Valuing architecture for strategic purposes : comments on applying the dependency structure matrix with real options theory

Analysis of product and organisational architecture using dependency structure matrices to describe a series of domains, in conjunction with real options theory, assists in predicting the strategic capabilities of either existing or potential products and organisations, and likely optimal or maximal rates of change. This assists in predicting the extent to which technologically dependent organisations can realistically create and capture value from a portfolio approach as a number of technology conglomerates currently seek to do. It also goes some way towards explaining why existing organisations find it difficult to create or exploit new knowledge and thereby helps explain why many synergies remain unrealised. This suggests that strategic leadership of technology conglomerates must be by people who possess either the tacit knowledge of the financial, organisational and technical aspects of the business, or who possess explicit tools to bridge any gaps. Given that explicit financial tools are available, in the absence of unique individuals the strategic planning process needs to incorporate measures designed to a priori check that the proposed strategies will result in technical knowledge creation and organisational value capture.

Department dc:contributor.department

System Design and Management Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2002

Author dc:creator

• Sharman, David M. (David Maynard), 1966-

Advisor dc:contributor.advisor

• Paul Carlile and Ali A. Yassine.

• System Design and Management 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/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/43617

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/43617