IT portfolio selection and IT synergy

Cho, Woo Je

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https://hdl.handle.net/2142/16844 Copy

Description

Title

IT portfolio selection and IT synergy

Author(s)

Cho, Woo Je

Issue Date

2010-08-20T17:59:35Z

Director of Research (if dissertation) or Advisor (if thesis)

Shaw, Michael J.

Doctoral Committee Chair(s)

Shaw, Michael J.

Committee Member(s)

• Thurston, Deborah L.
• Subramanyam, Ramanath
• Kwon, Hyok-Jon D.

Department of Study

Business Administration

Discipline

Business Administration

Degree Granting Institution

University of Illinois at Urbana-Champaign

Degree Name

Ph.D.

Degree Level

Dissertation

Keyword(s)

• IT Portfolio Selection
• IT Synergy
• IT Investment

Abstract

This dissertation consists of three chapters. The primary objectives of this dissertation are: (1) to provide a methodological framework of IT (Information Technology) portfolio management, and (2) to identify the effect of IT synergy on IT portfolio selection of a firm. The first chapter presents a methodological framework for IT project selection. As the size of IT investment in firms dramatically increases, the demand for strong methodologies of IT project selection increases. We use the efficient frontier as a tool to solve the IT project portfolio problem. We propose a model of IT portfolio selection with this view. Our method is unique in that IT synergy measures are systemically incorporated in the portfolio selection. The second chapter examines how firms can use IT synergy to optimize their IT portfolios. We begin by developing a framework for IT portfolio selection by identifying three types of IT synergy. Next, we examine the effect of different types of synergy on the IT portfolio selection by using this framework. Analytical models are developed to present the roles of different types of synergy. The analysis in this paper establishes conditions where firms obtain superior IT portfolios by enhancing IT synergy. In the third chapter, we develop a project portfolio selection model, focusing the issues of the non-linear return/risk relationship of IT investment and non-standardized measures of IT risk. Taking advantages of the benefits of the DEA method, we present a project selection model and an extended model, and demonstrate the validity of the model using computational studies.

Graduation Semester

2010-08

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http://hdl.handle.net/2142/16844

Copyright and License Information

Copyright 2010 Woo Je Cho

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