Daniel Sörensen - The Automotive Development Process: A Real Options Analysis
Published: 2006-09-26 | ISBN: 3835004999 | PDF | 219 pages | 8.17 MB
Motivated by Toyota's product development capabilities, Daniel Sörensen examines the question of how much to invest in pursuing parallel design alternatives. A real option to switch is modeled accounting for interproject correlations. Based upon economic theory, five principles for value-maximizing the product development process are presented.