Innovation management is increasingly fraught with uncertainties, complexity, and ‘information overload’. Emerging analytics methods and tools can be integrated to drive and streamline decision making in complex, uncertainty-laden environments.
SARK7 utilizes an integrated ‘techno-economic analysis’ process to structure and streamline innovation decision-making. The integrated modeling and simulation framework guides strategic decision making via a like-to-like valuation of opportunities in a portfolio context. The method integrates Net Present Value (NPV), Monte Carlo simulation, and Real Options Analysis (ROA) to extrapolate the value of an innovation. This integrated approach is particularly powerful when new and uncertain markets are involved.
The universal NPV basis allows for like-to-like comparisons across a diverse strategic portfolio. Comparative strategies can be refined: structured financing, hybrid models (i.e. licensing, risk sharing), scaling, timing, tax, etc. Implicit stakeholder perceptions & assumptions are made explicit & verified throughout development and refinement of the model.
DOWNLOAD SUMMARY OVERVIEW – Techno-Economic Analysis for Innovation Management:
http://www.sark7.com/docs/technoeconomic.pdf
Keywords: techno-economic analysis, valuation, innovation, strategy, management of uncertainty, optimization, IP, R&D, NPV, ROA
SCTR7: Data Science and Analytics 
February 15, 2013
Best practices, Management, Methods