A Quantitative Model for Using Open Innovation in Mobile Service Development

The potential of mobile service innovations to create valuable economic impact makes their development desirable for companies. To develop and launch successful mobile services, the integration of customers in the idea generation process bears high potential. However, such Open Innovation activities usually demand for investments, whereas the precise relation between the money invested and the generated economic effect is still indistinct. The objective of this paper is to replace the black box between investments in Open Innovation and the thereby generated profits through formal-deductive analysis. For this purpose, we analyze the effect chain between Open Innovation and economic profit by adapting the model of Kano and putting special emphasis on the specifics of mobile services. Building on that, we develop a quantitative formal model to determine the optimal investment amount in Open Innovation activities for mobile services. The model’s utility is illustrated with an example based on real-world data

The Manifold Fruits of Digitalization - Determining the Literal Value Behind

As digitalization is rewriting the rules of competition, companies need to adapt to external changes or they will be left behind. Indeed, digitalization bears a lot of economic potential and is undoubted to have tremendous impacts on the economy. Many companies already launched digital initiatives. However, most of them lack an understanding of the value digitalization can create. They often neither know the organizational value created, nor define accountability measures or specify targets. Therefore, as a first step this paper aims to provide clarity by relating digital benefits listed in literature and highlighting the underlying value drivers. Our results help companies to identify digital business value, but also lower the hurdles that prevent them from scaling up their digital effort

Leveraging customer knowledge in open innovation processes by using social software

Involving customers in the creation and design process of new products and services has been dis-cussed in practice and research since the early 1980’s. As one of the first researchers, von Hippel (1986) shed light on the concept of Lead Users, a group of users who are able to provide most accu-rate data on future needs for organizations. Subsequently, many scholars emphasized different areas of contribution for customers and how they provide assistance to the process of innovation. First of all, customers may contribute to product innovation (Cooper & Kleinschmidt, 1987; Driessen & Hillebrand, 2013; Füller & Matzler, 2007; Gruner & Homburg, 2000; Sawhney, Verona, & Prandelli, 2005; Snow, Fjeldstad, Lettl, & Miles, 2011; Yang & Rui, 2009) and service innovation (Abecassis-Moedas, Ben Mahmoud-Jouini, Dell’Era, Manceau, & Verganti, 2012; Alam, 2002; Chesbrough, 2011; Larbig-Wüst, 2010; Magnusson, 2003; Paton & Mclaughlin, 2008; Shang, Lin, & Wu, 2009; Silpakit & Fisk, 1985), e.g., by co-creating values (Prahalad & Ramaswamy, 2004), such as concepts or designs as well as reviewing and testing them throughout the stages of the process of innovation. From the customers’ point of view, being involved in innovation processes and becoming a part of the organ-ization is a desire of an increasing number of them. Customers are demanding more individual and more tailored products. They are increasingly knowledgeable and capable of designing and produc-ing their own products and services. Due to the fact that their influence on product development is positively related to the quality of the new product (Sethi, 2000), more and more organizations appreciate them as innovation actors and are willing to pay them for their input. Today, customers are not only involved in the qualification of products (Callon, Méadel, & Rabeharisoa, 2002; Callon & Muniesa, 2005; Grabher, Ibert, & Flohr, 2009) but also allowed to customize and evaluate them on the path to innovation (Franke & Piller, 2004; Piller & Walcher, 2006; von Hippel & Katz, 2002; von Hippel, 2001). Moreover, there is an abundance of studies that stress the customers’ influence on effectiveness (de Luca & Atuahene-Gima, 2007; Kleinschmidt & Cooper, 1991; Kristensson, Matthing, & Johansson, 2008; Still, Huhtamäki, Isomursu, Lahti, & Koskela-Huotari, 2012) and risk (Bayer & Maier, 2006; Enkel, Kausch, & Gassmann, 2005; Enkel, Perez-Freije, & Gassmann, 2005). While the latter comprises the risk of customer integration as well as the customers’ influence on market risks, e.g., during new product development, studies on effectiveness are mostly concerned with customer-orientation and products/services in line with customers’ expectations (Atuahene-Gima, 1996, 2003; Fuchs & Schreier, 2011). The accompanying change in understanding became known as open innovation (OI; first coined by Chesbrough in 2003) and represents a paradigm shift, where organizations switch their focus from internally generated innovation (i.e., ideation, in-house R&D, etc.) toward external knowledge and open innovation processes, thus, allowing them to integrate external ideas and actors, i.e. custom-ers (Chesbrough, 2006) and other external stakeholders (Laursen & Salter, 2006). Since then, OI has been identified as a success factor for increasing customer satisfaction (Füller, Hutter, & Faullant, 2011; Greer & Lei, 2012) and growing revenues (Faems, De Visser, Andries, & van Looy, 2010; Mette, Moser, & Fridgen, 2013; Spithoven, Frantzen, & Clarysse, 2010). In addition to that, by open-ing their doors to external experts and knowledge workers (Kang & Kang, 2009), organizations cope with shorter innovation cycles, rising R&D costs, and the shortage of resources (Gassmann & Enkel, 2004). Parallel to the paradigm shift in innovation, another shift has taken place in information and com-munication technologies (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011). Only a few years ago, when customer integration was still very costly, companies had to fly in customers, provide facilities onsite, permanently assign employees to such activities, and incentivise each task execut-ed by customers. Today, emerging technologies (subsumed under the term ‘social software’) help integrating customers or other external stakeholders, who are increasingly familiar with the such technologies from personal usage experience (Cook, 2008), and grant them access from all over the world in a 24/7 fashion. Examples include blogging tools, social networking systems, or wikis. These technologies help organizations to access customer knowledge, facilitate the collaboration with customers (Culnan, McHugh, & Zubillaga, 2010; Piller & Vossen, 2012) at reduced costs and allow them to address a much larger audience (Kaplan & Haenlein, 2010). On the other hand, customers can now express their needs in a more direct way to organizations. However, each technology or application category may present a completely different benefit to the process of innovation or parts of it and, thus, the innovation itself. Reflecting these developments, organizations need to know two things: how can they exploit the customers’ knowledge for innovation purposes and how may the implementation of social soft-ware support this. Hence, this research addresses the integration of customers in organizational innovation, i.e. new product development. It addresses how and why firms activate customers for innovation and which contribution customers provide to the process of innovation. Additionally, it investigates which tasks customers may take over in open innovations projects and which strategies organiza-tions may choose to do so. It also addresses which social software application supports each task best and how organizations may select the most suitable application out of a rapidly growing num-ber of alternatives. The nature of this research is recommendatory and aims at designing a solution for organizations that are interested in the potential contribution of customers during innovation, already involve customers in innovation tasks or plan to do so. Following the recommendations of this research should result in a more effective organizational exploitation of customer knowledge and their workforce and, thus, a value added to innovation and the outcomes of the process of innovation, e.g., a product that better fits the customers’ expectations and demands or consequently a better adoption of the product by the customer.:1 Introduction 2 Theoretical foundation 3 Research areas and focal points 4 Research aims and questions 5 Methods 6 Findings 7 Conclusion References Essay 1: The Role of External Knowledge in Open Innovation – A Systematic Review of Literature Essay 2: External Knowledge in Organisational Innovation – Toward an Integration Concept Essay 3: Idea Mining – Text Mining Supported Knowledge Management for Innovation Purposes Essay 4: How do Tasks and Technology fit? – Bringing Order to the Open Innovation Chao

Proceedings der 11. Internationalen Tagung Wirtschaftsinformatik (WI2013) - Band 1

The two volumes represent the proceedings of the 11th International Conference on Wirtschaftsinformatik WI2013 (Business Information Systems). They include 118 papers from ten research tracks, a general track and the Student Consortium. The selection of all submissions was subject to a double blind procedure with three reviews for each paper and an overall acceptance rate of 25 percent. The WI2013 was organized at the University of Leipzig between February 27th and March 1st, 2013 and followed the main themes Innovation, Integration and Individualization.:Track 1: Individualization and Consumerization Track 2: Integrated Systems in Manufacturing Industries Track 3: Integrated Systems in Service Industries Track 4: Innovations and Business Models Track 5: Information and Knowledge ManagementDie zweibändigen Tagungsbände zur 11. Internationalen Tagung Wirtschaftsinformatik (WI2013) enthalten 118 Forschungsbeiträge aus zehn thematischen Tracks der Wirtschaftsinformatik, einem General Track sowie einem Student Consortium. Die Selektion der Artikel erfolgte nach einem Double-Blind-Verfahren mit jeweils drei Gutachten und führte zu einer Annahmequote von 25%. Die WI2013 hat vom 27.02. - 01.03.2013 unter den Leitthemen Innovation, Integration und Individualisierung an der Universität Leipzig stattgefunden.:Track 1: Individualization and Consumerization Track 2: Integrated Systems in Manufacturing Industries Track 3: Integrated Systems in Service Industries Track 4: Innovations and Business Models Track 5: Information and Knowledge Managemen

IT Security in the Age of Digitalization – Toward an Understanding of Risk Perceptions and Protective Behaviors of Private Individuals and Managers in Organizations

Nowadays, information technology (IT) has become an integral part of our everyday life. In both the private and business context, we extensively use different IT systems for data production, data organization, data analysis, and communication with others. Due to the extensive usage of IT, the amount of digitalized personal and organizational information is rapidly and incessantly rising — making both private individuals and organizations attractive targets for attackers. The necessity to effectively protect sensitive data from IT security incidents is highly discussed in practice and research, it attracts high media attention, and our society should be actually aware of the importance of IT security in today’s digital world. However, recent reports demonstrate that organizations as well as private individuals — even though they are afraid of the rapid evolution of IT security risks — still often refrain from adopting the necessary IT security safeguards. To better prepare our society for the ongoing risks arising from extensive IT usage, a better understanding of how IT security is perceived by private individuals and managers is required. Motivated by the findings and theoretical underpinnings from previous research, this thesis addresses several research questions with respect to IT security perceptions and behaviors of private individuals and managers in organizations. By conducting four studies — one among private individuals and three among managers in organizations — the thesis not only contributes to the current research but also provides useful recommendations for practice. Suppliers of IT and IT security products as well as managers in customer organizations can especially learn from the findings of the studies. First, research paper A is focused on the private context and analyzes the gender differences in mobile users’ IT security perceptions and protective behaviors. Drawing on Gender Schema Theory and Protection Motivation Theory, a mixed-method study (survey, experiment, and interviews) under laboratory conditions is conducted. The results show that IT security perceptions of females and males are based on different downstream beliefs and indicate that females are more likely to translate their intention to take precautionary actions into actual behavior than males. The studies presented in research papers B, C, and D are conducted within the business context and focus on the IT security perceptions and behaviors of managers in organizations. Research paper B analyzes top managers’ IT security awareness. Since previous research predominantly investigated IT security awareness at the employee level, a comprehensive conceptualization of IT security awareness at the management level is currently missing. To address this research gap, a structured literature review and expert interviews are performed in order to develop and test a comprehensive conceptualization — including both individual and organizational factors — of top managers’ IT security awareness. Within research paper C, managers’ willingness to pay for IT security is in the focus of the investigation. Previous research largely neglected that various IT security safeguards might be differently evaluated by organizations, for example, due to different IT security requirements. By drawing on Kano’s Theory, the study takes into account that — depending on the organization’s individual IT security requirements — the implementation of IT security safeguards can also be associated with disadvantages. Based on interviews and an empirical study among managers, the study reveals that IT security safeguards are differently evaluated and that these different evaluations are associated with different levels of managers’ willingness to pay. Finally, research paper D analyzes managers’ Status Quo-Thinking in risk perception. Based on Prospect Theory, Status Quo Bias research, and an empirical study among managers, the findings indicate that managers’ risk evaluations and decisions to adopt new technologies are highly dependent on their assessments of the systems currently used in the organization. Moreover, the results implicate that the impact of Status Quo-Thinking on managers’ risk assessments and intentions to adopt new technologies is stronger the less experienced a manager is with a new technology, probably resulting in an incorrect risk assessment and inappropriate adoption behavior. Implications for research and practice are discussed in more detail within each research paper and summarized in the final chapter of the thesis