A life-cycle flexibility framework for designing, evaluating and managing "complex" real options : case studies in urban transportation and aircraft systems

Designing a flexible system with real options is a method for managing uncertainty. This research introduces the concept of "complex" real options, which are composed of interconnected echnological, organizational and process components. "Complex" real options differ from the "standard" real options described in the literature in the option life-cycle activities of design, evaluation and management. To address the challenges posed by "complex" real options, the Life-Cycle Flexibility (LCF) Framework was created. The framework addresses issues along the entire life-cycle of an option, in both technical and social system dimensions. Two case studies were considered in this research to better understand "complex" real options and test the LCF Framework: 1) a large blended wing body aircraft in a commercial aircraft manufacturing enterprise and, 2) Intelligent Transportation System (ITS) capabilities in an urban region with multiple public and private stakeholders. For the case studies, both a quantitative and qualitative analysis was completed. System dynamics and traffic demand models were used to quantitatively evaluate flexibility for each case study. Forty interviews with practitioners were conducted to better understand the practical challenges associated with flexible systems.

Department dc:contributor.department

Massachusetts Institute of Technology. Technology, Management, and Policy Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2007

Author dc:creator

• McConnell, Joshua B. (Joshua Bryan), 1974-

Advisor dc:contributor.advisor

• Joseph M. Sussman.

• Technology, Management, and Policy Program.

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/1721.1/39334
• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Identifier URI

http://dspace.mit.edu/handle/1721.1/39334

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/39334