Download or read book Real Options and Strategic Technology Venturing written by Caroline M. Sipp and published by Springer Science & Business Media. This book was released on 2012-11-19 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Real Options and Strategic Technology Venturing written by Caroline M. Sipp and published by Springer. This book was released on 2012-11-16 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Why When and How Are Real Options Used in Strategic Technology Venturing written by Caroline Sipp and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Real Options Solution written by F. Peter Boer and published by John Wiley & Sons. This book was released on 2002-11-08 with total page 434 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Real Options written by Lenos Trigeorgis and published by MIT Press. This book was released on 1996-03-14 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Real Options Theory written by Jeffrey J. Reuer and published by Emerald Group Publishing. This book was released on 2007-07-05 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Indicating Value in Early Stage Technology Venture Valuation written by Christoph Philipp Wessendorf and published by Springer Nature. This book was released on 2021-08-24 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fundraising for venture capital investments have continued to increase in recent years. One crucial step in the investment process is the valuation of the target company. Investors are faced with the great challenge of valuing a young venture without a corporate or financial history, a firm customer relationship or even a business model, while still taking into account the tremendous growth potential. Especially the valuation of technology companies is a difficult and often subjective process. Motivated by these considerations, this dissertation details a design science research project, which aims to develop an artifact that improves the indication of value in early-stage technology venture valuation while enabling operationalizable and fair valuation. This approach ensures a more meaningful valuation and better applicability to early-stage technology ventures compared to traditional methods while supporting the deliberate reduction of information asymmetries between entrepreneurs and investors. Firm-specific characteristics and practical applicability are taken into account.
Download or read book Knowledge and the Family Business written by Manlio Del Giudice and published by Springer Science & Business Media. This book was released on 2010-12-06 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Family businesses—the predominant form of business organization around the world—can make numerous, critical contributions to the economy and family well-being in both financial and qualitative terms. But dysfunctional family businesses can be difficult to manage, painful experiences at best, and they can destroy family wealth and personal relationships. This book explores the dynamics of family business management, in the context of constantly changing market conditions and the role that knowledge management plays in strategic planning and adaptation. Integrating the literature from family business, entrepreneurship, industrial psychology, and knowledge management, and with illustrative examples from a variety of enterprises, the authors address such topics as: •How family businesses can compete in the new knowledge economy •How to manage a family business when knowledge is its main asset •How to transfer knowledge (and how to keep it alive) through family generations Within this framework, the authors argue that effective resource management—especially intangible resources—is central to enabling a family-run organization to maintain a sustainable competitive advantage over time. They note that families often develop systemic, intuitive, or tacit knowledge that transcends rational decision making and needs to be recognized and nurtured as a distinctive asset. The authors demonstrate that trans-generational value is achieved when the family firm innovates and adapts itself to changing external and internal conditions. This kind of entrepreneurial performance requires dynamic capabilities and processes designed to acquire, exchange, combine and even shed knowledge and practices; and, in turn, dynamic capabilities result from mechanisms of knowledge sharing, collective learning, experience accumulation, and transfer.
Download or read book What Is So Real About Real Options and Why Are They Optional written by Johnathan Mun and published by John Wiley and Sons. This book was released on 2011-09-14 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the past, corporate investment decisions were cut and dried. Buy a new machine that is more efficient, make more products costing a certain amount, and if the benefits outweigh the costs, execute the investment. Hire a larger pool of sales associates, expand the current geographical area, and if the marginal increase in forecast sales revenues exceeds the additional salary and implementation costs, start hiring. Need a new manufacturing plant? Show that the construction costs can be recouped quickly and easily by the increase in revenues the plant will generate through new and improved products, and the initiative is approved. However, real-life business conditions are a lot more complicated. Your firm decides to go with an e-commerce strategy, but multiple strategic paths exist. Which path do you choose? What are the options you have? If you choose the wrong path, how do you get back on the right track? How do you value and prioritize the paths that exist? You are a venture capitalist firm with multiple business plans to consider. How do you value a start-up firm with no proven track record? How do you structure a mutually beneficial investment deal? What is the optimal timing to a second or third round of financing? This chapter provides a novel approach to applying real options to answering these issues and more.
Download or read book Real Options Analysis written by Johnathan Mun and published by John Wiley & Sons. This book was released on 2012-07-02 with total page 603 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Mun demystifies real options analysis and delivers a powerful, pragmatic guide for decision-makers and practitioners alike. Finally, there is a book that equips professionals to easily recognize, value, and seize real options in the world around them." --Jim Schreckengast, Senior VP, R&D Strategy, Gemplus International SA, France Completely revised and updated to meet the challenges of today's dynamic business environment, Real Options Analysis, Second Edition offers you a fresh look at evaluating capital investment strategies by taking the strategic decision-making process into consideration. This comprehensive guide provides both a qualitative and quantitative description of real options; the methods used in solving real options; why and when they are used; and the applicability of these methods in decision making.
Download or read book Entrepreneurial Profiles of Creative Destruction written by E. Carayannis and published by Springer. This book was released on 2014-08-26 with total page 465 pages. Available in PDF, EPUB and Kindle. Book excerpt: Entrepreneurial Profiles is intended to help students and practitioners of entrepreneurship think about what it takes to create a significant business, with focus on what it may take to create a successful and significant business.
Download or read book Technology Investment written by Kuno J.M. Huisman and published by Springer Science & Business Media. This book was released on 2001-11-30 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: The technology investment decision of an individual firm has become a very complex matter in recent years. One reason is the incredibly rapid progress of technological developments in the last decades. Another reason is the existence of and movement towards oligopolistic markets. In this book, several theoretical and technology investment models of the firm are developed and analyzed. To solve these models real options theory and game theory is used. The real options theory makes it possible to explicitly take into account (and value) the option value of waiting. Game theory is used to incorporate strategic interactions. Technology Investment extends the already existing real options models by the introduction of game theory. The game theory, or more specifically, the theory of timing games, is extended by the inclusion of stochastics.
Download or read book Advanced Digital Architectures for Model Driven Adaptive Enterprises written by Kulkarni, Vinay and published by IGI Global. This book was released on 2020-04-03 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt: The five digital forces (mobility and pervasive computing, cloud, big data, artificial intelligence and robotics, and social media) are poised to bring great academic and industrial breakthroughs. All stakeholders want to understand how to best harness these forces to their advantage. While literature exists for understanding each force independently, there is a lack of knowledge on how to utilize all the forces together to realize future enterprises. Advanced Digital Architectures for Model-Driven Adaptive Enterprises is an essential reference source that explores the potential in unifying the five digital forces to achieve increased levels of agility, efficiency, and scale. Featuring coverage on a wide range of topics including socio-technical systems, adaptive architectures, and enterprise modeling, this book is ideally designed for managers, executives, programmers, designers, computer engineers, entrepreneurs, tool builders, digital practitioners, researchers, academicians, ands students at the graduate level.
Download or read book Open Innovation written by Anne-Laure Mention and published by World Scientific. This book was released on 2016 with total page 708 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Open Innovation: A Multifaceted Perspective unveils research on open innovation from multidisciplinary perspectives and with practical insights from leaders and policy-makers. The first section addresses the links between open innovation and various disciplines, methods, concepts and policy instruments. The second section reviews selectively the literature, focusing essentially on open service innovation and innovation in financial services industries. It also explores different forms and types of practices reflecting the adoption and implementation of open innovation. The third section focuses on the management of open innovation, paying specific attention to the individual, intra- and inter-organizational levels."--Provided by publisher.
Download or read book The Practice of Enterprise Modeling written by Jennifer Horkoff and published by Springer. This book was released on 2016-10-27 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume constitutes the proceedings of the 9th IFIP WG 8.1 Conference on the Practice of Enterprise Modeling held in November 2016 in Skövde, Sweden. The PoEM conference series started in 2008 and aims to provide a forum sharing knowledge and experiences between the academic community and practitioners from industry and the public sector. The 18 full papers and 9 short papers accepted were carefully reviewed and selected from 54 submissions and cover topics related to information systems development, enterprise modeling, requirements engineering, and process management. In addition, the keynote by Robert Winter on “Establishing 'Architectural Thinking' in Organizations” is also included in this volume.
Download or read book TechVenture written by Mohan Sawhney and published by John Wiley & Sons. This book was released on 2002-02-28 with total page 365 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drawn from the popular TechVenture program at the Kellogg School of Management, this book provides a deep understanding of the key finance and business trends in e-commerce Viewing Silicon Valley as a test lab for e-commerce strategies, this book delivers the latest financial and business models shaping the e-commerce industry. TechVenture focuses on the Silicon Valley phenomenon, the new financial strategies, and evolving e-business models. Each chapter draws from field research and interviews with the top minds in business today, and covers the most recent advances in e-finance, including: technology incubators, start-up funds, measuring intellectual capital, valuation techniques for Internet firms, and emerging technologies. In addition, TechVenture features intriguing and informative case studies and examples of major companies, including Idealab, Merrill Lynch, Pfizer, and Amazon.com. General business and finance readers, as well as those fascinated by the Internet economy, will find TechVenture an invaluable read that is on the cutting edge of e-business. Mohanbir Sawhney (Evanston, IL) is the McCormick Tribune Professor of Electronic Commerce and Technology at the Kellogg Graduate School of Management, Northwestern University. Mr. Sawhney was recently named one of the twenty-five most influential people in e-business by Business Week magazine. Ranjay Gulati (Chicago, IL) is the Associate Professor of Management and Organizations at the Kellogg Graduate School of Management and the Director of the Center for Resource on E-Business Innovation. Anthony Paoni (Chicago, IL) is Associate Professor at the Kellogg Graduate School of Management.
Download or read book Technology Valuation Solutions written by F. Peter Boer and published by John Wiley & Sons. This book was released on 2004-09-23 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: A better way to value the profitability and risk of R&D projects New technology and R&D initiatives affect companies in both the service and manufacturing sector. It's estimated that half a trillion dollars is spent worldwide each year on such efforts. Technology Valuation Solutions + website offers a methodology along with illustrative cases for valuing the profitability and risk of R&D projects. A companion to Boer's earlier work, The Valuation of Technology (978-0-471-31638-1), this book provides additional material that will help readers assess a wide variety of projects and business scenarios. In addition to the in-depth case studies, this book includes a website featuring valuation templates that readers can customize for their own individual needs.
