Integrated method to create optimal dynamic strategic plans for corporate technology start-ups

This thesis presents an innovative method for evaluating and dynamically planning the development of uncertain technology investments. Its crux centers on a paradigm shift in the way managers assess investments, toward an approach that incorporates uncertainty in the beginning phases of planning instead of first choosing a plan and then considering the effect of risk. By proactively identifying critical uncertainties and "purchasing" flexibility to handle them, management can increase the value of the start-up technology. The method builds on extensive literature in corporate venture capital (CVC), opportunity identification, and opportunity development, to present a new integrated approach that: 1. Explicitly identifies the synergies between an investing company and an opportunity, and articulates the new value network created through a Technology-Implement-Commercialization (TIC) linkage framework. 2. Develops the opportunities articulated in the TIC networks using a tool that identifies current and goal positions for a set of critical issues, and states the critical uncertainties. 3. Combines the outcomes of the TIC and opportunity development steps in a decision analysis of the possible development paths. The result is a recommended dynamic strategy that invests initially in some form of flexibility to enable program directors to avoid paths that eventually appear unproductive, while seizing opportunities that develop along the course of the project. The thesis demonstrates the approach by applying it to a start-up project in solar concentrators, done from the perspective of a corporate sponsor.

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering Systems Division.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2009

Author dc:creator

• Mikati, Samir Omar

Advisor dc:contributor.advisor

• Richard de Neufville.

• Engineering Systems Division.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/53220

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/53220