Managing Strategic Flexibility in Industry 5.0 Transition : An Integrated Real Options and Strategic Foresight Approach
Year of publication
2025
Authors
Savolainen, Jyrki; Knudsen, Mikkel Stein
Abstract
This chapter deals with the corporate investment decision-making strategies amid the transformative landscape of Industry 5.0 and system-level Digital Twins Twinning. Through the lens of Strategic Foresight (SF) and Real Options (RO), the chapter both identifies a methodological gap in the literature regarding the integration of ROs and SF and underscores the potential synergy between these two fields. It is suggested that ROs can adeptly address numerical uncertainties in resource exploitation business cases, while SF serves as a valuable qualitative exploration tool under structural or radical uncertainty. A high-level, integrated decision framework is drafted, and its applicability is discussed within the Industry 5.0 context of system-level Digital Twins.
Show moreOrganizations and authors
LUT University
Savolainen Jyrki 
University of Turku
Knudsen Mikkel
Publication type
Publication format
Article
Parent publication type
Compilation
Article type
Other article
Audience
ScientificPeer-reviewed
Peer-ReviewedMINEDU's publication type classification code
A3 Book section, Chapters in research booksPublication channel information
Parent publication name
Contemporary Issues in Industry 5.0 : Towards an AI Integrated Society
Parent publication editors
Aaltonen, Päivi; Kurvinen, Emil
Publisher
ISSN
ISBN
Publication forum
Publication forum level
2
Open access
Open access in the publisher’s service
Yes
Open access of publication channel
Partially open publication channel
Self-archived
Yes
Other information
Fields of science
Business and management
Internationality of the publisher
International
International co-publication
No
Co-publication with a company
Yes
DOI
10.1007/978-3-031-74779-3_5
The publication is included in the Ministry of Education and Culture’s Publication data collection
Yes