Screening for Real Options “In” an Engineering System: A Step Towards Flexible System Development
The goal of this research is to develop an analytical framework for screening for real options “in” an engineering system. Real options is defined in the finance literature as the right, but not the obligation, to take an action (e.g. deferring, expanding, contracting, or abandoning) at a predete...
| Main Authors: | , , , |
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| Format: | Presentation |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/84540 |
| _version_ | 1826217216937295872 |
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| author | Bartolomei, Jason E. Hastings, Daniel E. de Neufville, Richard Rhodes, Donna H. |
| author_facet | Bartolomei, Jason E. Hastings, Daniel E. de Neufville, Richard Rhodes, Donna H. |
| author_sort | Bartolomei, Jason E. |
| collection | MIT |
| description | The goal of this research is to develop an analytical framework for screening for real options “in”
an engineering system. Real options is defined in the finance literature as the right, but not the
obligation, to take an action (e.g. deferring, expanding, contracting, or abandoning) at a
predetermined cost and for a predetermined time. These are called "real options" because they
pertain to physical or tangible assets, such as equipment, rather than financial instruments. Real
options improve a system’s capability of undergoing classes of changes with relative ease. This
property is often called “flexibility.” Recently, the DoD has emphasized the need to develop
flexible system in order to improve operational, technical, and programmatic effectiveness. The
aim of this research is to apply real options thinking to weapon acquisitions in order to promote
the ability of weapon system programs to deftly avoid downside consequences or exploit upside
opportunities. |
| first_indexed | 2024-09-23T16:59:50Z |
| format | Presentation |
| id | mit-1721.1/84540 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T16:59:50Z |
| publishDate | 2014 |
| record_format | dspace |
| spelling | mit-1721.1/845402019-04-10T22:35:13Z Screening for Real Options “In” an Engineering System: A Step Towards Flexible System Development Bartolomei, Jason E. Hastings, Daniel E. de Neufville, Richard Rhodes, Donna H. real options engineering system weapon acquisitions The goal of this research is to develop an analytical framework for screening for real options “in” an engineering system. Real options is defined in the finance literature as the right, but not the obligation, to take an action (e.g. deferring, expanding, contracting, or abandoning) at a predetermined cost and for a predetermined time. These are called "real options" because they pertain to physical or tangible assets, such as equipment, rather than financial instruments. Real options improve a system’s capability of undergoing classes of changes with relative ease. This property is often called “flexibility.” Recently, the DoD has emphasized the need to develop flexible system in order to improve operational, technical, and programmatic effectiveness. The aim of this research is to apply real options thinking to weapon acquisitions in order to promote the ability of weapon system programs to deftly avoid downside consequences or exploit upside opportunities. 2014-01-27T14:18:55Z 2014-01-27T14:18:55Z 2006 Presentation Technical Report http://hdl.handle.net/1721.1/84540 Attribution-NonCommercial-ShareAlike 3.0 United States http://creativecommons.org/licenses/by-nc-sa/3.0/us/ application/pdf |
| spellingShingle | real options engineering system weapon acquisitions Bartolomei, Jason E. Hastings, Daniel E. de Neufville, Richard Rhodes, Donna H. Screening for Real Options “In” an Engineering System: A Step Towards Flexible System Development |
| title | Screening for Real Options “In” an Engineering System: A Step Towards Flexible System Development |
| title_full | Screening for Real Options “In” an Engineering System: A Step Towards Flexible System Development |
| title_fullStr | Screening for Real Options “In” an Engineering System: A Step Towards Flexible System Development |
| title_full_unstemmed | Screening for Real Options “In” an Engineering System: A Step Towards Flexible System Development |
| title_short | Screening for Real Options “In” an Engineering System: A Step Towards Flexible System Development |
| title_sort | screening for real options in an engineering system a step towards flexible system development |
| topic | real options engineering system weapon acquisitions |
| url | http://hdl.handle.net/1721.1/84540 |
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