A SIMULATION BASED OPTIMIZATION METHODOLOGY for INFORMATION SYSTEM PROJECT SELECTION PROBLEM

Abstract

Information system (IS) project selection is a strategic decision problem discussed by many researchers for more than 40 years. Prior IS project selection approaches are considered this problem as a very complex decision making process since it is affected many selection criteria, limited resources, and one or more corporate objectives. In addition, there is a high level of risk for the uncertainty when determining the different input data such as weights of evaluation criteria and performance values of candidate projects. However, little attention has been paid so far to take into account these uncertainties in the IS project selection process. In this paper, considering possible uncertainties in the input data of IS project selection problem, a methodology that incorporates simulation optimization linked to a multi-criteria approach into the selection process for the best IS project alternative is presented. An illustrative example is provided in order to demonstrate the application of the proposed methodology.