ICT Investments and Management for Organizations

Abstract

Developing the Information and Communication Technologies (ICT) strategy that supports the overall organization's business strategy is critical for generating business value. Recognizing the inadequacy of traditional quantitative cost-benefits analysis for evaluating and managing ICT investments, researchers suggest multi-criteria analysis, integrating quantitative and qualitative modeling. This chapter introduces the Balance Scorecard (BS) decision analysis framework and combines it with Real Options (ROs) analysis, in a qualitative and quantitative perspective, for modeling the business flexibility as well as for evaluating and controlling the ICT investments strategy. The multi-criteria ROs modeling applies to all perspectives of the BS framework providing a holistic decision-making model for ICT business.