Tempus Decisionware is a break through proprietary software program that can easily value new product developments, extensions into new markets, as well as complex strategies developed under high levels of uncertainty. Using Real Options analysis, the software requires only range estimates and the sequence of events that may occur as time progresses to calculate value across three spheres: Net present value, option value, and abandonment value. Gone is the futility of arriving at volatility estimates and probabilities. EVS has the flexibility to arrive at a high level P&L in minutes or it can be used to value multi billion dollar investments.
For some time the notion that uncertainty breeds option value in an investment, if properly managed, has been generally accepted, but it has failed to become a useful management tool because of the near impossibility of calculating option value outside of the financial markets. Present attempts to value “real options” have been based on the false premise that volatility estimates can be reliably generated, or that probabilities of future events can be reliably forecast. Tempus instead values the anticipated path that a product development effort may follow using range estimates for the costs and benefits.
Check out our presentation at the Gartner PPM & IT Conference. View it here.