TY - GEN
T1 - An examination of IT initiative portfolio characteristics and investment allocation
T2 - 19th Americas Conference on Information Systems, AMCIS 2013
AU - Tu, Yu Ju
AU - Shaw, Michael
AU - Subramanyam, Ramanath
AU - Larson, Eric
PY - 2013
Y1 - 2013
N2 - We advance the theory pertaining to IT governance and portfolio management. We specifically examine how the portfolio characteristics can influence IT investment allocation. We propose two portfolio characteristics - flexibility and diversity. We define the flexibility as the number of IT investment choice, and the diversity as the dissimilarity of IT investment choice. Using the Monte Carlo simulation and real-world data, we find that 1) if a firm invests in a set of IT initiatives with higher flexibility, it will have greater potentiality to capture a superior IT investment allocation; 2) when a firm invests in a set of IT initiatives with lower flexibility, it will have greater potentiality to capture a superior IT investment allocation, if the set of IT initiatives involves higher diversity. Our findings implicate that a firm can exercise IT initiative flexibility and diversify IT initiative choice to improve portfolio investment allocation.
AB - We advance the theory pertaining to IT governance and portfolio management. We specifically examine how the portfolio characteristics can influence IT investment allocation. We propose two portfolio characteristics - flexibility and diversity. We define the flexibility as the number of IT investment choice, and the diversity as the dissimilarity of IT investment choice. Using the Monte Carlo simulation and real-world data, we find that 1) if a firm invests in a set of IT initiatives with higher flexibility, it will have greater potentiality to capture a superior IT investment allocation; 2) when a firm invests in a set of IT initiatives with lower flexibility, it will have greater potentiality to capture a superior IT investment allocation, if the set of IT initiatives involves higher diversity. Our findings implicate that a firm can exercise IT initiative flexibility and diversify IT initiative choice to improve portfolio investment allocation.
KW - IT governance
KW - IT investment
KW - IT portfolio
UR - http://www.scopus.com/inward/record.url?scp=84893209746&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84893209746&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:84893209746
SN - 9781629933948
T3 - 19th Americas Conference on Information Systems, AMCIS 2013 - Hyperconnected World: Anything, Anywhere, Anytime
SP - 356
EP - 364
BT - 19th Americas Conference on Information Systems, AMCIS 2013 - Hyperconnected World
Y2 - 15 August 2013 through 17 August 2013
ER -