The movement toward the real options methodology for IT project portfolio management derives from a financial model that considers the management of a portfolio of stock investment options.

Question

Quizplus · Accepted Answer

The real options methodology for IT project portfolio management is based on a financial model that considers the management of a portfolio of real investment options, not stock investment options. Real options refer to the flexibility to make strategic decisions based on uncertain future events or changes in market conditions, rather than simply executing a predefined plan. By using real options analysis, IT organizations can better evaluate and prioritize their project portfolios based on the potential value and risk associated with each investment.

The Movement Toward the Real Options Methodology for IT Project