Using DempsterShafer 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 DempsterShafer theory of belief functions with real options analysis. We discuss the combined use of both theories and show that combining the DempsterShafer 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.
real options theory belief functions multi-attribute decision analysis risk it infrastructure implementation strategy