Æilus has evolved from a practical value-flow methodology into a theory-driven value management system. This evolution was not a rebranding or a cosmetic refinement - it was a structural response to the limitations encountered while applying Æilus v1.x in increasingly complex socio-economic systems.
This article explains why Æilus v2.0 was necessary, what fundamentally changed, and how the introduction of Value Management Theory (VMT) reshaped the methodology into a coherent, extensible, and academically grounded framework.
Æilus v1.x: Practical Origins (2022)
The first generation of Æilus (v1.x), introduced in 2022, focused on measurable value flows and their optimization within organizations. Its core ideas included:
- representing organizational activity as cyclic value flows
- measuring delivered and consumed business value
- introducing transformers as organizational units that convert incoming value into outgoing value
- prioritizing work based on value-to-cost ratios
- increasing transparency through value-based reporting
Æilus v1.x proved effective in addressing real organizational problems:
- misaligned priorities across teams
- difficulty measuring the contribution of internal units
- inefficiencies in large, multi-team structures
- lack of feedback about value losses
However, v1.x relied on implicit assumptions about value that were never formalized. As a result, several limitations gradually emerged.
Limitations of Æilus v1.x
As Æilus was applied across different domains - technology, operations, governance, and personal effectiveness - the following challenges became apparent:
- Implicit theory of value
Value was treated as measurable but not formally defined. Different stakeholders often used incompatible interpretations of value without realizing it.
- Ambiguity between value and metrics
Measurement instruments (points, money, KPIs) were sometimes mistaken for value itself, leading to metric-driven distortions.
- Lack of formal boundaries
It was unclear where one value system ended and another began, making inter-system interactions hard to reason about.
- Unclear role of interpretation
Differences between planned value and realized value were observed but not formally explained.
- Scalability limits
As systems grew larger and more interconnected, value-flow optimization alone was insufficient to explain sustainability, value leakage, and systemic degradation.
These issues could not be resolved by adding more practices or metrics. They required a theoretical foundation.
Introduction of Value Management Theory (VMT)
Æilus v2.0 is built on Value Management Theory (VMT) - a formal theory that describes how value behaves in socio-economic systems.
VMT introduces:
- a strict ontology of value systems, actors, value elements, flows, and roles
- axioms defining fundamental properties of value (context-dependence, interpretational asymmetry, absence of conservation)
- theorems describing systemic effects such as:
- flow resistance
- accumulation of anti-value
- participation conditions
- system sustainability
- value leakage and inter-system dependency
- scaling through interpretation
VMT explicitly distinguishes:
- planned value (sender interpretation)
- realized value (receiver interpretation)
- retrospective value (post-hoc re-evaluation)
This separation made it possible to explain phenomena such as:
- misaligned expectations
- marketing and branding effects
- overproduction and hidden losses
- sustainability failures in value systems
Importantly, VMT is descriptive, not prescriptive. It defines what exists and what is possible, but does not dictate actions.
Æilus v2.0: A Theory-Driven Methodology
With VMT in place, Æilus could be redefined.
Æilus v2.0 is a value management methodology derived from VMT, designed to govern how value systems can be influenced without violating their fundamental properties.
Key differences from v1.x
|
Aspect |
Æilus v1.x |
Æilus v2.0 |
|---|---|---|
|
Theoretical foundation |
Implicit |
Explicit (VMT) |
|
Focus |
Value flows |
Value systems |
|
Value definition |
Operational |
Formal (ontology + axioms) |
|
Interpretation |
Assumed |
Explicitly managed |
|
Sustainability |
Secondary |
Primary constraint |
|
Roles |
Operational |
Structural and role-based |
|
Practices |
Catalog-centric |
Principle- and system-driven |
Three-Layer Knowledge Architecture
Æilus v2.0 operates as a three-layer knowledge system:
1. Value Management Theory (VMT)
- Describes the nature of value
- Defines ontological entities and constraints
- Independent of any methodology
2. Æilus Methodology v2.0
- Defines principles, roles, processes, and governance loops
- Specifies admissible interventions in value systems
- Ensures alignment with VMT
3. Æilus Design Practice
- Accumulates applied knowledge
- Contains real-world Value System Schemas (VSS)
- Focuses on patterns, cases, and design decisions
This separation prevents:
- theory from turning into philosophy
- methodology from becoming a cookbook
- practice from degenerating into ad-hoc solutions
Role-Centric Operating Model
Æilus v2.0 replaces role-heavy hierarchies with structural ownership:
- Value Transformer Owners manage value production within transformers
- Value System Owners ensure system sustainability and coherence
- Additional scaling roles (Flow Owner, Practice Owner, Domain Owner) are introduced only when complexity requires them
- Æilus Master supports correct methodological adoption without owning value
This model scales by adding roles, not processes.
Why Version 2.0 Matters
Æilus v2.0 is not “more complex” than v1.x - it is more explicit.
It enables:
- reasoning about value beyond metrics
- managing interpretation as a first-class object
- detecting hidden anti-value and resistance
- understanding why certain optimizations fail
- designing sustainable value systems, not just efficient flows
Æilus v1.x laid the practical groundwork.
Æilus v2.0 provides the theoretical and methodological maturity required for complex systems.
Æilus v2.0 represents a transition from value flow optimization to value system governance.
By grounding the methodology in Value Management Theory, Æilus v2.0 offers a rigorous, extensible, and transparent approach to managing value across diverse socio-economic contexts.
All current and future developments of Æilus are now explicitly marked as Æilus v2.0, reflecting this foundational shift.