Using Dempster-Shafer theory and real options theory to assess competing strategies for implementing IT infrastructures: A case study
This paper discusses the selection of a preferred strategy for implementing an IT infrastructure from a range of competing alternatives. The model presented here combines the use of an evidential reasoning approach based on the Dempster-Shafer theory of belief functions with real options analysis. We discuss the combined use of both theories and show that combining the Dempster-Shafer theory with real options analysis provides flexible support that takes account of the multi-dimensional nature of implementation decisions. We also go into the fundamental requirements that need to be met when selecting a strategy for implementing an IT infrastructure. We conclude by outlining a number of the model's limitations.
|Keywords||Belief functions, IT infrastructure implementation strategy, Multi-attribute decision analysis, Real options theory, Risk|
|Persistent URL||dx.doi.org/10.1016/j.dss.2008.07.006, hdl.handle.net/1765/14114|
|Series||ERIM Top-Core Articles|
|Journal||Decision Support Systems|
Hilhorst, C, Ribbers, P.M.A, van Heck, H.W.G.M, & Smits, M. (2008). Using Dempster-Shafer theory and real options theory to assess competing strategies for implementing IT infrastructures: A case study. Decision Support Systems, 46(1), 344–355. doi:10.1016/j.dss.2008.07.006