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.
Recommended Citation
Cho, Wooje and Shaw, Michael J., "Balancing the Strategic Value and the Operational Value in IT Portfolio Selection" (2009). AMCIS 2009 Proceedings. 183.
https://aisel.aisnet.org/amcis2009/183