Business Case Development for Inter-Organizational ES Implementations

This paper describes my PhD research on the development of business case guidelines that can be used for complex information system implementations, such as inter-organizational enterprise systems (ES). I identify problems and solutions related to the issue of estimating the costs and benefits of such complex implementations. Next to describing the research method used in my PhD project, I discuss what my research adds to the body of research and why this work is of interest for both the research community and practitioners

Information system diffusion in organizations - a control mechanism perspective

Research streams emphasize that after the excitement of adopting a new IS innovation, most do not employ the innovation to its full potential thus creating an assimilation gap. The failure of an IS to be fully diffused in an organization are, in most cases, due to employees resisting and not accepting the implemented innovation. The analysis of control mechanisms in IS research has proved to be a valuable approach to elucidate IS implementation and success experienced by organizations. The control mechanisms can be exercised thro ugh formal and informal modes. However, control mechanism theory have not yet been adopted to examine the process of IS diffusion in organizations. Therefore, there is a need to study the ways in which implemented control mechanisms impacts on the pro cess of diffusion of a Management Information System (MIS). Cooper and Zmud (1990) six stage IS implementation model will be applied to the research to illustrate and investigate the process of diffusion of the MIS. The research method will be an in-depth case study. It is anticipated that investigating IS diffusion from the perspective of control will considerably provide fresh insights in the understanding process of IS diffusion in organizations

Costs, Benefits and Value Distribution – Ingredients for Successful Cross-Organizational ES Business Cases

This paper introduces my PhD research project on developing guidelines for creating successful business cases for Enterprise System implementations in network settings. Three important aspects that were found to be important in such business cases are: the costs, benefits and the value distribution within a network. Each of the three aspects is addressed in this paper and the relationships between them are pointed out. A research model is presented showing how all three aspects contribute to the main goal of defining successful business case guidelines

Engaged Problem Formulation in IS Research

“Is this the problem?”: the question that haunts many information systems (IS) researchers when they pursue work relevant to both practice and research. Nevertheless, a deliberate answer to this question requires more than simply asking the involved IS practitioners. Deliberately formulating problems requires a more substantial engagement with the different stakeholders, especially when their problems are ill structured and situated in complex organizational settings. On this basis, we present an engaged approach to formulating IS problems with, not for, IS practitioners. We have come to understand engaged problem formulation as joint researching and as the defining of contemporary and complex problems by researchers and those practitioners who experience and know these problems. We used this approach in investigating IS management in Danish municipalities. In this paper, we present the approach to formulating problems in an engaged way. We discuss it in relation to ideas and assumptions that underpin engaged scholarship, and we discuss the implications for IS action research, design science research, and mixed approaches

The Inter-organizational Business Case in ES Implementations: Exploring the Impact of Coordination Structures and Their Properties

Developing the business case (BC) for an inter-organizational network is a major challenge. Factors like competition and differences in semantics between actors influence the stakeholders’ willingness to share information necessary for the BC development. In this paper we develop an exploratory framework showing the effect that coordination structure and project scope have on the development of a shared BC. We defined several coordination properties, such as competition, decision making location and decision power that mitigate this effect. We applied the framework in a case study where a BC is developed for an inter-organizational network. Our findings show that current BC development methods need to be re-stated and complemented by extra tools and interventions to support stakeholders in the inter-organizational specific setting

Teaching Case: Central University Medical Center: A Proposed Paperless Patient Registration System

Using a paperless patient registration project, this teaching case demonstrates an application of the six-step approach in developing a business case for an IT investment. More specifically, this case familiarizes students with the process of developing a solid business case by defining business drivers and investment objectives, identifying and structuring benefits and costs, and estimating return on investment (ROI) based on these values. Students learn, step-by-step, the process from raw data collected from organizational records and internet research to complete managerial decisions based on detailed analysis

Cost-Benefit Analysis for Complex IT Investments: An Investigation of Perceived Best Practices

Performing a cost-benefit analysis (CBA) is an important initial step in planning and implementing IT investments. However, creating an accurate and useful CBA for complex IT investments (such as enterprise systems implementations) is difficult due to uncertainty in the expected benefits, costs, risks, timing, and deliverables of these frequently changing projects. This paper reports on a Q-method analysis of the opinions of 19 expert practitioners on the creation and evaluation of CBAs for complex IT investments. The analysis found common agreement on the most important practices including: 1) identify how the IT investment aligns with business strategy; 2) gain senior management support at the beginning; and 3) involve all relevant stakeholders in the analysis. However, further analysis revealed two main types of opinions among the participants that seemed to prioritize either internally-focused practices such as strategic alignment and management support, or externally-focused practices such as the importance of benchmarking and consulting external experts. Viewing these results through the lens of agency theory, we suggest that rather than seeking a single set of “best practices” for creating CBAs for complex IT investments, one must take into account the preferences and risk-tolerance of the decision-makers as well as the role of principals, agents, risks, and uncertainty in the decision-making process

Creating and Evaluating Business Cases for Complex IT Investments: Towards a New Process Theory

A business case document is an important project management decision-making tool for planning and evaluating potential investments in technology and process improvement projects. However, the effectiveness of traditional business case approaches for evaluating complex information technology (IT) investments, such as enterprise systems implementations is often questioned. A business case is a document created by an organization that outlines the expected benefits, costs, risks, and feasibility of a possible investment. Creating an effective business case for complex IT investments is difficult due to the uncertainty around the expected benefits, costs, risks, and timing for these complicated organizational projects that typically involve significant technological and organizational change throughout the lifecycle of the IT system. This paper reports on our analysis of the current challenges and outlines a framework for guiding further study