Chapter 15 Objectives:
Describe the need for justifying EC investments, how it is done, and how metrics are used to determine justification.
Understand the difficulties in measuring and justifying EC investments.
Recognize the difficulties in establishing intangible metrics and describe how to overcome them.
List and briefly describe traditional and advanced methods of justifying IT investments.
Understand how e-CRM, e-learning, and other EC projects are justified.
Describe some economic principles of EC.
Understand how product, industry, seller, and buyer characteristics impact the economics of EC.
Recognize key factors in the success of EC projects and the major reasons for failures.
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EC Justification is a very complex procedure. It is difficult to measure
intangible benefits, and translate them into "revenue". How do you measure
improvement of customer service ? . There are various tools that were developed in order to calculate ROI . I found this really cool website that offers all kinds of tips and tools to do so.
http://www.wilsonweb.com/ecommerce/index.htm
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