  Optimal selection of interdependent IT Projects for implementation in multi
periods has been challenging in the framework of real option valuation. This
paper presents a mathematical optimization model for multi-stage portfolio of
IT projects. The model optimizes the value of the portfolio within a given
budgetary and sequencing constraints for each period. These sequencing
constraints are due to time wise interdependencies among projects. A
Metaheuristic approach is well suited for solving this kind of a problem
definition and in this paper a genetic algorithm model has been proposed for
the solution. This optimization model and solution approach can help IT
managers taking optimal funding decision for projects prioritization in
multiple sequential periods. The model also gives flexibility to the managers
to generate alternative portfolio by changing the maximum and minimum number of
projects to be implemented in each sequential period.
