2004 Volume 13 Issue 1 Pages 95-118
Taking the enterprise information system as the subsystem, which belongs to manufacturing system creating directly the profits of enterprise, the economics of the information system is evaluated by use of the method, “imbedding them into the whole system”. Firstly, classifying the information system into the intra-enterprise information system, such as ERP, and the extra-enterprise information system, such as CRM/SCM. Then the economic evaluating framework of information systems is proposed to individually evaluate these information subsystems, the combined information system and the whole system ―the enterprise system― integrating the manufacturing system with the information system. As the economic evaluation indices, NPV and Real Options are selected from the viewpoint of practicality, after comparing the economic evaluation indices having additivity, such as NPV, Monte Carlo DCF, Decision Tree and Real Options. NPV is applied to manufacturing system and the intra-enterprise system, and Real Options to the extra-enterprise system, assuming phased investments. The simulation based on the framework is run to prove the usefulness of proposed framework.
