Patent ID: 8620700

Claim:
A business method for defining, controlling and optimizing a flow of value down a workflow pipeline using a computer system, comprising: creating by a processor a phase-gate workflow pipeline via a component of at least one project in which completion of one or more predetermined activities of each project advances the project to a succeeding phase in the pipeline; mapping by the processor each of the one or more activities of each project in the pipeline using a mapping component to a value metric that is a function of a risk discount factor using an option value technique, wherein the value metric of each project is dynamically updated while project activities are being performed by updating the corresponding risk discount factor and/or the probability of exiting its current phase gate; and implementing by the processor an analysis component that analyzes the flow of value down the pipeline and managing the at least one project based on analysis of the flow of value, wherein said analysis includes executing, by the processor, the steps of: determining a current present value PV(0) and expected high and low present values PV(nU), PV(nL) that represent a high and low estimate of a phase value after a select duration, determining a rate of increase of the projects after the select duration by dividing a difference of the expected high present value PV(nU) and the current present value PV(0) by the current present value PV(0), determining a rate of decrease by dividing a difference of the expected low present value PV(nL) and the current present value PV(0) by the current present value PV(0), determining a value representative of a current option using both the rates of increase and decrease and a probability of exiting a current phase as inputs in a function, and computing a net value for each project as the current option value less a current investment.