CHALLENGES OF VALUE CREATION THROUGH CLOUD SAAS: BUSINESS/IT ALIGNMENT IN SERVICE ORIENTED INDUSTRIES

Although Business/IT alignment has gathered much interest in the past, it still presents a challenge for service sector companies facing Software-as-a-Service (SaaS) sourcing. Such companies lack managerial experience and competency of using ubiquitous technologies and SaaS applications in order to create business value. This paper provides evidence on how SaaS strengthens alignment between IT and business strategies and how it indirectly creates value for service sector enterprises. We employ semi-structured interviews and case studies to determine how aligning business strategy with SaaS -enabled IT strategy can lead to value creation. We found out that the features of SaaS such as on-demand self-service, rapid elasticity and measured service are considered advantageous by the companies, whilst dependence on a single vendor, incompatibility and information security were considered as a disadvantage. Future research could explore other cloud service models, such as Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) to reveal how and why other cloud service applications can succeed or fail supporting Business-IT alignment

Enterprise 2.0 – Is The Market Ready?

Enterprise 2.0 family technologies have growing popularity, the cloud computing market is growing rapidly and, as a consequence, companies of all sizes start to evaluate the potential fit. The use of “Software as a Service”, “Platform as a Service” and “Infrastructure as a Service” has been evolving during the past years and has become increasingly popular. As its computing viability and benefits are legitimized, the adoption rate is rapidly increasing. The most popular business model in the abovementioned family is by far “Software as a Service” (also called SaaS), which is a software distribution model assuming the software applications are hosted and maintained by the vendor or the distributor, and user access is granted exclusively by means of the Internet. Based on both literature review and action research, the paper at hand is a synthesis for the results of an empirical study performed during the last two years among Romanian and foreign companies, in order to outline and provide an objective and unbiased answer to the question: “Is the market ready for these technologies or did they come too soon?”. The paper is a part of a larger research performed by the author in the field of Enterprise 2.0 technologies.Enterprise 2.0, Software as a Service, Platform as a Service, Infrastructure as a Service, Empirical study

Organisational Learning with SaaS CRM – A case study of Higher Education

Customer Relationship Management (CRM) generally has a reputation as a technology that does not live up to its over-inflated expectations. Yet, implementations in higher education remain on the rise. Higher Education institutions (HEIs) are embracing cloud-based CRM systems to upsurge performance, encourage better management practices, and enhance their relationship with staff and students. CRM success however relies heavily on an adaptive organisational learning (OL) process upon which proactive decisions can be made. This paper emphasises that committed learning in post-implementation use is paramount to attaining further understanding of the capabilities, features and functionality of the CRM. Investigating how SaaS CRM usage reflect an organisation’s learning in a Higher Education context, the paper presents theoretical and practical contributions in a framework for effective SaaS CRM utilisation, and recommends a continuous cycle of exploration-exploitation-exploration. Yet the reality is that organisations explore, exploit, and then stop exploring

Organisational learning with SaaS CRM – A case study of higher education

Customer Relationship Management (CRM) generally has a reputation as a technology that does not live up to its over-inflated expectations. Yet, implementations in higher education remain on the rise. Higher Education institutions (HEIs) are embracing cloud-based CRM systems to upsurge performance, encourage better management practices, and enhance their relationship with staff and students. CRM success however relies heavily on an adaptive organisational learning (OL) process upon which proactive decisions can be made. This paper emphasises that committed learning in post-implementation use is paramount to attaining further understanding of the capabilities, features and functionality of the CRM. Investigating how SaaS CRM usage reflect an organisation’s learning in a Higher Education context, the paper presents theoretical and practical contributions in a framework for effective SaaS CRM utilisation, and recommends a continuous cycle of exploration-exploitation-exploration. Yet the reality is that organisations explore, exploit, and then stop exploring

Customer Relationship Management (CRM) Playbook for Consumer Packaged Goods (CPG) Companies

Companies, and specifically brands, that are able to establish direct and meaningful relationships with their target consumers can maximize their opportunity to gain a competitive advantage against companies who are not able to establish these types of relationships. Some industries rely heavily on product branding, create products that are frequently utilized in the daily lives of consumers, and compete in categories with fixed growth. These companies are particularly susceptible to being impacted, both positively and negatively, by building relationships with their consumers. Categories with fixed growth, or narrow categories, present challenges for marketers in terms of redefining the concept of market share and competing for a piece of a much smaller pie. Doug Anderson, Nielsen Senior Vice President (SVP), research & development said “Growth will only come from increasing share against competition”. (“Nielsen: Marketing \u27Gravy Train\u27 to Derail by 2020”) One such industry is Consumer Packaged Goods (CPG). CPG companies often spend a significant amount of time and resources collecting information about their consumers, but they have a need to develop meaningful ways to utilize the information to both provide value to these consumers, and provide the company with a positive business impact. Depending on the product’s life cycle stage, companies can potentially use consumer data to drive awareness, trial, conversion, loyalty, and/or advocacy of the brand or company. Over time, consumers have also shown a proactive desire to establish relationships with the brands that they are interested in, or already use, by exhibiting behaviors that include visiting company and brand web sites, joining user groups and forums, completing registration forms with personal contact information, and opting in to receive future communications from the brand or company. Web 2.0 is also influencing how companies build relationships with consumers. Consumers also engage with brands by: interacting with brands on social network sites such as Facebook fan pages and providing ratings and /or reviews about products on sites like Amazon.com. The consumer incentives for providing his/her information and agreeing to receive communications from these companies and brands can include: information relevant to the consumer based on past historical information, and free or discounted products or services based on follow up actions taken by the consumers. These follow up actions could be: redeeming a coupon, submitting a rebate, and/or earning points by purchasing products that can be redeemed for something of value at a later time. Customer Relationship Management (CRM), also known as Consumer Relationship Management (CRM), in the CPG industry, is an area that can be investigated to bridge the gap between companies and consumers, who both have a stake in the relationship. “CRM is a business strategy aimed at understanding, anticipating and responding to the needs of a company\u27s current and potential consumers in order to grow the relationship value”. (“CRM Defined and Understood”) This project will investigate the ways in which CRM can achieve business benefits using people, processes, and technology in a changing landscape using communication vehicles or touch points, such as e-mail, direct mail and text messages, to consumers across the offline, online, and mobile spaces. This project will focus on how CRM has been, and will continue to be, impacted by Web 2.0. The deliverable of this project will be a customizable CRM playbook for CPG companies to utilize. This toolkit will contain best practices, processes, and software that can be applied in a combination of ways to meet various CPG companies’ and brands’ needs. The best practices section of the playbook will include how to define appropriate CRM-specific objectives, goals, strategies, tactics, and measures for CPG companies and brands. Strategies and tactics include extending relationships with consumers in the social media and mobile spaces. The playbook will define the governance of consumer data based on business rules defined by the company and the standard processes. E-mail deployment software is an example of how technology will be highlighted in the toolkit. Success will be measured in various ways. As a strategic goal, companies should strive to maximize the utilization of data as a company asset and drive toward a higher degree of consumer segmentation and personalized communications. At a tactical level, companies can measure CRM program success though key performance indicators (KPIs) such as open rates, click through rates, and click-to-open rates of outbound e-mail communications. These are some of many vehicles used to build relationships with consumers

Measuring the Business Value of Cloud Computing

The importance of demonstrating the value achieved from IT investments is long established in the Computer Science (CS) and Information Systems (IS) literature. However, emerging technologies such as the ever-changing complex area of cloud computing present new challenges and opportunities for demonstrating how IT investments lead to business value. Recent reviews of extant literature highlights the need for multi-disciplinary research. This research should explore and further develops the conceptualization of value in cloud computing research. In addition, there is a need for research which investigates how IT value manifests itself across the chain of service provision and in inter-organizational scenarios. This open access book will review the state of the art from an IS, Computer Science and Accounting perspective, will introduce and discuss the main techniques for measuring business value for cloud computing in a variety of scenarios, and illustrate these with mini-case studies

Cloud Computing: TOE Adoption Factors By Service Model In Manufacturing

Organizations are adopting cloud technologies for two primary reasons: to reduce costs and to enhance business agility. The pressure to innovate, reduce costs and respond quickly to changes in market demand brought about by intense global competition has U.S. manufacturing firms turning to cloud computing as an enabling strategy. Cloud computing is a service based information technology model that enables on-demand access to a shared pool of computing services provisioned over a broadband network. Cloud is categorized across three primary service models, Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), differentiated by the cloud provider’s level of responsibility for managing hardware services, development platforms and application services. While prior research in cloud computing has sought to define the concept and explore the business value, empirical studies in the Information Systems literature stream are sparse, limited to exploratory case studies and SaaS research. Using the Technology, Organization, and Environment framework as a theoretical foundation, this research provides a holistic cloud adoption model inclusive of all cloud service layers. The study analyzes factors influencing organizational cloud adoption utilizing survey data from 150 U.S. manufacturing firms. The results find organizational innovativeness as a crucial factor to cloud computing adoption in manufacturing. An inverse factor relationship suggests the more innovative the firm culture, the less likely it is to adopt cloud. Other significant adoption factors include trust and technical competency. Findings also suggest variations in adoption influences based on the cloud service model deployed. The study has strategic implications for both researchers and managers seeking to understand the antecedents to adoption, and for practitioners developing an organizational cloud strategy spanning multiple cloud service models. For vendors, the study provides insights that can be leveraged to inform product design, solution strategy, and value proposition creation for future cloud service offerings

Understanding the determinants affecting the continuance intention to use cloud computing

Cloud computing has been progressively implemented in the organizations. The purpose of the paper is to understand the fundamental factors influencing the senior manager’s continuance intention to use cloud computing in organizations. A conceptual framework was developed by using the Technology Acceptance Model (TAM) as a base theoretical model. A questionnaire was used to collect the data from several companies in IT, manufacturing, finance, pharmaceutical and retail sectors in India. The data analysis was done using structural equation modeling technique. Perceived usefulness and perceived ubiquity are identified as important factors that affect continuance intention to use cloud computing. In addition, perceived ease of use is found having indirect influence through perceived usefulness. The validated model can be used as a framework for managers to ensure successful implementation of cloud computing. The study extended TAM by incorporating additional variables like perceived ubiquity, perceived costs and perceived risks to explore the determinants of continued intention to use cloud computing

Motives and Barriers to Cloud ERP Selection for SMEs: A Survey of Value Added Resellers (VAR) Perspectives

Small to Mid-size Enterprises (SMEs) typically are slow/late to adopt new technologies due to a conservative bias, cost factors and possible lack of knowledge. Implementation of a new Enterprise Resource Planning (ERP) system is a major, costly undertaking for a company of any size, especially SMEs, but there is the potential for huge paybacks touted by advantages afforded by the cloud. Cloud based ERP technology for SMEs is relatively new and poses a potential large risk-reward payoff. Given that these SMEs are currently functioning with their existing systems, why would they want to risk switching to Bleeding Edge Cloud ERP technology? Prior ERP research has focused primarily on an ERP’s implementation success and the relevant critical success factors (CSFs) important throughout the various stages of an ERP’s lifecycle. The focus of these studies has been on post-selection variables and the success or failure of the ERP’s adoption or implementation. Inherent in these studies are firms who already selected ERP technology which provides no insight into any potential barriers that prevent selection. ERP research in the area of SME cloud/SaaS ERP systems is nascent. This paper adds methodological, empirical and theoretical contributions to this existing stream of research about the motives and barriers in the selection of cloud ERP systems for SME’s. In particular, this research paper proposes to help bridge these gaps by operationalizing and testing Saeed, Juell-Skielse, and Uppström (2012)’s Unified Framework (UF) of the motives and barriers to the selection of cloud ERP systems. This current study uses Value Added Resellers (VARs) as subjects. They are arguably the most knowledgeable and in the best position to assess both the motives and more importantly barriers since there are in direct contact with the cloud ERP prospective purchasers