Is IT Really Becoming a Commodity?

Academics and others have claimed that IT is becoming a commodity input, one that can no longer confer a competitive advantage. If IT is becoming a commodity, the role played by IT in most firms should be akin to that played by utilities. We conduct an event-study to determine whether IT is becoming a commodity. We use the volatility of a firm’s stock price to certain macroeconomic news (news about shrinking or expanding demand) to compare the stock price behavior of utility firms with that of IT firms. We find that although the IT industry as a whole is not becoming a commodity, there are some firms within the IT industry that are similar to a utility. In addition, we find that the view that IT can confer a competitive advantage (as perceived by financial markets) was stronger during the dotcom boom period than at other times in the study period (1980-2007)

"International Trade Theory and Policy: A Review of the Literature"

This paper provides a survey of the literature on trade theory, from the classical example of comparative advantage to the New Trade theories currently used by many advanced countries to direct industrial policy and trade. An account is provided of the neo-classical brand of reciprocal demand and resource endowment theories, along with their usual empirical verifications and logical critiques. A useful supplement is provided in terms of Staffan Linder’s theory of "overlapping demand," which provides an explanation of trade structure in terms of aggregate demand. Attention is drawn to new developments in trade theory, with strategic trade providing inputs to industrial policy. Issues relating to trade, growth, and development are dealt with separately, supplemented by an account of the neo-Marxist versions of trade and underdevelopment.Comparative Costs; Resource Endowment Pattern and Trade; Overlapping Demand; Strategic Trade; New Theories of Trade; Trade and Development

Drivers and Impacts of R&D Adoption on Transport and Logistics Services

Actually, technologies and applications in industries are changing via business restructuring, new business models, new knowledge and supply chains. So R&D is not focused primarily on manufacturing industry as it used to be, but on different kinds of industries as logistics and transport (TLS). Nevertheless, the characteristics of the TLS industry determine the introduction of specific R&D solutions accordingly to sectors operations. The objective of this paper is to describe the R&D opportunities in the TLS industry and how managers use them to make their businesses more innovative and efficient. Using the Structure-Conduct-Performance (SCP) model the paper identifies the links between R&D adoption and innovation dynamics. Relating the findings, on the driver’s side there are three points that are worth mentioning: increasing market competition, the relationships of firms interacting with each other and the availability and quality of complementary assets such as employee skills and IT know-how. On the impacts’ side, firms advanced in terms of implementing R&D solutions are more likely to implement organizational changes. Finally, a set of recommendations on how to further improve the continuous innovation in the TLS industry is presented

The evaluation of E-business related technologies in the Railway Industry

For the purposes of this paper, e-business is defined as: "the performance, automisation and organisation of transactions, or chains of them, and the gathering and publishing of data, electronically over a communication protocol" Little research has been conducted either into how e-business technology can be successfully evaluated, or into the associated costs and benefits specifically related to the transportation and railway industries. Based upon a review of the current literature and a series of interviews held with railway operators, track managers and transportation customers from the Australian Fortune 100, the paper puts forward a framework for the evaluation of e-business investments within the railway industry. The research reported here is aimed at developing a flexible interface that enables the decision maker to assess and evaluate a wide variety of complex interacting variables. The proposed approach uses a variety of evaluation methods, as opposed to searching for a single "best" approach. Additionally, an attempt is being made to include the complex interaction between the implementation of the new technology and the changing organisational setting. A model is proposed using fuzzy logic to handle incomplete and uncertain knowledge; as well as to combine criteria within a conceptual model from which "real-worth" evaluations can be performed. This model provides a systematic approach to guide the decision maker in the deployment of e-business and emerging technologies in the industry. After discussing the main findings from a literature review on the use of evaluation frameworks in IT related projects, the paper deals with the proposed framework in detail. The use of empirical data, which was obtained transportation customers to help define the main framework factors, is also discussed. Finally, the paper summarises the main implications for rail freight of customers’s perceptions and stated needs in the e-business domain

The ERP and CRM business value

Dissertation presented as the partial requirement for obtaining a Master's degree in Information Management, specialization in Knowledge Management and Business IntelligenceThe value of Information Technology (IT) adoption has been and still is a crucial question for the decision on IT adoption. In this paper we suggest and test a research model that aims at defining the integrative value of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems. ERP and CRM systems is analysed based on the Resource Based View (RBV) of the firm and will be measured by its impact on business value, having in consideration the moderation of system and process integration. The research model was tested and analysed with data, collected with the assistance of Microsoft, from firms that have adopted both ERP and CRM systems in their organization. Our aim with this research is that it will provide new knowledge on how ERP and CRM systems may positively influence value from IT investments, and how systems integration as well as process integration provides business value

Information Systems and Healthcare XXIX: Information Technology Investments and Returns -- Uniqueness in the Healthcare Industry

The way in which information technology (IT) impacts firm productivity is an enduring question in organizational research and practice. Rather than adopting the common explanation that IT spending improves organizational performance, we hypothesize that IT spending determines the amount of IT assets, such as IT hardware, IT personnel, IT systems, and IT outsourcing, that can be acquired. These IT assets, in turn, affect productivity. The context of our study is the healthcare industry. Because of the unique set of managerial values, incentives, and constraints in this industry, we also hypothesize that IT personnel play a key role in determining hospital productivity. Analysis of panel data on acute-care centers provides support for our hypotheses. This paper contributes to literature by (1) refining earlier research that explains that IT spending improves organizational productivity; (2) examining the interrelationships between various types of IT assets; and (3) providing initial indications that outsourcing of the IT function may not have the beneficial effects in healthcare that it does in other industries

Information Systems and Healthcare XXIX: Information Technology Investments and Returns – Uniqueness in the Healthcare Industry

The way in which information technology (IT) impacts firm productivity is an enduring question in organizational research and practice. Rather than adopting the common explanation that IT spending improves organizational performance, we hypothesize that IT spending determines the amount of IT assets, such as IT hardware, IT personnel, IT systems, and IT outsourcing, that can be acquired. These IT assets, in turn, affect productivity. The context of our study is the healthcare industry. Because of the unique set of managerial values, incentives, and constraints in this industry, we also hypothesize that IT personnel play a key role in determining hospital productivity. Analysis of panel data on acute-care centers provides support for our hypotheses. This paper contributes to literature by (1) refining earlier research that explains that IT spending improves organizational productivity; (2) examining the interrelationships between various types of IT assets; and (3) providing initial indications that outsourcing of the IT function may not have effects in healthcare that it does in other industries

Feral Systems: The Likely Effects on Business Analytics Functions in an Enterprise Resource Planning System Environment.

This paper looks at a case study of an Enterprise Resource Planning System (ERP) implementation in a geographically dispersed utility company and the approach by middle management to several problems perceived by them to be problematic. Their approach was to develop systems outside the implemented ERP. These are referred to as feral systems and the implication of these in terms of effective business analytics (BA) are discussed. The paper contends that despite the extremely effective databases and sophisticated modules for business analytic functions within most ERP’s, middle managers are still in the “just in case of an incident” mode of inventory management and data entered in their own feral systems may be significantly different to the inventory levels recorded in the main ERP. The implications to accurate forecasts from BA modules are also discussed

Enterprise resource planning and customer relationship management value

Ruivo, P., Oliveira, T., & Mestre, A. (2017). Enterprise resource planning and customer relationship management value. Industrial Management and Data Systems, 117(8), 1612-1631. https://doi.org/10.1108/IMDS-08-2016-0340Purpose - The purpose of this paper is to develop and test a theoretical model to measure the impact of enterprise resource planning (ERP) and customer relationship management (CRM) systems and moderating relationships of system and process integration on business value. Design/methodology/approach - ERP and CRM systems are analysed with the resource-based view theory and measured by their impact on business value, having in consideration the moderation of system and process integration. The model was tested and analysed with data collected by Microsoft, from firms that have adopted both ERP and CRM systems in their organisation. Findings - ERP system is found to be an important asset to business value, but CRM systems' impact on business value is found to be not significant. System integration as moderator of ERP or CRM system is found to be not significant but has a positive and significant impact on business value. For process integration, the study finds that it is significant only when moderating the CRM system variable. Research limitations/implications - The model shows that the moderating effects of system and process integration are important variables for understanding the joint business value of ERP and CRM. Practical implications - Adopting an ERP system and ensuring system integration provides a direct impact on business value. In order for a CRM system to have a positive impact on business value, process integration with ERP system must be ensured. Originality/value - This study provides new knowledge on how ERP and CRM systems used together may positively influence value from IT investments, and how systems integration and process integration provide business value.authorsversionpublishe

Investigating the Impact of Procurement Alignment on Supply Chain Management Performance

AbstractThe increasing emphasis that organizations are placing on purchasing and supply chain management over the past decade, has set the spotlight on the potential of procurement systems. However, the majority of studies still examine IT adoption enablers despite the fact that procurement systems are perceived as a commodity in modern enterprises. Studies that examine the post-adoption conditions that facilitate performance gains in the supply chain management domains still remain scarce. In this paper we investigate the effect of business/IT-alignment within the procurement domain in order to determine if it affects procurement performance. Additionally, we examine the impact that supply chain management governance centralization has in attaining procurement alignment. In order to answer these questions, a sample of 172 European companies was analyzed by means of Partial Least Squares (PLS) modeling. Our results empirical support our hypotheses that procurement alignment leads to increased performance over time and in relation with competitors, with the effect of the former being greater than the latter. Additionally, we find that contrary to empirical evidence supporting the statement that a decentralized structure enables e-procurement adoption, governance centralization of supply chain management decisions fosters procurement alignment