DocumentCode
3504147
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
Volume
2
fYear
2008
fDate
12-15 Oct. 2008
Firstpage
1962
Lastpage
1965
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;
fLanguage
English
Publisher
ieee
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
Type
conf
DOI
10.1109/SOLI.2008.4682853
Filename
4682853
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