Title data
Häckel, Björn ; Hänsch, Florian:
Managing an IT Portfolio on a Synchronized Level, or: The Costs of Partly Synchronized Investment Valuation.
In: Journal of Decision Systems.
Vol. 23
(2014)
Issue 4
.
- pp. 388-412.
ISSN 1246-0125
DOI: https://doi.org/10.1080/12460125.2014.946781
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Abstract in another language
IT investments are usually risky by nature and account for a considerable part of annual investment budgets. Though value-based IT portfolio management (ITPM) aims at sustained economic growth and long-term value creation regarding IT investments, companies often fail to implement a synchronized ITPM approach that considers all relevant risk-/return components within IT investment valuation. In this paper we compare a synchronized and an only partly synchronized valuation of IT investments within a company`s ITPM by means of an optimization model. We show that an only partly synchronized IT investment management leads to sub-optimal investment decisions as especially stochastic interdependency structures are neglected. Furthermore, we analyze how different risk-/return structures of IT investment opportunities affect the valuation error resulting from an only partly synchronized IT investment valuation and conduct a comprehensive simulation study to further validate our findings.
Further data
Item Type: | Article in a journal |
---|---|
Refereed: | Yes |
Keywords: | IT Investment Valuation; Risk-/ Return Management; IT Portfolio Management;
Stochastic Interdependencies; Capability Maturity Models |
Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Business Administration Research Institutions Research Institutions > Affiliated Institutes Research Institutions > Affiliated Institutes > Fraunhofer Project Group Business and Information Systems Engineering Research Institutions > Affiliated Institutes > FIM Research Center Finance & Information Management Faculties Faculties > Faculty of Law, Business and Economics |
Result of work at the UBT: | No |
DDC Subjects: | 000 Computer Science, information, general works > 004 Computer science 300 Social sciences > 330 Economics |
Date Deposited: | 12 Nov 2018 08:25 |
Last Modified: | 12 Nov 2018 08:25 |
URI: | https://eref.uni-bayreuth.de/id/eprint/46278 |