Reference no: EM133767710
Question: Start reviewing and responding to the postings of your classmates as early in the week as possible. Respond to at least two of your classmates' initial postings. Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between two or more lines of reasoning in the discussion. Cite sources in your responses to other classmates. Complete your participation for this assignment by the end of week.
Managing Real Options with Emerging Technologies
In this assignment, you will consider a framework for identifying and developing technology-based business opportunities in new areas for a company and discuss how this framework could be applied to different domains of industry and technologies. Using the framework and concepts you learned from your Week 4 readings, you will also discuss the process by which real options are developed and exercised.
On the basis of your reading, address the following:
Identify the emerging technologies mentioned in this paper. Describe the particular problems the technologies intended to address.
Discuss how the framework, principles, and mechanisms discussed in this paper could be applied to other domains of industry and other technologies. Stress the aspects of the framework that are generic compared to those that may need to be adapted on a technology-specific basis.
Describe how a real options framework is created. Discuss how uncertainties are viewed as opportunities that increase value. Analyze how real options are developed and managed.
Consider the assertion that Net-Present-Value (NPV) and other Discounted-Cash-Flow (DCF) approaches fail to recognize the value-creating characteristics of emerging technology investments. Explain this assertion and analyze whether the paper addresses the limitation of NPV versus real options.