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Value‐centered R&D organizations: Ten principles for characterizing, assessing, and managing value

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  • William B. Rouse
  • Kenneth R. Boff

Abstract

The management of R&D organizations has received considerable attention in terms of the nature of the flow from research to development to deployed technology, as well as planning and managing this flow. R&D strategies, innovation funnels, and multistage decision processes, to name just a few constructs, have been articulated and elaborated. This article builds on this foundation to consider the nature of the value created by this process. An options‐based approach is advocated for economic valuation of the products of R&D. Adoption and implementation of this approach is outlined in terms of ten principles for characterizing, assessing, and managing value. © 2004 Wiley Periodicals, Inc.† Syst Eng 7: 167–185, 2004

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  • William B. Rouse & Kenneth R. Boff, 2004. "Value‐centered R&D organizations: Ten principles for characterizing, assessing, and managing value," Systems Engineering, John Wiley & Sons, vol. 7(2), pages 167-185.
    • Handle: RePEc:wly:syseng:v:7:y:2004:i:2:p:167-185
    DOI: 10.1002/sys.20003
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    References listed on IDEAS

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    1. William B. Rouse & Kenneth R. Boff, 2003. "Value streams in science & technology: A case study of value creation and intelligent tutoring systems," Systems Engineering, John Wiley & Sons, vol. 6(2), pages 76-91.
    2. Martha Amram, & Nalin Kulatilaka,, 1998. "Real Options:: Managing Strategic Investment in an Uncertain World," OUP Catalogue, Oxford University Press, number 9780875848457.
    3. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
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