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Overview:

Many firms in emerging economies invest in information technology primarily with the objective of protecting their cost advantages. This paper presents a framework for evaluating information technology investments by integrating the value chain model with activity-based costing. The proposed four-step approach is illustrated with a numerical example of a hypothetical manufacturing company seeking improvements in its cost structure. With the framework, the methodology of evaluating the IT-related investments is performed in four steps in this paper.

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Format:PDFSize:237 KB
Date:Dec 2004
Pages:6

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