Dynamic Modeling to Assess the Business Value of Electronic Commerce

Prior to adopting Electronic Commerce (E-Comm), organisations need to assess its real business value and compare it to the costs of the associated investments. The intangible nature of most E-Comm benefits may render the development of a business case very difficult in practice. In this paper, we present a case study of E-Comm investment evaluation. Computer-based models of the business processes to be affected by E-Comm were developed and dynamically simulated to assist in gaining insight on the real benefits and dangers associated with the planned business change. Drawing on the results of the case study, we discuss the potential of Dynamic Process Modelling to support assessment of E-Comm business value.