A decision framework for automatic teller machine investment :an application to the Nigerian banking sector

Abstract

The selection and adoption of an appropriate information technology projects is one of the most challenging business tasks of the last decade. IT projects often record the largest capital expenditure for most service oriented companies. Unfortunately, many IT projects have not met their expectation despite their huge expense. Consequently, there is an urgent need to develop a framework that will assist in the analysis and selection of these IT projects. In this dissertation, classical financial theory coupled with Real Options analysis, namely a Mean-Variance (MV) model is used to provide new insights on project selection and analysis. More specifically, this dissertation presents an easy-to-use framework that will assist managers to evaluate potential ATM deployment projects. In addition, a case study to demonstrate how to apply the framework in a typical bank of a growing economy is presented. This dissertation contributes to IT management field by defining the risk dimensions of IT investments and providing insights based on interdisciplinary financial theories