Managerial Flexibility Quantification Under Competition Threat in ICT Investments

In this paper, we estimate the value of an Information Communication Technology (ICT) investment opportunity, modeled as a Real Option (RO), when there is competition threat that can influence negatively its value or even more eliminate it. We put our analysis in the revenue management concept, which is a very real concern for ICT service providers across the globe especially after the increase of competition as a result of markets' liberalization. The target is to maximize revenue level and minimize risk that influence business profitability. Finally, we apply our model to a real life e-learning case study showing how it can be formulated and solved