Nutzwert

Nutzwert is a measure of usefulness or benefit of a decision option, used in decision support. It is not strictly monetary; it represents a combination of subjective preferences and objective criterion fulfillment.

In a Nutzwertanalyse, several criteria are defined and weighted. Each option is scored on each criterion on a scale (for example 0 to 5 or 0 to 100). The weighted sum of the scores yields the Nutzwert, often preceded by normalization to allow comparison across criteria. The approach is additive in many implementations, though alternative models can be employed.

Nutzwert is applied in project selection, product design, policy evaluation and urban planning, especially in German-speaking countries’ public administration and industry. It provides a structured framework to compare diverse impacts, such as costs, safety, environmental effects, and usability, on a common scale.

The method relies on subjective judgments for weights and scores, which can affect results. Therefore, sensitivity analysis and careful criterion selection are recommended to mitigate bias and ensure transparency. Critics point to potential overemphasis of tangible criteria or the influence of stakeholder preferences on the outcome.

Etymology and related terms: Nutzwert combines Nutzen (benefit) and Wert (value). Related concepts include Nutzwertanalyse, Nutzwertkriterien, multi-criteria decision analysis, and cost-benefit analysis.