Document Type
Article
Date
2001
Keywords
Technology investment, Real options, Risk management, Investment risk, Investment structure, Project management
Language
English
Disciplines
Business Administration, Management, and Operations | Technology and Innovation
Description/Abstract
Real operating (flexibility) options embedded in a technology investment are valuable because they allow management to take rational, value-adding actions that could favorably affect operational traits of the investment (timing, scale, scope, etc.). These options, however, are not inherent in technology investments. Rather, they usually must be carefully planned and designed to fit each investment differently. Building on concepts from the area of financial risk management, this paper presents a methodology for planning the creation of specific operating options designed to maximize the value of a technology investment in light of the risks underlying that investment. The paper also illustrates the use of the methodology in the context of a Web-based information technology investment.
Recommended Citation
Benaroch, Michel, "Option-Based Management of Technology Investment Risk" (2001). Management - All Scholarship. 7.
https://surface.syr.edu/mgt/7
Included in
Business Administration, Management, and Operations Commons, Technology and Innovation Commons