Abstract: By introducing the real option theory into the decision of enterprise information systems investment, a real options analysis framework is proposed for the investment decision of information systems projects. According to life cycle theory, the investment process is divided into four stages, and the uncertainty factors that might exist in each stage are analyzed. And then, various kinds of real options embodied in these uncertainty factors are identified. By utilizing the binomial pricing methodology to establish a pricing model of multistage compound real options, this paper further gives the quantitative assessing method. Using the proposed real options analysis framework, this paper aims at providing more justified theoretical basis for enterprises when they make investment decisions in information systems construction projects. r