• Title/Summary/Keyword: Decision Cost

Search Result 1,971, Processing Time 0.029 seconds

Review of 2015 Major Medical Decisions (2015년 주요 의료판결 분석)

  • Yoo, Hyun Jung;Lee, Dong Pil;Lee, Jung Sun;Jeong, Hye Seung;Park, Tae Shin
    • The Korean Society of Law and Medicine
    • /
    • v.17 no.1
    • /
    • pp.299-346
    • /
    • 2016
  • There were also various decisions made in medical area in 2015. In the case that an inmate in a sanatorium was injured due to the reason which can be attributable to the sanatorium and the social welfare foundation that operates the sanatorium request treatment of the patient, the court set the standard of fixation of a party in medical contract. In the case that the family of the patient who was declared brain dead required withdrawal of meaningless life sustaining treatment but the hospital rejected and continued the treatment, the court made a decision regarding chargeable fee for such treatment. When it comes to the eye brightening operation which received measure of suspension from the Ministry of Health and Welfare for the first time in February, 2011, because of uncertainty of its safety, the court did not accept the illegality of such operation itself, however, ordered compensation of the whole damage based on the violation of liability for explanation, which is the omission of explanation about the fact that the cost-effectiveness is not sure as it is still in clinical test stage. There were numerous cases that courts actively acknowledged malpractices; in the cases of paresis syndrome after back surgery, quite a few malpractices during the surgery were acknowledged by the court and in the case of nosocomial infection, hospital's negligence to cause such nosocomial infection was acknowledged by the court. There was a decision which acknowledged malpractice by distinguishing the duty of installation of emergency equipment according to the Emergency Medical Service Act and duty of emergency measure in emergency situations, and a decision which acknowledged negligence of a hospital if the hospital did not take appropriate measures, although it was a very rare disease. In connection with the scope of compensation for damage, there were decisions which comply with substantive truth such as; a court applied different labor ability loss rate as the labor ability loss rate decreased after result of reappraisal of physical ability in appeal compared to the one in the first trial, and a court acknowledged lower labor ability loss rate than the result of appraisal of physical ability considering the condition of a patient, etc. In the event of any damage caused by malpractice, in regard to whether there is a limitation on liability in fee charge after such medical malpractice, the court rejected the hospital's claim for setoff saying that if the hospital only continued treatments to cure the patient or prevent aggravation of disease, the hospital cannot charge Medical bills to the patient. In regard to the provision of the Medical Law that prohibit medical advertisement which was not reviewed preliminarily and punish the violation of such, a decision of unconstitutionality was made as it is a precensorship by an administrative agency as the deliberative bodies such as Korean Medical Association, etc. cannot be denied to be considered as administrative bodies. When it comes to the issue whether PRP treatment, which is commonly performed clinically, should be considered as legally determined uninsured treatment, the court made it clear that legally determined uninsured treatment should not be decided by theoretical possibility or actual implementation but should be acknowledged its medical safety and effectiveness and included in medical care or legally determined uninsured treatment. Moreover, court acknowledged the illegality of investigation method or process in the administrative litigation regarding evaluation of suitability of sanatorium, however, denied the compensation liability or restitution of unjust enrichment of the Health Insurance Review & Assessment Service and the National Health Insurance Corporation as the evaluation agents did not cause such violation intentionally or negligently. We hope there will be more decisions which are closer to substantive truth through clear legal principles in respect of variously arisen issues in the future.

  • PDF

The Application of Operations Research to Librarianship : Some Research Directions (운영연구(OR)의 도서관응용 -그 몇가지 잠재적응용분야에 대하여-)

  • Choi Sung Jin
    • Journal of the Korean Society for Library and Information Science
    • /
    • v.4
    • /
    • pp.43-71
    • /
    • 1975
  • Operations research has developed rapidly since its origins in World War II. Practitioners of O. R. have contributed to almost every aspect of government and business. More recently, a number of operations researchers have turned their attention to library and information systems, and the author believes that significant research has resulted. It is the purpose of this essay to introduce the library audience to some of these accomplishments, to present some of the author's hypotheses on the subject of library management to which he belives O. R. has great potential, and to suggest some future research directions. Some problem areas in librianship where O. R. may play a part have been discussed and are summarized below. (1) Library location. It is usually necessary to make balance between accessibility and cost In location problems. Many mathematical methods are available for identifying the optimal locations once the balance between these two criteria has been decided. The major difficulties lie in relating cost to size and in taking future change into account when discriminating possible solutions. (2) Planning new facilities. Standard approaches to using mathematical models for simple investment decisions are well established. If the problem is one of choosing the most economical way of achieving a certain objective, one may compare th althenatives by using one of the discounted cash flow techniques. In other situations it may be necessary to use of cost-benefit approach. (3) Allocating library resources. In order to allocate the resources to best advantage the librarian needs to know how the effectiveness of the services he offers depends on the way he puts his resources. The O. R. approach to the problems is to construct a model representing effectiveness as a mathematical function of levels of different inputs(e.g., numbers of people in different jobs, acquisitions of different types, physical resources). (4) Long term planning. Resource allocation problems are generally concerned with up to one and a half years ahead. The longer term certainly offers both greater freedom of action and greater uncertainty. Thus it is difficult to generalize about long term planning problems. In other fields, however, O. R. has made a significant contribution to long range planning and it is likely to have one to make in librarianship as well. (5) Public relations. It is generally accepted that actual and potential users are too ignorant both of the range of library services provided and of how to make use of them. How should services be brought to the attention of potential users? The answer seems to lie in obtaining empirical evidence by controlled experiments in which a group of libraries participated. (6) Acquisition policy. In comparing alternative policies for acquisition of materials one needs to know the implications of each service which depends on the stock. Second is the relative importance to be ascribed to each service for each class of user. By reducing the level of the first, formal models will allow the librarian to concentrate his attention upon the value judgements which will be necessary for the second. (7) Loan policy. The approach to choosing between loan policies is much the same as the previous approach. (8) Manpower planning. For large library systems one should consider constructing models which will permit the skills necessary in the future with predictions of the skills that will be available, so as to allow informed decisions. (9) Management information system for libraries. A great deal of data can be available in libraries as a by-product of all recording activities. It is particularly tempting when procedures are computerized to make summary statistics available as a management information system. The values of information to particular decisions that may have to be taken future is best assessed in terms of a model of the relevant problem. (10) Management gaming. One of the most common uses of a management game is as a means of developing staff's to take decisions. The value of such exercises depends upon the validity of the computerized model. If the model were sufficiently simple to take the form of a mathematical equation, decision-makers would probably able to learn adequately from a graph. More complex situations require simulation models. (11) Diagnostics tools. Libraries are sufficiently complex systems that it would be useful to have available simple means of telling whether performance could be regarded as satisfactory which, if it could not, would also provide pointers to what was wrong. (12) Data banks. It would appear to be worth considering establishing a bank for certain types of data. It certain items on questionnaires were to take a standard form, a greater pool of data would de available for various analysis. (13) Effectiveness measures. The meaning of a library performance measure is not readily interpreted. Each measure must itself be assessed in relation to the corresponding measures for earlier periods of time and a standard measure that may be a corresponding measure in another library, the 'norm', the 'best practice', or user expectations.

  • PDF

Potential Effects of Gaming Disorder Classification on Gamers' Attitude and Gaming Intention (게임이용장애 질병분류가 게임이용자의 태도와 게임의향에 미치는 효과)

  • Kim, Suk Hwan;Han, Sang Hoon;Kim, Bora;Kang, Hyoung Goo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
    • /
    • v.15 no.4
    • /
    • pp.277-301
    • /
    • 2020
  • This study surveyed 503 adults to examine the effect of gaming disorder classification, recently announced by World Health Organization(WHO), when it is applied to Korean game market. Considering the difference in respondents' background knowledge on gaming disorder, half of the respondents were randomly assigned to read an informative news article describing WHO's decision and its expected effect on domestic game industry. Based on previous literature of gaming disorder, we categorized respondents into a normal-use group and a potentially problematic-use group. As a result of analyses, it was found that the gaming disorder classification would yield overall reduction of game-related consumption in terms of gaming time(24%), game cost(28%), the number of games(22%), etc. The potentially problematic group showed higher willingness to pay for gaming than the normal group did, even if the game cost presumably increases due to the gaming disorder classification. A similar outcome was observed in those with high stress levels. This implies that the policy to solve game addiction problems may ironically lead to unexpected cost increases to the target group of the policy. Hence, problematic groups, especially, highly stressful people and the people with the lack of self-control, need to be considered when the gaming disorder classification policy is established. Furthermore, the informative news article had the preventive effect on the attitude and the intention of the people with moderate or high self-control capacity, but not to the people with gaming-additive tendencies, Again, this finding confirms the necessity of the tweezers policy to refine target groups by their characteristics and prepare for differentiated policies. When the gaming disorder classification is simply adopted with no consideration of domestic circumstances, irreversible loss could affect Korean game users, game industries, and related companies. This calls for urgent cooperation between academia, government, and industry to set up appropriate measures to deal with the gaming disorder classification.

Strategies of Car-Ferry Shipping Companies According to the Korea-China Free Trade Agreement (한·중 FTA 체결에 따른 수도권항만 카페리선사의 발전방안)

  • Park, Sung-Eun;Ahn, Seung-Bum
    • Journal of Korea Port Economic Association
    • /
    • v.34 no.1
    • /
    • pp.111-132
    • /
    • 2018
  • As China continues to evolve as a major economic power and the Free Trade Agreement (FTA) between the Republic of Korea and China was ratified on June 1, 2015, market volume between the two countries is expected to grow more rapidly. This study aims on improving the efficiency of car-ferry lines. We conducted two surveys- for shippers and forwarders of car-ferry companies, and container liners. The study analyzes the decision factors for delivery companies and their importance for shippers and forwarders of car-ferry companies and container liners. Based on analysis of prior studies on the competition for car-ferry companies and liners, three primary variables are selected-promptness, economics, and safety. The promptness variable consists of shipping time, loading/unloading time, and customs clearing time. The economic variable consists of marine transportation cost from a domestic harbor to China, loading/unloading cost in the harbor, and overland transport cost from the harbor to shippers inland. Finally, the safety variable consists of cargo damage rates, safety facilities, such as lashing and shoring, and punctuality of transportation time. The survey and AHP results show that the promptness, safety, and economics factors are 0.549, 0.309, and 0.142 in the shipper groups of car-ferry companies' category, respectively. It indicates that there is considerable difference in the importance of each factor. In contrast, the factors are 0.350, 0.348, and 0.302 in the forwarders category, which suggests that there is little difference in each factor's importance. As for shippers and forwarders of liners, the importance of each factor is found to be in the following order: economics, safety, and promptness.

Study on the Establishment of Barley Cultivation System using the Power Tiller (동력경운기를 중심으로한 맥류재배의 기계화 -관작업체계 확립에 관한 연구)

  • 이영렬;최규홍
    • Journal of Biosystems Engineering
    • /
    • v.3 no.2
    • /
    • pp.22-33
    • /
    • 1978
  • To maintain the self-sufficiency of food production , it is required to improved the productivity and increase the effective utilization of land in the double cropping areas using improved cultivation technology. The following reasons encourage this cours of action because the overlapping rice harvest and barely seeding seasons complete for labour, the lower price of barley makes it financially less attractive to grow and these two facts together are responsible for a decrease in barley being planted in certain more seasonably marginal double cropping areas. Fro these reasons, it is desirable to carry out tests to improve the current cultivation techniques . In this interest , the following studies were carried out in the experimental field located at Banweol-myeon, Whasung-jkun, Gyeonggi-do from October 1977 to July 1978 in order to establish the mechanical method of barley cultivation using the power tiller. The summarized results are as follows. 1. The work performance in the seeding operation using the rotary barley seeder was 68 minutes per 10 ares which compares favourably with 408 min/10a using the conventional method. This is only one sixth of the time required by th conventional method. The operating costs using the rotary barley seeder was 1, 463 won per 10 areas as against 3, 486 Won per 10 ares for the conventional method, showing a saving of about 50% in comparison with the conventional method. 2. In the manure spreading operation, the work performance was 25 min/10a for the manure spreading machine , compared to 1089 min/10a for the manual operations. This is about one fourth of the time required by the conventional method, The operating costs were 810 Won/10a for the machine and 857 Won/10a for the manual labour. This cost shows little advantage by the machine over the manual labor costs. The conventional method of manure spreading will continue pending decision which will develope and improve the machine.3. Work performance in the rolling operation using the barley rolIer was 30 min/lOa which compares favourably with 135 min/10a using conventional method. This was one fourth of the time required by the conventional method. The operating costs were 514 Won/103. for the machine and 1, 003 Won/lOa for manual labour. In the weed control operation, the work performance and operating costs were 45min/lOa, 1, 399won/10a for the herbcide application using the power sprayer, 1, 149min/10a 8, 541won/lOa for the conventional method respectively. This is 26 times higher efficiency in comparison to the conventional method. 4. In the harvesting operation using the reaper binder and tiller attachment, the work performance was 60min/lOa and represents a cost of 2, 039won/10a. The con\ulcornerventional method took 640min/10a at a cost of 4, 757won/lOa. The reaper binder showns a saving of one tenth over the conventional method. The automatic thresher is already recommended for the current situations, and is now being used. 5. From a comparison of the results of the above trials, the serial cultivation system using the attachment for the power tiller such as the rotary barley seeder is now to be recommended for the current barley cultivation system. It is also recommend from these results that the mechanized technology now available must be used to improve and maintain the increase in barley production. It is seen th1t this is the only course now avaihble to solve the peak seasonal requirements of labour needed for l11rvesting and seeding between rice and barley cultivation.

  • PDF

Evolution of Aviation Safety Regulations to cope with the concept of data-driven rulemaking - Safety Management System & Fatigue Risk Management System

  • Lee, Gun-Young
    • The Korean Journal of Air & Space Law and Policy
    • /
    • v.33 no.2
    • /
    • pp.345-366
    • /
    • 2018
  • Article 37 of the International Convention on Civil Aviation requires that rules should be adopted to keep in compliance with international standards and recommended practices established by ICAO. As SARPs are revised annually, each ICAO Member State needs to reflect the new content in its national aviation Acts in a timely manner. In recent years, data-driven international standards have been developed because of the important roles of aviation safety data and information-based legislation in accident prevention based on human factors. The Safety Management System and crew Fatigue Risk Management Systems were reviewed as examples of the result of data-driven rulemaking. The safety management system was adopted in 2013 with the introduction of Annex 19 and Chapter 5 of the relevant manual describes safety data collection and analysis systems. Through analysis of safety data and information, decision makers can make informed data-driven decisions. The Republic of Korea introduced Safety Management System in accordance with Article 58 of the Aviation Safety Act for all airlines, maintenance companies, and airport corporations. To support the SMS, both mandatory reporting and voluntary safety reporting systems need to be in place. Up until now, the standard of administrative penal dispensation for violations of the safety management system has been very weak. Various regulations have been developed and implemented in the United States and Europe for the proper legislation of the safety management system. In the wake of the crash of the Colgan aircraft, the US Aviation Safety Committee recommended the US Federal Aviation Administration to establish a system that can identify and manage pilot fatigue hazards. In 2010, a notice of proposed rulemaking was issued by the Federal Aviation Administration and in 2011, the final rule was passed. The legislation was applied to help differentiate risk based on flight according to factors such as the pilot's duty starting time, the availability of the auxiliary crew, and the class of the rest facility. Numerous amounts data and information were analyzed during the rulemaking process, and reflected in the resultant regulations. A cost-benefit analysis, based on the data of the previous 10 year period, was conducted before the final legislation was reached and it was concluded that the cost benefits are positive. The Republic of Korea also currently has a clause on aviation safety legislation related to crew fatigue risk, where an airline can choose either to conform to the traditional flight time limitation standard or fatigue risk management system. In the United States, specifically for the purpose of data-driven rulemaking, the Airline Rulemaking Committee was formed, and operates in this capacity. Considering the advantageous results of the ARC in the US, and the D4S in Europe, this is a system that should definitely be introduced in Korea as well. A cost-benefit analysis is necessary, and can serve to strengthen the resulting legislation. In order to improve the effectiveness of data-based legislation, it is necessary to have reinforcement of experts and through them prepare a more detailed checklist of relevant variables.

A study on the feasibility evaluation technique of urban utility tunnel by using quantitative indexes evaluation and benefit·cost analysis (정량적 지표평가와 비용·편익 분석을 활용한 도심지 공동구의 타당성 평가기법 연구)

  • Lee, Seong-Won;Chung, Jee-Seung;Na, Gwi-Tae;Bang, Myung-Seok;Lee, Joung-Bae
    • Journal of Korean Tunnelling and Underground Space Association
    • /
    • v.21 no.1
    • /
    • pp.61-77
    • /
    • 2019
  • If a new utility tunnel is planned for high density existing urban areas in Korea, a rational decision-making process such as the determination of optimum design capacity by using the feasibility evaluation system based on quantitative evaluation indexes and the economic evaluation is needed. Thus, the previous study presented the important weight of individual higher-level indexes (3 items) and sub-indexes (16 items) through a hierarchy analysis (AHP) for quantitative evaluation index items, considering the characteristics of each urban type. In addition, an economic evaluation method was proposed considering 10 benefit items and 8 cost items by adding 3 new items, including the effects of traffic accidents, noise reduction and socio-economic losses, to the existing items for the benefit cost analysis suitable for urban utility tunnels. This study presented a quantitative feasibility evaluation method using the important weight of 16 sub-index items such as the road management sector, public facilities sector and urban environment sector. Afterwards, the results of quantitative feasibility and economic evaluation were compared and analyzed in 123 main road sections of the Seoul. In addition, a comprehensive evaluation method was proposed by the combination of the two evaluation results. The design capacity optimization program, which will be developed by programming the logic of the quantitative feasibility and economic evaluation system presented in this study, will be utilized in the planning and design phases of urban community zones and will ultimately contribute to the vitalization of urban utility tunnels.

Image Watermarking for Copyright Protection of Images on Shopping Mall (쇼핑몰 이미지 저작권보호를 위한 영상 워터마킹)

  • Bae, Kyoung-Yul
    • Journal of Intelligence and Information Systems
    • /
    • v.19 no.4
    • /
    • pp.147-157
    • /
    • 2013
  • With the advent of the digital environment that can be accessed anytime, anywhere with the introduction of high-speed network, the free distribution and use of digital content were made possible. Ironically this environment is raising a variety of copyright infringement, and product images used in the online shopping mall are pirated frequently. There are many controversial issues whether shopping mall images are creative works or not. According to Supreme Court's decision in 2001, to ad pictures taken with ham products is simply a clone of the appearance of objects to deliver nothing but the decision was not only creative expression. But for the photographer's losses recognized in the advertising photo shoot takes the typical cost was estimated damages. According to Seoul District Court precedents in 2003, if there are the photographer's personality and creativity in the selection of the subject, the composition of the set, the direction and amount of light control, set the angle of the camera, shutter speed, shutter chance, other shooting methods for capturing, developing and printing process, the works should be protected by copyright law by the Court's sentence. In order to receive copyright protection of the shopping mall images by the law, it is simply not to convey the status of the product, the photographer's personality and creativity can be recognized that it requires effort. Accordingly, the cost of making the mall image increases, and the necessity for copyright protection becomes higher. The product images of the online shopping mall have a very unique configuration unlike the general pictures such as portraits and landscape photos and, therefore, the general image watermarking technique can not satisfy the requirements of the image watermarking. Because background of product images commonly used in shopping malls is white or black, or gray scale (gradient) color, it is difficult to utilize the space to embed a watermark and the area is very sensitive even a slight change. In this paper, the characteristics of images used in shopping malls are analyzed and a watermarking technology which is suitable to the shopping mall images is proposed. The proposed image watermarking technology divide a product image into smaller blocks, and the corresponding blocks are transformed by DCT (Discrete Cosine Transform), and then the watermark information was inserted into images using quantization of DCT coefficients. Because uniform treatment of the DCT coefficients for quantization cause visual blocking artifacts, the proposed algorithm used weighted mask which quantizes finely the coefficients located block boundaries and coarsely the coefficients located center area of the block. This mask improves subjective visual quality as well as the objective quality of the images. In addition, in order to improve the safety of the algorithm, the blocks which is embedded the watermark are randomly selected and the turbo code is used to reduce the BER when extracting the watermark. The PSNR(Peak Signal to Noise Ratio) of the shopping mall image watermarked by the proposed algorithm is 40.7~48.5[dB] and BER(Bit Error Rate) after JPEG with QF = 70 is 0. This means the watermarked image is high quality and the algorithm is robust to JPEG compression that is used generally at the online shopping malls. Also, for 40% change in size and 40 degrees of rotation, the BER is 0. In general, the shopping malls are used compressed images with QF which is higher than 90. Because the pirated image is used to replicate from original image, the proposed algorithm can identify the copyright infringement in the most cases. As shown the experimental results, the proposed algorithm is suitable to the shopping mall images with simple background. However, the future study should be carried out to enhance the robustness of the proposed algorithm because the robustness loss is occurred after mask process.

Export Control System based on Case Based Reasoning: Design and Evaluation (사례 기반 지능형 수출통제 시스템 : 설계와 평가)

  • Hong, Woneui;Kim, Uihyun;Cho, Sinhee;Kim, Sansung;Yi, Mun Yong;Shin, Donghoon
    • Journal of Intelligence and Information Systems
    • /
    • v.20 no.3
    • /
    • pp.109-131
    • /
    • 2014
  • As the demand of nuclear power plant equipment is continuously growing worldwide, the importance of handling nuclear strategic materials is also increasing. While the number of cases submitted for the exports of nuclear-power commodity and technology is dramatically increasing, preadjudication (or prescreening to be simple) of strategic materials has been done so far by experts of a long-time experience and extensive field knowledge. However, there is severe shortage of experts in this domain, not to mention that it takes a long time to develop an expert. Because human experts must manually evaluate all the documents submitted for export permission, the current practice of nuclear material export is neither time-efficient nor cost-effective. Toward alleviating the problem of relying on costly human experts only, our research proposes a new system designed to help field experts make their decisions more effectively and efficiently. The proposed system is built upon case-based reasoning, which in essence extracts key features from the existing cases, compares the features with the features of a new case, and derives a solution for the new case by referencing similar cases and their solutions. Our research proposes a framework of case-based reasoning system, designs a case-based reasoning system for the control of nuclear material exports, and evaluates the performance of alternative keyword extraction methods (full automatic, full manual, and semi-automatic). A keyword extraction method is an essential component of the case-based reasoning system as it is used to extract key features of the cases. The full automatic method was conducted using TF-IDF, which is a widely used de facto standard method for representative keyword extraction in text mining. TF (Term Frequency) is based on the frequency count of the term within a document, showing how important the term is within a document while IDF (Inverted Document Frequency) is based on the infrequency of the term within a document set, showing how uniquely the term represents the document. The results show that the semi-automatic approach, which is based on the collaboration of machine and human, is the most effective solution regardless of whether the human is a field expert or a student who majors in nuclear engineering. Moreover, we propose a new approach of computing nuclear document similarity along with a new framework of document analysis. The proposed algorithm of nuclear document similarity considers both document-to-document similarity (${\alpha}$) and document-to-nuclear system similarity (${\beta}$), in order to derive the final score (${\gamma}$) for the decision of whether the presented case is of strategic material or not. The final score (${\gamma}$) represents a document similarity between the past cases and the new case. The score is induced by not only exploiting conventional TF-IDF, but utilizing a nuclear system similarity score, which takes the context of nuclear system domain into account. Finally, the system retrieves top-3 documents stored in the case base that are considered as the most similar cases with regard to the new case, and provides them with the degree of credibility. With this final score and the credibility score, it becomes easier for a user to see which documents in the case base are more worthy of looking up so that the user can make a proper decision with relatively lower cost. The evaluation of the system has been conducted by developing a prototype and testing with field data. The system workflows and outcomes have been verified by the field experts. This research is expected to contribute the growth of knowledge service industry by proposing a new system that can effectively reduce the burden of relying on costly human experts for the export control of nuclear materials and that can be considered as a meaningful example of knowledge service application.

A study on the Success Factors and Strategy of Information Technology Investment Based on Intelligent Economic Simulation Modeling (지능형 시뮬레이션 모형을 기반으로 한 정보기술 투자 성과 요인 및 전략 도출에 관한 연구)

  • Park, Do-Hyung
    • Journal of Intelligence and Information Systems
    • /
    • v.19 no.1
    • /
    • pp.35-55
    • /
    • 2013
  • Information technology is a critical resource necessary for any company hoping to support and realize its strategic goals, which contribute to growth promotion and sustainable development. The selection of information technology and its strategic use are imperative for the enhanced performance of every aspect of company management, leading a wide range of companies to have invested continuously in information technology. Despite researchers, managers, and policy makers' keen interest in how information technology contributes to organizational performance, there is uncertainty and debate about the result of information technology investment. In other words, researchers and managers cannot easily identify the independent factors that can impact the investment performance of information technology. This is mainly owing to the fact that many factors, ranging from the internal components of a company, strategies, and external customers, are interconnected with the investment performance of information technology. Using an agent-based simulation technique, this research extracts factors expected to affect investment performance on information technology, simplifies the analyses of their relationship with economic modeling, and examines the performance dependent on changes in the factors. In terms of economic modeling, I expand the model that highlights the way in which product quality moderates the relationship between information technology investments and economic performance (Thatcher and Pingry, 2004) by considering the cost of information technology investment and the demand creation resulting from product quality enhancement. For quality enhancement and its consequences for demand creation, I apply the concept of information quality and decision-maker quality (Raghunathan, 1999). This concept implies that the investment on information technology improves the quality of information, which, in turn, improves decision quality and performance, thus enhancing the level of product or service quality. Additionally, I consider the effect of word of mouth among consumers, which creates new demand for a product or service through the information diffusion effect. This demand creation is analyzed with an agent-based simulation model that is widely used for network analyses. Results show that the investment on information technology enhances the quality of a company's product or service, which indirectly affects the economic performance of that company, particularly with regard to factors such as consumer surplus, company profit, and company productivity. Specifically, when a company makes its initial investment in information technology, the resultant increase in the quality of a company's product or service immediately has a positive effect on consumer surplus, but the investment cost has a negative effect on company productivity and profit. As time goes by, the enhancement of the quality of that company's product or service creates new consumer demand through the information diffusion effect. Finally, the new demand positively affects the company's profit and productivity. In terms of the investment strategy for information technology, this study's results also reveal that the selection of information technology needs to be based on analysis of service and the network effect of customers, and demonstrate that information technology implementation should fit into the company's business strategy. Specifically, if a company seeks the short-term enhancement of company performance, it needs to have a one-shot strategy (making a large investment at one time). On the other hand, if a company seeks a long-term sustainable profit structure, it needs to have a split strategy (making several small investments at different times). The findings from this study make several contributions to the literature. In terms of methodology, the study integrates both economic modeling and simulation technique in order to overcome the limitations of each methodology. It also indicates the mediating effect of product quality on the relationship between information technology and the performance of a company. Finally, it analyzes the effect of information technology investment strategies and information diffusion among consumers on the investment performance of information technology.