The Automotive Development Process: A Real Options Analysis - Softcover

Sörensen, Daniel

Softcover

ISBN 10: 3835004999 ISBN 13: 9783835004993

Publisher: Deutscher Universitätsverlag, 2006

Synopsis

global automotive industry currently undergoing substantial changes the way firms compete. Driving forces behind these changes globalized markets, technologies, more demanding customers. structures are evolving within the automotive companies, there increased evidence of the importance of we- functioning networks order to gain a competitive advantage. The benchmarks for the automotive companies the demands for higher product quality, more efficiency bringing products to markets, a reduction of time to market. above changes present the starting point for the research by Daniel which deals with the product development process, particular within the automobile industry. It a subject, which to now hasn't been satisfactorily treated. Daniel sets out to explain value the engineering product development paradigms of point- set-based concurrent engineering from a holistic viewpoint. First of all, identifies select capabilities based empirical studies of best practice current automotive product development, particular at Toyota Motor Corporation. This a pronounced understanding of why different product engineering systems able to yield a competitive advantage the market. Second of all, applies a real option valuation model to these capabilities within a financial economics framework order to quantify from the viewpoint of shareholders the value of poi- concurrent engineering respectively. In this way, automotive firms are given a powerful tool, which enables them to identify the optimal amount of innovation to build into the product development process. Finally, Daniel establishes five clear principles of product development, which give significant direction for automotive executives designing controlling the product development process optimally uncertain dynamic environment.

About this title

About the Author

Dr. Daniel Sörensen promovierte bei Prof. Dr. Henry Schäfer am Lehrstuhl für Allgemeine Betriebswirtschaftslehre und Finanzwirtschaft an der Universität Stuttgart. Er ist als Habilitant bei Prof. Dr. Henry Schäfer in Stuttgart tätig.

From the Back Cover

The global automotive industry is currently undergoing significant changes and the companies are not only faced with opportunities, but also with new risks. Traditional automotive industry giants are fighting to maintain their market share and their profitability, and at the same time Asian automotive companies are increasing their share of the market and their profitability at high rates.

Motivated by the situation in practice and by the Toyota development process, Daniel Sörensen examines the question of how much to invest in pursuing more than one design alternative in parallel within the product development process. He develops a real options model capable of modeling and valuing in monetary terms the effects of interproject correlation coefficients and volatilities in order to compute the optimal number of design alternatives to develop in parallel. Based upon economic theory, he presents five principles in order to value-maximize the product development process.

Edition details

• Publisher: Deutscher Universitätsverlag
• Publication date: 2006
• ISBN 10: 3835004999
• ISBN 13: 9783835004993
• Binding: Paperback
• Language: English
• Number of pages: 246