By focusing the capital allocation process on the determining strategic investment decisions, the most profitable and value-creating investments can be identified. Individual investments can be put into a relevant business and life-cycle context. 

Decision-makers are provided with consistent and comparable information between business units and investment alternatives.

Alternative scenarios with complex combinations of investments can easily be identified and evaluated.  Management has a fair chance to identify the best investment strategies and decisions from the an entire business perspective instead of being trapped in a piecemeal capital allocation negotiation.