G. Anandalingam and Henry C. Lucas
- Published in print:
- 2004
- Published Online:
- September 2007
- ISBN:
- 9780195177404
- eISBN:
- 9780199789559
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195177404.003.0005
- Subject:
- Business and Management, Strategy
The 1990s saw an incredible amount of excitement about optical networking technology. Many start-up companies with potentially viable new technology seemed very “hot” to investors, especially venture ...
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The 1990s saw an incredible amount of excitement about optical networking technology. Many start-up companies with potentially viable new technology seemed very “hot” to investors, especially venture capital firms and well established technology companies in telecommunications like Lucent, Nortel, and Cisco. There was a mad scramble to either invest in or acquire a number of these new start-up companies including Chromatis, Ignitus, Sycamore, Lightera, etc. Winners ended up paying billions of dollars for companies with commercially unproven technology or technology that could be emulated by others. Over the past two years, the optical networking industry has lost over $500 billion in investor value, and it offers a good example of market factors leading to the winner’s curse.Less
The 1990s saw an incredible amount of excitement about optical networking technology. Many start-up companies with potentially viable new technology seemed very “hot” to investors, especially venture capital firms and well established technology companies in telecommunications like Lucent, Nortel, and Cisco. There was a mad scramble to either invest in or acquire a number of these new start-up companies including Chromatis, Ignitus, Sycamore, Lightera, etc. Winners ended up paying billions of dollars for companies with commercially unproven technology or technology that could be emulated by others. Over the past two years, the optical networking industry has lost over $500 billion in investor value, and it offers a good example of market factors leading to the winner’s curse.
Yossi Sheffi
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780262029797
- eISBN:
- 9780262330626
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262029797.003.0006
- Subject:
- Economics and Finance, Financial Economics
Whereas the first five chapters talk primarily of companies’ reactions to disruptions, Chapter 6 begins the discussions of more proactive preparations. These preparations include the fundamental ...
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Whereas the first five chapters talk primarily of companies’ reactions to disruptions, Chapter 6 begins the discussions of more proactive preparations. These preparations include the fundamental steps of creating redundancy and building flexibility. Yet the maturation of risk management has also led companies to prepare other kinds of specialized risk-management assets in the form of business continuity plans, emergency operations centers, and formalized processes for managing disruptions.Less
Whereas the first five chapters talk primarily of companies’ reactions to disruptions, Chapter 6 begins the discussions of more proactive preparations. These preparations include the fundamental steps of creating redundancy and building flexibility. Yet the maturation of risk management has also led companies to prepare other kinds of specialized risk-management assets in the form of business continuity plans, emergency operations centers, and formalized processes for managing disruptions.
