Value roadmapping: A structured approach for early stage technology investment decisions

Deciding to invest in early stage technologies is one of the most important tasks of technology management and arguably also the most uncertain. It assumes a particular significance in the rise of technology companies in emerging economies, which have to make appropriate investment decisions. Technology managers already have a wide range of methods and tools at their disposal, but these are mostly focussed on quantitative measures such as discounted cash flow and real options techniques. However, in the early stages of technology development there seems to be a lot of dissatisfaction with these techniques as there appears to be a lack of accuracy with respect to the underlying assumptions that these models require. In order to complement these models this paper will discuss an alternative approach that we call value road-mapping. By adapting roadmapping techniques the potential value streams of early stages technologies can be plotted and hence a clearer consensus based picture of the future potential of new technologies emerges. Roadmapping is a workshop-based process bringing together multifunctional perspectives, and supporting communication in particular between technical and commercial groups. The study is work in progress and is based on a growing number of cases. (c) 2006 PICMET.

Understanding and communicating the value of technology: A process perspective

Technological investment is an important driver of innovation and the evaluation of technology potential is becoming increasingly important in this context. Although there is a range of possible approaches and tools for understanding and communicating the value of technology to potential customers, not all are useful or accessible in practice, where the situation is often complex and constantly evolving. Although many companies have their own customised processes in place for securing approval for technology development, often combining several techniques, very few empirical studies have been performed to learn from these practices and provide an overall view of the process of ";selling"; technologies internally or externally. In this paper, the current literature and practice related to technology valuation is reviewed and summarised in a five step process for building a business case for technology investment that gives guidance on where and when to use specific valuation tools. The seller or proposer's perspective is taken and consultative sales techniques incorporated. This provides a flexible reference for R&D managers and adds to the body of literature on the selection and use of valuation tools. A user friendly guide has been published detailing the five step approach. © 2011 IEEE.

Towards a process framework for assessing the potential value of technologies

Current technology valuation literature predominantly focuses on explaining the merits and implications of specific tools, but little research is available that takes a contextual process perspective. The aim of this paper is to further develop an integrative process framework that supports the structuring of the valuation process and the more systematic choice of valuation techniques for new technologies. The paper starts by reviewing key concepts and issues that surround the assessment of technology investments and the evidence of what companies use. Many factors need to be brought into the appraisal process, reflecting technological and market conditions. While there is usually a desire to reduce the assessment to a financial value, it is also widely appreciated that there is long term strategic value in securing a technological lead, which is difficult, or even inappropriate, to assess in purely financial terms. The multiple factors involved in the evaluation activity are identified with respect to the changing nature of the appraisal process as the technology matures and the implications for associated tools. The result of the literature review is a process framework which provides a conceptual basis for integrating valuation techniques. This framework is then populated with the results of industrial case studies on technology valuation to allow conclusions on its applicability to be drawn. © 2011 IEEE.

Performance plumbing: Installing performance management systems to deliver lasting value

Purpose - The purpose of this paper is to explore the concept of performance plumbing, arguing that too often performance management systems in organisations are not correctly installed. Without the appropriate plumbing, performance management systems do not drive organisational change and improvement. Design/methodology/approach - The paper draws on the consultancy experiences of two of the authors, as well as the research of the third. Specific case examples are provided throughout the paper to illustrate the points being made. Findings - The paper argues that the key elements of a plumbed-in performance management system are: performance architecture; performance insights; performance focus; and performance action. Taken together, these four elements provide the necessary plumbing to enable performance management systems to deliver real value. Research limitations/implications - The paper draws on the experience of the authors, rather than a formally designed piece of research. The ideas presented in the paper would therefore benefit from further investigation and testing. Originality/value - The paper will be valuable to scholars and practitioners interested in ensuring that performance management systems deliver lasting value. © Emerald Group Publishing Limited.

Proceedings of an international workshop on the value of computer-based engineering tools, held in Cambridge in April 1997

There is increasing adoption of computer-based tools to support the product development process. Tolls include computer-aided design, computer-aided manufacture, systems engineering and product data management systems. The fact that companies choose to invest in tools might be regarded as evidence that tools, in aggregate, are perceived to possess business value through their application to engineering activities. Yet the ways in which value accrues from tool technology are poorly understood.

This report records the proceedings of an international workshop during which some novel approaches to improving our understanding of this problem of tool valuation were presented and debated. The value of methods and processes were also discussed. The workshop brought together British, Dutch, German and Italian researchers. The presenters included speakers from industry and academia (the University of Cambridge, the University of Magdeburg and the Politechnico de Torino)

The work presented showed great variety. Research methods include case studies, questionnaires, statistical analysis, semi-structured interviews, deduction, inductive reasoning, the recording of anecdotes and analogies. The presentations drew on financial investment theory, the industrial experience of workshop participants, discussions with students developing tools, modern economic theories and speculation on the effects of company capabilities.