Evaluating and selecting e-commerce software and communication systems for a supply chain

The concept of justification and evaluation of systems, projects, and technologies has traditionally fallen within the scope of internal enterprise decision-making. Yet, with the growth of inter-organizational projects, technologies, and programs, the evaluation process takes on a broader and more complex characteristic. Previously, strategic justification and selection focused on internal departments within an organization and meeting their requirements. Within this context the decision was usually tied to strategic goals and directions of the firm, a common element for all departments. Even though the objectives and directions may have some minor conflicts among these various groups, the decision ultimately came down to one decision maker or group that had the best interests of that specific organization in mind. With inter-organizational systems, such as information systems used in managing the supply chain, the conflicts are between organizations that may have more than one supply chain that they are a part of, with varying strategic directions. The additional complexities of multiorganizational systems evaluation are evaluated within a framework described in this paper. The paper's goal is to introduce the various factors and present a decision framework that will aid members of the supply chain and a supply chain director in deciding which electronic commerce technology media and software is most suitable for the whole supply chain. The techniques used in this approach include both qualitative and quantitative measurements for the evaluation or justification of these systems. The framework uses an integrative set of models based on the analytical hierarchy process and goal programming. An illustrative example provides some managerial insight into the framework and decision environment. (C) 2003 Elsevier B.V. All rights reserved.