A real options approach to strategic RFID investment decision

Xiaodan Wu, Dianmin Yue, Junbo Bai, Chao Hsien Chu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

6 Scopus citations

Abstract

One major roadblock for RFID adoption is to justify its return on investment. Most researchers used cost/benefit analysis, discount cash flow, or net present value method to support the decision; however, these methods does not consider uncertainties and lack flexibility when valuate the investment in RFID. In this paper, we examine the uncertainties and risks associated with RFID investment and propose the use of real options approach to consider them. We demonstrate how can a real options method be used and suggest a process for making strategic RFID investment decision. The results were evidenced and supplemented with a sensitivity analysis.

Original languageEnglish (US)
Title of host publication2009 IEEE International Conference on RFID, RFID 2009
Pages314-321
Number of pages8
DOIs
StatePublished - Sep 25 2009
Event2009 IEEE International Conference on RFID, RFID 2009 - Orlando, FL, United States
Duration: Apr 27 2009Apr 28 2009

Other

Other2009 IEEE International Conference on RFID, RFID 2009
CountryUnited States
CityOrlando, FL
Period4/27/094/28/09

All Science Journal Classification (ASJC) codes

  • Computer Networks and Communications
  • Information Systems
  • Electrical and Electronic Engineering

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