《《A real option theoretic fuzzy evaluation model for enterprise resource planning investment》.pdf

J. Eng. Technol. Manage. 29 (2012) 47–61 Contents lists available at SciVerse ScienceDirect Journal of Engineering and Technology Management journal homepage: /locate/jengtecman A real option theoretic fuzzy evaluation model for enterprise resource planning investment a a,* a b Chew Jian You , C.K.M. Lee , S.L. Chen , Roger J. Jiao a Division of Systems and Engineering Management, School of Mechanical and Aerospace Engineering, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798, Singapore b Georgia Institute of Technology, The G.W. Woodruff School of Mechanical Engineering, 813 Ferst Drive, NW Atlanta, GA 30332-0405, United States A R T I C L E I N F O A B S T R A C T JEL classification: The high failure rate of ERP implementation is due to a common C51 pitfall that ERP projects are often enacted as merely investment into Keywords: installation of IT infrastructure, rather than systematic planning of Real Option Theory operation changes, business process re-engineering and a paradigm Enterprise resource planning shift for the operation and management. To manage ERP investment Fuzzy payoff valuation in a changing environment for high payoff, this paper adopts a real Fuzzy Logic Option valuation models option theoretic method. Fuzzy payoff valuation is introduced to