Real Options and Strategic Technology Venturing
Title | Real Options and Strategic Technology Venturing PDF eBook |
Author | Caroline M. Sipp |
Publisher | Springer Science & Business Media |
Pages | 136 |
Release | 2012-11-19 |
Genre | Business & Economics |
ISBN | 1461458145 |
This book seeks to answer “why, when and how are real options used in strategic technology venturing?” This work tests for the role of real options in decision making involving three types of firms in decreasing order of technology-dependence – technology-driven (TD) (where the profit is fully dependent on new technology creation and leveraging), technology-based (TB) (where the profit is enabled and supported by technology) and technology-neutral (TN) (where the profit is almost independent of technology). It also deals with strategic and non-strategic types of decisions driven by real options. This analysis shows that an environment presenting co-opetitive (simultaneous competition and collaboration) conditions triggers the use of real options (why), that serve to transform the position, posture and propensity of businesses to innovate and thus they co-evolve (when) into more effective and efficient forms of businesses (co-specialization) (how). The authors demonstrate that embracing risk and uncertainty can increase levels and probability of new venture formation. However, their simulation also shows that it should be adapted to the risk profile of the firm and that timing is also a factor to be considered. Although engaging the concepts of real options, this analysis does not focus on a specific investment valuation methodology, but highlights the relationship between knowledge and risk and rather addresses the management of mindsets, as moving towards a systematic conceptualization of real options represents a different paradigm in decision making.
Real Options and Strategic Technology Venturing
Title | Real Options and Strategic Technology Venturing PDF eBook |
Author | Caroline M. Sipp |
Publisher | Springer |
Pages | 124 |
Release | 2012-11-16 |
Genre | Business & Economics |
ISBN | 9781461458159 |
This book seeks to answer “why, when and how are real options used in strategic technology venturing?” This work tests for the role of real options in decision making involving three types of firms in decreasing order of technology-dependence – technology-driven (TD) (where the profit is fully dependent on new technology creation and leveraging), technology-based (TB) (where the profit is enabled and supported by technology) and technology-neutral (TN) (where the profit is almost independent of technology). It also deals with strategic and non-strategic types of decisions driven by real options. This analysis shows that an environment presenting co-opetitive (simultaneous competition and collaboration) conditions triggers the use of real options (why), that serve to transform the position, posture and propensity of businesses to innovate and thus they co-evolve (when) into more effective and efficient forms of businesses (co-specialization) (how). The authors demonstrate that embracing risk and uncertainty can increase levels and probability of new venture formation. However, their simulation also shows that it should be adapted to the risk profile of the firm and that timing is also a factor to be considered. Although engaging the concepts of real options, this analysis does not focus on a specific investment valuation methodology, but highlights the relationship between knowledge and risk and rather addresses the management of mindsets, as moving towards a systematic conceptualization of real options represents a different paradigm in decision making.
Why, When and How Are Real Options Used in Strategic Technology Venturing?
Title | Why, When and How Are Real Options Used in Strategic Technology Venturing? PDF eBook |
Author | Caroline Sipp |
Publisher | |
Pages | 0 |
Release | 2011 |
Genre | |
ISBN |
The Real Options Solution
Title | The Real Options Solution PDF eBook |
Author | F. Peter Boer |
Publisher | John Wiley & Sons |
Pages | 434 |
Release | 2002-11-08 |
Genre | Business & Economics |
ISBN | 0471421278 |
Harness the power of real options Real options theory is based on the Nobel Prize--winning work on financial options, and has captured the interest of executives, managers, and investors who need to understand the future profitability of an asset. Originally developed to value technology initiatives and companies, the method is now being applied broadly across various businesses and industries. The Real Options Solution offers comprehensive coverage of the real options approach with a five-step framework and examples for applying the author's unique total value model based on real options analysis. This approach will help executives and investors minimize the risk of committing to new ventures and delivers a framework flexible enough to apply to business initiatives in all types of companies.
Real Options Theory
Title | Real Options Theory PDF eBook |
Author | Jeffrey J. Reuer |
Publisher | Emerald Group Publishing |
Pages | 520 |
Release | 2007-07-05 |
Genre | Business & Economics |
ISBN | 1849504946 |
Examines the ways in which real options theory can contribute to strategic management. This volume offers conceptual pieces that trace out pathways for the theory to move forward and presents research on the implications of real options for strategic investment, organization, and firm performance.
Real Options
Title | Real Options PDF eBook |
Author | Lenos Trigeorgis |
Publisher | MIT Press |
Pages | 452 |
Release | 1996-03-14 |
Genre | Business & Economics |
ISBN | 9780262201025 |
Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. In the 1970s and the 1980s, developments in the valuation of capital-investment opportunities based on options pricing revolutionized capital budgeting. Managerial flexibility to adapt and revise future decisions in order to capitalize on favorable future opportunities or to limit losses has proven vital to long-term corporate success in an uncertain and changing marketplace. In this book Lenos Trigeorgis, who has helped shape the field of real options, brings together a wealth of previously scattered knowledge and research on the new flexibility in corporate resource allocation and in the evaluation of investment alternatives brought about by the shift from static cash-flow approaches to the more dynamic paradigm of real options—an approach that incorporates decisions on whether to defer, expand, contract, abandon, switch use, or otherwise alter a capital investment. Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. Also discussed are the strategic value of new technology, project interdependence, and competitive interaction. The ability to value real options has so dramatically altered the way in which corporate resources are allocated that future textbooks on capital budgeting will bear little resemblance to those of even the recent past. Real Options is a pioneer in this area, coupling a coherent picture of how option theory is used with practical insights in into real-world applications.
Real Options
Title | Real Options PDF eBook |
Author | Martha Amram |
Publisher | Oxford University Press on Demand |
Pages | 246 |
Release | 1999 |
Genre | Business & Economics |
ISBN | 9780875848457 |
Using real-world examples and clear case studies, the authors provide investors and managers with an innovative method for assessing a company's non-financial assets, allowing them to assess opportunities whose financial rewards are less than certain.