Beyond free software: An exploration of the business value of strategic open source

The phenomenon of open source software (OSS) has been well studied from the software development perspective, but it has received much less attention from the perspective of business value. Nevertheless, OSS, when viewed as a value creation process rather than ‘free’ software, provides businesses with value through access to knowledge and innovation capacity resident in online communities. This conceptualisation, which we label ‘strategic open source’ requires firms to rethink their strategy and processes as there is a shift in focus from ownership to openness and collaboration with external parties. Nonetheless, the emergence of OSS poses a puzzle for conceptions of organisational theory. Therefore, a theorising process is needed in order to develop a deeper understanding of how value is created and captured with OSS. Using a field study of eleven European firms, this paper explores the creation and capture of business value from strategic open source. The findings reveal that while decision makers look to open innovation initiatives like OSS for value creation and capture, there is still a desire to remain self reliant, resulting in collaborative design (of external innovations) rather than collaborative decision making with value network partners in relation to how such innovations would help create and capture value within firms.     

Business analytics and business value: A comparative case study

With growing adoption of business analytics, it is important for investing firms to understand how business value is created from investments. Studies in IT domain have highlighted how higher investment in technology may not bring more returns, rather how IT as an organizational capability acts as a key mediator in value creation. This research extends the model to business analytics, to identify elements of analytics technology assets and business analytics capability and to understand the mechanism of business value creation using multiple case studies. We capture how analytics resources contribute to business performance by developing operational and organizational performance measures.     

Understanding the IT/business partnership: A business process perspective

From a business process perspective, the business value of information technologies (IT) stems from how they improve or enable business processes. At the same time, in the field of strategic IT/business alignment, the locus of discussion has been how IT/business partnerships enhance the value of IT. Despite this apparent relationship, the business process perspective has been absent from the IT/business alignment discussion. In this paper, we use the case of an industrial company to develop a model for understanding IT/business partnerships in business process terms. Based on our findings, we define these partnerships by allocating responsibilities between central IT and the local business during two stages of a process lifecycle: formation and standardization. The significance of the findings lies in how the model’s configuration leads to different types of IT units’ process centricity. This in turn affects the ability of the company as a whole to transform its operations with IT.     

An empirical examination of a process-oriented IT business success model

The value of information technology (IT) to modern organizations is almost undeniable. However, the determination of that value has been elusive in research and practice. We used a process-oriented research model developed using two streams of IT research to examine the value of IT in business organizations. One stream is characterized by examining how IT and non-IT variables affect other so-called IT success variables. The second stream is commonly referred to as IT business value, defined as the contribution of IT to firm performance. The resulting research model is referred to in our paper as the IT business success model. Data was collected from 225 top IS executives in fairly large organizations to empirically examine several hypotheses derived from theory concerning the causal nature of the IT business success model. A set of measures for the IT business success model was developed through an intense investigation of the IT literature. The measures were tested for validity and reliability using confirmatory factor analysis. The hypotheses that resulted from past research and conceptually illustrated in the research model were assessed using structural equation analysis. The implications of these findings and the limitations of the study are discussed in an effort to contribute to building a process-oriented theory base for IT business success at the organizational level of analysis.     

Closing the loop: Empirical evidence for a positive feedback model of IT business value creation

Researchers have established that information technology (IT) can improve firms’ productivity. Whether improved productivity leads to additional investment in IT, however, remains largely uninvestigated. In this paper, we consider whether the relationship between productivity and subsequent IT investment might be positive, negative, or ad hoc, and hypothesize that this relationship is positive. We analyze seven years of panel data from 1236 healthcare firms and present empirical evidence supporting our hypothesis. When our finding is combined with extant research, it becomes reasonable to propose that unidirectional causality does not fully describe the process of IT business value creation. Instead, we argue that existing static models of IT business value with unidirectional causality can be recast as dynamic models that explicitly incorporate multiple time periods and a positive feedback relationship to more accurately capture the complexity of this process. The creation of IT business value can thus be understood as a positive feedback model where IT investment in a given time period builds the stock of IT inputs, where those IT inputs then impact productivity, and where productivity leads to IT investment in a future time period, beginning the cycle anew.     

Appropriation of accounting information system use under the new IFRS: Impacts on accounting process performance

The newly issued International Financial Reporting Standards (IFRS) have significantly transformed the accounting process and the accounting information system (AIS). Confronting the changes in information technologies (IT), using the AIS appropriately is crucial to derive accurate information from which to process business transactions and report information in compliance with the new IFRS. Built on adaptive structuration theory (AST), this study is aimed toward investigating how accounting regulatory changes influence AIS use, which consequently affects accounting process performance. Data are collected through a questionnaire survey of 250 accountants from 36 countries currently using the IFRS as their accounting standards. The results show that perceived system restrictiveness, IT professional support, and accountant's self-efficacy significantly explain faithfulness of appropriation (FOA) whereas perceived effectiveness of controls on IT use does not. FOA influences exploitive and exploratory task adaptations, which subsequently predict accounting process performance under the new IFRS. This study enriches the AST literature and contributes to both the accounting and IT domains. Our findings provide organizations with new insights into how to maintain the efficiency of accounting practice and business operations under the new IFRS.     

Creating business value with process mining

Information systems research has a long-standing interest in how organizations gain value through information technology. In this article, we investigate a business process intelligence (BPI) technology that is receiving increasing interest in research and practice: process mining. Process mining uses digital trace data to visualize and measure the performance of business processes in order to inform managerial actions. While process mining has received tremendous uptake in practice, it is unknown how organizations use it to generate business value. We present the results of a multiple case study with key stakeholders from eight internationally operating companies. We identify key features of process mining – data & connectivity, process visualization, and process analytics – and show how they translate into a set of affordances that enable value creation. Specifically, process mining affords (1) perceiving end-to-end process visualizations and performance indicators, (2) sense-making of process-related information, (3) data-driven decision making, and (4) implementing interventions. Value is realized, in turn, in the form of process efficiency, monetary gains, and non-monetary gains, such as customer satisfaction. Our findings have implications for the discourse on IT value creation as we show how process mining constitutes a new class of business intelligence & analytics (BI&A) technology, that enables behavioral visibility and allows organizations to make evidence-based decisions about their business processes.     

Exploiting incumbents' potentialities: From linear value chains to multisided platforms

Two‐sided (or multisided) platforms are significantly transforming the competitive landscape. Companies like Airbnb and Uber entered and challenged traditional industries by adopting business models able to innovatively exploit the opportunities provided by digital technologies. Recent studies have pointed out that the characteristics of multisided platforms might inspire traditional businesses to foster innovation, enabling different kinds of value creation and capture. This paper aims to explore this possibility through a longitudinal case study of an Italian tour operator that moved from a traditional linear value chain model to a multisided platform. Relying on the literature about multisided platforms and the modalities adopted by incumbents in fostering innovation, this research offers contributions to both theory and practice. Firstly, it shows how incumbents can reinterpret their resources and relationships in order to conceive new multisided platforms. Secondly, it investigates how the experience gained by incumbents can unveil technological opportunities. Thirdly, it shows how the incumbents can manage complexity and adopt a systemic perspective in developing multisided platforms. Thus, the contribution to the academic dimension is in enriching the knowledge of how multisided platforms can help incumbents in dealing with their ‘typical curse’.     

Usability,quality, value and e-learning continuance decisions

Previous research suggests that an eventual information technology (IT) success depend on both its initial adoption (acceptance) and subsequent continued usage (continuance). Expectancy disconfirmation theory (EDT) has been successfully used to predict users’ intention to continue using information technologies. This study proposed a decomposed EDT model to examine cognitive beliefs and affect that influence users’ continuance decision in the context of e-learning service. The proposed model extended EDT by decomposing the perceived performance component into usability, quality, and value. Research hypotheses derived from this model are empirically validated using the responses to a survey on e-learning usage among 183 users. The results suggest that users’ continuance intention is determined by satisfaction, which in turn is jointly determined by perceived usability, perceived quality, perceived value, and usability disconfirmation.     

The role of IT application orchestration capability in improving agility and performance

This paper investigates how IT application orchestration – a dynamic capability encapsulating a firm’s ability to refresh its application portfolio through a process of building, buying, and retiring IT applications – impacts firm performance. We propose a conceptual model in which the effect of IT application orchestration on firm performance is mediated by process agility. We further propose that a firm’s strategic orientation moderates the effect of IT application orchestration capability on process agility. Analysis of data from an international survey of IT executives supports our proposed hypotheses. This research contributes to the emergent literature on dynamic capabilities by proposing and testing a theory of how IT application orchestration capability affects agility and firm performance.     

FAHP改进Shapley值法进行工程科技创新收益分配

从合作博弈论视角分析了工程科技合作创新收益合理分配的问题,运用Shapley值法对创新联盟的收益进行初次分配;基于模糊综合评价法（FAHP）从科技创新角色重要性、合作意识、成本投入、企业实力、承担风险等量化评价各创新成员的实际贡献率,据此修正初次分配Shapley值。用工程实际创新案例进行了计算分析,结果表明改进的分配方法合理地提高了核心创新单位和承担风险大的单位的收益,分配结果与成员在联盟中的价值相匹配,有利于创新联盟的稳定,具有可操作性和实用性,可为合作创新收益分配提供理论依据与方法。     

Hierarchical business value of information technology: Toward a digital innovation value chain

Information technology (IT) increasingly changes the ways through which firms develop and commercialize innovation. Prior studies have mainly focused on the direct effect of IT use on innovation performance, while little is known about how IT use for different purposes in the innovation processes leads to innovation performance at the organizational level. Drawing on the routine-based absorptive capacity (AC) framework, we conceptualize IT use for knowledge search and relational search as IT-enabled internal and external AC routines and unveil the hierarchical benefits resulting from IT use for innovation. We propose a model in which firms need to purposefully use IT to search for knowledge in the new product development process or search for relationships in the collaborative innovation process, leading to first-order benefits (i.e., internal innovation benefits and open innovation benefits) and, in turn, second-order benefits (i.e., innovation performance). By using a unique data set from 1028 German firms between 2003 and 2007, we find that IT use for knowledge search enhances internal innovation benefits, whereas IT use for relational search increases open innovation benefits. More importantly, internal and open innovation benefits mediate the relationships between IT use for knowledge and relational search and various innovation performance measures. Taken together, our findings shed light on a deeper understanding of the digital innovation value chain.     

The strategic value of IT insourcing: An IT-enabled business process perspective

Although research on the business impact of IT outsourcing abounds, little is known about the relative strategic value of IT outsourcing and IT insourcing. Drawing upon the knowledge-based view of the firm, this study postulates that, compared with IT outsourcing, IT insourcing is more effective for developing IT-enabled business processes (IEBP), which subsequently lead to superior firm performance. Our analysis of the data from InformationWeek and Compustat shows that IT insourcing is positively associated with IEBP, while the relationship between IT outsourcing and IEBP is not statistically significant. We also find that IEBP have a significant influence on firm performance. Finally, the effect of IT sourcing mechanisms on IEBP and the effect of IEBP on firm performance are both moderated by the type of innovation related to IEBP. The results suggest that in order to improve their performance firms should consider IT an integral part of their strategic core and should be proactively involved in the internal development of IT resources. We conclude with managerial implications and directions for future research.     

Consultancies and capabilities in innovating with IT

When firms innovate with information technology (IT), they frequently retain consultants, who presumably bring certain capabilities to the process. But what capabilities are these and why do they seem to be so needed? In this essay, I consider several different consultancy specializations – business strategy, technology assessment, business process improvement, systems integration, business support services – and how they facilitate an IT innovation process both within and across firms. For each specialization, I examine the consultancy’s capabilities and contributions both to the client (within an engagement) and to the broader support of the innovation (across and beyond engagements). The analysis suggests a number of conjectures as to the influence of consultancies on an IT innovation’s adoption, diffusion and eventual institutionalization.     

Exploring characteristics and transformational capabilities of InsurTech innovations to understand insurance value creation in a digital world

Recent developments in the insurance industry embrace various “Insurance Technology” (InsurTech) innovations. To date, there is a lack of structured assessments of InsurTech. Prior research on FinTech fails (1) to clarify how InsurTech can be characterized and what capabilities are employed, and hence, (2) to reveal implications for value creation on firm and industry level. We address this by inductively building a model of InsurTech innovation adopting the grounded theory method. Our empirical data includes 208 InsurTech innovations from a market analysis based on Twitter data and a multiple-case study. The resulting model comprises 52 characteristics and 14 transformational capabilities and is integrated with extant value networks and intermediation literature. The former explains how InsurTech affects firm-level value creation and suggests that disruptive potentials emerge from aligning the transformational capabilities along three interdependent activities. The latter explains the entrance of digital intermediaries and their roles in the personal insurance market.     

Government policy,public value and IT outsourcing: The strategic case of ASPIRE

The paper examines government IT outsourcing polices. The paper critiques the concept of ‘the Contract State’, and suggests how more disciplined uses of outsourcing can assist the creation of public value, more broadly conceived. Within the context of international developments, we study the United Kingdom Inland Revenue (IR), Customs and Excise (HMRC) and Department of Social Security (DSS) and their IT outsourcing contracts. The evidence suggests that outsourcing and marketization initiatives have adverse public value impacts, and may need to be rethought. Major IT operations and innovations, for example e-government, National Health Service (NHS) and identity card IT policies in the UK, are managed and generate legacies that do not always make efficient and effective use of the market. Moreover, their objectives, implementation and management over time may truncate their value to the public at large. Applying a revised Public Value policy approach offers a richer perspective to guide central government decisions worldwide about future IT outsourcing.     

Strategic business value from big data analytics: An empirical analysis of the mediating effects of value creation mechanisms

Big data are a prominent source of value capable of generating competitive advantage and superior business performance. This paper represents the first empirical investigation of the theoretical model proposed by Grover et al. (2018), considering the mediating effects of four value creation mechanisms on the relationship between big data analytics capabilities (BDAC) and four value targets. The four value creation mechanisms investigated (the source of the value being pursued) are transparency, access, discovery, and proactive adaptation, while the four value targets (the impacts of the value creation process) are organization performance, business process improvement, customer experience and market enhancement, and product and service innovation. The proposed empirical validation of Grover et al.’s (2018) model adopts an econometric analysis applied to data gathered through a survey involving 256 BDA experts. The results reveal that transparency mediates the relationship for all the value targets, while access and proactive adaptation mediate only in case of some value targets, and discovery does not have any mediating effect. Theoretical and practical implications are discussed at the end of the paper.     

A Model to Create Organizational Value with Big Data Analytics

Value creation is a major factor not only in the sustainability of organizations but also in the maximization of profit, customer retention, business goals fulfillment, and revenue. When the value is intended to be created from Big Data scenarios, value creation entails being understood over a broader range of complexity. A question that arises here is how organizations can use this massive quantity of data and create business value? The present study seeks to provide a model for creating organizational value using Big Data Analytics (BDA). To this end, after reviewing the related literature and interviewing experts, the BDA-based organizational value creation model is developed. Accordingly, five hypotheses are formulated, and a questionnaire is prepared. Then, the respective questionnaire is given to the research statistical population (i.e., IT managers and experts, particularly those specializing in data analysis) to test the research hypotheses. In next phase, connections between model variables are scrutinized using the structural equation modeling (measurement and structural models). The results of the study indicate that investigating the infrastructures of the Big Data Analytics, as well as the capabilities of the organization and those of Big Data Analytics is the initial requirement to create organizational value using BDA. Thereby, the Big Data Analytics strategy is formulated, and ultimately, the organizational value is created as well.     

企业远程安全运维服务系统可行性分析研究

而今,随着计算机通信网络技术的飞速发展,IT越来越深入到企业的核心业务,影响企业的策略制定和企业的发展。对于企业而言,如何把有限的IT资源有效的作用于企业核心业务,最快地获取专业的支持能力,实现对系统的完善管理,提高系统的可靠性和可用性,提高企业的工作效率,更好地管理IT运营成本,提高企业的竞争力,这是所有企业都必须面对的问题。     

The ethnology of information: Cultural learning through cooperative action research in a multinational firm

Business information systems traditionally focus on technical matters. This paper explores the creation and implementation of information systems that integrate organizational business, social, and cultural knowledge. By using an extended case study set in grounded theory, we document how one company used cooperative research to meet these goals. In particular, we show how such research permits the reformulation, modification, or rejection of working hypotheses from a theoretical academic through a practitioner level. The cooperative research systems were grounded in ethnography, participant observation, improvement cycles, and detailed work processes. The information systems were effective in both monocultural and multicultural environments.