Evaluation of strategic investments in information technology
Communications of the ACM
Justifying investments in new information technologies
Journal of Management Information Systems
Strategic management of information technology investments: an options perspective
Strategic information technology management
Strategic information technology management
Valuing risky projects: option pricing theory and decision analysis
Management Science
A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investment
Information Systems Research
Journal of Management Information Systems
A note on project risk and option values of investments in information technologies
Journal of Management Information Systems
Editorial—IT Investment Payoff in E-Business Environments: Research Issues
Information Systems Frontiers
Information Technology Investments: Characteristics, Choices, Market Risk and Value
Information Systems Frontiers
CITC4 '03 Proceedings of the 4th conference on Information technology curriculum
Advanced topics in information resources management
Rental software valuation in IT investment decisions
Decision Support Systems
Integrating option model and knowledge management performance measures: an empirical study
Journal of Information Science
Knowledge management performance evaluation: a decade review from 1995 to 2004
Journal of Information Science
A contingency view of organizational infrastructure requirements engineering
Proceedings of the 2006 ACM symposium on Applied computing
A fuzzy approach to R&D project portfolio selection
International Journal of Approximate Reasoning
Organizational size and IT innovation adoption: A meta-analysis
Information and Management
Strategic IT Investments: The Impact of Switching Cost and Declining IT Cost
Management Science
Information Technology and Management
Journal of Management Information Systems
What Do You Know? Rational Expectations in Information Technology Adoption and Investment
Journal of Management Information Systems
A Framework for Assessing the Business Value of Information Technology Infrastructures
Journal of Management Information Systems
Prioritizing a Portfolio of Information Technology Investment Projects
Journal of Management Information Systems
Information Technology Investment Strategies Under Declining Technology Cost
Journal of Management Information Systems
On the Valuation of Multistage Information Technology Investments Embedding Nested Real Options
Journal of Management Information Systems
Managing Information Technology Investment Risk: A Real Options Perspective
Journal of Management Information Systems
Active ERP implementation management: A Real Options perspective
Journal of Systems and Software
Information Technology and Management
Fuzzy Real Option Analysis for IT Investment in Nuclear Power Station
ICCS '07 Proceedings of the 7th international conference on Computational Science, Part III: ICCS 2007
Real option valuation on grid computing
Decision Support Systems
Real options and technology management: Assessing technology migration options in wireless industry
Telematics and Informatics
Journal of Management Information Systems
A compound real option and AHP methodology for evaluating ICT business alternatives
Telematics and Informatics
A Fuzzy Group Decision Approach to Real Option Valuation
RSFDGrC '07 Proceedings of the 11th International Conference on Rough Sets, Fuzzy Sets, Data Mining and Granular Computing
Journal of Computational and Applied Mathematics
IT project portfolio optimization: a risk management approach to software development governance
IBM Journal of Research and Development
Information systems evaluation: an ongoing measure
International Journal of Business Information Systems
Real Option Pricing of Network Design Investments
Transportation Science
Real Option Pricing of Network Design Investments
Transportation Science
ROI analysis in e-government assessment trials: the case of sistema piemonte
EGOV'06 Proceedings of the 5th international conference on Electronic Government
Measurement practices for knowledge management: an option perspective
CAiSE'05 Proceedings of the 17th international conference on Advanced Information Systems Engineering
Evaluating the impact of IT investments on productivity: a causal analysis at industry level
International Journal of Information Management: The Journal for Information Professionals
Investment timing for mobile payment systems
Proceedings of the 14th Annual International Conference on Electronic Commerce
International Journal of Business Data Communications and Networking
Evaluate IT Investment Opportunities Using Real Options Theory
Information Resources Management Journal
The Institutionalization of IT Budgeting: Empirical Evidence from the Financial Sector
Information Resources Management Journal
The effect of synergy enhancement on information technology portfolio selection
Information Technology and Management
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The application of real options analysis to information technology investment evaluation problems recently has been proposed in the IS literature (Chalasani et al. 1997; Dos Santos 1991; Kambil et al. 1993; Kumar 1996; Taudes 1998). The research reported on in this paper illustrates the value of applying real options analysis in the context of a case study involving the deployment of point-of-sale (POS) debit services by the Yankee 24 shared electronic banking network of New England. In the course of so doing, the paper also attempts to operationalize real options analysis concepts by examining claimed strengths of this analysis approach and balancing them against methodological difficulties that this approach is believed to involve. The research employs a version of the Black-Scholes option pricing model that is adjusted for risk-averse investors, showing how it is possible to obtain reliable values for Yankee 24's "investment timing option," even in the absence of a market to price it. To gather evidence for the existence of the timing option, basic scenario assumptions, and the parameters of the adjusted Black-Scholes model, a structured interview format was developed. The results obtained using real options analysis enabled the network's senior management to identify conditions for which entry into the POS debit market would be profitable. These results also indicated that, in the absence of formal evaluation of the timing option, traditional approaches for evaluating information technology investments would have produced the wrong recommendations.