Information Technology Investment Evaluation And Strategy-Game Theory And Real Options Approach

This research provides a framework of information technology investment strategy choice, which is different from the traditional net present value analysis, consider real option value of the enterprise resource planning and Customer Relationship Management two core businesses of IT investment, and large enterprises obtained on the simulation of large enterprises and small business enterprises Game balanced competitive strategy.The main conclusions are: whether large enterprises to large enterprises or large enterprises to small enterprises in the game, any enterprise should carefully evaluate the option value of IT investment and estimate the competitor's strategy and then take the best of their IT strategy.This research also suggests that enterprises should adopt the U.S. GAO annual IT investment evaluation and decision process to include real option and game theoretic analysis. For further research, the analytic framework developed in this research can be applied to evaluate real options embedded in other IT investments such as Disaster Recovery, Corporate Employee Portal and so on.Another proposal is that enterprises should use the improved GAO's IT investment evaluation and decision process. For the Follow-up research can choose investment in information technology such as information systems disaster recovery, enterprise portal, and so on...