Return on IT Investments in Two-Sided Markets

In two-sided markets an intermediary brings together two distinct customer populations, such as buyers and sellers on an e-commerce platform. In these markets the growth process of customer populations depends on network effects both within and between buyers and sellers. Thus, assigning IT investments to customer populations and quantifying the monetary value of these investments is complex. We show that measuring the intermediary’ s platform value may provide a remedy, and make IT investments in two-sided markets accountable. Thereby, we develop a model for the platform value and the growth process of customer populations accounting for network effects in two-sided market. We apply our model to an e-commerce platform. Our results highlight a significant contribution of buyers to the platform value. Analysing former IT investments we find further evidence to rather invest in buyers than sellers, and to promote investments that increase buyers’ trust in products, intermediary and trading partners (sellers)

A Viable Approach for Measuring the Risk-Return Relationship of IT Investments

The importance of managing the risk-return balance of information technology (IT) investments has become clearer than ever. Yet, quantitative assessment of IT investment risk and return based on financial measures remains a major challenge. Recently scholars have used event study analysis to measure the value created via IT investment, by examining the abnormal changes in shareholder wealth around the time a specific IT investment is announced. The abnormal return on equity due to such an event is considered a good proxy for the economic value of that event. In the same spirit, this research proposes estimating several forms of IT investment risk, by combining event study analysis with the use of arbitrage pricing theory. In so doing, this research contributes towards the development of an integrated approach for quantifying the risk-return relationship for IT investment so that practitioners can make more informed investment decisions

Making Every Dollar Count: How Expected Return Can Transform Philanthropy

Describes the benefits and methods of a quantitative process for evaluating potential program investments -- based on benefit, likelihood of success, the foundation's contribution, and cost -- to maximize return on resources

The rationale of e-health evaluation: The case of NHS Direct

An important area of research is that of the evaluation of e-health services. A holistic e-health evaluation framework should address the aspects that are hampering healthcare services from embracing the full potential of information and communication technologies towards successful e-health initiatives. Towards building a holistic evaluation framework for e-health services, this paper is intended to examine the rationale of e-health evaluation, as the paper argues that this aspect should be addressed first in the development of such a framework. NHS Direct which is one of the largest e-health services in the world has been chosen to discuss and validate a set of evaluation rationales and their applicability in practice

Portfolio-based infrastructure investment strategy for railroad company

Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering, 2002.Includes bibliographical references (leaves 126-128).Project based capital investment planning for developing a railroad company's infrastructure facilities does not necessarily allow managers the optimal use of their limited capital resources, because such planning simply focuses on the required cash spending and expected return from the single project. A portfolio based investment strategy aims at increasing or maximizing the value of a company's set of ground facilities, i.e., infrastructure portfolio, through quantifying the impact of strategic investments on the value of a portfolio. This study makes two approaches to the measurement of the value of infrastructure portfolios and the effect of strategic investments. First, strategic investments are considered to add certain economic values to a company, which can be interpreted as residual returns from the portfolio after rewarding its investors. Then, the value of the portfolio is analogous to that of a stock price and its dividend yield. Second, the value of a portfolio can be maximized through finding optimal strategic investment timings and its amounts. Real options approach makes use of the concept of financial option pricing as capital budgeting techniques, and it allows a company to incorporate the value of managerial flexibility in its infrastructure portfolio.by Takeshi Sato.S.M

Doing Good Today and Better Tomorrow: A Roadmap to High Impact Philanthropy Through Outcome-Focused Grantmaking

Describes Hewlett's experience with implementing the outcome-focused grantmaking (OFG) process in its environment program as a guide for identifying a portfolio of grants with maximum impact. Outlines trials and errors, recent innovations, and challenges

E-Government evaluation factors: Citizen’s perspective

The e-government field is growing to a considerable size, both in its contents and position with respect to other research fields. The government to citizen segment of egovernment is taking the lead in terms of its importance and size. Like the evaluation of all other information systems initiatives, the evaluation of egovernments in both theory and practice has proved to be important but complex. The complexity of evaluation is mostly due to the multiple perspectives involved, the difficulties of quantifying benefits, and the social and technical context of use. The importance of e-government evaluation is due to the enormous investment of governments on delivering e-government services, and to the considerable pace of growing in the e-government field. However, despite the importance of the evaluation of e-government services, literature shows that e-government evaluation is still an immature area in terms of development and management. This work is part of a research effort that aims to develop a holistic evaluation framework for e-government systems. The main aim of this paper is to investigate the citizen’ perspective in evaluating e-government services, and present a set of evaluating factors that influence citizens’ utilization of e-government services. These evaluation factors can serve as part of an e-government evaluation framework. Moreover, the evaluation factors can also be used as means of providing valuable feedback for the planning of future egovernment initiatives

Resilient Coasts: A Blueprint for Action

Highlights the need to mitigate climate change-related risks to coastlines. Calls for better science, strengthened ecosystems, risk-based land use planning, viable insurance markets, and adaptable standards for infrastructure, building, and investment

Optimal gradual annuitization : quantifying the costs of switching to annuities

We compute the optimal dynamic asset allocation policy for a retiree with Epstein-Zin utility. The retiree can decide how much he consumes and how much he invests in stocks, bonds, and annuities. Pricing the annuities we account for asymmetric mortality beliefs and administration expenses. We show that the retiree does not purchase annuities only once but rather several times during retirement (gradual annuitization). We analyze the case in which the retiree is restricted to buy annuities only once and has to perform a (complete or partial) switching strategy. This restriction reduces both the utility and the demand for annuities