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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.

[1] Value Model Reference Content (LEAD-ES20007BCPG)[2] Applying Real-World BPM in an SAP Environment, Ann Rosenberg, Mark von Rosing, Greg Chase, Rukhshaan Omar, and James Taylor, SAP Press, 2011, ISBN: 978-1-59229-343-8[3] Brandenburger, A. M. and H. Stuart. 1996. “Value-based business strategy.” Journal of Economics & Management[4] Butler Group, ‘Measuring IT Costs and Value’, East Yorkshire, England, Butler Group Press, September 2005[5] Deloitte, ‘Driving Enterprise Value,’ Deloite Press, New York, October 2004[6] IBM Global CEO study, 2009, 2010, 2011, 2012, 2013 and 2014, IBM Value Institute Press, New York[7] Cook, R.; ‘How to Spot a Failing IT Project’, CIO Magazine, 17 July 2007

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