On the Ex Ante Valuation of IT Service Investments

Abelein U, Habryn F, Becker A (2009) Towards a holistic framework for describing and evaluating business benefits of a service oriented architecture (SOA). In: Proceedings of the 13th enterprise distributed object computing conference, Auckland Alshawi S, Irani Z, Baldwin LP (2003) Benchmarking information technology investment and benefits extraction. Benchmarking 10(4):414–423 Angell IO, Smithson S (1991) Appraisal, monitoring and control. information systems management: opportunities and risks. MacMillan, Basingstoke, pp 189–212 Aral S, Weill P (2007) IT assets, organizational capabilities, and firm performance: how resource allocations and organizational differences explain performance variation. Organ Sci 18(5):763–780 Arrow KJ (1965) Aspects of the theory of risk bearing. Yrjö Jahnsson lectures, Helsinki Asundi J, Kazman R (2001) A foundation for the economic analysis of software architectures. In: Proceedings of the 3rd workshop on economics-driven software engineering research, Toronto Ayal M, Seidmann A (2009) An empirical investigation of the value of integrating enterprise information systems: the case of medical imaging informatics. J Manag Inf Syst 26(2):43–68 Balasubramanian P, Kulatilaka N, Storck J (2000) Managing information technology investments using a real-options approach. J Strateg Inf Syst 9(1):39–62 Bamberg G, Krapp M (2016) Is time consistency compatible with risk aversion? Rev Manag Sci 10(2):195–211 Bamberg G, Spremann K (1981) Implications of constant risk aversion. Z Oper Res 25(7):205–224 Bamberg G, Dorfleitner G, Krapp M (2006) Unternehmensbewertung unter Unsicherheit: Zur entscheidungstheoretischen Fundierung der Risikoanalyse. Z Betriebswirtschaft 76(3):287–307 Baskerville R, Cavallari M, Hjort-Madsen K, Pries-Heje J, Sorrentino M, Virili F (2005) Extensible architectures: the strategic value of service-oriented architecture in banking. In: Proceedings of the 13th European conference on information systems, Regensburg Becker A, Widjaja T, Buxmann P (2011) Value potentials and challenges of service-oriented architectures. Results of an empirical survey from user and vendor perspective. Bus Inf Syst Eng 3(4):199–210 Beimborn D, Joachim N, Weitzel T (2008) Drivers and inhibitors of SOA business value - conceptualizing a research model. In: Proceedings of the 14th Americas conference on information systems, Toronto Benaroch M, Kauffman RJ (1999) A case for using real options pricing analysis to evaluate information technology project investments. Inf Syst Res 10(1):70–86 Benaroch M, Jeffery M, Kauffman R, Shah S (2007) Option-based risk management: a field study of sequential information technology investment decisions. J Manag Inf Syst 24(2):103–140 Bharadwaj A, Bharadwaj SG, Konsynski BR (1999) Information technology effects on firm performance as measured by Tobin’s q. Manag Sci 45(7):1008–1024 Black F, Scholes M (1973) The pricing of options and corporate liabilities. J Political Econ 81(3):637–654 Boell SK, Cecez-Kecmanovic D (2014) A hermeneutic approach for conducting literature reviews and literature searches. Commun AIS 34(1):257–286 Bradley A (2008) Finding the business value in SOA: a business case framework. In: Symposium/ITxpo 2008, Orlando Brandl R, Bichler M, Ströbel M (2007) Cost accounting for shared IT infrastructures estimating resource utilization in distributed IT architectures. Wirtschaftsinformatik 49(2):83–94 Braunwarth KS, Friedl B (2010) Towards a financially optimal design of IT services. In: Proceedings of the 31st international conference on information systems, St Louis Braunwarth KS, Heinrich B (2008) IT-Service-Management - Ein Modell zur Bestimmung der Folgen von Interoperabilitätsstandards auf die Einbindung externer IT-Dienstleister. Wirtschaftsinformatik 50(2):98–110 Brynjolfsson E, Hitt L (1995) Information technology as a factor of production: the role of differences among firms. Econ Innov New Technol 3(4):183–200 Buhl HU, Röglinger M, Stöckl S, Braunwarth KS (2011) Value orientation in process management. Bus Inf Syst Eng 3(3):163–172 Chau PYK, Kuan KKY, Liang TP (2007) Research on IT value: what we have done in Asia and Europe. Eur J Inf Syst 16(3):196–201 Cho W, Shaw MJ (2009) Does IT synergy matter in IT portfolio selection? In: Proceedings of the 30th international conference on information systems, Phoenix Cho W, Shaw MJ (2013) Portfolio selection model for enhancing information technology synergy. IEEE Trans Eng Manag 60(4):739–749 Choi J, Nazareth DL, Jain HK (2010) Implementing service-oriented architecture in organizations. J Manag Inf Syst 26(4):253–286 Cochrane JH (2005) Asset pricing. Princeton University Press, Princeton Coenenberg A, Salfeld R (2003) Wertorientierte Unternehmensführung. Schäffer-Poeschel, Stuttgart Copeland TE, Weston JF, Shastri K (2008) Financial theory and corporate policy. Addison-Wesley, Boston Cui X, Li D, Wang S, Zhu S (2012) Better than dynamic mean - variance: time inconsistency and free cash flow stream. Math Finance 22(2):346–378 Davis GA (2002) The impact of volatility on firms holding growth options. Eng Econ 47(2):213–231 DeAngelo H (1981) Competition and unanimity. Am Econ Rev 71(1):18–27 Dedrick J, Gurbaxani V, Kraemer KL (2003) Information technology and economic performance: a critical review of the empirical evidence. ACM Comput Surv 35(1):1–28 Dehning B, Richardson VJ (2002) Returns on investments in information technology: a research synthesis. J Inf Syst 16(1):7–30 Dewan S, Min CK (1997) The substitution of information technology for other factors of production: a firm level analysis. Manag Sci 43(12):1660–1675 Diao Y, Bhattacharya K (2008) Estimating business value of IT services through process complexity analysis. In: Proceedings of the 11th IEEE/IFIP network operation and management symposium, Salvador de Bahia Diepold D, Ullrich C, Wehrmann A, Zimmermann S (2011) Bewertung intertemporaler Abhängigkeiten zwischen IT-Projekten: Anwendung eines realoptionsbasierten Ansatzes unter Berücksichtigung projektspezifischer Risiken. Z Betriebswirtschaft 81(7/8):805–831 Dos Santos BL, Peffers KG, Mauer DC (1993) The impact of information technology investment announcements on the market value of the firm. Inf Syst Res 4(1):1–23 Dutta A (2004) Putting numbers on intangible benefits. In: Proceedings of the 25th international conference on information systems, Washington D.C. Fichman RG (2004) Real options and IT platform adoption: implications for theory and practice. Inf Syst Res 15(2):132–154 Fridgen G, Moser F (2013) Using IT fashion investments to optimize an IT innovation portfolio’s risk and return. J Decis Syst 22(4):298–318 Geman H, Ohana S (2008) Time-consistency in managing a commodity portfolio: a dynamic risk measure approach. J Bank Finance 32(10):1991–2005 Ghosh S, Li X (2013) A real options model for generalized meta-staged projects - valuing the migration to SOA. Inf Syst Res 24(4):1011–1027 Grefen P, Ludwig H, Dan A, Angelov S (2006) An analysis of web services support for dynamic business process outsourcing. Inf Softw Technol 48(11):1115–1134 Häckel B, Hänsch F (2014) Managing an IT portfolio on a synchronized level or: the costs of partly synchronized investment valuation. J Decis Syst 23(4):388–412 Häckel B, Hänsch F, Isakovic V (2011) Langfristige versus periodische IT-Investitionsbewertung im Rahmen einer wertorientierten Unternehmensführung. In: Proceedings of the 10th international conference on wirtschaftsinformatik, Zürich Han K, Chang YB, Hahn J (2011) Information technology spillover and productivity: the role of information technology intensity and competition. J Manag Inf Syst 28(1):115–145 Hares J, Royle D (1994) Measuring the value of information technology. Wiley, New York Harmantzis FC, Tanguturi VP (2007) Investment decisions in the wireless industry applying real options. Telecommun Policy 31(2):107–123 Heffner R, Leganza J, Czarnecki M (2009) SOA is far from dead - but it should be buried. Forrester Research Hirshleifer J (1965) Investment decision under uncertainty: choice-theoretic approaches. Q J Econ 79(4):509–536 Hitt LM, Brynjolfsson E (1996) Productivity, business profitability, and consumer surplus: three different measures of information technology value. MIS Q 20(2):121–142 Irani Z (2010) Investment evaluation within project management: an information systems perspective. J Oper Res Soc 61(6):917–928 Irani Z, Love PED (2002) Developing a frame of reference for ex-ante IT/IS investment valuation. Eur J Inf Syst 11(1):74–82 Joachim N (2011) A literature review of research on service-oriented architectures (SOA): characteristics, adoption determinants, governance mechanisms, and business impact. In: Proceedings of the 17th Americas conference on information systems, Detroit, paper 339 Joachim N, Beimborn D, Weitzel T (2013) The influence of SOA governance mechanisms on IT flexibility and service reuse. J Strateg Inf Syst 22:86–101 Kaczmarek T, Wecel K (2008) Hype over service oriented architecture continues. Wirtschaftsinformatik 50(1):52–78 Kauffman RJ, Li X (2005) Technology competition and optimal investment timing: a real options perspective. IEEE Trans Eng Manag 52(1):15–29 King WR, He J (2005) Understanding the role and methods of meta-analysis in IS research. Commun AIS 16(1):665–686 Klischewski R, Abubakr R (2010) Can e-government adopters benefit from a technology-first approach? The case of Egypt embarking on service-oriented architecture. In: Proceedings of the 43rd Hawaii international conference on system sciences, Hawaii Kohlborn T, Korthaus A, Taizan C, Rosemann M (2009) Identification and analysis of business and software services - a consolidated approach. IEEE Trans Serv Comput 2(1):50–64 Kohli R, Grover V (2008) Business value of IT: an essay on expanding research directions to keep up with the times. J Assoc Inf Syst 9(1):23–39 Kontogiannis K, Lewis G, Smith D (2007) The landscape of service-oriented systems: a research perspective for maintenance and reengineering. In: Proceedings of the workshop on service-oriented architecture maintenance, Amsterdam Krammer A, Heinrich B, Henneberger M, Lautenbacher F (2011) Granularity of services. An economic analysis. Bus Inf Syst Eng 3(6):345–358 Kumar S, Dakshinamoorth V, Krishnan M (2007) Does SOA improve the supply chain? An empirical analysis of the impact of SOA adoption on electronic supply chain performance. In: Proceedings of the 40th Hawaii international conference on system sciences, Hawaii Kundisch D, Meier M (2011) IT/IS project portfolio selection in the presence of project interactions - review and synthesis of the literature. In: Proceedings of the 10th international conference on wirtschaftsinformatik, Zürich Lee S, XiangJY Kim JK (2011) Information technology and productivity: empirical evidence from the Chinese electronics industry. Inf Manag 48(2/3):79–87 Levy Y, Ellis TJ (2006) A systems approach to conduct an effective literature review in support of information systems research. Inf Sci J 9:181–212 Li X (2009) Preemptive learning, competency traps, and information technology: a real options analysis. IEEE Trans Eng Manag 56(4):650–662 Lintner J (1965) The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets. Rev Econ Stat 47(1):13–37 Luthria H, Rabhi F (2009) Using service oriented computing for competitive advantage. In: Proceedings of the 15th Americas conference on information systems, San Francisco Markowitz HM (1959) Portfolio selection: efficient diversification of investments. Yale University Press, New Haven Mata FJ, Fuerst WL, Barney JB (1995) Information technology and sustained competitive advantage: a resource-based analysis. MIS Q 19(4):487–505 Melville N, Kraemer K, Gurbaxani V (2004) Information technology and organizational performance: an integrative model of IT business value. MIS Q 28(2):283–322 Millard DE, Howard Y, Abbas N, Davis HC, Gilbert L, Wills GB, Walters RJ (2009) Pragmatic web service design: an agile approach with the service responsibility and interaction design method. Comput Sci Res Dev 24(4):173–184 Moitra D, Ganesh J (2005) Web services and flexible business processes: towards the adaptive enterprise. Inf Manag 42(7):921–933 Müller B, Viering G, Ahlemann F, Riempp G (2007) Towards understanding the sources of the economic potential of service-oriented architecture: findings from the automotive and banking industry. In: Proceedings of the 15th European conference on information systems, St. Gallen Murphy KE, Simon SJ (2001) Using cost benefit analysis for enterprise resource planning project evaluation: a case for including intangibles. In: Proceedings of the 34th Hawaii international conference on system sciences, Hawaii Oh LB, Leong YX, Teo HH, Ravichandran T (2007) Service-oriented architecture and organizational integration: an empirical study of IT-enabled sustained competitive advantage. In: Proceedings of the 28th international conference on information systems, Montreal Orlikowski WJ, Iacono CS (2001) Desperately seeking the ‘IT’ in IT research. A call to theorizing the IT artifact. Inf Syst Res 12(2):121–134 Papazoglou MP (2008) Service-oriented computing: a research roadmap. Int J Coop Inf Syst 17(2):223–255 Peacock E, Tanniru M (2005) Activity-based justification of IT investments. Inf Manag 42:415–424 Pratt JW (1964) Risk aversion in the small and in the large. Econometrica 30(1/2):122–136 Probst F, Buhl HU (2012) Supplier portfolio management for IT services considering diversification effects. Bus Inf Syst Eng 4(2):71–83 Rai A, Sambamurthy V (2006) Editorial notes - the growth of interest in service management: opportunities for information systems scholars. Inf Syst Res 17(4):327–331 Rai A, Patnayakuni R, Patnayakuni N (1997) Technology investment and business performance. Commun ACM 40(7):89–97 Renkema TJW, Berghout EW (1997) Methodologies for information systems investment evaluation at the proposal stage: a comparative review. Inf Softw Technol 39(1):1–13 Ross JW, Beath CM (2002) Beyond the business case: new approaches to IT investment. MIT Sloan Manag Rev 43(2):51–59 Rowe F (2014) What literature review is not: diversity, boundaries and recommendations. Eur J Inf Syst 23:241–255 Schelp J, Winter R (2007) Towards a methodology for service construction. In: Proceedings of the 40th Hawaii international conference on system sciences, Hawaii Schryen G (2013) Revisiting IS business value research: what we already know, what we still need to know, and how we can get there. Eur J Inf Syst 22(2):139–169 Schryen G, Bodenstein C (2010) A decision-theoretic foundation of IS business value research. In: Proceedings of the 18th European conference on information systems, Pretoria SCHUFA (2015) Access to SCHUFA services. https://www.schufa.de/en/en/produkteundservices_en/anbindungandieschufa_1/anbindungandieschufa.jsp. Accessed 26 Aug 2015 Schwartz EJ, Zozaya-Gorostiza C (2003) Investment under uncertainty in information technology: acquisition and development projects. Manag Sci 49(1):57–70 Schwarz A, Mehta M, Johnson N, Chin W (2007) Understanding frameworks and reviews: a commentary to assist us in moving our field forward by analyzing our past. Data Base Adv Inf Syst 38(3):29–50 Sharpe WF (1964) Capital asset prices: a theory of market equilibrium under conditions of risk. J Finance 19(3):425–442 Sircar S, Turnbow JL, Bordoloi B (2000) A framework for assessing the relationship between information technology investments and firm performance. J Manag Inf Syst 16(4):69–97 Smith JE, Nau RF (1995) Valuing risky projects: option pricing theory and decision analysis. Manag Sci 41(5):795–816 Soh C, Markus ML (1995) How IT creates business value: a process theory synthesis. In: Proceedings of the 16th International conference on information systems, Amsterdam Strotz RH (1955) Myopia and inconsistency in dynamic utility maximization. Rev Econ Stud 23(3):165–180 Sylla C, Wen HJ (2002) A conceptual framework for evaluation of information technology investments. Int J Technol Manag 24(2–3):236–261 Tewary K, Kosalge P, Motwani J (2009) Piloting service oriented architecture: a case study in the oil industry. In: Proceedings of the 15th Americas conference on information systems, San Francisco Thomas O, vom Brocke J (2010) A value-driven approach to the design of service oriented information systems - making use of conceptual models. Inf Syst E Bus Manag 8(1):67–97 Trkman P, Kovacic A, Popovic A (2011) SOA adoption phases: a case study. Bus Inf Syst Eng 3(4):211–220 Ullrich C (2013) Valuation of IT investments using real options theory. Bus Inf Syst Eng 5(5):331–341 Verhoef C (2002) Quantitative IT portfolio management. Sci Comput Program 45(1):1–96 Verhoef C (2005) Quantifying the value of IT-investments. Sci Comput Program 56(1):315–342 Viering G, Legner C, Ahlemann F (2009) The (lacking) business perspective on SOA - critical themes in SOA research. In: Proceedings of the 9th international conference on wirtschaftsinformatik, Vienna vom Brocke J, Sonnenberg C (2007) Serviceorientiertes Prozesscontrolling - Unternehmensindividuelle Wirtschaftlichkeitsrechnungen zur Nutzung serviceorientierter Architekturen bei der Prozessgestaltung. In: Nissen V, Petsch M, Schorcht H (eds) Service-orientierte Architekturen: Chancen und Herausforderungen bei der Flexibilisierung und Integration von Unternehmensprozessen. Gabler, Wiesbaden, pp 185–204 vom Brocke J, Sonnenberg C, Thomas O (2008) Towards an economic justification of service oriented architectures - measuring the financial impact. In: Proceedings of the 14th Americas conference on information systems, Toronto vom Brocke J, Sonnenberg C, Simons A (2009) Value-oriented information systems design: the concept of potentials modelling and its application to service-oriented architectures. Bus Inf Syst Eng 1(3):223–233 von Neumann J, Morgenstern O (1947) Theory of games and economic behavior. Princeton University Press, Princeton Webster J, Watson RT (2002) Analyzing the past to prepare for the future. Writing a literature review. MIS Q 26(2):xiii–xxiii Wehrmann A, Heinrich B, Seifert F (2006) Quantitatives IT-Portfoliomanagement: Risiken von IT-Investitionen wertorientiert steuern. Wirtschaftsinformatik 48(4):234–245 Wilhelm J (1989) On stakeholders’ unanimity. In: Bamberg G, Spremann K (eds) Agency theory, information, and incentives. Springer, Berlin, pp 179–204 Zimmermann S (2008a) Governance im IT Portfoliomanagement - Ein Ansatz zur Berücksichtigung von Strategic Alignment bei der Bewertung von IT. Wirtschaftsinformatik 50(5):357–365 Zimmermann S (2008b) IT-Portfoliomanagement - Ein Konzept zur Bewertung und Gestaltung von IT. Inf Spektrum 31(5):460–468 Zimmermann S, Katzmarzik A, Kundisch D (2012) IT sourcing portfolio management for IT services providers - an approach for using modern portfolio theory to allocate software development projects to available sites. Data Base Adv Inf Syst 43(1):24–45