Abstract
This paper proposes a systems life cycle model that could be used to analyse the commercial feasibility of emerging technologies development. The model is based on a comprehensive review of the literature on the key factors impacting the success or failure in commercialising technology. The proposed systems model includes a technical, economic and operational domain and covers a project's planning, project implementation and feedback, analysis and control phases. This model was applied to a case study, a wave energy technology, with a concentration on the economic domain. The economic domain includes an after tax analysis model, which a typical company uses to assess economic feasibility and a sensitivity analysis that identifies the most important attributes. The internal rate of return (IRR) and other figures of merit (FoMs) were used to show whether the project meets standard business criteria. This case shows how financial leverage significantly improves a project's economic attractiveness.
| Original language | English |
|---|---|
| Pages (from-to) | 441-462 |
| Number of pages | 22 |
| Journal | International Journal of Industrial and Systems Engineering |
| Volume | 14 |
| Issue number | 4 |
| DOIs | |
| State | Published - 8 Jul 2013 |
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Keywords
- ATA
- After tax analysis
- Commercializing emerging technology
- Engineering economics
- IRR
- Internal rate of return
- LCC/EUAC
- Life cycle costs
- NPV
- Net present value
- Renewable energy
- Systems engineering
- Systems model
- Technology commercialization
- Wave/ocean energy farm
Cite this
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A systems model for commercialising emerging technology : Wave energy farm system (WEFS) case study. / Bonilla, Oscar; Merino, Donald N.; Raftery, Michael; Wainer, Tamara; Jain, Rashmi.
In: International Journal of Industrial and Systems Engineering, Vol. 14, No. 4, 08.07.2013, p. 441-462.Research output: Contribution to journal › Review article › Research › peer-review
TY - JOUR
T1 - A systems model for commercialising emerging technology
T2 - Wave energy farm system (WEFS) case study
AU - Bonilla, Oscar
AU - Merino, Donald N.
AU - Raftery, Michael
AU - Wainer, Tamara
AU - Jain, Rashmi
PY - 2013/7/8
Y1 - 2013/7/8
N2 - This paper proposes a systems life cycle model that could be used to analyse the commercial feasibility of emerging technologies development. The model is based on a comprehensive review of the literature on the key factors impacting the success or failure in commercialising technology. The proposed systems model includes a technical, economic and operational domain and covers a project's planning, project implementation and feedback, analysis and control phases. This model was applied to a case study, a wave energy technology, with a concentration on the economic domain. The economic domain includes an after tax analysis model, which a typical company uses to assess economic feasibility and a sensitivity analysis that identifies the most important attributes. The internal rate of return (IRR) and other figures of merit (FoMs) were used to show whether the project meets standard business criteria. This case shows how financial leverage significantly improves a project's economic attractiveness.
AB - This paper proposes a systems life cycle model that could be used to analyse the commercial feasibility of emerging technologies development. The model is based on a comprehensive review of the literature on the key factors impacting the success or failure in commercialising technology. The proposed systems model includes a technical, economic and operational domain and covers a project's planning, project implementation and feedback, analysis and control phases. This model was applied to a case study, a wave energy technology, with a concentration on the economic domain. The economic domain includes an after tax analysis model, which a typical company uses to assess economic feasibility and a sensitivity analysis that identifies the most important attributes. The internal rate of return (IRR) and other figures of merit (FoMs) were used to show whether the project meets standard business criteria. This case shows how financial leverage significantly improves a project's economic attractiveness.
KW - ATA
KW - After tax analysis
KW - Commercializing emerging technology
KW - Engineering economics
KW - IRR
KW - Internal rate of return
KW - LCC/EUAC
KW - Life cycle costs
KW - NPV
KW - Net present value
KW - Renewable energy
KW - Systems engineering
KW - Systems model
KW - Technology commercialization
KW - Wave/ocean energy farm
UR - http://www.scopus.com/inward/record.url?scp=84879644099&partnerID=8YFLogxK
U2 - 10.1504/IJISE.2013.054806
DO - 10.1504/IJISE.2013.054806
M3 - Review article
VL - 14
SP - 441
EP - 462
JO - International Journal of Industrial and Systems Engineering
JF - International Journal of Industrial and Systems Engineering
SN - 1748-5037
IS - 4
ER -