Simulating Internet-based collaboration: A cost-benefit case study using a multi-agent model

Abstract

The relationship between the adoption of Internet-based communication technology (ICT) and coordination performance has not been explored in sufficient depth in the literature. We argue that the impact of ICT on a coordination system typically needs to be studied on a case-by-case basis. A case study utilizing multi-agent simulation to support decision-making is described. We built the simulation system based on a theoretical model and a real world case. Through a proper verification process, we demonstrate that a multi-agent simulation experiment is a valid decision support tool for IT investment decisions. From the particular context of our case, we observe that the adoption of ICT is not a determinant of productivity. To save time and to cut cost, decision makers should focus more on technology utilization and business process redesign.