Title :
The investment and decision making based on option theory in ERP project
Author :
Zhu, Bing ; Wang, Penghui
Author_Institution :
Sch. of Econ. & Manage., Beijing Jiaotong Univ., Beijing
Abstract :
With the development of information technology, more and more enterprises have determined to make investment on ERP project. Whether or not to make this investment can be regarded as a option for the company. This paper introduces the characteristic of ERP system first, and analyzes the investment, then brings option theory into ERP investment to evaluate the value of investment. The approach of evaluating value includes traditional NPV of expected cash flow and the option value of operating.
Keywords :
decision making; decision theory; enterprise resource planning; investment; ERP project; cash flow; decision making; decision theory; investment; option theory; traditional NPV; ERP investment; ERP project; option value; real option;
Conference_Titel :
Service Operations and Logistics, and Informatics, 2008. IEEE/SOLI 2008. IEEE International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-1-4244-2012-4
Electronic_ISBN :
978-1-4244-2013-1
DOI :
10.1109/SOLI.2008.4682853
