Return on Software: Maximizing the Return on Your Software Investment

The “Do Nothing” Alternative

Alternative A0 represents a course of action that, by convention, is called the “do nothing” alternative. This alternative doesn't really mean doing nothing at all, it only means that none of the proposals in the set being considered are carried out. Instead, the money is put into investments that give a predetermined rate of return (bonds, interest bearing accounts, put into a more profitable part of the corporation, etc.).

It's important to consider the do nothing alternative in most business decisions. Sometimes even the best of the stated proposals is worse than what could be achieved by investing somewhere else. When the do nothing alternative comes out the best, it means the organization would be better off ...