[8] 2002 e-business-strategies-for-virtual-organizations

Table 8.1 Information economics – value-based approach
Traditional ROI (+)
+value linking (+)
+value acceleration (+)
+value restructuring (+)
+innovation (+)
Evaluating strategies for e-business change
= Adjusted ROI *Business value +IT value
= VALUE (business contribution
� Strategic match (+) � Strategic IT architecture (+)
� Competitive advantage (+)
� Competitive response (+)
� Management information (+)
� Service and quality (+)
� Environmental quality (+)
� Empowerment (+)
� Cycle time (+)
� Mass customization (+)
� Business strategy risk (–) � IT strategy risk (–)
� Definition uncertainty (–)
� Business organization risk (–) � Technical risk (–)
� IT service delivery risk (–)
stakeholder; and (b) risks: competitive strategy, organizational
strategy and uncertainty.
Even at the simplest level – financial values there are still many
factors which are difficult to quantify. e-business increases
revenue in at least three ways, by decreasing costs, by accessing
new markets and additional segments of existing markets and
by redefining the market through new, better and readily
available information. In each of these areas there are many
different values to be measured against selected value drivers.
Deise et al. (2000) identify seven variables related to customer
value and competitiveness as:
� Services – expanded and improved.
� Price – more rational and dynamic.
� Quality – improved and more attractive.
� Fulfilment time – reduced.
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