Digital business models are disrupting smart systems, as the result of shifts in operational efficiency, opportunities for risk transfer or derivative markets, and equity value from intangible (non-financial) assets.
These value streams are opening up investment in infrastructure to capital-efficient models, where frequent updates on structural health and use inform risk and return.
The risk-return framework of infrastructure investment captures social, regulated, and demand-based systems, mainly driven by fixed income (e.g. bonds, debt) and private equity or hedge funds. Smart infrastructure represent IoT-driven systems, where returns depend on performance and structural health.
Our work focuses on how data-driven value drivers in smart real assets can be converted and tested into financial models or risk rating in a simulation environment.
Recent and Current Collaborators and Partners
- Prof. Newsha Ajami, Director, Center of Urban Water Policy, Stanford University
- Deloitte, Detroit Office
- World Economic Forum
- UM-Transportation Research Institute
