An analytic approach for quantifying the value of e-business initiatives

Abstract

We describe an IBM strategic consulting offering involving a methodology and an analytic tool. The methodology, the Risk and Opportunity Assessment, provides a systematic approach for diagnosing problems in the value chain of the enterprise, and for selecting and prioritizing e-business initiatives. Applying this methodology involves the use of an analytic tool, the Value Chain Modeling Tool, that uses management science and operations research techniques, as well as techniques from the domains of finance and supply chain management, to model the end-to-end value chain of the enterprise. This approach has been successfully used to improve the financial and operating performance of several enterprises.