A DECISION-MODEL FOR INTERDEPENDENT INFORMATION-SYSTEM PROJECT SELECTION

Existing methods for information system (IS) project selection neglect an important aspect of information technology, namely the interdepend encies that exist among various IS applications (projects). Recognizin g and modeling these project interdependencies provides valuable cost savings and greater benefits to organizations. In this paper, an IS pr oject selection model is developed that identifies and models benefit, resource and technical interdependencies among candidate projects. Th e proposed model is formulated as a nonlinear 0-1 programming problem and represents a significant addition to existing IS, capital budgetin g and RED project selection models. The model is converted, using line arization techniques, and tested (validated) by applying it to real-wo rld IS project selection data. By comparing the performance of this mo del with existing project selection models, the contribution of this m odel is highlighted.