Valuing IT investments
Whether or not the management of information technology is a core competence or a strategic necessity possessed by every firm, developing an effective IT information technology infrastructure to support the deployment of an information-based strategy remains a critical skill. In today’s economy firms do not want to invest in expensive IT capability that will not be needed; they want certainty before deciding to invest. Likewise, when something is needed it is needed immediately, because in so many ventures the bulk of the profits go to the early innovators; they want speed after the decision to invest has been made. Financial options are investments made to hedge against risk and indeed to profit from uncertainty; strategic IT options are strategy-enabling partial investments that likewise hedge against risk and enable the firm to profit from uncertainty, while significantly improving the effectiveness of expenditures on technology.
At this presentation you will learn:
- How to identify strategic opportunities to exploit information.
- How to divide the necessary development efforts into strategic stages or chunks, which need not be implemented all at once. The earliest stages can be viewed as strategic options.
- How to value to options created by strategic chunkification, that is, by dividing a large investment into related, sequential stages.
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