According to Spitsberg et al. (2015), various emerging technologies are designed to solve ever-changing demographic changes. Notably, emerging technologies include Cleantech, emerging market growth technologies, demographic change technologies, and digitization technologies. All the technologies are developed to address a specific problem.
Cleantech technology is primarily developed to address the concerns of environmental cleanness. It aims to improve the environment by reducing wastage and emissions. Besides, it provides sufficient relief to shortages in energy, water, and natural resources. It provides paths for both developed and developing countries to address greenhouse gas emissions, deforestation, resource scarcity, and air and water pollution. Emerging market technologies address the concerns of rapid urbanization. The technology is designed for the growth of urbanization in Asia and other regions. It also targets products and services rising with the middle-class population in both the BRIC and other areas with growing economies. Another emerging technology deals with the changing demographic. It addresses the shifts in the demographics of the population. Lastly, digitization technology ushers in the big data and internet of things through its confluence of inexpensive sensor technology, low-cost data storage, and faster processor speeds.
Application in other Industries
Understanding the dynamics of the value chain is one of the considerations applied in different industries. Every industry requires new markets, new technology to drive cost leadership, and critical innovation competency. Every industry faces challenges that need evolving technology to solve. As a result, the principles discussed in the article can be essential in recognizing the ability of the sector to identify technologies that can be exploited by a particular company in the industry to drive successful investment. For instance, the business creation framework centers on megatrend areas where a market interruption occurs frequently and on emerging technology trends, providing information about potential technological disruptions that lead to new business opportunities.
Real options refer to the economically valuable right to make or abandon some alternative courses concerning business investment. It involves projects involving tangible assets. Natural options can include the decision to expand, defer or wait, or leave a project entirely. Reals options framework is obtained as long as an investment is established to provide choices for the investment. On the other hand, uncertainties can be a source of business opportunities, mainly when the business creation framework provides information about market disruptions and technological disruption, which can be an opportunity for value-creation in business.
NPV, DCF and Real Options
Although the authors do not cover the subjects above in detail, the implication is that NPV alone is limited and cannot provide the best information for the business’s decision-making framework. The authors suggest incorporating a Real option, which is a financial term for alternatives or choices that become available with an investment opportunity. These options arise base on the conditions of the business investment during its life. Implicitly, NPV, and DCF alone are not acceptable methods due to limitations which the authors avoid expressing.