Comments on: Don’t Look for ROI on Enterprise 2.0 – Look for Value! http://vaughanmerlyn.com/2009/04/15/dont-look-for-roi-on-enterprise-20-look-for-value/ Vaughan Merlyn on the Changing Role of the IT Organization Tue, 15 May 2012 12:38:10 +0000 hourly 1 http://wordpress.com/ By: links for 2009-04-28 | Brian Magierski http://vaughanmerlyn.com/2009/04/15/dont-look-for-roi-on-enterprise-20-look-for-value/#comment-664 Tue, 28 Apr 2009 23:03:58 +0000 http://vaughanmerlyn.com/?p=1337#comment-664 [...] Don’t Look for ROI on Enterprise 2.0 – Look for Value! « IT Organization Circa 2017 (tags: enterprise2.0 technology roi value) Share and Enjoy: [...]

]]> By: Links for 22-04-09 | burningCat http://vaughanmerlyn.com/2009/04/15/dont-look-for-roi-on-enterprise-20-look-for-value/#comment-661 Wed, 22 Apr 2009 08:06:12 +0000 http://vaughanmerlyn.com/?p=1337#comment-661 [...] Don’t Look for ROI on Enterprise 2.0 – Look for Value! [...]

]]> By: itorganization2017 http://vaughanmerlyn.com/2009/04/15/dont-look-for-roi-on-enterprise-20-look-for-value/#comment-657 Thu, 16 Apr 2009 15:38:19 +0000 http://vaughanmerlyn.com/?p=1337#comment-657 Interesting, Russ. It would seem there are even more ways to use Real Options than I was aware! I am looking forward to your post on this!

]]> By: Russ Aebig http://vaughanmerlyn.com/2009/04/15/dont-look-for-roi-on-enterprise-20-look-for-value/#comment-656 Thu, 16 Apr 2009 15:29:27 +0000 http://vaughanmerlyn.com/?p=1337#comment-656 Although there is a financial foundation to Real Options, I’ve typically seen it best used a tool for addressing the complex challenges which accompany demand management and portfolio management. The financial carry over of the Real Options thinking has been a treated as a pleasant side effect and useful if justification is needed for decisions.

I have seen it attempted to be used more formally with an Appropriation Committee in the launching of a new line of business, but the line of thinking never gained enough traction (largely because of the cause and effect is too far removed from each other).

In reflection, I agree with you about the maturity level and industry domain. I’d never thought of these dimensions in the context of Real Options, but I believe this does seem to track very closely with my experience.

]]> By: Is Your IT Organization an Enabler? Or a Preventer? « IT Organization Circa 2017 http://vaughanmerlyn.com/2009/04/15/dont-look-for-roi-on-enterprise-20-look-for-value/#comment-655 Thu, 16 Apr 2009 15:15:45 +0000 http://vaughanmerlyn.com/?p=1337#comment-655 [...] vs. CTO – What’s The Difference?To Centralize or Decentralize IT – That Was The Question…Don’t Look for ROI on Enterprise 2.0 – Look for Value!The Art and Science of Grouping Projects into ProgramsIT Maturity and the Role of Relationship [...]

]]> By: itorganization2017 http://vaughanmerlyn.com/2009/04/15/dont-look-for-roi-on-enterprise-20-look-for-value/#comment-654 Thu, 16 Apr 2009 11:03:56 +0000 http://vaughanmerlyn.com/?p=1337#comment-654 Real Options does show promise as a way of thinking about certain types of IT investment – especially those of an infrastructural nature. I’ve worked with some clients on this in the past, and from that experience I’d say it only really fits those with the highest Business-IT Maturity, especially if they are in financial services where the concepts behind options thinking are very familiar.

Even then, I’d say that while Real Options can help with the financial ROI thinking, it does not necessarily achieve the clarity of “cause and effect” thinking I believe is needed to get the highest value from this type of initiative.

]]> By: Russ Aebig http://vaughanmerlyn.com/2009/04/15/dont-look-for-roi-on-enterprise-20-look-for-value/#comment-652 Thu, 16 Apr 2009 01:07:37 +0000 http://vaughanmerlyn.com/?p=1337#comment-652 Vaughan,
It is interesting how this topic is surfacing in the blogosphere. It brings to mind a book from a few years ago which ties “real options” to business decisions. It was the result of a wonderful set of research in the financial industry and it’s applicability to strategic decisions. I will be posting about it in reference to E2.0 as I have a few cycles free up.
Russ

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