Modern Real Options
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Modern Real Options are suitable for both adaptive (agile) and linear (rigid) projects. Thus, both kinds of projects can coexist and can be handled in the most suitable manner (hybrid portfolios). No organizational changes are required.
Modern Real Options correctly evaluate the financial value of adaptive (agile) and linear projects. Thus, they apply to major corporate processes, including Business Casing (acceptance decision), Portfolio Prioritization (optimal resource allocation), Annual Project Budgeting (right-sizing as per financial objectives).
The correct financial evaluation requires the explicit expression of uncertainties. On this basis, suitable reactions can be described, i.e., adaptability. These inputs are used for a realistic, risk-adjusted evaluation.
It is often crucial to account for adaptability: The greater the uncertainty, the higher the value of adaptability. This value is frequently substantial and decisive.
Key is the realistic representation of the adaptive (agile) project. This requires the allowance of any level of complexity, and a familiar way of expressing business assumptions. This facilitates consensus on all assumptions.
Our ROC software makes all these capabilities easily accessible – no need for being a financial expert.