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. (c) 2008 Elsevier B.V. All rights reserved.
real options theory belief functions multi-attribute decision analysis risk it infrastructure implementation strategy