Centre for Technology Management

Early valuation of technology: real options, hybrid models and beyond

Francis Hunt, Rick Mitchell, Rob Phaal, David Probert is Hunt, Rick Mitchell, Rob Phaal, David Probert

Centre for Technology Management, Institute for Manufacturing, Engineering Department, University of Cambridge, UK

Abstract

There are fundamental challenges in valuing technology, in particular dealing with uncertainty, complexity and aggregation issues. In this paper we identify desirable properties of valuation tools and then review existing tools against these criteria. We then establish a need for a tool to explore and communicate the value of technologies at the earliest stage of development, and propose a tool, the value roadmap, that fills this gap. We report on initial learning from piloting this tool at a multinational corporation.