John Andrew Campbell

Real options analysis of the timing of IS investment decisions

Many information systems (IS) investments belong to a class of capital budgeting problem where there is an option: the investment may be made straight away or delayed for some period. A real options analysis could allow decision-makers to add value to these investment decisions by providing a framework that explicitly recognises uncertainty. This paper uses options pricing theory to determine the optimal timing of IS investments and to explore the effect of different investment review cycles. The findings provide support for the common industry practice of demanding short payback periods for IS investments.

Using Internet technology to support flexible learning in business education

New technologies are increasingly relied upon to support innovative approaches to business education. In particular, Internet technology has expanded the reach and range of traditional universities by allowing individualized online access to information and knowledge. However, while there are many claimed pedagogical benefits, little is known about the impact and effectiveness of Internet technology in flexible learning environments. This paper reports the experience of using web-based technology to support flexible learning in an undergraduate management subject. Important teaching and learning issues associated with the development and implementation of online flexible learning resources are discussed.

Identifying an optimal start-up date for information technology projects: a real options approach

Summary form only given. Under conditions of uncertainty, investment flexibility is an important and valuable consideration. There is a growing view that the techniques used to evaluate financial options might be appropriate in certain circumstances for evaluating capital investments that have option like characteristics. These types of investment choices are often referred to as real options as the investment opportunities typically involve real assets (information systems, factories, new products, etc.) rather than paper-based assets (stocks, bonds, currencies, etc.). One significant aspect of this research is the use of a real options approach to determine the optimal start-up date of IS investments. The approach reported here draws an analogy between the impact of stock dividends on the early exercise of American style call options and foregone project cash flow and investment deferral. This approach has significant advantages over other valuation methods that are based on options pricing theory.

User acceptance of videoconferencing: perceptions of task characteristics and media traits

While there are several theoretical models that might explain the acceptance and usage of videoconferencing systems, little empirical research has been conducted to corroborate these theories and to establish which factors are important to videoconferencing participants. This study draws on the trait theories of media selection to assess the associations between user acceptance of videoconferencing technology and user perceptions of task characteristics and media traits. The findings show that perceptions of task characteristics and media traits are associated with the perceived utility and ease-of-use of videoconferencing systems.