
Evaluate project by profitability, urgency and operational related
criteria
Rank projects based on scoring model
Rank projects in two steps
1. Rough division by ability to postpone and type of the
requirement
2. Detailed ranking by NPV
Allocate budgets to MDAs to cover minimum necessary maintenance
Measures are prioritized by the MDAs
Source: BCG project example
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