Cost and benefit of Internet-based support of business processes

Abstract

Even though the new economy hype is gone, the Internet is still an attractive communication infrastructure. It allows to set up specific information flows between various users, customised in functionality and the required level of interactivity. Using the Internet, even smaller companies can take advantage from electronic data interchange, and achieve cost reduction or an improved information quality. To access these potentials, investments in IT, organisation and training are required. However, the problem for a company is first, to decide which processes should be supported by a web-based solution, and second, when the solution as such is designed, to estimate its consequences on the processes, the possible benefit and the necessary investment. Our hypothesis is that processes, their communication and the IT have characteristics which allow a rough evaluation whether an Internet support will be economically justified. Based on this, an estimation method is developed. It suggests a set of characteristics for a rough evaluation and a framework for a fine estimation for cost and benefits with an integrated view on both organisational and technical solution.