Promoting Digital Transformation to Increase Resilience in the Face of Uncertainty

Abstract

Digital transformation refers to the process of using new digital technologies to enable a company to make significant business improvements. This paper presents a system architecture approach for valuating design flexibilities and alternatives within a complex system in civil engineering. The proposed system is based on a binomial lattice pricing model that is used to place a numerical value on design options. The system is built to evaluate conditions before the valuation phase is performed in order to capture the user requirements and possible alternatives and design flexibility within the system's future conditions and scenarios. Once the end-user's specifications are defined the system is then analyzed for the possible uncertainties and solutions to hedge the risk of these uncertainties are developed and simulated for the best possible results. This study provides a systematic viewpoint of a project to the designer, while also encompassing a newly researched field of incorporating tools typically used in the financial market to value investments.