Using a mark-to-market valuation technique to objectively measure IT portfolio value creation

Yu Hsiang John Huang, Eric C. Larson, Michael J. Shaw

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

Abstract

Enterprise executives frequently face the challenge of making decisions under conditions of significant uncertainty when dealing with IT investments, IT project management and realization of intangible organizational benefits enabled by IT. A suitable methodology for accurately estimating the current financial standing of each project in a portfolio of IT projects over the full project lifecycle is useful for IT managers to understand IT value creation and manage the IT projects across the portfolio. In line with this perspective, we propose a Mark-to-Market valuation technique that enables a standardized approach across diverse IT projects that comprise the IT portfolio. Three main contributions may be drawn from this study: 1) the Mark-to-Market approach is a useful valuation technique in the context of IT projects; 2) practitioners may leverage the technique to assess project value and the performance of the IT portfolio over the lifecycle of such projects; and 3) the consistent treatment of each project allows aggregation and applications of standard portfolio management techniques to the practice of IT portfolio management.

Original languageEnglish (US)
Title of host publication19th Americas Conference on Information Systems, AMCIS 2013 - Hyperconnected World
Subtitle of host publicationAnything, Anywhere, Anytime
Pages3880-3891
Number of pages12
StatePublished - 2013
Event19th Americas Conference on Information Systems, AMCIS 2013 - Chicago, IL, United States
Duration: Aug 15 2013Aug 17 2013

Publication series

Name19th Americas Conference on Information Systems, AMCIS 2013 - Hyperconnected World: Anything, Anywhere, Anytime
Volume5

Other

Other19th Americas Conference on Information Systems, AMCIS 2013
Country/TerritoryUnited States
CityChicago, IL
Period8/15/138/17/13

Keywords

  • Greeks
  • IT portfolio management (ITPM)
  • Mark-to-market
  • Mark-to-model
  • Project monitoring
  • Realization

ASJC Scopus subject areas

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

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