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.     

Integrated simulation method for investment decisions of micro production systems

From a production logistics point of view, micro production systems need special methods due to their special requirements and characteristics. In this paper a new approach for the assessment of different investment scenarios during the planning period with integrated cost simulation is presented. In particular, the use of single-purpose and multi-purpose machines and the cost effectiveness of function integration are examined. Thereby alternative machine pool configurations and optimal costs can be analysed, determined and taken into consideration for investment decisions.     

Executive information systems in major companies: Spanish case study

In such a competitive environment as the present one is, the managers of different organizations must not only make the right decisions, but they must also make and implement them as quickly as possible. For this reason, they need several tools to provide them with information. These tools are called Executive Information Systems (EIS).This paper intends to portray the present situation of EIS in Spain. For this purpose, we surveyed the three leading Spanish companies in every sector. This paper contains statistical material on EIS situation in Spain.     

Information systems outsourcing decisions using a group decision-making approach

Outsourcing refers to a company that contracts with another company to provide services that might otherwise be performed by in-house employees. Information system (IS) outsourcing policies define the criteria that organizations utilize to decide upon the scope and degree of reliance of their IS capabilities upon external sources. IS outsourcing is an innovative organizational tool for IS management in both private and public sector organizations. In this paper, an interactive group decision-making methodology is proposed to select/rank IS providers under multiple criteria. A measure for the consensus level of the group preferences is developed to satisfy an acceptable level of group agreement and reliability. The Spearman coefficients for both the aggregated rank order and each DM's rank order have also been calculated. The group and the individual evaluations are gathered through a fuzzy TOPSIS approach. The proposed methodology is applied in the largest office furniture manufacturer in Konya-Turkey. Eight alternative IS providers are evaluated based on seven criteria by five decision makers. Sensitivity analyses are also provided to see the effects of parameter changes on the final decision.     

Knowledge sharing and investment decisions in information security

We study the relationship between decisions made by two similar firms pertaining to knowledge sharing and investment in information security. The analysis shows that the nature of information assets possessed by the two firms, either complementary or substitutable, plays a crucial role in influencing these decisions. In the complementary case, we show that the firms have a natural incentive to share security knowledge and no external influence to induce sharing is needed. However, the investment levels chosen in equilibrium are lower than optimal, an aberration that can be corrected using coordination mechanisms that reward the firms for increasing their investment levels. In the substitutable case, the firms fall into a Prisoners' Dilemma trap where they do not share security knowledge in equilibrium, despite the fact that it is beneficial for both of them to do so. Here, the beneficial role of a social planner to encourage the firms to share is indicated. However, even when the firms share in accordance to the recommendations of a social planner, the level of investment chosen by the firms is sub-optimal. The firms either enter into an “arms race” where they over-invest or reenact the under-investment behavior found in the complementary case. Once again, this sub-optimal behavior can be corrected using incentive mechanisms that penalize for over-investment and reward for increasing the investment level in regions of under-investment. The proposed coordination schemes, with some modifications, achieve the socially optimal outcome even when the firms are risk-averse. Implications for information security vendors, firms, and social planner are discussed.     

Information systems practice, education and research

Abstract. The launch of a new journal in information systems prompts thought and debate concerning the state of the subject area and some contemplation on its past and future. This introductory paper reflects the views of the editors, views which will not be shared by all. We find a wide spectrum of interpretations and experiences concerning the nature of information systems and this wide range of views is both a strength and a weakness. It is a weakness in the sense that it is very difficult to put boundaries around the area and establish common definitions and accepted norms. The latter are usually associated with more stable and established disciplines that have accepted underlying theories. It is a strength in the sense that the wide variety of views, experiences and background subjects adds richness to the discipline. From the point of view of the Journal of Information Systems this should mean a wide variety of interesting topics from which we can draw. Our paper begins with an introduction to the debate about the nature of information systems, a debate which is continued in the following paper. We also give an overview of practice, education and research in information systems. In order to keep the paper to a reasonable length, this overview will necessarily be selective and will probably be Anglocentric.     

Information modelling for manufacturing systems: A case study

This paper addresses the information-modeling issue for SAIL 1, an integrated shopfloor manufacturing system with flexible manufacturing and material-handling capabilities at the City University of Hong Kong. Based on analyses of the system configuration and information flow structure of SAIL 1, this paper presents a data-modeling strategy to model its information system from the system-physical configuration, system-operation control and system-operation monitoring, respectively. By using the IDEF1x methodology to abstract, classify and define the information objects and the interrelationships between them, three semantic data models were constructed in accordance with the system requirements and modeling strategy, from which the internal and external schemata of the SAIL 1 information system can be derived correspondingly.     

A business repository enrichment process: A case study for manufacturing execution systems

A key characteristic of the software applications supporting manufacturing business processes is their heterogeneity. This is due not only to differences in their development and deployment, but also to the variety of processes and actors in complex organizations. Heterogeneity at the semantic level is one of the major problems in any process of interoperability and/or integration. There is therefore a need for developing new approaches and methods to ensure interoperability between different software solutions. In the context of a case study with a consortium of MES (Manufacturing Execution Systems) publishers, we propose a semantic alignment process of repositories used in the construction of a MES solution called “MES On Demand”, using multiple applications and driven by business processes. Through the study of semantic heterogeneities, we use an enrichment-based alignment for business repositories applied to ISO/IEC 62264. Finally, we evaluate the contribution of this approach to enterprise maturity in the application of standards and reference models, using Nascio’s Enterprise Architecture Maturity Model. This proposal, which is useful for practitioners and experts, is a contribution to academic study on semantic alignment for master interoperability.     

Robust investment decisions under supply disruption in petroleum markets

Energy-dependent economies and energy security strategies need to cope with oil and gas supply disruptions that are rare but persistent and can be financially catastrophic. This paper proposes a tractable approach for determining robust investment strategies in petroleum markets under the risk of supply disruption when asset prices follow geometric mean-reverting jump processes. The robust counterpart of the portfolio management problem under supply disruption is derived for several symmetric and asymmetric representations of the uncertainties in the problem. Computational experiments with real market data indicate that the robust optimization approach using uncertainty sets tailored to the characteristics of the data results in strategies with superior worst-case performance.     

Information systems security research agenda: Exploring the gap between research and practice

This paper undertakes a systematic review of the Information Systems Security literature. The literature review consists of three parts: First, we perform topic modeling of major Information Systems journals to understand the field's debates. Second, we conduct a Delphi Study composed of the Chief Information Security Officers of major corporations in the US to identify security issues that they view as important. Third, we compare Topic Modeling and the Delphi Study results and discuss key debates, gaps, and contradictions within the academic literature. Further, extant Information Systems Security literature is reviewed to discuss where the academic community has placed the research emphasis and what is now required in the discipline. Based on our analysis, we propose a future agenda for Information Systems security research.     

Information systems development as emergent socio-technical change: a practice approach

Many information systems development (ISD) initiatives fail to deliver the expected benefits. An important percentage of these are the result of social and organizational factors, not simply technical failures. This paper explores the dynamics of these social and organizational factors to better understand the causes of success and failure. Based on data from a detailed case analysis of an ISD project, the paper depicts the ISD process as an emergent and dynamic one, characterized by continuous local adaptations. The paper ends with a proposal of a feedback-rich framework, based on a practice view of socio-technical change that offers theoretical insights and practical heuristics to system developers and project managers.     

Real options analysis of the timing of IS investment decisions

Many information systems (IS) investments belong to a class of capital budgeting problem where there is an option: the investment may be made straight away or delayed for some period. A real options analysis could allow decision-makers to add value to these investment decisions by providing a framework that explicitly recognises uncertainty. This paper uses options pricing theory to determine the optimal timing of IS investments and to explore the effect of different investment review cycles. The findings provide support for the common industry practice of demanding short payback periods for IS investments.     

Expert systems in business: a British perspective

Abstract: In the early 1970s, research into Artificial Intelligence (Al) in Britain was almost wiped out following the publication of an unfavourable report to government. In the 1980s, Al emerged from obscurity with Expert Systems as its leading edge and has now become the focus of considerable activity with an ever-growing volume of practical applications developed or under development in British industry and business. This paper reviews the growth of business interest in Expert Systems from a British perspective and surveys the principal work carried out to date. Technical issues highlighted by this work are considered and prospects for future development are discussed.     

Information systems for primary health care: the case of the Aegean islands

The concern of this paper is the creation of an information system for primary health care. The problem environment is characterised by its location – health centres and agrarian surgeries serving small to medium size communities, which make up insular societies on the Aegean islands in Greece. The approach adopted was based on soft systems methodology (SSM) with the aim of obtaining operational models of the problem situation requiring the information system (IS). The SSM approach has proved most efficient in identifying important subsystems within the primary health care system. It also aided in this way the debate about the solutions to the problem of creating an IS in a health centre on the island of Samos.     

Challenges in business systems integration

Four main frameworks for intercompany relationships (SCOR, CPFR, ISA95 and OAG) are discussed and compared. The link between the frameworks and different supply chain integration applications such as ERP, CRM and VMI are pictured. Finally the state-of-the-art, future state and challenges of the supply chain integration applications are discussed. It is concluded that the main challenge with respect to frameworks supporting business systems integration is to extend them with implementation functionality to better support business system application development. An example of this is customer requirement fulfillment processes such as product development and order fulfillment. Not only do they cross the borders of the company's departments (sales, logistics, purchasing, etc) but also various companies in the supply chain. In spite of this development, business integration across systems and borders are still not matured and to a large extend based on human interaction.     

Transforming an enterprise model into a use case model in business process systems

One of the responsibilities of requirements engineering is to transform stakeholder requirements into system and software requirements. For enterprise systems, this transformation must consider the enterprise context where the system will be deployed. Although there are some approaches for detailing stakeholder requirements, some of them even considering the enterprise context, this task is executed manually. Based on model-driven engineering concepts, this study proposes a semi-automatic transformation from an enterprise model to a use case model. The enterprise model is used as a source of information about the stakeholder requirements and domain knowledge, while the use case model is used as software requirements model. This study presents the source and target metamodels, a set of transformation rules, and a tool to support the transformation. An experiment analyzes the use of the proposed transformation to investigate its benefits and if it can be used in practice, from the point of view of students in the context of a requirements refinement. The results indicate that the approach can be used in practice, as it did not influence the quality of the generated use cases. However, the empirical analysis does not indicate benefits of using the transformation, even if the qualitative results were positive.     

Information sharing and business systems leveraging in supply chains: An empirical investigation of one web-based application

Web-based supply chain applications promise to provide information sharing capabilities that will enhance the participating organizations’ information capabilities and business benefits. We performed an empirical study of a sophisticated Web-based supply chain application to determine the effect of such information sharing and business systems leveraging on business benefits. We also examined the importance of relational concurrence (i.e., shared business interests among supply chain partners), as an antecedent to both information sharing and business systems leveraging. Our work showed that both information sharing and business system leveraging provided important business benefits and that relational concurrence was only marginally related to information sharing and not at all related to business systems leveraging, limiting the significance attributed to this factor in prior research on inter-organizational systems.