Title :
The ERP investment: An evaluation model
Author :
Wu, Liang-Chuan ; Liou, Fang-Ming
Author_Institution :
Inst. of Technol. Manage., Nat. Chung Hsing Univ., Taichung, Taiwan
Abstract :
This paper evaluates ERP investment under uncertainty using the Real Options for modeling. We utilize a quantitative model and real option concept to evaluate the investment rule for the ERP investment. We use PDE to obtain the optimal threshold ratio of revenue and cost. Finally, we determine the threshold value by incorporating the illustrative parameter of ERP investments.
Keywords :
enterprise resource planning; partial differential equations; ERP investment rule; PDE; enterprise resource planning; evaluation model; modeling; optimal threshold ratio; quantitative model; real option concept; Education; Equations; Information systems; Investments; Mathematical model; Uncertainty; ERPInvestment; Partial Differential Equation; Real Option; Uncertainty;
Conference_Titel :
Education and Management Technology (ICEMT), 2010 International Conference on
Conference_Location :
Cairo
Print_ISBN :
978-1-4244-8616-8
Electronic_ISBN :
978-1-4244-8618-2
DOI :
10.1109/ICEMT.2010.5657541
