Valuing architecture for strategic purposes : comments on applying the dependency structure matrix with real options theory
Author(s)
Sharman, David M. (David Maynard), 1966-
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System Design and Management Program.
Advisor
Paul Carlile and Ali A. Yassine.
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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.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, System Design & Management Program, 2002. Also issued in leaves. Includes bibliographical references (p. 232-236).
Date issued
2002Department
System Design and Management Program.Publisher
Massachusetts Institute of Technology
Keywords
System Design and Management Program.