Managing uncertainty in new product development projects for improved valuation and decision making is one of the most complex and challenging problems in operations management. It is important for any corporation depending on the success of new products and innovations. This work shows how uncertainty can be handled and partly resolved by conducting an information update during the development process. It is one of the first comprehensive models that combine statistical decision theory in form of Bayesian analysis with a real options framework for projects exposed to different sources of uncertainty. The proposed framework makes an important theoretical contribution in addressing this problem, while at the same time being of significant value to managers who face the difficult task of evaluating and managing complex product development projects.

Keywords

Bibliographic Information

Book Title: The Value of Information Updating in New Product Development
Authors: Christian Artmann
Series Title: Lecture Notes in Economics and Mathematical Systems
DOI: https://doi.org/10.1007/978-3-540-93833-0
Publisher: Springer Berlin, Heidelberg
eBook Packages: Mathematics and Statistics, Mathematics and Statistics (R0)
Copyright Information: Springer-Verlag Berlin Heidelberg 2009
Softcover ISBN: 978-3-540-93832-3Published: 17 February 2009
eBook ISBN: 978-3-540-93833-0Published: 21 April 2009
Series ISSN: 0075-8442
Series E-ISSN: 2196-9957
Edition Number: 1
Number of Pages: XVIII, 208
Number of Illustrations: 41 b/w illustrations
Topics: Applications of Mathematics, Probability Theory and Stochastic Processes, Finance, general, Innovation/Technology Management, Operations Research/Decision Theory, Quantitative Finance

Publish with us

Policies and ethics

Authors:

Sections

Buy it now

Buying options

Other ways to access

Table of contents (10 chapters)

Front Matter

Back Matter

About this book