Lecture Electronic commerce - Chapter 15: Economics and Justification of Electronic Commerce

Lecture Electronic commerce - Chapter 15: Economics and Justification of Electronic Commerce learning objectives: Describe the need for justifying EC investments, how it is done, and how metrics are used to determine justification. Understand the difficulties in measuring and justifying EC investments. Recognize the difficulties in establishing intangible metrics and describe how to overcome them. List and briefly describe traditional and advanced methods of justifying IT investments. | Chapter 15 Economics and Justification of Electronic Commerce 2008 Pearson Prentice Hall Electronic Commerce 2008 Efraim Turban et al. Learning Objectives 1. Describe the need for justifying EC investments how it is done and how metrics are used to determine justification. 2. Understand the difficulties in measuring and justifying EC investments. 3. Recognize the difficulties in establishing intangible metrics and describe how to overcome them. 4. List and briefly describe traditional and advanced methods of justifying IT investments. 15-2 Learning Objectives 5. Understand how e-CRM e-learning and other EC projects are justified. 6. Describe some economic principles of EC. 7. Understand how product industry seller and buyer characteristics impact the economics of EC. 8. Recognize key factors in the success of EC projects and the major reasons for failures. 15-3 Why Justify E-Commerce Investments How Can They Be Justified Increased Demand for Financial Justification IT executives feel the demand for financial justification and planning from executives but 65 of companies lack the knowledge or tools to do ROI calculations 75 have no formal processes or budgets in place for measuring ROI 68 do not measure how projects coincide with promised benefits six months after completion 15-4 Why Justify E-Commerce Investments How Can They Be Justified OtherReasons Why EC Justification Is Needed Companies realize that EC is not necessarily the solution to all problems A formal evaluation of requests for funding is mandated Companies need to assess the success of EC projects after completion and later on a periodic basis The success of EC projects may be assessed in order to pay bonuses 15-5 Why Justify E-Commerce Investments How Can They Be Justified EC Investment Categories and Benefits ITinfrastructure provides the foundation for EC applications in the enterprise EC applications are specific systems and programs for achieving certain objectives 15-6 Why Justify E-Commerce .

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