A Decision Analysis Framework for Prioritizing a Portfolio of ICT Infrastructure Projects

The inadequacy of traditional quantitative cost–benefit analysis for evaluating information and communications technologies (ICT) infrastructure investments have led researchers to suggest real options (ROs) analysis for valuating ICT projects. However, ROs models are strictly quantitative and often, ICT investments may contain qualitative factors that cannot be quantified in monetary terms. In addition, ROs analysis results in some factors that can be treated more efficiently when taken qualitatively. This paper combines ROs and the analytic hierarchy process (AHP) into a common decision analysis framework, providing an integrated multiobjective, multicriteria model called ROAHP for prioritizing a portfolio of interdependent ICT investments. The proposed model is applied to an ICT case study showing how it can be formulated and solved.