Business analytics in supply chains - The contingent effect of business process maturity

The paper analyzes the effect of the use of business analytics on supply chain performance. It investigates the changing information processing needs at different supply chain process maturity levels. The effects of analytics in each Supply Chain Operations Reference areas (Plan, Source, Make and Deliver) are analyzed with various statistical techniques. A worldwide sample of 788 companies from different industries is used. The results indicate the changing impact of business analytics use on performance, meaning that companies on different maturity levels should focus on different areas. The theoretical and practical implications of these findings are thoroughly discussed.     

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.     

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.     

可适应性企业级整体IT成熟度模型及其评价

目前部分企业计划或已经采用不同的成熟度模型和指标对其 IT成熟度进行评估 ,如 IT服务成熟度、软件成熟度、信息风险成熟度等方法 ,但无有效的方法对整体 IT成熟度进行评估。基于 SEI开发的能力成熟度框架( CMM)提出可适应性整体 IT成熟度模型 ( adaptive total IT maturity model / ATITMM/ @ ITMM, @ ITMM)的概念,并建立可适应性的企业级通用 IT成熟度模型 ;运用一种合适的通用评估纬度反映企业整体 IT状况 ,同时采用模糊综合评价法对整体 I     

Enabling firm performance through business intelligence and analytics: A dynamic capabilities perspective

This study draws on the sense-seize-transform view of dynamic capabilities as the theoretical lens for examining the role of BI&A in organizations. It views BI&A as the sensing and seizing components of dynamic capabilities that contribute to firm performance by enabling business process change. Findings confirm a positive relationship between BI&A and performance, mediated by business process change capabilities. This study answers the call for a theoretically grounded examination of the relationship between BI&A and firm performance by highlighting the significance of the BI&A seizing capabilities, and the importance of business process change in translating BI&A output into improved performance.     

Explaining IT governance disclosure through the constructs of IT governance maturity and IT strategic role

This study investigates the relation between the maturity of IT governance processes and the IT governance disclosure of firms. Furthermore, it examines whether the strategic role of IT in an industry induces systematic variation in IT governance disclosure. Based on a content analysis of annual reports and a field survey on the maturity of the implementation of COBIT processes, the results demonstrate a role of IT governance frameworks in stimulating accountability and transparency via enhanced external reporting of relevant IT information to external stakeholders, in particular in settings where the strategic role of IT is high.     

Impacts of essential elements of management on IT application maturity — A perspective from firms in China

This paper explores the impacts of essential elements of management on IT application maturity (ITAM). A game theoretical model is established to show that a firm's IT application maturity should match with its essential elements of management. In order to further validate the analytical result, a data set with 137 firms was collected via a survey instrument. Using reliability and factor analysis on the dataset, a four-dimension measurement construct of IT application maturity is proposed together with a three-dimension measurement construct of essential elements of management. Empirical analysis is then conducted to address research questions on the impacts of essential elements of management on IT application maturity. It is found that while a firm's strategic cooperation capability has no significant effect on IT application maturity, its internal coordination capability positively influences all four dimensions of IT application maturity. For the firm's execution capability, although it shows no significant effect on the overall IT application maturity, it does positively affect the technology and man-machine synergy dimensions of IT application maturity. The findings of this study offer practical guidance for organizations to better align their IT application maturity with essential elements of management.     

Business value of big data analytics: A systems-theoretic approach and empirical test

Although big data analytics have been widely considered a key driver of marketing and innovation processes, whether and how big data analytics create business value has not been fully understood and empirically validated at a large scale. Taking social media analytics as an example, this paper is among the first attempts to theoretically explain and empirically test the market performance impact of big data analytics. Drawing on the systems theory, we explain how and why social media analytics create super-additive value through the synergies in functional complementarity between social media diversity for gathering big data from diverse social media channels and big data analytics for analyzing the gathered big data. Furthermore, we deepen our theorizing by considering the difference between small and medium enterprises (SMEs) and large firms in the required integration effort that enables the synergies of social media diversity and big data analytics. In line with this theorizing, we empirically test the synergistic effect of social media diversity and big data analytics by using a recent large-scale survey data set from 18,816 firms in Italy. We find that social media diversity and big data analytics have a positive interaction effect on market performance, which is more salient for SMEs than for large firms.     

IT assets, organization capital and market power: Contributions to business value

How much IT capital contributes to the economic value of firms is a relevant but complex issue, since the contribution may come from different sources that are difficult to separate. In this paper, we model the determinants of the economic value of multi-asset firms with market power when the adjustment costs of investing in IT capital turn into organization capital, increasing the future cash flow of the firm. The resulting valuation equation, new in the literature, has four simultaneous sources of economic value: (i) purchase costs of the assets, (ii) adjustment costs, (iii) organization capital, and (iv) rents from market power. The model is tested with a unique data base from Spanish banks in a time period when these banks invested heavily in IT capital. We find that 54% of the economic value of the representative bank corresponds to the purchase cost of material and immaterial assets, including IT capital. The remaining 46% corresponds to the contributions of: adjustment costs (17%), organization capital (7%) and rents from market power (22%).     

Business intelligence and analytics use,innovation ambidexterity,and firm performance: A dynamic capabilities perspective

To survive in a dynamic and hyper-competitive business environment, firms are compelled to simultaneously introduce incremental and radical innovations. While it is recognised that business intelligence and analytics (BI&A) can support innovation and provide organisational value, the literature provides a limited understanding of its impact on balancing different innovation activities and ensuring performance gains. In this study, we examine the relationship between BI&A use, innovation ambidexterity, and firm performance by relying on the process theory of IS value creation as well as the dynamic capabilities perspective. We test our model using data collected from medium- and large-sized firms in Slovenia, applying partial least squares modelling. The results support the notion that BI&A use is positively associated with successful balancing between explorative and exploitative innovation activities, which in turn enhances firm performance. Our results also indicate that innovation ambidexterity is enhanced in two ways: indirectly through interaction with the firm’s absorptive capacity, and directly by increasing the possibilities of faster experimentation with offerings of products or services and improved predictability of the value of new products or services.     

Exploring the relationships between IT competence,innovation capacity and organizational agility

Business environments today are characterized as being very dynamic and hyper competitive. Organizations in these environments have to be agile in order to adapt their strategies and actions to be successful. While it is recognized that information technology can enable firms to be agile, there is a limited understanding of the mechanisms through and the contexts in which Information Technology (IT) enhances agility. This study examines two key antecedents of organizational agility, namely the IT competence of a firm and its innovation capacity and, examine their independent and joint effects on agility. We test our model using data collected from large firms in the US. The results provide strong support for our model. We found that firms with superior IS capabilities coupled with an aggressive IT investment orientation create digital platforms that enable them to be agile. We also found that the innovation capacity of the firm has a positive relationship with organizational agility and that firms with higher innovation capacity are better able to leverage their digital platforms to enhance agility. Our results indicate that organizational agility has a strong positive impact of firm performance. We interpret and discuss these results and their theoretical and practical implications.     

The moderating role of IT-business alignment in the relationship between IT governance,IT competence,and innovation

Results from a survey of senior executives/officers in charge of IT suggest that while greater IT governance triggers more innovation, IT-business alignment does not moderate this relationship. Executive management IT competence has a direct and positive impact on innovation, and this relationship is stronger when moderated by IT-business alignment. However, regardless of IT-business alignment, innovation is not significantly affected by the board’s IT competence but is positively impacted by IT intensity. This study extends the IS literature on the role of IT in innovation and contributes to the IT governance literature.     

Achieving novelty and efficiency in business model design: Striking a balance between IT exploration and exploitation

Digitalization is encouraging an increasing number of firms to design their business models based on information technology (IT) for exploring business opportunities. This study examines the effect of the balance (imbalance) between IT exploration and exploitation on novelty-centered business model design (NBMD) and efficiency-centered business model design (EBMD). Using matched data from the IT-related executive and chief executive officer of 183 firms, this study finds that IT exploration is positively related to NBMD and EBMD and that IT exploitation is positively related to only EBMD. NBMD and EBMD are significantly related to firm performance. Polynomial regression and response surface analysis reveal that NBMD and EBMD first decline and then rise with the increase in the level of balance between IT exploration and exploitation. NBMD declines but EBMD rises with the increase in the level of imbalance between IT exploration and exploitation. This study contributes to the understanding on leveraging IT capability to influence the business model design and firm performance.     

Data mining and knowledge discovery 1996 to 2005: overcoming the hype and moving from “university” to “business” and “analytics”

I survey the transformation of the data mining and knowledge discovery field over the last 10 years from the unique vantage point of KDnuggets as a leading chronicler of the field. Analysis of the most frequent words in KDnuggets News leads to revealing observations.     

Realizing business value of agile IT applications: antecedents in the supply chain networks

This research develops a framework for organizational value creation from agile IT applications. Based on the four themes in the business value research—business process perspective, complementarities, application level of analysis, and extent of use—three antecedents (organizational fit, process assimilation, and network adoption) are identified as pre-requisites for realizing the value of agile supply chain applications. Advanced planning and scheduling (APS) systems are used as examples, and two case studies for their implementation in the electronics and consumer goods industry are reported to support the propositions. The theories of diffusion of innovation, complementarities, network externalities, and technology structuration are applied to develop the propositions for fit, assimilation, and network effects. Information sharing and industry clockspeed are identified as the moderating factors in the proposed model. The framework has both managerial and research relevance. The research guides managers regarding ways to more fully realize the value of agile applications and forms a basis for future research on the business value of IT applications.

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.     

Business analytics for strategic management: Identifying and assessing corporate challenges via topic modeling

Strategic management requires an assessment of a firm's internal and external environments. Our work extends the body of management tools (e.g., SWOT analysis or growth-share matrix) by proposing an automated text mining framework. Here we draw on narrative materials from firms (e.g., financial disclosures) and perform topic modeling so as to identify the key issues faced by an organization. We then quantify the use of language along two dimensions: risk and optimism. This reveals a firm's strengths and weaknesses by identifying business units, activities, and processes subject to risk, while also comparing it with competitors or the market.     

Understanding the impact of business cases on IT investment decisions: An analysis of municipal e-government projects

This study synthesizes the extant literature to derive an integrative developmental framework for IT business cases that can be applied to diagnose the feasibility of technological investments. We then construct a theoretical model that postulates the impact of IT business case elements on the initial cost estimates of technological investments. Subsequently, our theoretical model is subjected to empirical validation through content analysis of IT business cases developed for municipal e-government projects. Findings indicate that the richness of the richness of business cases translates to more initial costs being identified in technological investments, thereby conserving resources for the organization through informed investment decisions.     

IT centrality,IT management model,and contribution of the IT function to organizational performance: A study in Canadian hospitals

The characterization of the IT function in organizations represents a central topic of investigation in the information systems field. The main purpose of this study was to predict the contribution of the IT function to organizational performance by focusing on the centrality of IT and the IT management profile as primary determinants. A cross-sectional survey of CIOs working in Canadian hospitals reveals that IT centrality positively influences the strategic orientation of the IT management model. In turn, the stronger the strategic orientation of the IT management model in place, the greater is the IT function’s contribution to organizational performance.     

Transitioning to a business rule management service model: Case studies from the property and casualty insurance industry

As the volume, sources and types of business rules continue to grow, so do the needs of organizations to accurately, consistently and effectively manage rules. Increasingly, firms seek business rules management systems (BRMS) for assistance. Although studies have examined BRMS technical considerations, few have examined management considerations of deploying and managing BRMS projects. This study addresses this gap through examination and comparative analysis of BRMS deployments. Qualitative case study methods are employed and findings suggest a common deployment methodology and emergence of tightly structured services model. Participant's adoption drivers, consequences of deployment, IT alignment and transitions to IT service-orientations are provided.