Dynamic Modeling to Assess the Business Value of Electronic Commerce

George M. Giaglis, Ray J. Paul, and Georgios I. Doukidis
International Journal of Electronic Commerce,
Volume 3, Number 3, Spring 1999, pp. 35.

Abstract: Before adopting electronic commerce (E-Comm), organizations need to assess its real business value, and to compare its costs with those of the associated investments. The intangible nature of most E-Comm benefits may make it difficult to develop an actual business case. This paper presents a case study of E-Comm investment evaluation. Computer-based models of the business processes affected by E-Comm were developed and dynamically simulated to assist in obtaining insight on the real benefits and dangers associated with the planned business change. The potential of Dynamic Process Modeling to support assessment of E-Comm business value is discussed in light of the results of the case study.

Key Words and Phrases: Case studies, cost-benefit analysis, electronic commerce investments, information system investment evaluation.