Financial Dynamics: A System for Valuing Technology Companies (Wiley Finance) Westland, Chris

A complete guide to valuing technology
Financial Dynamics lays out the structure, components, and application of the financial dynamics system of valuation. It provides managers, investors, and other stakeholders with an accurate, comprehensive tool, which answers the question, "what is the value of a technology product, project, or firm?" The models discussed in this comprehensive book provide readers with an invaluable method for finding the worth of a business whose core competencies are knowledge-intensive.
Christopher Westland graduated with a PhD in computers and information systems from the University of Michigan. Prior to joining academia, he was database manager and corporate security manager at Rockwell International. Decision-making in technology companies has grown exceedingly complex, risky and ad hoc. Finding the value of a managerial decision - be it the adoption of a new technology, the launch of a new product, a strategic alliance, branding, additional R&D expenditures or new factories - has never been as important, nor as challenging, as it is today. Behind every successful decision lies an intricate assortment of competencies, presumptions and objectives, all strongly influenced by the company's history and its ability to mould the future through strategy and technology choice.

Financial Dynamics responds to the challenge by laying out the structure, components and application of the Financial Dynamics system of valuation. It provides managers, investors and other stakeholders with an accurate, comprehensive tool, which answers the question, "what is the value of a technology product, project or firm?" The Financial Dynamics model will find widespread application to valuation as well as give the analyst an invaluable tool for finding the worth of a business whose core competencies are knowledge-intensive. Chris Westland's book on valuation takes us on a journey through economics, accounting, finance, physics and the liberal arts. It will shake the accounting, auditing and investment communities to the core - for good reason. A must read for anyone involved in analyzing, auditing, or investing in technology companies, or for that matter, stocks in general. - Andrew Leeming, author of The Super Analysis

Financial Dynamics examines the challenges of applying traditional accounting and valuation methodologies to analyze the economic performance of today's knowledge economy-based businesses. An interesting and informative read that breaks away from the traditional ways of looking at the performance of corporations. - Chris Ip, Principal, McKinsey and Company, Leader of Greater China Business Technology Office.

In this ambitious and original text, the polymathic Westland - a scientist and consultant - cruises in with observations on Moore's and Metcalfe's laws, nanotechnology and optics, biotech and materials science. He attempts to formalize in crisp mathematics some of the "laws" of the microcosm and telecosm. And he explores the many methods of pinning the butterflies of innovation in algorithms of valuation. A fascinating read that does not pretend there are any simple answers or panaceas. - George Gilder, author of Telecosm

The assets of the modern company cannot be boxed into the accounting categories of trick and mortar businesses, but are derived from the knowledge these companies have accumulated... In Financial Dynamics, Westland not only takes us on a lively tour of the difficulties in assessing the value of the 21st century company, but also offers a monumental and much needed attempt to reengineer valuation. - Albert-Laszlo Barabasi, author of Linked and Emil T. Hoffman, Professor of Physics, University of Notre Dame

Financial Dynamics is a thought-provoking synthesis of history, technology, accounting and finance. This book provides insights into the value of human capital in general, and technology, in particular. - Aswath Damodaron, Professor of Finance, New York University's Leonard N. Stein School of Business, author of Damodaron on Valuation and Investment Valuation

J. CHRISTOPHER WESTLAND is Professor of Information Systems and Management at the University of Science & Technology in Hong Kong. He holds a BA in mathematics and an MBA in accounting, and received his PhD in information technology from the University of Michigan. Dr. Westland has professional experience in the US as a certified public accountant and as a consultant in information systems in the US, Europe, Latin America and Asia, and sits on the editorial boards of several of the leading academic journals in information technology. This is his third book; previously he has written Valuing Technology (Wiley 2002) and Global Electronic Commerce (MIT Press 2000). Dr. Westland is a sought after speaker and consultant who has consulted on valuation and technology strategy for Microsoft, Intel, Motorola, V-Tech, Aerospace Corporation, IBM, Pacific Bell, and other technology firms. He lives in Hong Kong with his wife and three children.