Management tools for real options techniques and task analysis

This paper is concerned with the extension of work presented previously by A. Jagle et al. (see Proc IEMC, Albuquerque, NM, USA, IEEE, p.147-152, 2000), where a new methodology was proposed for the assessment and validation of the value delivered in the development of new products based on the use of real options techniques. It has become evident that the real options approach offers a more robust alternative to current project evaluation processes, and that there is a need for a user friendly, easy assimilated tool that can be used to implement these techniques. To assist managers in applying these techniques to project selection, management, and tracking, a set of tools is proposed. These include: a Project Real Options Management Tool (PROMT); a Resource Oriented Simulation for Task Analysis (ROSTA); and an Optional Path Planning Tool (OPPT)