Real options approach to explore the effect of organizational change on IoT development project

Zhou, Zhiping; Liu, Xinbao; Pei, Jun; Pardalos, Pãnos M.; Liu, Lin; Fu, Chao

doi:10.1007/s11590-016-1006-8

Cited by 6 publications

(3 citation statements)

References 34 publications

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“…However, in order to use DTs in such a way that they benefit these SPM areas, the “human‐side” (e.g., personal and intraorganizational issues) must also be considered. One example stated by Zhou et al (2017) was that the increased use of DTs in companies required the formation of new departments to collect and process the PLCD in order to aid decision making in other departments. The level of application and implementation of DTs for SPM is also likely to be influenced by different factors such as technological affinity and/or company size.…”

Section: Discussionmentioning

confidence: 99%

Application of digital technologies for sustainable product management in a circular economy: A review

2022

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Digital technologies (DTs), such as the Internet of Things, big data, artificial intelligence, or blockchain, are considered as enablers for a more sustainable and circular economy. So far, literature on these topics has mostly focused on specific DTs and subareas of sustainable product management (SPM). The aim of this paper is to provide a more comprehensive overview of current and potential examples of DT applications in SPM (e.g., product design/assessment, supply chain management, and business models). The collected examples (n = 146) were analyzed based on a systematic literature review, using quantitative and qualitative content analysis. Deductive and inductive analyses of the examples revealed the potential of DTs in terms of their usability along the product life cycle, their role as enablers for circular economy strategies and in specific SPM activities. DT application often entails only incremental improvements, for example, increased efficiency of existing processes, with more radical forms of improvement remaining relatively scarce. There is clear room for greater adoption and optimization of DTs, in various areas of SPM, so as to accelerate the transition towards a more sustainable and circular economy.

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Section: Discussionmentioning

confidence: 99%

Application of digital technologies for sustainable product management in a circular economy: A review

2022

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“…This might be crucial at the beginning of the decision-making process, especially in those companies of smaller size, which usually have less access to resources. In this vein, companies face crucial investment decisions, involving significant challenges to the progress of the application of IoT [31].…”

Section: The Importance Of the Iotmentioning

confidence: 99%

Internet of Things and Their Coming Perspectives: A Real Options Approach

2019

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Internet of things is developing at a dizzying rate, and companies are forced to implement it in order to maintain their operational efficiency. The high flexibility inherent to these technologies makes it necessary to apply an appropriate measure, which properly assesses risks and rewards. Real options methodology is available as a tool which fits the conditions, both economic and strategic, under which investment in internet of things technologies is developed. The contribution of this paper is twofold. On the one hand, it offers an adequate tool to assess the strategic value of investment in internet of things technologies. On the other hand, it tries to raise awareness among managers of internet of things technologies because of their potential to contribute to economic and social progress. The results of the research described in this paper highlight the importance of taking action as quickly as possible if companies want to obtain the best possible performance. In order to enhance the understanding of internet of things technologies investment, this paper provides a methodology to assess the implementation of internet of things technologies by using the real options approach; in particular, the option to expand has been proposed for use in the decision-making process.

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“…The risks classified as high were either related to the human factor and the competence or the software components of the system Data security risks (Tupa et al, 2017) Majority of common risk factors in the manufacturing area are related to information security, data loss, loss of integrity of information, errors of data processing, a risk of cyber-attacks (Nurse et al, 2017) Cyber attacks, security of data and information Financial risks (Zhou et al, 2017) As the investment nature is of a long cycle and high risk, the "organisational factors" in the implementation are also non-ignorable (Yigitbasioglu, 2015) Concerns the hidden costs of contracting and its performance The impact on SMEs is higher as they potentially do not have access to large sums of capital to invest in cutting-edge IT software and hardware (Hassan, 2017) IT investment has a major impact on cloud computing…”

Section: Types Of Risksmentioning

confidence: 99%

Risks of digitalisation of business models

Kovaitė

Stankevičienė

2019

Proceedings of 6th International Scientific Conference Contemporary Issues in Business, Management and Economics Engineering ‘2

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Purpose – to identify the types of risks to be analysed during the process of digitalisation of business models driven by Industry 4.0 and determine which blocks of business model are affected most. Research methodology – FARE method as a Multicriteria decision support method for expert evaluation is used. Findings – results determine 6 types of risks: technical, competence, acceptance by staff, acceptance by customers and partners, data privacy and security and financial risks. The highest effect is shown in customer channels, key resources, and revenue stream and customer segmentation. The lowest effect is shown for key partners. Research limitations – research focuses on the level of enterprise and does not cover macro-level risks. Practical implications – Industry 4.0 brings new types of risks to be assessed. The results show that risk assessment matrix RADi (Risk Assessment of Digitalisation of Business Model) can be used by enterprises to identify areas of highest risks when planning and implementing digitalisation of parts or whole business model due to Industry 4.0. Originality/Value – a new risk assessment matrix RADi (Risk Assessment of Digitalisation of Business Model) is developed by the authors as a contribution to the systematic approach to the changes occurring because of digitalisation in the business models

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Real options approach to explore the effect of organizational change on IoT development project

Cited by 6 publications

References 34 publications

Application of digital technologies for sustainable product management in a circular economy: A review

Application of digital technologies for sustainable product management in a circular economy: A review

Internet of Things and Their Coming Perspectives: A Real Options Approach

Risks of digitalisation of business models

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