Innovation management: integrated techno-economic analysis

February 15, 2013

Best practices, Management, Methods

Innovation Management

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

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About SARK7

Scott Allen Mongeau (SARK7) is an INFORMS Certified Analytics Professional (CAP) and a Data Scientist in the Cybersecurity business unit at SAS Institute. Scott has over 20 years of experience in project-focused analytics functions in a range of industries, including IT, biotech, pharma, materials, insurance, law enforcement, financial services, and start-ups. Scott is a part-time PhD (ABD) researcher at Nyenrode Business University. He holds a Global Executive MBA (OneMBA) and Masters in Financial Management from Erasmus Rotterdam School of Management (RSM). He has a Certificate in Finance from University of California at Berkeley Extension, a MA in Communication from the University of Texas at Austin, and a Graduate Degree (GD) in Applied Information Systems Management from the Royal Melbourne Institute of Technology (RMIT). He holds a BPhil from Miami University of Ohio. Having lived and worked in a number of countries, Scott is a dual American (native) and Dutch citizen. He may be contacted at: webmaster@sark7.com All posts are copyright © 2015 SARK7 All external materials utilized imply no ownership rights and are presented purely for educational purposes.

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