Accession Number : ADA458432


Title :   Integrated Portfolio Analysis: Return on Investment and Real Options Analysis of Intelligence Information Systems (Cryptologic Carry On Program)


Descriptive Note : Research rept.


Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA GRADUATE SCHOOL OF BUSINESS AND PUBLIC POLICY


Personal Author(s) : Rios, Jr , Cesar G ; Housel, Thomas ; Mun, Johnathan


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a458432.pdf


Report Date : 30 Sep 2006


Pagination or Media Count : 67


Abstract : This paper introduces the Knowledge Value Added/Real Options (KVA+RO) valuation framework for use in information technology (IT) portfolio management within the Navy. KVA+RO is designed to support IT portfolio investment decisions. It is intended to empower decision-makers by providing performance-based data and analyses like the Return On Investment (ROI) on individual projects, programs, and processes within a portfolio of IT investments. Using KVA historical data as a platform, the authors evaluate potential strategic investments with real options analysis. The first section discusses limitations of existing ROI approaches. The paper then presents the KVA+RO methodology and framework and reviews core concepts, underlying assumptions, metrics, and potential applications to the IT portfolio management problem in the Department of Defense (DoD). In the final section, the KVA+RO valuation framework is applied to Naval Cryptologic Carry On Program (CCOP) systems that are used in the Intelligence Collection Process (ICP) for evaluation of signal intelligence gathering system investments.


Descriptors :   *MILITARY INTELLIGENCE , *DEPARTMENT OF DEFENSE , *MANAGEMENT PLANNING AND CONTROL , *NAVAL PROCUREMENT , *INFORMATION SYSTEMS , *INVESTMENTS , SIGNAL PROCESSING , INFORMATION WARFARE , KNOWLEDGE MANAGEMENT , BUSINESS PROCESS REENGINEERING , CRYPTOGRAPHY , CASE STUDIES , ELECTRONIC INTELLIGENCE , HISTORY , DATA ACQUISITION


Subject Categories : Administration and Management
      Military Intelligence
      Logistics, Military Facilities and Supplies


Distribution Statement : APPROVED FOR PUBLIC RELEASE