A Competitive Market Approach to Gas Turbine Technology Portfolio Selection

Heavy duty gas turbine developments are major endeavors which use significant resource for development. Optimization of the technology portfolio is critical to yield a competitive product-line which is robust enough to compete in a dynamic market where vantage positions bring large profits but quickly erode over time. The current research addresses some of these challenges by proposing a transparent and integrated method aimed at investigating technology portfolio selection for future gas turbine-based power plants. The value-driven methodology analyzes technology investments, and is the foundation for a strategic decision framework that facilitates the formulation of robust and competitive technology portfolio solutions. A three-step process is proposed in this paper. A market response analysis is first carried out to estimate market penetration. A technology impact and readiness level analysis is performed next and augmented with a portfolio optimization. Finally, “what-if” scenarios are investigated to assess the robustness of selected technology portfolio candidates against a set of market conditions.Copyright © 2011 by Siemens Energy, Inc.