Integrated Portfolio Analysis: Return on Investment and Real Options Analysis of Intelligence Information Systems (Cryptologic Carry On Program)
NAVAL POSTGRADUATE SCHOOL MONTEREY CA GRADUATE SCHOOL OF BUSINESS AND PUBLIC POLICY
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This paper introduces the Knowledge Value AddedReal Options KVARO valuation framework for use in information technology IT portfolio management within the Navy. KVARO 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 KVARO 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 KVARO 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.
- Administration and Management
- Military Intelligence
- Logistics, Military Facilities and Supplies