Here at SmartFlix we're pretty analytical about it.
When we're batting the idea around, we create a page in the wiki, and the first section is "rationale / analysis". In there we put the number of customers it will attract, or the plausible increase in revenue per customer (with some error bars), then calculate a value for this (a 5% chance of an extra $1 from each of X thousand customers = $Y). We also calculate the cost (we have a nominal price of $75 per engineering hour, and half of that for a design or marketing hour). If a project doesn't pay back its investment in a year, we don't do it. If a project does look to pay back its investment, we then rank order it against other projects to figure out which to do first.
Comments
Here at SmartFlix we're pretty analytical about it.
When we're batting the idea around, we create a page in the wiki, and the first section is "rationale / analysis". In there we put the number of customers it will attract, or the plausible increase in revenue per customer (with some error bars), then calculate a value for this (a 5% chance of an extra $1 from each of X thousand customers = $Y). We also calculate the cost (we have a nominal price of $75 per engineering hour, and half of that for a design or marketing hour). If a project doesn't pay back its investment in a year, we don't do it. If a project does look to pay back its investment, we then rank order it against other projects to figure out which to do first.