Assessing Blockchain Investments through the Learning Option: An Application to the Automotive and Aerospace Industry
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Blockchain technology has demonstrated huge potential in providing simplicity and efficiency for different industries. However, its implementation in the automotive and aerospace industry is quite slow because of its difficulty to show value creation. Real option methodology, specifically the learning option, is an assessment tool which fits the conditions under which investment in blockchain technology is carried out. Thus, its application can help managers to wisely invest in this technology despite the complexity of this industry. This study offers a suitable tool to assess the strategic value of an investment in blockchain technology from a conservative position by using the real option approach, particularly the learning option. Specifically, this paper provides the mathematical expression to obtain the value of a project which includes the learning option for n periods. Likewise, it tries to raise awareness among managers of the importance to gather relevant information before ma...
automotive and aerospace industry