Portfolio selection model for enhancing information technology synergy

Wooje Cho; Michael J. Shaw

doi:10.1109/TEM.2013.2248088

Portfolio selection model for enhancing information technology synergy

Research output: Contribution to journal › Article › peer-review

Abstract

This paper presents a methodological framework for IT project selection that focuses on the impact of synergy enhancement on portfolio return and risk. As the size of firms' IT investments continues to increase, the demand for strong methodologies for IT portfolio selection has been increasing. Using the mean-variance efficient frontier as a tool to balance portfolio return and portfolio risk, we develop a model for IT portfolio selection. Unlike existing IT portfolio selection models, in this framework, the enhanceable project interdependency, project synergy, is distinguished from the inherent project interdependency, project covariance. This model enables firms to examine the effect of synergy enhancement on project portfolio risk and highlights the benefit of portfolio management of IT projects.

Original language	English (US)
Article number	6512575
Pages (from-to)	739-749
Number of pages	11
Journal	IEEE Transactions on Engineering Management
Volume	60
Issue number	4
DOIs	https://doi.org/10.1109/TEM.2013.2248088
State	Published - May 10 2013

Keywords

Decisions under risk and uncertainty
implementation methodologies
portfolio strategies
project evaluations
project management
project selection

ASJC Scopus subject areas

Strategy and Management
Electrical and Electronic Engineering

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