No economic phenomenon is more important to the modern world than the creation of wealth through technological innovation. But technological innovation is a notoriously risky and competitive business. The value of an idea is diminished not only by the risk of technical or commercial failure, but also by the time value of money and the costs of the R&D effort itself.
In Technology Valuation Solutions, expert Peter Boer shares the concepts, case histories, and software that he has developed over his thirty years of direct experience in managing technology and technology-based businesses. Boer skillfully combines financial perspectives, sensible management methods, and real-world experience in technology management to show you the way toward practical, value-based R&D management.
Based on the belief that powerful modern planning tools-such as cash flow analysis, electronic spreadsheets, decision analysis, and real options-can illuminate technology valuation in ways that no other method can, this comprehensive resource presents a model by which those charged with planning innovation can easily and rapidly calculate the value of a project or project proposal, while taking full account of the risks. This financial model, known as Risk-Adjusted Valuation, has implications beyond research, including transactions support and corporate strategy.
Technology Valuation Solutions is structured around a series of situations or cases requiring analysis. A problem is posed and the solution is outlined in detail. In the process, the methodology is illustrated and its features discussed. Some of the cases are designed primarily to illustrate methods, while other cases provide an R&D practitioner's perspective of what the issues "feel" like at each stage of an R&D project. In addition to in-depth case studies found throughout the text, a companion CD-ROM includes Microsoft(r) Excel templates that support the cases discussed throughout the book. You can use the CD-ROM in concert with the text or build your own models based on these software templates when confronting a new problem with its own special circumstances.
Filled with in-depth insight and practical advice, Technology Valuation Solutions offers a better way to value the profitability and risk of R&D projects in a world where competition is fierce, failure is rife, and the value created for winners is substantial.
A better way to value the profitability and risk of R&D projects
New technology and R&D initiatives affect companies in both the service and manufacturing sector. It's estimated that half a trillion dollars is spent worldwide each year on such efforts. Technology Valuation Solutions + CD-ROM offers a methodology along with illustrative cases for valuing the profitability and risk of R&D projects.
A companion to Boer's earlier work, The Valuation of Technology (0-471-31638-5), this book provides additional material that will help readers assess a wide variety of projects and business scenarios. In addition to the in-depth case studies, this book includes a CD-ROM featuring valuation templates that readers can customize for their own individual needs.
F. Peter Boer (Boynton Beach, FL) is President and CEO of Tiger Scientific, Inc., a firm specializing in science and technology consulting and investments. Presently, he is actively engaged with several companies who are adopting option-based valuation methods to their R&D portfolios.
F. Peter Boer
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