Strategic Options in the Digital Era

The collapse of the dot-com euphoria coupled with the downturn in the business cycle is driving many firms to abandon their high-growth strategies in favor of current earnings. This article argues that, whilst hedging against adverse future conditions, firms must retain an ability to seize up-side business benefits by framing IT investments as strategic options. The authors use three illustrative examples to develop a strategic management process that they term the "Strategic Options Navigator". They conclude by drawing implications for CEOs, CIOs and CFOs.