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
Leveraging the new infrastructure: how market leaders capitalize on information technology
Leveraging the new infrastructure: how market leaders capitalize on information technology
Quatitative IT portolio management
Science of Computer Programming
A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investment
Information Systems Research
Journal of Management Information Systems
Journal of Management Information Systems
Should We Wait? Network Externalities, Compatibility, and Electronic Billing Adoption
Journal of Management Information Systems
Managing Information Technology Investment Risk: A Real Options Perspective
Journal of Management Information Systems
Valuing information technology infrastructures: a growth options approach
Information Technology and Management
On the Valuation of Multistage Information Technology Investments Embedding Nested Real Options
Journal of Management Information Systems
Information Processing Design Choices, Strategy, and Risk Management Performance
Journal of Management Information Systems
Information Technology and Management
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
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
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
Modeling the benefit of e-recruiting process integration
Decision Support Systems
Information Technology and Firm Boundaries: Impact on Firm Risk and Return Performance
Information Systems Research
An Interdisciplinary Perspective on IT Services Management and Service Science
Journal of Management Information Systems
Should We Go Our Own Way? Backsourcing Flexibility in IT Services Contracts
Journal of Management Information Systems
Research Note---Using Real Options to Investigate the Market Value of Virtual World Businesses
Information Systems Research
Information Technology Portfolio Management: Literature Review, Framework, and Research Issues
Information Resources Management Journal
The effect of synergy enhancement on information technology portfolio selection
Information Technology and Management
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Although the use of real options for valuation of information technology (IT) investments has been documented, little research has been conducted to examine its relevance for valuing and prioritizing a portfolio of projects. Complexities of IT projects along with the effect of project interdependencies raise several challenges in applying real options for prioritization of IT investments. We examine a large U.S.-based energy utility firm in a deregulated environment that is considering investment in a portfolio of 31 projects to provide a range of Internet-enabled energy services to customers. Using real data on expected project benefits and costs for different competitive scenarios, we develop a nested options model that extends prior research by incorporating the impact of project interdependencies to calculate the option value of all projects. Our nested options model provides a better understanding of project interdependencies on valuation and prioritization decisions, and provides insights into the business value of IT infrastructure projects that provide the managerial flexibility to launch future projects. We present a real options portfolio optimization algorithm for dynamic multiperiod portfolio optimization by incorporating the project values based on real options analysis in a portfolio management model with budget constraints.