Assessing the Impact of XML/EDI with Real Option Valuation

von Dr. Shermin Voshmgir

vorherige Seite | zur Übersichtsseite | folgende Seite

Statistik und Sichtungsnachweis dieser Seite findet sich am Artikelende

[1.] Svr/Fragment 038 01 - Diskussion
Zuletzt bearbeitet: 2020-05-21 15:55:26 [[Benutzer:|]]
BauernOpfer, Fragment, Gesichtet, Ritz 1995, SMWFragment, Schutzlevel sysop, Svr

Typus
BauernOpfer
Bearbeiter
SleepyHollow02
Gesichtet
Yes.png
Untersuchte Arbeit:
Seite: 38, Zeilen: 1-6, 10-23, 28-32
Quelle: Ritz 1995
Seite(n): 51, 52, 53, Zeilen: 51: 7 ff.; 52: 1, 13 ff.; 53: 1 ff.
3.1.5 Cost of setting up and [sic] EDI network

Because of the organizational gap, and EDI network cannot start right away, but requires an initiative to be launched to close the gap. The first contributors to the collective action, i.e. the initiators of an EDI network, do not only have to plan, design, and implement the required techno-organizational infrastructure and the related services, but they also have to bear the associated costs.

[There are different cost categories such as: (1) Coordination costs of a new network, (2) Implementation costs of a new network, (3) Individual expenses, and (4) Opportunity costs (Ritz 1995: 51-52).]

The set-up process of a coordination and a subsequent implementation stage. During the coordination stage, the network's future characteristics are determined, and plans to implement the specified conception are drawn up.

The subsequent implementation of the network infrastructure yields even higher costs for the organizations involved in the collective action at that stage. Infrastructure investments foremost include the direct capital cost of acquiring the systems hard- and software, the highering of staff to operate and market it, the provision of facilities to house the system, etc. Moreover, the cost of establishing an intermediary organization may also be subsumed under this heading. Depending on the scope of this project and the situation at the outset in terms of pre-existing technical infrastructure and standards, the implementation of the network infrastructure may entail altogether substantial costs to the initiators. Some of these investments may actually represent sunk costs that display asset-specificity. [...]

Beside the cost of implementing of the communication infrastructure, initial contributors to the collective action will have to carry the individual expenses of joining the network as participants. Usually, an organization that decides to participate in an EDI network needs to invest in its internal hard- and software, e.g. by purchasing converter software and by adapting business applications to the [communication requirements of the clearing center.]


Ritz, D. 1995, The start-up of an EDI Network: A comparative case study for the air cargo industry, Dissertation, Hochschule für Wissenschaft-, Recht- u. Sozialwissenschften [sic] St. Gallen.

[page 51]

2.3.2 The cost of setting up an EDI network

It has been shown earlier17 that because of the organizational gap, an EDI network cannot start right away, but requires an initiative to be launched to close that gap. The first contributors to the collective action, i.e. the initiators of an EDI network, do not only have to plan, design, and implement the required techno-organizational infrastructure and the related services, but they also have to bear the associated costs.

Cost categories

As mentioned earlier, the set-up process of an EDI network encompasses a coordination and a subsequent implementation stage. During the coordination stage, the network's future characteristics are determined, and plans to implement the specified


17See chapter A 1.2.

[page 52]

conception are drawn up. [...]

The subsequent implementation of the network infrastructure yields even higher costs for the organizations involved in the collective action at that stage. Infrastructure investments foremost include the direct capital cost of acquiring the system's hard- and software, the hiring of staff to operate and market it, the provision of facilities to house the system, etc. Moreover, the cost of establishing an intermediary organization may also be subsumed under this heading. Depending on the scope of the project and the situation at the outset in terms of pre-existing technical infrastructures and standards, the implementation of the network infrastructure may entail altogether substantial costs to the initiators.18 Some of these investments may actually represent sunk costs19 that display asset-specificity, i.e. "nontrivial investments in transaction-specific assets." (Williamson 1985, pp. 30).

Besides the costs related to the implementation of the common infrastructure, initial contributors to the collective action additionally have to carry the individual expenses of joining the network as participants, if applicable.20 Usually, an organiza-


18The direct capital cost for developing the technical infrastructure of Singapore's TradeNet, for instance, amounted to more than $20 million. This sum does not include the investment made by the involved governmental bodies in conceiving the project, managing the development, or establishing Singapore Network Services (SNS) as intermediary organization (King and Konsynski 1990).

19For a discussion of sunk cost from an accountancy perspective, see e.g. Luther (1992). Rosenbaum (1992) provides an economic analysis of entry, barriers, exit, and sunk costs.

20This applies primarily to community members as initiators. A third-party service provider leading an EDI initiative, on the other hand, will obviously not join the network as a participant. Its role in the diffusion stage will thus be limited to acting as an intermediary.

[page 53]

tion that decides to participate in an EDI network needs to invest in its internal hard- and software systems, e.g. by purchasing converter software and by adapting business applications to the communications requirements of the clearing center.


King, J.L. and Konsynski, B. (1990) Singapore TradeNet. A tale of one city, Nl-191-009, Harvard Business School, Boston, MA, 1990.

Luther, R.G. (1992) Fixed costs and sunk costs in decision-making, in: Management Accounting, Vol. 70, 1992, pp. 37, 42.

Rosenbaum, D. I. (1992) Entry, barriers, exit, and sunk costs. An analysis, in: Applied Economics, Vol. 24, 1992, pp. 297-304.

Williamson, O.E. (1975) Markets and hierarchies. Analysis and antitrust implications, London, 1975.

Anmerkungen

The source is given, but it is not made clear that the text is so closely and extensively copied.

Sichter
(SleepyHollow02) Schumann



vorherige Seite | zur Übersichtsseite | folgende Seite
Letzte Bearbeitung dieser Seite: durch Benutzer:Schumann, Zeitstempel: 20200125171907
Nutzung von Community-Inhalten gemäß CC-BY-SA, sofern nicht anders angegeben.
… weitere Daten zur Seite „Svr/038
SleepyHollow02 +
(SleepyHollow02) Schumann +