Premium
Transforming the Acquisition Enterprise: A Framework for Analysis and a Case Study of Ship Acquisition
Author(s) -
Pennock Michael J.,
Rouse William B.,
Kollar Diane L.
Publication year - 2007
Publication title -
systems engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.474
H-Index - 50
eISSN - 1520-6858
pISSN - 1098-1241
DOI - 10.1002/sys.20070
Subject(s) - valuation (finance) , context (archaeology) , value (mathematics) , engineering , process management , computer science , management science , operations research , business , accounting , geography , archaeology , machine learning
The acquisition of public sector complex systems is time‐consuming, very expensive, and rife with uncertainties. The enterprise associated with acquisition is an excellent candidate for transformation— fundamental change to achieve substantially higher levels of value. This paper argues that choosing among alternative transformation initiatives should be based on an enterprise‐wide perspective as well as systematic economic valuation of the alternative investments. An options‐based methodology for assessing the economic value of alternative initiatives is presented and illustrated in the context of military ship building. © 2007 Wiley Periodicals, Inc. Syst Eng 10: 99– 117, 2007