IT project management under real options theory and IT governance: a case study on organisation relocation

Information technology (IT) governance is meant to define the objectives assigned to the information technology in order to plan set and implement the processes related to the management of IT life cycle. IT goals constantly evolve and the monitoring of IT projects is one of the main preoccupations of IT department managers. Indeed, decision makers often lack reliable tools to model and assess the randomness of the various components of IT governance and subsequently anticipate the best investment decisions. This research develops a varied set of techniques for: 1) making the right IT investment decisions in the context of an effective IT governance; 2) predicting the behaviour of IT components in a new location through simulating these decisions in two different environments. For this purpose, governance strategies are simulated in the conditions of the relocation through the proposed framework. This modelling approach stands out by establishing a real‐time decisional framework based on real options analysis (ROA). Thus, various scenarios are generated in both the current and the new (post‐relocation) environment via a Monte Carlo simulation.