Int. J. of Industrial and Systems Engineering   »   2013 Vol.14, No.4

 

 

Title: A systems model for commercialising emerging technology: wave energy farm system (WEFS) case study

 

Authors: Oscar Bonilla; Donald N. Merino; Michael Raftery; Tamara Wainer; Rashmi Jain

 

Addresses:
School of Systems and Enterprises, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ 07030, USA
School of Systems and Enterprises, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ 07030, USA
School of Systems and Enterprises, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ 07030, USA
School of Systems and Enterprises, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ 07030, USA
School of Systems and Enterprises, Stevens Institute of Technology, Castle Point on Hudson, Hoboken, NJ 07030, USA

 

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.

 

Keywords: technology commercialisation; systems modelling; emerging technology; renewable energy; wave energy farms; ocean energy farms; wave power; systems engineering; after tax analysis; ATA; engineering economics; internal rate of return; IRR; net present value; NPV; life cycle costs; LCC; EUAC; technology development; commercial feasibility; financial leverage.

 

DOI: 10.1504/IJISE.2013.054806

 

Int. J. of Industrial and Systems Engineering, 2013 Vol.14, No.4, pp.441 - 462

 

Available online: 09 Jun 2013

 

 

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