Avaluen

Avaluen is a conceptual framework used to assess the overall value of decisions, products, or projects by aggregating multiple value dimensions into a single evaluative score or balanced scorecard. The approach treats value as multidimensional, capturing financial return, user value or usability, strategic alignment, risk, and social or environmental impact, as well as potential for future value. In practice, avaluen is not a single standardized method; organizations adapt multi-criteria decision analysis (MCDA) techniques to define indicators, assign weights, and combine them into a composite score.

Common steps include identifying relevant value dimensions through stakeholder input, selecting measurable indicators for each dimension, normalizing the indicators to a common scale, applying weights that reflect relative importance, and aggregating using additive or non-linear schemes. Sensitivity analysis and scenario planning are often used to interpret results and assess robustness.

Applications of avaluen span product development, project portfolio management, policy appraisal, and sustainability dashboards. The method supports transparent trade-offs among competing objectives and can facilitate communication with diverse stakeholders. Proponents argue that avaluen helps formalize value judgments and align decisions with strategic goals, while critics caution that results depend heavily on chosen dimensions, weighting, and data quality.

There is no universal standard for avaluen, and terms describing similar ideas—such as value-based design, value scorecards, or MCDA frameworks—are often used interchangeably. See also multi-criteria decision analysis, benefit-cost analysis, and decision risk assessment.