The Error of Fixed Strategies in IT Innovation Investment Decisions
Allocating an IT Innovation budget to technologies in different maturity stages (mature vs. fashionable IT innovations) is a demanding task for companies. Due to the dynamic innovation cycles with new emerging technologies, many IT innovation investment decisions follow a bandwagon behavior or fixed investment strategies. Instead of optimizing the IT innovation budget's allocation to mature or fashionable IT innovations and following a mindful investment strategy, fixed strategies with na?ve diversification are the rule in practice. To contribute to the decision making process regarding the IT innovation budget's allocation, the authors aim on the optimized allocation to mature and fashionable IT innovations via a dynamic optimization model incorporating the idiosyncrasies of IT innovations and a company's innovator profile.