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Methodologies for Evaluating Investment in Electronic Data Interchange

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  • Dothang Truong

    (Fayetteville State University, USA)

Abstract

Reluctance of organizations to invest in electronic data interchange (EDI, Internet-based EDI, and XML/EDI) is largely due to their inability to assess the return on these investments. We identify prescriptive and evaluative methodologies for analyzing investment in EDI: non-financial methods, purely financial methods, and financial and strategic consideration methods. We also show how computer simulation can be used as a tool for assessing EDI. Evaluating the benefits resulting from EDI implementation was illustrated through the well-known Beer Game. Our analysis and review also identifies difficulties involved in assessing the benefits of EDI in supply chains.

Suggested Citation

  • Dothang Truong, 2005. "Methodologies for Evaluating Investment in Electronic Data Interchange," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 1(3), pages 56-68, July.
    • Handle: RePEc:igg:jeis00:v:1:y:2005:i:3:p:56-68
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