Strategic Options in the Digital Era

The collapse of the dot‐com euphoria coupled with the downturn in the business cycle is driving many firms to abandon their high‐growth strategies in favor of current earnings. This article argues that, whilst hedging against adverse future conditions, firms must retain an ability to seize up‐side business benefits by framing IT investments as strategic options. The authors use three illustrative examples to develop a strategic management process that they term the “Strategic Options Navigator”. They conclude by drawing implications for CEOs, CIOs and CFOs.