Life-Cycle Flexibility

Designing flexibility in a system with real options
is one method for managing uncertainty. However,
designing flexibility in a "complex system" is only
one of several tasks that must be accomplished if the
flexibility is to be deployable and of value.
Many potential challenges exist throughout an
option s life-cycle that makes design, evaluation,
exercise and management of an option complex. Complex real options" are composed of more than a
single or simple change or addition to a system to
create flexibility. Rather, a complex real option is
likely composed of interconnecting technological,
organizational and process components. A complex real
option may be embedded in a complex system, which has
technical and social system components and the
behaviors that go along with this.
To meet the need for considering flexibility in
complex systems the concept of Life-Cycle Flexibility
(LCF), or flexibility from cradle to grave , is
introduced. LCF considers both physical and social
systems and spans the entire life-cycle of an option,
starting with activities to ready an enterprise for
flexible systems and continues through system
monitoring and option exercise decisions.

Autorentext
Joshua McConnell has worked in a variety of capacities including as a management consultant with McKinsey & Company; a systems engineer with NASA; a policy analyst with the Institute for Defense Analysis; and a transportation researcher at the Massachusetts Institute of Technology. Josh has a PhD from MIT in Technology, Management and Policy.

Klappentext
Designing flexibility in a system with real options is one method for managing uncertainty. However, designing flexibility in a "complex system" is only one of several tasks that must be accomplished if the flexibility is to be deployable and of value. Many potential challenges exist throughout an option's life-cycle that makes design, evaluation, exercise and management of an option complex. "Complex real options" are composed of more than a single or simple change or addition to a system to create flexibility. Rather, a complex real option is likely composed of interconnecting technological, organizational and process components. A complex real option may be embedded in a complex system, which has technical and social system components and the behaviors that go along with this. To meet the need for considering flexibility in complex systems the concept of Life-Cycle Flexibility (LCF), or flexibility from "cradle to grave", is introduced. LCF considers both physical and social systems and spans the entire life-cycle of an option, starting with activities to ready an enterprise for flexible systems and continues through system monitoring and option exercise decisions.