Enterprise Information Investment Real Options Analysis

The premise to successfully operate Enterprises Informatization is to assess informatizational investment in a reasonable way, and the choice of methods is the key. The method of Discounted Cash Flow is severely criticized because of its disadvantages. A new method named Real Options Approach is based on options, and it challenges the traditional opinion that uncertainty equals to risk, moreover it points out that uncertainty is the origin of options' value. Real Options Approach takes uncertainty into consideration when assess informatizational investment and promotes enterprises to develop quickly.Compared with the traditional ways of assessing informatization, we study the features of informatizational investment and indicate that Real Options Approach must be adopted because of a great deal of uncertainty and potential growth opportunity faced by enterprises' informatizational investment. In order to construct a relatively perfect system of assessment, we utilize adoption rate as the entrance, and introduce the approaches of Sensibility Analysis as well as Scenario Planning. Sensibility Analysis makes Enterprises find the key factor which has an effect on informatizational investment to reduce the risk of investment. Then we make use of Scenario Planning to reassess a variety of Scenarios which produced by quantitative tools.