A Study of the IT Project Management Using EVM & Real Options

Proposal of an Abandonment Option Integrated into EVM for Decision-making

Abstract

It is important for project management of IT (Information Technology) development in Japan to carry out early detection of a problem by schedule management and cost management. EVM (Earned Value Management) is an effective method of performance by comparing planned to actual results. Unless a next action to its project is clear, the effective method may not function. Therefore, application of real options is considered that the action to performance should be clarified. Furthermore, in this article, we have proposed a simple real option model of IT project by EVM & an abandonment option.