A scenario tree approach to multi-period project selection problem using real-option valuation method

This paper investigates the relation between information technology (IT) and the change of business operations. We evaluate the geographical demand of companies for customer service interactions. The structure is a separate selection model in which districts play the role of distinguished products. The approximated demand structure is used to evaluate the results of IT on customer size, place selection, and cost preserving. The results verify the higher cost vulnerability of IT-thorough companies but propose that capability to utilize cost different is highly company-specified and that the influence of geographically restricted externalities is even existent. Because the productivity of many IT phenomenon based on network results in which the edge productivity caused by the acceptance of a technology by a site is higher if the rest of the company accepts this technology too, companies have a motivation to need cooperate funding in technology across the business. We grow a mathematical model to investigate this balance and obtain experimental assumptions that relate IT-funding variety to the assignment of decision rights.