Successful acquisition of IT systems

School of Managemen

New product development in an emerging economy: analysing the role of supplier involvement practices by using Bayesian Markov chain Monte Carlo technique

The research question is whether the positive relationship found between supplier involvement practices and new product development performances in developed economies also holds in emerging economies. The role of supplier involvement practices in new product development performance is yet to be substantially investigated in the emerging economies (other than China). This premise was examined by distributing a survey instrument (Jayaram’s (2008) published survey instrument that has been utilised in developed economies) to Malaysian manufacturing companies. To gauge the relationship between the supplier involvement practices and new product development (NPD) project performance of 146 companies, structural equation modelling was adopted. Our findings prove that supplier involvement practices have a significant positive impact on NPD project performance in an emerging economy with respect to quality objectives, design objectives, cost objectives, and “time-to-market” objectives. Further analysis using the Bayesian Markov Chain Monte Carlo algorithm, yielding a more credible and feasible differentiation, confirmed these results (even in the case of an emerging economy) and indicated that these practices have a 28% impact on variance of NPD project performance. This considerable effect implies that supplier involvement is a must have, although further research is needed to identify the contingencies for its practices

Competition, Innovation and Intellectual Property Rights in Software Markets

This paper analyzes when it may be desirable for the government to stimulate open source software as a response to market failures in software markets. Our most important finding is that directly stimulating open source software, e.g. by acting as a lead customer, can improve dynamic efficiency if (i) there is a serious customer lock-in problem, while (ii) to develop the software, there is no need to purchase specific, complementary inputs at a substantial cost, and (iii) follow-on innovations are socially valuable but there are impediments to contractual agreements between developers that aim at realizing such innovations.software markets, intellectual property rights, open source software, public policy.

IS offshoring: a proposed maturity model of offshore IS suppliers

Companies in developed economies are now accustomed to use offshore IS services to develop and maintain software, and an increasing number of specialist offshore services firms exists to meet the demand. These include systems integrators whose origins are in developed economies, and ‘pure play’ offshore IS providers that originate in countries where the cost of IS labour is relatively low. Both type of offshore organisation have changed considerably in recent years in response to market demand and competitive pressure. Although researchers have developed maturity models for users of IS offshoring, there is little that describes the nature and behaviour of offshore IS providers. Accordingly, this paper proposes a maturity model for offshore IS suppliers that is analogous to various consumer-oriented maturity models found in the literature and in trade journals. This preliminary framework is developed by reference to literature on outsourcing, offshoring and IS maturity models, and by recent relevant experience of practitioner organisations. The conclusions from this study can be used to guide further research, and to develop constructs helpful to practitioners. The research helps suppliers of offshore IS services to understand the particular conditions in which it is appropriate to consider new business models. For consumers of offshore outsourcing, it provides a framework for categorising suppliers of IS services

A Resource-Based Analysis of Outsourcing: Evidence from Case Studies

The central role that information technology plays in the management of companies, the massive investments that are required, and a preoccupation for rationalization explain in good part the renewed interest in the strategies used for information systems sourcing. In-house provision is often seen as the best way to provide an organization with IT services that are well adapted to support its business activities while preserving its trademark processes and know-how. On the other hand, critics argue that a better solution is to outsource those IT activities to specialists, thus permitting the company to focus on its core business. The choice of a sourcing mode has an impact on the ability of the firm to implement its systems and ultimately to compete in its field of business. In order to better understand under what conditions a firm should choose one sourcing mode over another, we argue that it is necessary to analyze the interactions between a firm's competencies and the strategic value of those competencies. This is investigated using evidence from 21 information system projects. The0501n findings were that the best predictor of success and failure, by far, is the fit between the governance mode and the position of the project in the value/availability matrix. Another interesting finding is that no sourcing mode per se seems to lead to successful outcomes. It is always a matter of selecting the appropriate mode for each situation. De plus en plus, les technologies de l'information sont au centre des préoccupations des gestionnaires. Elles commandent des investissements massifs et peuvent être gérées de diverses manières. Traditionnellement, une gestion interne était favorisée pour fournir à l'organisation des services sur mesure et pour protéger des pratiques uniques, permettant à l'organisation de se différencier. Les détracteurs de cette approche soutiennent que l'impartition est un meilleur choix. L'impartition permet à la firme de se concentrer sur ses compétences de bases tout en lui donnant accès à des spécialistes de pointe. Pour mieux comprendre le lien entre les compétences de la firme et l'impartition, 21 projets sont étudiés. Les résultats indiquent que le meilleur prédicteur de succès est l'adéquation entre le mode de gestion et le profil de compétences de la firme.Outsourcing of IT, resource-based theory, IT resources, Impartition, approche centrée sur les resources, étude de cas

Innovation, competition and public procurement in the pre-commercial phase

Should the supply or the demand side bear the risk connected to innovation? The two polar cases identified in the literature are the supply push and the demand pull. The former is the typical one, with the supplier bearing the costs and obtaining the benefits from innovating. The latter is technology procurement, where the buyer takes the risk, by procuring the innovative good or service. With respect to this, pre-commercial procurement is a peculiar solution that can explain the debate found in the literature relative to its configuration either as a supply-side or a demand-side instrument. The separation from the commercial phase allows the procurer to take only (part of) the risks connected to R&D services. Also, competition among suppliers gives the opportunity of evaluating different solutions and to obtain, in the commercial phase, a lower price for the innovative good. The counterpart of all this is a large portion of risk being left to the supplier. As a consequence, suppliers need to obtain a larger share of the benefits of the innovation process. This economic reason, besides the legal restrictions on State aid, explains the need for a shared risks-shared benefits approach, centred on the agreements on the assignment of IPRs

Communication issues in requirements elicitation: A content analysis of stakeholder experiences

The gathering of stakeholder requirements comprises an early, but continuous and highly critical stage in system development. This phase in development is subject to a large degree of error, influenced by key factors rooted in communication problems. This pilot study builds upon an existing theory-based categorisation of these problems through presentation of a four-dimensional framework on communication. Its structure is validated through a content analysis of interview data, from which themes emerge, that can be assigned to the dimensional categories, highlighting any problematic areas. The paper concludes with a discussion on the utilisation of the framework for requirements elicitation exercises

Concurrentie, innovatie en intellectuele eigendomsrechten in software markten

This study analyzes under which circumstances it may be desirable for the government to stimulate open source software as a response to market failures in software markets. To consider whether policy intervention can increase dynamic efficiency, we discuss the differences between proprietary software and open source software with respect to the incentives to innovate and market failures that may occur. The document proposes guidelines to determine which types of policy intervention may be suitable. Our most important finding is that directly stimulating open source software, e.g. by acting as a lead customer, can improve dynamic efficiency if (i) there is a serious customer lock-in problem, while (ii) to develop the software, there is no need to purchase specific, complementary inputs at a substantial cost, and (iii) follow-on innovations are socially valuable but there are impediments to contractual agreements between developers that aim at realizing such innovations. This publication is in Dutch.