Balancing the strategic value and the operational value in IT portfolio selection

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper provides a methodological framework in which the problem of IT project portfolio selection is solved by balancing between operational and strategic IT investments. From interviews with CIOs, we found that the interest in IT projects in many firms tends to center on operational benefits, rather than strategic benefits. We examined the impact of strategic IT investments from an IT portfolio perspective. We applied an optimization model for the IT the portfolio selection and developed a computational method to explore the impact of strategic IT investments. We found that, based on a longterm evaluation, IT portfolio selection focusing on both the operational value and the strategic value resulted in greater performance than IT portfolio selection focusing on the operational value alone. In addition, we found that the risk level of the strategic value of IT did not significantly affect the outcome of the IT portfolio in a strategic IT investment.

Original languageEnglish (US)
Title of host publication15th Americas Conference on Information Systems 2009, AMCIS 2009
Pages1613-1624
Number of pages12
Volume3
StatePublished - 2009
Event15th Americas Conference on Information Systems 2009, AMCIS 2009 - San Francisco, CA, United States
Duration: Aug 6 2009Aug 9 2009

Other

Other15th Americas Conference on Information Systems 2009, AMCIS 2009
Country/TerritoryUnited States
CitySan Francisco, CA
Period8/6/098/9/09

Keywords

  • IT portfolio selection
  • IT projects
  • Strategic alignment of IT
  • Strategic IT investments

ASJC Scopus subject areas

  • Computer Science Applications
  • Computer Networks and Communications
  • Information Systems
  • Library and Information Sciences

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