Decisioneering Releases Real Options Analysis Toolkit

Managers Are Unable to Communicate Value …and it costs their shareholders big-time.

Denver, CO, August 7, 2002 - - The current volatility on Wall Street indicates a complete failure by managers to adequately communicate the value inherent in their companies. The problem: managers are not equipped to describe the future opportunities of the firm with convincing financial language.

Until today.

With the Real Options Analysis Toolkit, Decisioneering has delivered a software, training, and consulting package that gives companies the power to capture and communicate the value of their projects, including research and development, mergers and acquisitions, e-business project prioritization, and contract valuation.

Leading companies, including Accenture, Timken, and Schlumberger, are in the process of adopting the methodologies outlined in the training and software. “I believe that the real options product will be extremely valuable to strategists, financial analysts, R&D managers, and others who wish to quantify the value of opportunities accurately," said Jim Schreckengast, Senior Vice President, R&D Strategy of Gemplus International, one of the early adopters of real options.

The secret that everyone knows but nobody talks about is that there are serious limitations with using a straight discounted cash flow analysis for valuation. “A simple cash flow analysis can not capture the intrinsic value of flexibility in strategic decision-making,” says Dr. Johnathan Mun, Vice President of Analytical Services at Decisioneering, Inc. Real options extend discounted cash flow analysis by accounting for future decisions. Why is it a real option? It is "real" because you are investing in operating capital instead of financial capital. It is an "option" because you are investing in the right, but not the obligation, to invest.

Dr. Mun is a recognized expert in real options analysis. As a consulting manager in KPMG Consulting’s Global Financial Strategies practice, Dr. Mun was exposed to a wide array of risk analysis and real options projects, experience that he has applied in his new book, Real Options Analysis: Tools and Techniques for Valuing Strategic Investments & Decisions.

The Real Options Analysis Toolkit consists of 33 models and 69 functions that cover all forms of real-options analytics. “This software combines Decisioneering’s experience with professional training, the power of Crystal Ball software, and the flexibility of real options analysis for financial decision-making,” says Dr. Mun.

“With the availability of this technology, managers have no excuse for not understanding the true value of the opportunities before them, and making responsible decisions,” says Charles Von Thun, CEO of Decisioneering. “And for the manager who likes to use his ‘gut’ to decide, the technology translates gut feel into actual dollars.”

To learn more about real options at Decisioneering visit

Founded in 1986, Denver-based Decisioneering, Inc. provides software, training, and consulting that simplify risk analysis and improve decision-making, including the industry-leading risk analysis package, Crystal Ball. For further information about the company, call 800-289-2550 or visit Decisioneering’s web site,

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Contact:                Jennifer Mogck
                        Marketing Communications Manager
                        Decisioneering, Inc.