Technology Valuation Solutions - Hardcover

by F. Peter Boer (Author)

A better way to value the profitability and risk of R&D projects

New technology and R&D initiatives affect companies in both the service and manufacturing sector. It's estimated that half a trillion dollars is spent worldwide each year on such efforts. Technology Valuation Solutions + website offers a methodology along with illustrative cases for valuing the profitability and risk of R&D projects.

A companion to Boer's earlier work, The Valuation of Technology (978-0-471-31638-1), this book provides additional material that will help readers assess a wide variety of projects and business scenarios. In addition to the in-depth case studies, this book includes a website featuring valuation templates that readers can customize for their own individual needs.

Front Jacket

No economic phenomenon is more important to the modern world than the creation of wealth through technological innovation. But technological innovation is a notoriously risky and competitive business. The value of an idea is diminished not only by the risk of technical or commercial failure, but also by the time value of money and the costs of the R&D effort itself.

In Technology Valuation Solutions, expert Peter Boer shares the concepts, case histories, and software that he has developed over his thirty years of direct experience in managing technology and technology-based businesses. Boer skillfully combines financial perspectives, sensible management methods, and real-world experience in technology management to show you the way toward practical, value-based R&D management.

Based on the belief that powerful modern planning tools-such as cash flow analysis, electronic spreadsheets, decision analysis, and real options-can illuminate technology valuation in ways that no other method can, this comprehensive resource presents a model by which those charged with planning innovation can easily and rapidly calculate the value of a project or project proposal, while taking full account of the risks. This financial model, known as Risk-Adjusted Valuation, has implications beyond research, including transactions support and corporate strategy.

Technology Valuation Solutions is structured around a series of situations or cases requiring analysis. A problem is posed and the solution is outlined in detail. In the process, the methodology is illustrated and its features discussed. Some of the cases are designed primarily to illustrate methods, while other cases provide an R&D practitioner's perspective of what the issues "feel" like at each stage of an R&D project. In addition to in-depth case studies found throughout the text, a companion website includes Microsoft Excel templates that support the cases discussed throughout the book. You can use the website in concert with the text or build your own models based on these software templates when confronting a new problem with its own special circumstances.

Filled with in-depth insight and practical advice, Technology Valuation Solutions offers a better way to value the profitability and risk of R&D projects in a world where competition is fierce, failure is rife, and the value created for winners is substantial.

Back Jacket

Praise for Technology Valuation Solutions

"R&D is a risky investment, but the returns could be very high. Through practical examples Boer teaches proven methodologies to value R&D projects for most any stage of development and investment."
--Barry B. Siadat, Managing Director, Arsenal Capital Partners

"F. Peter Boer's extensive experience as a senior executive, board member, and technical advisor have provided the opportunity for him to participate in the development of hundreds of prospects and numerous successful technical strategies. Here he provides readers with case material from a vast range of real-world situations while adding his own strong personal insights, making this book an important read for those interested in both technical and business decision making."
--Jeffrey M. Lipton, President & CEO, NOVA Chemicals

"If you like numbers, formulas, analyses, strategies, and real-life case studies, you will love this book. Boer provides a number of additional tools for the R&D leader in judging risk for them to benefit in this highly competitive, rapidly changing world of technology."
--Charles F. Larson, President Emeritus, Industrial Research Institute, Inc.

"Good case studies in industrial R&D are very hard to come by. Academics may have the analytical rigor with which the examples should be analyzed, but seldom do they have the facts at the level of detail required. Case studies provided by industrial practitioners often have the inverse problem: facts and stories but no academically rigorous analysis. F. Peter Boer's book is in a category above both of those situations. Technology Valuation Solutions is a uniquely interesting, beautifully written, and well-referenced book that is suitable for business schools as a textbook, for academics as a rich source of factual information on the development of complex industrial technologies, and for industrial management as high-quality training material."
--Louis Hegedus, Senior Vice President, Research & Development, ATOFINA Chemicals

"Boer is a thoughtful and well-informed analyst of technology-based innovations, and has a good nose for the kinds of problems people run into in valuing new and improved technologies. This book deals well with a whole series of challenges involving the interaction of technology and business issues. Written in simple and accessible prose, the illustrative case examples will appeal greatly to technology managers as well as other business professionals who are looking for a counterweight to the flood of purely 'numbers driven' valuation literature that is now so fashionable."
--G. Sam Samdani, PhD, Advanced Materials, Biotechnology, and Chemicals Expert, McKinsey & Company

"This book is a must-read for any current or aspiring CTO. Through just enough theory and relevant cases, Boer provides insight into what to request from the R&D financial and strategic planners. In addition to building understanding of the value of these analyses, the text clearly lays out the hazards of relying exclusively on such without a thorough understanding of both the input and other nonfinancial risk factors."
--Dr. F. M. Ross Armbrecht Jr., President, Industrial Research Institute, Inc.

"Today, companies are under increasing pressure to manage their R&D project portfolios in a disciplined and value-creative manner. An assortment of different theories and methods has been proposed to help management with different aspects of this challenge. In this book, Boer presents the practitioner with a comprehensive approach to R&D portfolio management integrating the latest financial techniques with the specific issues of the field. Drawing on his extensive experience, the author introduces the material in a pragmatic, user-friendly way through a series of actual cases. This book will be a great help for the executive interested in practical solutions to the problems of R&D management."
--Vladimir Antikarov, Monitor Group, and coauthor of Real Options: A Practitioner's Guide

Author Biography

F. PETER BOER is President and CEO of Tiger Scientific Inc., a firm specializing in science and technology consulting and investments. He is the author of The Valuation of Technology and The Real Options Solution (both published by Wiley). After a successful career as a senior business and technical executive, Boer joined Yale University, where he taught valuation and other subjects. At present, he is actively engaged with several companies that are adopting option-based valuation methods for their R&D portfolios.