There is no such
thing as an “intangible” ROI benefit.
If it makes a difference then you can see it.
If you can see it you can measure it. If you
can measure it you can manage it and demand accountability
for it. |
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Measurement is central to effective management.
And managers today need much more information than they get
from traditional project evaluation methods such as simple ROI, IRR,
or NPV. Today's managers need:
- The ability to measure intangible benefits
- Control over double counting of benefits or costs across multiple project proposals
- The ability to evaluate projects in the context of an entire portfolio of potential project investments
- Methods that provide sensitivity analysis for decision models
- Calibration methods for eliminating bias in estimated costs or benefits
- Methods for estimating costs and benefits as probable ranges rather than as arbitrary point estimates
- Means for understanding of the effects of a negative financial outcome
- Tools that acknowledge the effects of changing conditions throughout project lifecycles
Major Scale will enable you to evaluate all your IT
and capital project investments in the context of a portfolio of
active or proposed investments, rebalanced throughout the lifecycle
of each project.
Major Scale will step you through a complete set of
procedures to define investment analysis parameters, determine decision
models, generate investment analysis reports and
ensure that promised benefits are actually
harvested.
In-depth analysis of risk/return estimates
We will use techniques tailored
to fit the capabilities of your organization. These can include quantification
of intangible benefits and probabilistic estimation techniques
for forecasting cash flows to ensure that each decision model's input
information is comprehensive and reliable.
More accurate forecasting of outcomes
Major Scale will bring higher capability
to your organization, including statistical estimation techniques
to evaluate the full range of potential ROI outcomes and their volatility.
Real Option values for proposed initiatives
Real Options Analysis provides an economically
advanced method for evaluating the monetary value of future
opportunities.
We examine both operating options, which allow managers the flexibility
of changing investment configuration features such as timing, scaling,
scope, etc., and strategic growth options that may spawn opportunities
for future growth based on the successful outcome of the current
initiative.
Major Scale gives management powerful and flexible
methods for understanding the risks and opportunities and forecasting
the most likely returns from IT and capital project investments. We will
enable you to measure and manage project risks within the context
of your entire portfolio of projects, tailored to your own unique
constraints and risk profile.
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