The overall objective of this study is to assist transportation agencies in developing appropriate ITS strategies to improve traffic operations. This report summarizes the effort in applying innovative methods for ITS planning and ITS evaluation. First, the authors present a study using FHWA ITS Planning Process Version 2.1 to develop appropriate ITS trategies to accommodate local needs. A case study was performed in Austin, Texas to illustrate the whole procedure. The results indicate that by incorporating the National ITS Architecture and IDAS, the FHWA ITS Planning Process could be more applicable to the regional ITS planning. Next, a multicriteria decision analysis method is presented for ITS alternative comparison and selection. The multicriteria approach developed in this study can be applied to identify the best ITS alternative among several candidates. An iterative ELECTRE-I procedure was employed to compare various ITS alternatives and identify the best one. With a case study in Austin, TX, the approach was illustrated and its applicability was proven. Finally, recommendations for further research activities are given at the end of the report.