Flexible ICT Investments Analysis Using Real Options

Information-Communication Technology (ICT) investments analysis using Real Options (ROs) has been a subject of active research during the last decade. It is a flexible method to value investment opportunities and to derive optimal timing of investments deployment taking into account uncertainties in future benefits and costs. We develop a framework for classifying the research on real ICT projects' evaluation using ROs. We analyze these projects with respect to three issues: 1) the complexity of the ICT project, 2) the ROs calculation method and 3) the assumptions made. Finally, we conclude and suggest directions for future research