Research on enterprise information system implementation decision based on real options approach

This paper analyzes the regulation of the decision of enterprise information system (IS) implementation based on real options approach. According to the staged feature of the decision procedure, a concept model is constructed and a generalized stochastic procedure is employed to embody the uncertainty in IS implementation. With the help of the no arbitrage arguments, the values of the real options involved in the decision flexibility are estimated to get the synthesis model of the project value. When the optimal objectives are set up, the optimization model can be put forward to make the best decision. From the case for computation, we can estimate the value of the real options embedded in the decision procedure and realize the significant effects on the decision results of the IS construction.