OPTIONS ANALYSIS OF SOFTWARE PLATFORM DECISIONS: A CASE STUDY

摘要

In recent years, the use of option pricing models to support IT investment decisions has been pro- posed in the MIS literature. In this paper, we discuss the practical advantages of such techni- ques for the selection of a software platform. First, we argue that traditional quantitative approaches to a cost-benefit analysis give only a partial picture of such decision situations: due to the long planning horizon required because of the time-con- suming and resource-intensive implementation process, it is not possible to exactly predict which applications will, in fact, run on the system over time.