Integrated portfolio analysis: return on investment and real options analysis of intelligence information systems (cryptologic carry on program)
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Authors
Rios, Cesar G.
Housel, Thomas
Mun, Johnathan
Subjects
Military intelligence
Electronic intelligence
Information warfare
Cryptography
Electronic intelligence
Information warfare
Cryptography
Advisors
Date of Issue
2006
Date
2006
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
This paper introduces the Knowledge Value Added/Real Options (KVA+RO) valuation framework. KVA+RO is designed to support information technology (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, potential strategic investments are valuated with real options analysis. The first section discusses limitations of existing ROI approaches. The paper then presents KVA+RO methodology and framework, reviews core concepts, underlying assumptions, metrics and potential applications to the IT portfolio management problem in the DoD. In the final section, the KVA+RO valuation framework is applied to Naval Cryptologic Carry On Program (CCOP) systems used in the Intelligence Collection Process (ICP) for evaluation of information warfare systems investments.--p. i.
Type
Technical Report
Description
Acquisition research (Graduate School of Business & Public Policy)
Series/Report No
Department
Organization
Identifiers
NPS Report Number
NPS-AM-06-016
Sponsors
Funding
Format
1 v.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.