I have previously posted a straight forward method for creating an identity management business case and based on the downloads I have had it’s been popular. I also know it’s effective because it’s been proven. Most people shy away from the real options part, however. Everyone seems to understand discounted cash flows, but many do not understand real options.
I am now posting a stronger model that is complementary to the other one and can be used for other initiatives besides IAM. It combines real options with Knowledge Value Added (KVA). The methodology is derived from the work of Johnathan Mun so if you want to go back to the source start there.
As side note, some people think it is foolish to share methodologies that you have developed and all the big consulting firms protect theirs. A methodology is just a process, and the only thing that matters is the execution of it. It can be downloaded at the Risk Horizon website here.
