List and briefly discuss the difficulties in measuring productivity and performance gains from EC investments
What will be an ideal response?
Data, or the analysis of the data, may hide productivity gains. In service industries, such as finance or health-care delivery, it is more difficult to define what the products are, how they change in quality, and how they may be related to corresponding benefits and costs. EC productivity gains in certain areas of the company may be offset by losses in other areas. For example, increased online sales may decrease offline sales, a situation known as cannibalism. The results of any investment justification depend on what is actually measured. To assess the benefits of EC investment, one should look at productivity improvement in the area where the EC project was installed. However, productivity increase may not necessarily be a profitable improvement if there are losses in other areas. Many EC investments take five to six years to show significant positive results, but many studies do not wait that long to measure productivity changes.
You might also like to view...
The organizations doing business using technology-based applications have been labeled electronic commerce.
Answer the following statement true (T) or false (F)
When two competitors enter into a strategic alliance, the two companies are referred to as ______.
a. frenemies b. antagonists c. star-crossed lovers d. alter-egos
Anglo-Saxon versus continental differences have been summarized using all but which of the following characteristics?
a. Strength of the accounting profession b. Population size c. Strong equity markets as opposed to credit financing from major banking institutions d. The importance of the country’s legal system relative to the setting of accounting rules
____________________ parties are conditionally liable for payment of negotiable instruments
Fill in the blank(s) with correct word