Introduction
Value Modeling is one of the most common dilemmas and challenges confronting companies today, regardless of factors such as size, revenue, industry, region or business model[1].
There is a need to manage decisions to make large-scale investments in business and IT-enabled capabilities as well as to ensure that these complex investments are effectively and efficiently transformed into the different competencies to realize concrete business value[2].
In far too many cases, this business value simply is not realized[3]. Just consider the many different cases and evidence in the research space today.
In recent years, survey after survey has revealed that from 30 to 70 percent of large-scale investments in, for example IT-enabled change, is wasted, challenged or fails to bring a return to the company. In fact, one survey from the Butler Group[4] on measuring costs and value found that, in many enterprises, less than 8 percent of the IT budget is actually spent on initiatives that bring value for the company.
Another survey from Deloitte about ‘Driving Enterprise Value[5] of 124 financial executives revealed that almost 80 percent of IT projects did not actively encourage value creation and thereby realization in their enterprise.
In a yearly (from 2009-2014) accruing CEO study, IBM survey of Fortune 1000 CxO found that, on average, CIOs believe that 40 percent of all IT spending brought no return to their organizations[6].
A 2007 study[7] conducted by The Standish Group found that only 35 percent of all IT projects succeeded while the remainder (65 percent) were either challenged or failed.
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