Investment Appraisal and Business Benefits for E-Enterprises

Rapid changes have occurred in the world economy during recent years, and organisations are concentrating on the move towards e -Business and e -Commerce. The paper follows a logical approach firstly identifying the business benefits of eEnterprises such as increased market share, improved customer services, and improved supply chain management. Critical success factors t hat an organisation needs to focus on in order to integrate an e -Business infrastructure successfully into existing system are discussed. A method for appraisal of investment is then proposed that is appropriate for organisations evolving into e -Enterprises. The appraisal is in the form of a strategy that can be implemented in order to achieve the critical success factors. The suitability of traditional evaluation measures such as return on investment (ROI), net present value (NPV) and internal rate of return (IRR) are questioned and future issues concerning e Enterprises are raised.