Meaning ● Real options, when adapted for small and medium-sized businesses (SMBs), provide a strategic framework allowing firms to defer, expand, abandon, or alter investment decisions based on evolving market conditions. ● In the context of SMB growth, they offer avenues for staged investments in automation technologies, allowing SMBs to scale operations without immediate, large-scale capital outlays. ● Regarding implementation, real options grant SMBs the flexibility to pilot projects and assess their viability before committing significant resources, reducing the risk associated with technology adoption and new market entry. ● This strategy enables SMBs to make informed choices about automation investments, ensuring alignment with their evolving needs and business objectives, which supports smart growth decisions. It supports the idea of strategic automation with the opportunity to adapt the plan. ● SMBs are enabled to be more flexible in a high changing environment. ● With Real Options thinking SMBs can minimize risk and also maximize rewards. This is a valuable business decision instrument for automation, implementation and growth strategies, leading to increase long-term sustainable company value.
