Complementing Measurements and Real Options Concepts to Support Inter-iteration Decision-Making in Agile Projects

2008 ◽  
Author(s):  
Zornitza Racheva ◽  
Maya Daneva ◽  
Luigi Buglione
Keyword(s):  
Decision Making ◽  
Real Options

USING REAL OPTIONS IN AN INVESTMENT VALUATION AND DECISION-MAKING PROCESSES

2020 ◽  
Vol 1 (8) ◽  
pp. 43-46
Author(s):  
T. T. ADAMIYA ◽  
Keyword(s):  
Decision Making ◽  
Real Options ◽  
Financial Management ◽  
Significant Risk ◽  
Investment Project ◽  
Market Uncertainty ◽  
Investment Activity ◽  
Traditional Assessment ◽  
Decision Making Processes ◽  
Additional Value

The current stage of global development is characterized by opportunities for investment activity, along with an instability of the economic situation and high uncertainty, dictates the need for investors and managers to make effective decisions, taking into account constantly changing conditions. An investor, while making a decision which project to accept, for the most part, uses the standard methods of financial management as a basis for forecasting and analysis. Considering fast-moving processes of technology change, as well as the conditions of market uncertainty, significant risk and agency problems, the article proposes the use of real options as an insurance (hedging) tool for investors against risks at different stages of the investment project. Risk management can be carried out through real options - the tool of flexibility in decision making. Traditional assessment methods ignore the ability to adapt internal and external changes, however management flexibility can significantly reduce risks, and therefore create additional value.

Toehold Acquisitions as Behavioral Real Options

2017 ◽  
Vol 59 (3) ◽  
pp. 42-73 ◽  
Author(s):  
Han T. J. Smit ◽  
Joris C. M. Kil
Keyword(s):  
Decision Making ◽  
Real Options ◽  
Negative Effects ◽  
Behavioral Biases ◽  
Managerial Attention ◽  
Executive Decision Making

Dealmakers tend to neglect uncertainty when making acquisition decisions, rushing into deals that eventually fail to deliver the anticipated synergies. Cause for this uncertainty neglect can be found in behavioral biases that cloud executive decision making. Acquirers should more often use minority stakes as a toehold to test full acquisitions and to guard themselves against the negative effects of uncertainty. An extended valuation toolkit that requires more managerial attention to uncertainty and behavioral pitfalls can help executives to better identify and value the benefits of minority stake strategies as an alternative to controlling acquisitions in uncertain situations.

ICT Investments and Management for Organizations

2014 ◽  
pp. 544-560
Author(s):  
Georgios N. Angelou ◽  
Anastasios A. Economides
Keyword(s):  
Decision Making ◽  
Real Options ◽  
Information And Communication Technologies ◽  
Business Strategy ◽  
Communication Technologies ◽  
Qualitative Modeling ◽  
Balance Scorecard ◽  
Cost Benefits ◽  
Information And Communication ◽  
Decision Making Model

Developing the Information and Communication Technologies (ICT) strategy that supports the overall organization's business strategy is critical for generating business value. Recognizing the inadequacy of traditional quantitative cost-benefits analysis for evaluating and managing ICT investments, researchers suggest multi-criteria analysis, integrating quantitative and qualitative modeling. This chapter introduces the Balance Scorecard (BS) decision analysis framework and combines it with Real Options (ROs) analysis, in a qualitative and quantitative perspective, for modeling the business flexibility as well as for evaluating and controlling the ICT investments strategy. The multi-criteria ROs modeling applies to all perspectives of the BS framework providing a holistic decision-making model for ICT business.

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