Justifying investments in new information technologies
Journal of Management Information Systems
Joint ventures and the option to expand and acquire
Management Science
Management Science
A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investment
Information Systems Research
Capital One: Exploiting an Information-Based Strategy
HICSS '98 Proceedings of the Thirty-First Annual Hawaii International Conference on System Sciences-Volume 6 - Volume 6
HICSS '98 Proceedings of the Thirty-First Annual Hawaii International Conference on System Sciences-Volume 6 - Volume 6
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Valuing information technology infrastructures: a growth options approach
Information Technology and Management
Prioritizing a Portfolio of Information Technology Investment Projects
Journal of Management Information Systems
The Journal of Strategic Information Systems
Electronic Commerce Research and Applications
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
Managerial Entrenchment with Strategic Information Technology: A Dynamic Perspective
Journal of Management Information Systems
The Role of ERP Implementation in Enabling Digital Options: A Theoretical and Empirical Analysis
International Journal of Electronic Commerce
Special Section: Competitive Strategy, Economics, and Information Systems
Journal of Management Information Systems
IT project portfolio optimization: a risk management approach to software development governance
IBM Journal of Research and Development
An Interdisciplinary Perspective on IT Services Management and Service Science
Journal of Management Information Systems
Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing
Journal of Management Information Systems
Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing
Journal of Management Information Systems
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Executives need to master different mechanisms for analyzing their firms' investment opportunities in uncertain, difficult times. Rapidly changing business conditions require firms to move quickly, with total commitment and the rapid deployment of capital, resources, and management attention, often in several directions at the same time. However, high levels of strategic uncertainty and environmental risk, combined with limits on available funding, require firms to limit their commitment. In brief, we require high levels of strategic commitment to numerous projects, while simultaneously preserving our flexibility and withholding commitment. Whereas achieving both is clearly impossible, techniques exist that enable executives (1) to identify and to delimit their range of investment alternatives that must be considered, and to do so rapidly and reliably, (2) to divide investments into discrete stages that can be implemented sequentially, (3) to determine which chunks can safely and profitably be developed as strategic options, with value that can be captured when subsequent stage investments are made later; and (4) to quantify and to estimate the value of these strategic options with a significant degree of accuracy, so that selections can be made from a portfolio of investment alternatives. This paper also avoids restrictions of common option valuation models by providing a technique that is general enough to be used when the data required by common models are not available or the assumptions are not satisfied.