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.     

The strategic value of IT-enabled self-organised collectives during crises

There is a promising body of work pertaining to the strategic value of IT-enabled self-organised collectives in times of crisis. This area is of significant theoretical and practical importance. Yet, we still have little systematic knowledge about precisely how self-organised collectives contribute during crises and how the value of their contributions might be leveraged strategically. To address this, we develop a model to demonstrate four dimensions across which self-organised collectives create strategic value: (i) information sharing value; (ii) collective resource-mobilisation value; (iii) network value; and (iv) generative value. In doing so, we reveal more about the specific capabilities of self-organised collectives, and we use these insights to develop implications for theory. We conclude by outlining an agenda to encourage and accelerate future research on the role of IT-enabled self-organised collectives during crises.     

Assessing the role of IT-enabled process virtualization on green IT adoption

Green Information Technology (IT) tools and practices contribute to environmental sustainability and business processes virtualization. To assess whether IT-enabled process virtualization capabilities impact organizational Green IT initiatives, Bose and Luo 2011 proposed a conceptual model that combines three theories: technology-organization-environment framework, process virtualization theory, and diffusion of innovation theory. We conducted an empirical analysis of data from 251 European firms, and found that environment context (competition intensity and regulatory support) was more important to Green IT initiatives than organization or technology context. Technology factors (sensory readiness, relationship readiness, synchronism readiness, and identification and control readiness) facilitating process virtualization were not found significant to organizational Green IT initiatives.     

Does IT pay to focus? An analysis of IT business value under single and multi-focused business strategies

Previous research finds that firm performance is highest when firms maintain a singular strategic focus as opposed to a multi-focused strategy. Yet, from an IT perspective, there is still some debate as to whether IT business value or the contribution of IT to firm performance is also maximized when firms maintain a single-focused strategy. Using the notion of value disciplines to model strategic foci, we find in a matched survey of executives in 241 firms that IT business value is highest in firms with a multi-focused business strategy and lowest in those with a single focus. We also find a relationship between strategic foci and the primary locus of IT value within the value chain for all focus-types except those emphasizing operational excellence. If all firms are using IT to reduce operating expenses, operationally excellent firms may find it increasingly difficult to sustain a low-cost advantage over time through IT.     

CIOs: Pushing the IT business value envelope

Successful businesses understand the needs of customers and their markets, and execute business strategies to establish their competitive positions. Consistent with their business goals, these businesses use extract commodities, make goods, deliver services, and provide other tangibles and intangibles to stay competitive. They also reevaluate their business vision, increase business values, and change to gain advantage over their competitors. IT not only has been essential to business management and operation, but has also provided significant strategic leverage to businesses.     

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.     

IT-enabled change: evaluating an improvisational perspective

This paper presents an empirical study into a hierarchical organization's experience with the adoption and use of an adaptive information technology, in this case a workflow application. The paper takes an improvisational perspective on the change process and assesses it through a case study which examines the organization's experiences in terms of anticipated, opportunity-based and emergent changes to their processes, structure and culture that were enabled by the introduction of the workflow application. The findings build upon Orlikowski and Hofman's improvisational change model by evaluating the model in a different organizational context to that of the original study. The findings reveal that ongoing improvisational changes can occur in hierarchical organizations and that improvisations and adaptations can occur in organizations which adopt adaptive IT provided that ongoing support for change management is forthcoming. The findings also suggest that there is a correlation between the level of customer dissatisfaction and the emergence of any local improvisations regardless of the organization type. This implies that an improvisational perspective may be useful for hierarchical organizations which introduce new technology as the local improvisations which can occur may be leveraged for advantage. The study also raises important questions about the categorisation of technologies as adaptive and critically reflects on this aspect of the improvisational change model.     

Digital systems and competitive responsiveness: The dynamics of IT business value

The mechanics of competition involve perception and reaction to competitor moves. Both incur delays that can be reduced by digital systems. Using system dynamics and the Red Queen paradigm, we modeled the impact of IT investments on response delays and business value, with the following results: (a) value has significant transient components; (b) value depends on investment level and the relative delays of competitors; and (c) relative delays affect the first-mover advantage. These results show that when assessing the value of IT investments, it is important to consider (a) the temporal pattern of benefits, not just their total magnitude, and (b) the impact of ongoing moves by competitors.     

Quantifying forecast quality of IT business value

This article discusses how to quantify the forecasting quality of IT business value. We address a common economic indicator often used to determine the business value of project proposals, the Net Present Value (NPV). To quantify the forecasting quality of IT business value, we develop a generalized method that is able to account for asymptotic cases and negative valued entities. We assess the generalization with real-world data of four organizations together consisting of 1435 IT assets with a total investment cost of 1232+ million Euro for which 6328 forecasts were made. Using the generalized method, we determine the forecasting quality of the NPV, along with the benefits and cost using real-world data of another 102 IT assets with a total business value of 1812 million Euro. For the real-world case study, we will find that the quality of the forecasted NPVs is lower than the forecasted benefits, which is again lower than the forecasting quality of the cost. Also, we perform a sensitivity analysis to investigate the impact on the quality of an asset’s forecasted NPV when the forecasting quality of benefits or cost improves. Counterintuitively, it turned out in this case study that if the quality of cost forecasts would improve, the overall quality of its NPV predictions would degrade. This underlines the importance of both accurate cost and benefit predictions. Finally, we show how to use the quantified forecast information to enhance decision information using two simulation examples.     

Post-merger IT integration strategies: An IT alignment perspective

When a company decides to merge with or to acquire another company, a major question is to what extent to integrate the information technologies and the organization. Interpreting merger objectives to proper IT integration strategies is a complex and time-consuming process, due to a lack of explicit understanding of the problems involved. The current literature in this field is meager and has not yet resulted in a theory. For this purpose, we developed a variant of the IT alignment model. In this model, we identify three ambition levels of mergers and IT integration from the literature. Additionally, we describe four integration methods that fit with these ambitions. The relations between these objectives and methods are moderated by contextual factors. Three hospital cases, with different merger and IT integration ambitions, describe the practice of this model. The case studies also add several new variables and relations to it. This result facilitates further research in post-merger IT integration by delivering an empirical research model.     

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.     

The business model portfolio as a strategic tool for value creation and business performance

The number of organisations that operate multiple business models continues to increase. However, operating multiple business models can be complex, as they often need to be harmonised within a broader portfolio due to their interdependencies. This complexity is exacerbated by the increasing role of digital technology and data – enabling new opportunities but also coming with related paradoxes. This paper examines the growing body of literature on business model portfolios revealing that they are evolving into a strategic tool for value creation and business performance. While there are concomitant value opportunities arising from complementarities and synergies, there are also paradoxes emerging from tensions that need to be considered. Employing a developmental literature review, we present a synthesis of recent empirical case studies to gain insight into the management of business model portfolios. Firstly, we identify different strategic intents: diversifying, sensing, and complementing. Secondly, we distil different themes for value opportunities and paradoxes and categorise them according to a business model framework. Thirdly, we identify and discuss the role of digital technologies and data for business model portfolios. Overall, we contribute to an emerging stream of studies on multiple business models in relation to strategy, innovation and technology. By adopting a holistic perspective on the management of business model portfolios, we explore strategic intent, value opportunities and paradoxes, and discuss how portfolios can play a role in strategic management and planning.     

The change in user and IT dynamics: Blogs as IT-enabled virtual self-presentation

Using the blogosphere as an enabling IT environment, this paper investigates how self-concept influences virtual self-presentation behavior and the use of IT artifacts. Self-presentation theory is adapted from the social psychology literature to develop a theoretical research model of virtual self-presentation. We tested the research model and hypotheses with data collected from 312 bloggers. Structural equation analysis of this data reveals a nomological net of self-concept leading to IT-enabled virtual self-presentation and the use of IT artifacts. Our findings provide a new perspective of users as heterogeneous individuals who have various self-concepts that change the sequence and dynamics among users, IT artifacts, and tasks. In contrast to traditional systems, in the social context of virtual self-presentation, users are the primary and essential drivers who determine vaguely defined tasks and systems.     

The leveraging influence of strategic alignment on IT investment: An empirical examination

Businesses have invested enormous sums in information technology (IT). The challenge now is to optimize these investments. We empirically examined the influence of the alignment between IS strategy and business strategy (strategic alignment) on the payoff of IT investment. Many studies have been performed on the value of IT investment and strategic alignment separately, in the past, but here we combined them by investigating the moderating affect of strategic alignment on the relationship between IT investment and firm performance for a group of manufacturing firms. The results indicated that there is a synergistic coupling between strategic alignment and IT investment with firm performance. Firms that have aligned IT and business strategies can invest in additional IT resources with some assurance that they will be leveraged substantially. One of our main contributions was in the examination of four differing perspectives of strategic alignment and their relationship with the payoff of IT investment.     

Determinants of business sustainability: An ergonomics perspective

There is a need to integrate both macro- and micro-ergonomic approaches for the effective implementation of interventions designed to improve the root causes of problems such as work safety, quality and productivity in the enterprise system. The objective of this study was to explore from an ergonomics perspective the concept of business sustainability through optimising the worker–work environment interface. The specific aims were: (a) to assess the working conditions of a production department work process with the goal to jointly optimise work safety, quality and quantity; (b) to evaluate the enterprise-wide work process at the system level as a social entity in an attempt to trace the root causes of ergonomic issues impacting employees throughout the work process. The Work Compatibility Model was deployed to examine the experiences of workers (that is, effort, perceived risk/benefit, performance and satisfaction/dissatisfaction or psychological impact) and their associations with the complex domains of the work environment (task content, physical and non-physical work environment and conditions for learning/growth/development). This was followed by assessment of the enterprise system through detailed interviews with department managers and lead workers. A system diagnostic instrument was also constructed from information derived from the published literature to evaluate the enterprise system performance. The investigation of the production department indicated that the stress and musculoskeletal pain experienced by workers (particularly on the day shift) were derived from sources elsewhere in the work process. The enterprise system evaluation and detailed interviews allowed the research team to chart the feed-forward and feedback stress propagation loops in the work system. System improvement strategies were extracted on the basis of tacit/explicit knowledge obtained from department managers and lead workers. In certain situations concerning workplace human performance issues, a combined macro–micro ergonomic methodology is essential to solve the productivity, quality and safety issues impacting employees along the trajectory or path of the enterprise-wide work process. In this study, the symptoms associated with human performance issues in one production department work process had root causes originating in the customer service department work process. In fact, the issues found in the customer service department caused performance problems elsewhere in the enterprise-wide work process such as the traffic department. Sustainable enterprise solutions for workplace human performance require the integration of macro- and micro-ergonomic approaches.     

Scalable growth in IT-enabled service provisioning: a sensemaking perspective

Vendors of IT-enabled services must address equivocal and changing requirements from diverse customers while simultaneously making a profit. However, our knowledge of how these organizations can achieve the necessary scalability is limited. Against this backdrop, we leverage organizational sensemaking to investigate how a large vendor attempted to create a scalable service infrastructure through three sequential strategies. This in-depth case study reveals key factors that challenged the efficacy of each strategy. First, addressing equivocality through structural separation exacerbated the organization’s challenges because of misaligned collective identities between business units. Second, reducing equivocality through market segmentation proved to be inadequate because individual-level cognitive constraints shaped pre-packaged solutions that lacked functionality. Third, responding to equivocality through service modularization was challenged due to lack of social interaction about standardization of component interfaces, system and process redundancies, and inflexible process architectures. We offer a detailed analysis of these strategies and discuss implications in relation to theory and practice.     

Fuzzy cognitive strategic maps in business process performance measurement

This paper elaborates on the application of Fuzzy Cognitive Maps (FCMs) in strategy maps (SMs). The limitations of the Balanced Scorecards (BSCs) and SMs are first discussed and analyzed. The need for simulated scenario based SMs is discussed and the use of FCMs as one of the best alternatives is presented. A software tool for the development, simulation and analysis of FCM based SMs is also presented. The effectiveness of the resulting software tool and FCM theory in SMs is experimented in two case studies in Banking.