E-Commerce Decision Support Analysis Based On The Model Of E-Business Value Creation Process

As Chinese manufacturing industry is in the process of transformation from individual E-Commerce flow to application systems integration, how to assess the level of E-Readiness effectively before implementation, how to real-time understanding and adjust the status of e-commerce in the implementation process, and how to do the overall performance assessment after the implementation process, have been the dominating problems for informationization and E-Commerce implementation faced by domestic enterprises.At present the studies at home and abroad are mainly concentrated in one or other aspect which is before, in, or after the implementation of e-commerce, but have not proposed an index system or a decision method to integrate the three stages. Selecting an index system, which is extracted from the great majority of researches, used a combination method simply. The construction of the indicators reflects a significantly hierarchical relation. However, the structural relationship which is extraordinarily complex between indicators and indicators can not be explained, and the general rules of E-Commerce value transformation would not be revealed too.Therefore, the current studies have only measured for evaluation points but not has the ability to forecast or decision-making.Based on the four dimensions such as: E-Business Strategy Initiative, IT Resource Integration, E-Business Capabilities, and E-Business Value, "The Model of E-Business Value Ceation Process" proposed by professor Zhao could reveal the general rules of E-Commerce value transformation, and mine the inherent mechanism of E-Commerce development which is demonstrated by enterprise practice.Based on Professor Zhao Jing's model this paper sought to build a reasonable decision-oriented index system, and proposed two specific methods for decision support analysis. These two methods can go deep into the index layer and provide for the operational management decision-making rules and decision support. This paper constructed an index system based on "The Model of E-Business Value Creation Process", and gave a comprehensive demonstration of that the index system could orient forecast and decision-making from three aspects such as "resource-based theory", "Norlan stage theory", "volatility analysis of resource", and also testified respectively that this index system has much capability in "dynamic track", "phase assessment" and "diagnosis and forecast" respectively. Subsequently, on the basis of this index system, for decision analysis this paper proposed two methods—decision rules mining between two variables and sensitivity analysis of variables and indicators based on the overall model. The first method used PLS (Partial Least-Squares Regression) to study causal relation between two group variables, and extracted decision-making rules from them by VIP (Variable Importance in Projection) and indicators relation graph. The second method designed by the author of this paper is based on the conclusions of PLS-SEM(Partial Least-Squares Regression-Structural Equation Modeling), with "Fig depth-first search" strategy, could be used to measure the causal relations between the two cross-variables(or cross-indicators). These two methods can not only be used in e-business related issues, but also used in the other areas. This paper also summed up the advantages, disadvantages, and the scope of their respective of the two methods, extracted the decision-making rules between every 2 variables by combining with practice data from 177 manufacturing enterprises, and got the sensitivity analysis results at the variable-level and indicator-level, which could provide valuable support for the decision-making to the managers.