Why Justify EC Investments? How Can They Be Justified? Specific Benefits cost reduction(85%) productivity improvement (7%) improved customer satisfaction(6%) improved staffing levels(5%) higher revenues(4%) higher earnings(4%) better customer retention(4%) more return of equity( 3%) faster time-to-market (3%) Electronic Commerce Prentice Hall 2006Electronic Commerce Prentice Hall © 2006 8 Why Justify EC Investments? How Can They Be Justified? • Specific Benefits – cost reduction (85%) – productivity improvement (7%) – improved customer satisfaction (6%) – improved staffing levels (5%) – higher revenues (4%) – higher earnings (4%) – better customer retention (4%) – more return of equity (3%) – faster time-to-market (3%)