Making the information technology investment decision: a principled approach

Seven principles on which to base an evaluation of strategic information technology (IT) ventures are presented. The principles range from making the investment decision, through managing risk, to preparing for unanticipated upside and downside implications. The principles are based on empirical studies, and on theoretical work on the timing of investments and the valuation of options benefits inherent in many IT initiatives. The role of a company's unique resources in generating competitive advantage, and the role of strategic necessity in guiding IT investment decisions are also considered.>