Evaluating the cost of software quality
Communications of the ACM
The Dot Com Effect: the impact of e-commerce announcements on the market value of firms
ICIS '99 Proceedings of the 20th international conference on Information Systems
ICIS '00 Proceedings of the twenty first international conference on Information systems
Maximizing the value of internet-based corporate travel reservation systems
Communications of the ACM
Managing risks in IT projects: an options perspective
Information and Management
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
Optimal purchase decision criteria for information technology
Managing IT in government business & communities
Advanced topics in information resources management
Rental software valuation in IT investment decisions
Decision Support Systems
Activity-based justification of IT investments
Information and Management
A real option analysis approach to evaluating digital government investment
dg.o '05 Proceedings of the 2005 national conference on Digital government research
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
Evaluating strategic options using decision-theoretic planning
Information Technology and Management
To be or not to B2B: Evaluating managerial choices for e-procurement channel adoption
Information Technology and Management
Valuing information technology infrastructures: a growth options approach
Information Technology and Management
A decision support model for optimal timing of investments in information technology upgrades
Decision Support Systems
Strategic IT Investments: The Impact of Switching Cost and Declining IT Cost
Management Science
Information Technology and Management
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
International Journal of Electronic Commerce
Managing Information Technology Investment Risk: A Real Options Perspective
Journal of Management Information Systems
Communicating the value of uncertain information technology investments using an options approach
International Journal of Business Information Systems
Valuing wireless data services solutions for corporate clients using real options
International Journal of Mobile Communications
Electronic Commerce Research and Applications
Active ERP implementation management: A Real Options perspective
Journal of Systems and Software
Cost estimation for cross-organizational ERP projects: research perspectives
Software Quality Control
Information Technology and Management
Fuzzy multicriteria R&D project selection with a real options valuation model
Journal of Intelligent & Fuzzy Systems: Applications in Engineering and Technology - Fuzzy theory and technology with applications
Real option valuation on grid computing
Decision Support Systems
Journal of Management Information Systems
Risk Management of Contract Portfolios in IT Services: The Profit-at-Risk Approach
Journal of Management Information Systems
Journal of Management Information Systems
A compound real option and AHP methodology for evaluating ICT business alternatives
Telematics and Informatics
Investments in Information Security: A Real Options Perspective with Bayesian Postaudit
Journal of Management Information Systems
A real options approach for evaluation and justification of a hospital information system
Journal of Systems and Software
Effects of Organizational Learning and Knowledge Transfer on Investment Decisions Under Uncertainty
Journal of Management Information Systems
Proceedings of the 11th Annual International Digital Government Research Conference on Public Administration Online: Challenges and Opportunities
International Journal of Electronic Finance
IT project portfolio optimization: a risk management approach to software development governance
IBM Journal of Research and Development
Using real option thinking to improve decision making in security investment
OTM'10 Proceedings of the 2010 international conference on On the move to meaningful internet systems - Volume Part I
ICAT investment appraisal using real options
ICCOMP'06 Proceedings of the 10th WSEAS international conference on Computers
How much to spend on flexibility? Determining the value of information system flexibility
Decision Support Systems
The valuation of RFID investment using fuzzy real option
Expert Systems with Applications: An International Journal
Competing or coordinating: IT R&D investment decision making subject to information time lag
Information Technology and Management
Pricing e-service quality risk in financial services
Electronic Commerce Research and Applications
Should We Go Our Own Way? Backsourcing Flexibility in IT Services Contracts
Journal of Management Information Systems
The Power of Patterns and Pattern Recognition When Developing Information-Based Strategy
Journal of Management Information Systems
What drives global ICT adoption? Analysis and research directions
Electronic Commerce Research and Applications
Measurement practices for knowledge management: an option perspective
CAiSE'05 Proceedings of the 17th international conference on Advanced Information Systems Engineering
A Study of Sourcing Channels for Electronic Business Transactions
Journal of Management Information Systems
Resolving uncertainty and creating value from the exercise of e-commerce investment options
Information Systems Journal
Research Note---Using Real Options to Investigate the Market Value of Virtual World Businesses
Information Systems Research
International Journal of Business Data Communications and Networking
International Journal of Business Data Communications and Networking
A fuzzy linguistic ontology payoff method for aerospace real options valuation
Expert Systems with Applications: An International Journal
Evaluate IT Investment Opportunities Using Real Options Theory
Information Resources Management Journal
Information Technology Portfolio Management: Literature Review, Framework, and Research Issues
Information Resources Management Journal
Understanding Contingencies Associated with the Early Adoption of Customer-Facing Web Portals
Journal of Management Information Systems
The effect of synergy enhancement on information technology portfolio selection
Information Technology and Management
Strategic alignment and value maximization for IT project portfolios
Information Technology and Management
ACM Transactions on Management Information Systems (TMIS)
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The application of fundamental option pricing models (OPMs), such as the binomial and the Black-Scholes models, to problems in information technology (IT) investment decision making have been the subject of some debate in the last few years. Prior research, for example, has made the case that pricing "real options" in real world operational and strategic settings offers the potential for useful insights in the evaluation of irreversible investments under uncertainty. However, most authors in the IS literature have made their cases using illustrative, rather than actual real world examples, and have always concluded with caveats and questions for future research about the applicability of such methods in practice. This paper makes three important contributions in this context: (1) it provides a formal theoretical grounding for the validity of the Black-Scholes option pricing model in the context of the spectrum of capital budgeting methods that might be employed to assess IT investments; (2) it shows why the assumptions of both the Black-Scholes and the binomial option pricing models place constraints on the range of IT investment situations that one can evaluate that are similar to those implied by traditional capital budgeting methods such as discounted cash flow analysis; and (3) it presents the first application of the Black-Scholes model that uses a real world business situation involving IT as its test bed. Our application focuses on an analysis of the timing of the deployment of point-of-sale (POS) debit services by the Yankee 24 shared electronic banking network of New England. This application enables us to make the case for the generalizability of the approach we discuss to four IT investment settings.