Strategic Management of Information Technology Investments An Options Perspect

Cover Strategic Management of Information Technology Investments An Options Perspect
Strategic Management of Information Technology Investments An Options Perspect
Ajit Kambil
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Hence the net present value of the project is: NPV = E(PV) — Iq - $3, 750, 000 - $4, 000, 000 = -$250, 000 Step 6: Conclusions from tWet Present Value Analysis Based on the negative net present value the project should not be authorized. As the task force reexamined its estimation and assumptions underlying the project, they realized that the major sources of uncertainty were tied to the nurses' acceptance of the project and to technical integration issues. In addition, most managers still felt
... that handheld computers would become widely adopted in many hospitals. How could managers at Healthways resolve this uncenainty and position the hospital to effectively take advantage of this technology?
4. 2 Acquiring an Option on the Handheld Computers Application.
The task force managers identified another investment opponunity available to Healthways. They could undenake a pilot project that implemented the local area network and most of the data architecture. The pilot project would also undenake a limited test of the handheld computer.


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