Organizational competence for harnessing IT: A case study

In spite of decades of discussion and research into the benefits of the use of IT in the organization, it has been difficult to prove a positive gain. Literature on IT management has reported more cases of failed implementations than of success. We believed that developing organizational competencies both helped in harnessing IT and also in gaining competitive advantage. Conceptual schema for developing this was based on the theory of strategic competence, which formed the basis of our work. We undertook a case study to prove this. Findings suggested that three broad categories of competence were necessary for harnessing IT. A number of facilitating competencies were also found and are presented.     

A framework for addressing the organisational issues of enterprise systems implementation

Over the last 10 years many organisations have made significant investments in Enterprise-wide Systems (ES), particularly Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) software packages. Whilst in most cases technical implementation is relatively successful, many of the initiatives have failed to deliver the benefits expected. Research studies have identified a wide range of factors, that can affect the success of ES implementations, and the general consensus is that organisational issues are more difficult to resolve than technical ones.This research set out to synthesise a framework, from prior research, for analysing and understanding these organisational issues and to apply and refine the framework by studying four ES initiatives in different organisational and industry contexts. The findings from the case studies suggest that the framework can help understand how different approaches to managing ES implementations both address and influence the behaviours of key interest groups and hence the achievement of the benefits expected from the investment.     

An Approach to Evaluating E-Business Information Systems Projects

Capital investments in the e-business infrastructure add complexity to the IT payoff question because e-business interorganizational investments are deployed across multiple platforms, projects, vendors and partners. Traditional MIS research has been devoted to measuring the payoff from information technology (IT) investment without any specific focus on e-business. Flaws in the mature MIS performance measures seem to yield weak guidance for managers when evaluating IT success, thus diluting the potential for these measures to be adapted for use in the new e-business environment. A review of the conventional MIS payoff literature indicates that these measures may be incomplete, inaccurate, or inefficient for application to electronic commerce investments. This paper brings four new points to the e-business IT investment evaluation dialogue: (1) we first explore performance measurement validity flaws in our long established measures; (2) the paper discusses a two-by-two matrix delineating the gap between the quantitative versus qualitative performance measures of management information systems (MIS) initiatives; (3) sample e-business payoff techniques are discussed and reviewed in light of these historical imperfections, and (4) fourth, the paper proposes and describes an innovative framework derived from production theory economics for future research in evaluating e-business MIS implementations.     

Realising B2B e-commerce benefits: the link with IT maturity,evaluation practices,and B2BEC adoption readiness

Actual realisation of business-to-business electronic commerce (B2B e-commerce) benefits from IT investments has been a critical issue for large organisations. However, relatively little research has been undertaken to determine the drivers for realising B2B e-commerce benefits within these organisations. A survey research was conducted to examine the relationships between B2B e-commerce benefits, IT investment evaluation methodologies (IEM), IT benefit realisation processes (BRP), B2B e-commerce adoption readiness, and IT maturity in large Australian organisations. An IT investment management model was developed to test these relationships. The results had empirically validated the model and indicate that a higher level of BRP adoption and increased level of B2B e-commerce adoption readiness had a significant direct relationship with B2B e-commerce benefits. In addition, the level of B2B e-commerce adoption readiness, and the level of IEM and BRP adoption were significantly influenced by the level of IT maturity. However, the use of IEM alone had only an indirect positive influence on B2B e-commerce benefits through the higher level of BRP adoption and increased level of B2B e-commerce adoption readiness.     

The rise of customer-oriented banking - electronic markets are paving the way for change in the financial industry

The banking industry has been a pioneer in adopting electronic markets with exchanges, clearinghouses, and multilateral trading facilities having become the backbone of today??s globally integrated financial transactions. While most banks use the services of these electronic markets to handle interbank processes, they still strive for bilateral relations in the field of customer-facing processes. This position paper argues that the financial crises, the changing behavior of customers, upcoming innovations based on information technology (IT) and financial services offered by non-banks are strong drivers towards more customer-orientation in the financial industry. A large variety of banking IT innovations has emerged and illustrates that traditional banks are expected to have less power to impede competition at the customer interface and in consequence need to re-position themselves. Building on these developments on the one hand and existing electronic market infrastructures in the banking industry on the other, the concept of a customer-oriented financial market infrastructure is proposed as a possible future solution. The impact is illustrated using a competitive analysis of the banking industry and analogies to the media industry where new entrants from the computing industry have caused disruptive changes. Besides describing the threat to existing banks, the position paper also discusses the perspectives for banks.     

Consumer decision-making and smart logistics planning based on FPGA and convolutional neural network

In the fourth Industrial Revolution, cost-effective planning and rational management were the key to the success of the revolution. This paper mainly studies the development and application of models in machine learning technology. The abnormal activities monitored in real time are rectified so that the customer's electronic orders can be displayed through the support of big data, thus laying the foundation for the development of intelligent logistics. Under the data system, an exception model is created and classified and regressed. In this model, the security and stability of customer orders in the network can be automatically detected, and the abnormal data can be analyzed and evaluated. Unusual circumstances of this kind need to be in an intelligent logistics environment, and delivery tasks must be called intuitive for special care. Early detection of abnormal order events is expected to improve the accuracy of delivery planning. To enable new technical solutions, the logistics industry and economic decision-makers often lack the IT background and expertise needed to start developing new systems and technical solutions. Evaluate the benefits of using. Implementation and integration complexity is seen as one of the three major obstacles to the success of the IoT above. This is by hindering long-term investment in new technologies from slowing down digitization.     

Evaluating organizational efficiency resulting from information technology investment: an application of data envelopment analysis

Abstract. Even during this recessionary era, information technology (IT) expenditure in most organizations continues to grow at a high rate. Because of this increased IT expenditure, more and more senior managers are demanding that IT play a greater role in determining their firm's success by helping them increase organizational efficiencies and perhaps even achieve competitive advantage. The existing information systems literature on IT investment and organizational strategic performance, however, provides very little help to senior managers in making before-the-fact IT investment decisions. The present research study puts forth some 'hard' evidence relating IT investment to organizational strategic and economic performance by using data envelopment analysis (DEA). Eight IT investment measures were used as inputs and 10 organizational strategic and economic performance ratios were used as outputs for the DEA model. The results indicate that two-thirds of the organizations in this research study are deemed efficient by DEA. A clear distinction exists between the efficient group and the inefficient group in terms of IT investment and organizational strategic and economic performance. The firms in the efficient group had a much higher return on their information technology investment than the inefficient group. In addition, the DEA results pinpoint the inefficient inputs and deficient outputs for an inefficient firm allowing a senior manager to take corrective actions to compensate for the situation.     

Why one big picture is worth a thousand numbers: measuring intangible benefits of investments in augmented reality based assistive technology using utility effect chains and system dynamics

The body of literature in the area of IT/IS investment evaluation proposes a variety of methods and techniques for the ex-ante assessment of IT/IS investments. However, the financial evaluation of intangible benefits associated with IT/IS investments in general and investments in innovative IT/IS in particular still remains a problem area of high relevance to decision makers. As a consequence, investment decisions are still taken by practitioners as an “act of faith”. With this in mind, it is our primary aim to develop a quantification model for the financial assessment of intangible benefits concerning investments in innovative IT/IS. Based on an augmented reality and smart glasses application scenario from the construction domain, we demonstrate how intangible benefits of innovative IT/IS investments can be visualised and measured more effectively by means of utility effect chains and system dynamics prior to their incorporation into a cost–benefit analysis. Based on design science research, the quantification model is developed by means of a systematic literature review and evaluated using the augmented reality application scenario in construction. The model can serve as an aid to the managerial decision making process by providing an enhanced understanding of the various tangible and intangible benefits associated with the investment.     

Timing the introduction of information technology

Abstract. Deciding when to adopt or introduce new information technology (IT) is a relatively difficult problem. This paper presents a method that can be used in many circumstances to evaluate new IT. The model is based on modelling the response of customers and rivals to services provided by IT. The methodology recognizes competitor reactions on two levels: within the local market and actions by rivals in the international market. The model examines behaviour, costs, and benefits over time. Several different types of models are examined, ranging from competitive (Nash) equilibriums to joint ventures. This model is illustrated by examining when banks should implement new technology. The results indicate that large banks can effectively utilize technology as a strategic weapon. Smaller, local banks are more limited in their control of technology. The model reveals some strategic uses that are not evident from existing models.     

Toward more effective management of information technology benefits

A critical issue facing senior executives is how to improve the return on their information technology (IT) investments. The results of numerous studies are inconclusive as they have failed to show conclusively that IT investments produce expected payoffs. The purpose of this paper is to offer an explanation for the perceived lack of IT payoff and show how managers can improve the return on their IT investments. We argue that IT can provide significant benefits, but in many cases these benefits are not captured by the firm that made the investment. Instead, a large portion of the benefits are reaped by a variety of participants or stakeholders. The implications of this for managers is that they need to view IT payoff as a portfolio of benefits across many stakeholders. They must also understand and manage the distribution of the benefits within the portfolio to assure that benefits are transferred to the bottom line. The paper offers a framework for analyzing the nature and distribution of IT benefits among various stakeholder groups and concludes with a set of guidelines for measuring and managing these benefits.     

Technical and management perceptions of enterprise information system importance, implementation and benefits

Abstract.  This paper compares information systems (IS) integration in high-tech organizations from the information technology (IT) and general management perspectives. All the organizations studied have experience of integrated Enterprise Resource Planning systems, and some with their extension to Supply Chain Management and Customer Relationship Management systems. The operational scope of the sample systems, and senior IT and general management perceptions of the importance of their functions, benefits and implementation success factors, obtained by qualitative interviews with 49 senior managers and a quantitative survey of 219 high-tech companies, are described and compared. Although the opinions expressed indicate some mutual hostility, IT and general management perceptions of IS implementation were very similar. IT managements overall importance assessments of business functions were more strongly correlated with their overall level of implementation, and they tended to rate system benefits and system reliability more highly. The significance of these findings is discussed and some suggestions for further investigation, placing them in a wider context, are made. Arguably, the similarities found are more important than the differences.     

Return on Infrastructure, the New ROI

IT executives frequently must be able to communicate IT's value in real economic terms, characterizing how technology infrastructure financially benefits the business relative to the company's financial performance objectives. Traditionally, the approach taken has focused on the capital investment process, with return on investment being the primary metric. However, ROI approaches identify financial results pertaining to a specific project, rather than IT programs as a whole, and can be misleading. A new financial metric, return on infrastructure employed (ROIE), has economic and real practical meaning to senior executive management because it recognizes IT as both an asset and a service. ROIE is a new financial management tool with which to judge the business contribution of IT as a whole; using it can motivate management behaviors and disciplines that are essential for success in the modern-day information economy.     

Banking in the Internet and mobile era

Large parts of today's banking business are based on the application of information technology (IT). This applies to advisory at the customer frontend to and internal operations in banks to the electronic stock exchanges and transaction networks. To position the five contributions in the special issue on ??Banking in the Internet and Mobile Era??, this editorial suggests a framework that structures the application areas of IT in the banking industry. It recognizes IT as the enabler for all four tiers of the banking value chain and highlights the specific role of the regulatory environment in this industry. The special issue emphasizes the transformation of the banking industry towards more customer-orientation as well as the role of Internet and mobile technologies to change established channels and banking services.     

Effects of strategic alignment on IS success: the mediation role of IS investment in Korea

The purpose of this research is to develop a comprehensive information system (IS) evaluation model for IS success linked to organizational performance. The primary focus of this research is to investigate the role of IT investment in business values by means of a group survey of about 300 business executives in Korea. We used the contingency theory to discover the mediation effect of IS investment on strategic alignment and IS success. In contrast to previous research, this study expanded the test scope to IS architecture and organizational structure at the operational level. The results from 273 business executives in Korea indicated that strategy integration with IT is positively related to IT investment, and IT investment is a critical antecedent of IS success. Thus, the implications of the findings are that right-directional IT investment has played an important role in the success of IT companies in Korea.     

Information systems management: role of planning, alignment and leadership

Undoubtedly technology has the potential to provide significant strategic and operational benefits to organisations in the electronic age. Unfortunately the reality is that many organisations are failing to reap the expected benefits from their investment in information systems. This, along with the ubiquitous presence of technology, incessant technological changes and the unrelenting advance of e-commerce, means information systems management (ISM) has become a matter of major concern to many organisations. Given the paramount importance of ISM to organisations, this article seeks to critically examine three of the most fundamental and perhaps elusive aspects of ISM in the context of a rapidly changing technological environment - planning, alignment and managerial responsibilities. Since ISM is a multifaceted concept, it would be futile to attempt a comprehensive analysis of the subject in a single article and hence the above focus on a small number of issues. More specifically, the organisational and managerial aspects of ISM would form the core of this article rather than the more technical issues (e.g. IT infrastructure development). It will also explore problem areas in the literature that represents gaps within both theory and in the prevalent methodologies employed to examine those theories.     

Information systems management: role of planning,alignment and leadership

Undoubtedly technology has the potential to provide significant strategic and operational benefits to organisations in the electronic age. Unfortunately the reality is that many organisations are failing to reap the expected benefits from their investment in information systems. This, along with the ubiquitous presence of technology, incessant technological changes and the unrelenting advance of e-commerce, means information systems management (ISM) has become a matter of major concern to many organisations. Given the paramount importance of ISM to organisations, this article seeks to critically examine three of the most fundamental and perhaps elusive aspects of ISM in the context of a rapidly changing technological environment – planning, alignment and managerial responsibilities. Since ISM is a multifaceted concept, it would be futile to attempt a comprehensive analysis of the subject in a single article and hence the above focus on a small number of issues. More specifically, the organisational and managerial aspects of ISM would form the core of this article rather than the more technical issues (e.g. IT infrastructure development). It will also explore problem areas in the literature that represents gaps within both theory and in the prevalent methodologies employed to examine those theories.     

Justifications,Strategies, and Critical Success Factors in Successful ITIL Implementations in U.S. and Australian Companies: An Exploratory Study

Abstract

A growing number of organizations are implementing the ITIL (IT Infrastructure Library) “best practice” framework in an attempt to improve their IT service management processes. However, not all ITIL implementations are successful and some companies have been disappointed with the outcomes. This exploratory research reports on four case studies of “successful” implementations of IT service management using the process-based ITIL V2 framework. Two companies are located in the U.S. and two in Australia. The cases demonstrate a mix of implementation justifications and strategies. Critical success factors (CSFs) suggested in the literature are compared against those attributed to these successful ITIL implementations. Some CSFs, including executive management support, interdepartmental communication and collaboration, use of consultants, training and careful software selection are confirmed. Three new CSFs are identified: creating an ITIL-friendly culture, process as a priority, and customer-focused metrics. Practitioner guidelines, to assist IT managers, who are contemplating adopting ITIL for process improvement and organisational transformation, are also provided together with some challenges encountered and their associated resolutions.     

Information Technology Investments: Characteristics, Choices, Market Risk and Value

The decisions confronting information technology (IT) managers have changed a great deal since the early 1970s. The key decisions three decades ago were related to the management of application development projects and operations centers. Today, the key decisions are quite different. What level of service should the firm provide end-users? Should IT services, development projects and the ownership and management of operations centers be outsourced? IT investments attempt to satisfy specific needs. Because of environmental differences and differences in the cost structure and benefits of alternative ways in which these needs can be met, the answers to these questions may differ across firms. Modern financial analysis can provide insights to help managers deal with many of the problems they currently face. We use modern financial theory to show how the value of IT investments can be affected by some of the choices made by managers. We show how the market risk of demand and the market risk of costs affect the market risk and value of IT investments. We consider three types of investment decisions: outsourcing versus in-house services; investments in interorganizational systems; and determining the optimal level of IT services that should be provided. Our analysis indicates that: (1) as the market risk of demand for operations decreases, firms are less likely to outsource operations; (2) the value of an investment in an interorganizational system increases as the market risk of costs increases; and (3) the optimal level of user service is inversely related to service demand risk and is directly related to the market risk of service costs.     

Information technology and the accountant: a case study

The factors leading to the success or failure of IT implementations by accountants are investigated in a health service situation. Tbe case study adopts the participant observation methodology and the factors observed are classified as motivators and demotivators. Using a project dependent definition of success, a catastrophe theory framework is used to describe the outcome of the combined influence of these factors. Four particular IT projects are discussed and the factors observed include: the influence of higher levels in the organizational hierarchy, some systems characteristics, the seduction of technology, external pressures, the 'rate of change', skills shortage and reliability. By comparing the examples described with features mentioned by other authors, it is noted that some factors appear to be generally applicable, whereas others may be context dependent.     

Resource Complementarity and IT Economies of Scale: Mechanisms and Empirical Evidence

ABSTRACT

In this study, we explore economies of scale for IT infrastructure and application services. An in-depth appreciation of economies of scale is imperative for an adequate understanding of the impact of IT investments. Our findings indicate that even low IT spending organizations can make a difference by devoting at least 60% of their total IT budget on IT infrastructure in order to foster economies of scale and extract strategic benefits.