Uncertainty as a key value driver of real options

Real option valuation can be difficult and time consuming. Therefore, we propose a framework which is aimed at facilitating the process of real option valuation and to make it more time efficient. The framework covers not only the valuation of real options but also the organizational, strategic-, and controlling aspects necessary to apply real option valuation accurately. In particular this paper focuses on uncertainties underlying any real option. Uncertainties will be used not only to identify options but also to link the interaction of uncertainties with the interaction of options. Finally, we will demonstrate the applicability of the framework with a real life ecommerce case.

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