SOA and BPM, a Partnership for Successful Organizations

In order to stay effective and competitive, companies have to be able to adapt themselves to permanent market requirements, to improve constantly their business process, to act as flexible and proactive economic agents. To achieve these goals, the IT systems within the organization have to be standardized and integrated, in order to provide fast and reliable data access to users both inside and outside the company. A proper system architecture for integrating company’s IT assets is a service oriented one. A service-oriented architecture (SOA) is an IT architectural style that allows integration of the company’s business as linked, repeatable tasks called services. A subject closely related to SOA is Business Process Management (BPM), an approach that aims to improve business processes. The paper also presents some aspects of this topic, as well as the relationship between SOA and BPM. They complement each other and help companies improve their business performance.Information Systems, SOA, Web Services, BPM

UC Berkeley's Cory Hall: Evaluation of Challenges and Potential Applications of Building-to-Grid Implementation

From September 2009 through June 2010, a team of researchers developed, installed, and tested instrumentation on the energy flows in Cory Hall on the UC Berkeley campus to create a Building-to-Grid testbed. The UC Berkeley team was headed by Professor David Culler, and assisted by members from EnerNex, Lawrence Berkeley National Laboratory, California State University Sacramento, and the California Institute for Energy & Environment. While the Berkeley team mapped the load tree of the building, EnerNex researched types of meters, submeters, monitors, and sensors to be used (Task 1). Next the UC Berkeley team analyzed building needs and designed the network of metering components and data storage/visualization software (Task 2). After meeting with vendors in January, the UCB team procured and installed the components starting in late March (Task 3). Next, the UCB team tested and demonstrated the system (Task 4). Meanwhile, the CSUS team documented the methodology and steps necessary to implement a testbed (Task 5) and Harold Galicer developed a roadmap for the CSUS Smart Grid Center with results from the testbed (Task 5a) and evaluated the Cory Hall implementation process (Task 5b). The CSUS team also worked with local utilities to develop an approach to the energy information communication link between buildings and the utility (Task 6). The UC Berkeley team then prepared a roadmap to outline necessary technology development for Building-to-Grid, and presented the results of the project in early July (Task 7). Finally, CIEE evaluated the implementation, noting challenges and potential applications of Building-to-Grid (Task 8). These deliverables are available at the i4Energy site: http://i4energy.org/

EQUITY Premium Puzzle in a Data-Rich Environment

Standard consumption-based asset pricing models focus on the consumption risk, seen as the only source of fluctuations and information about risk for the informed investor. These models, however, can account for high expected excess stock return only when assuming implausible relative risk aversion. This paper adds additional risk factors to the standard C-CAPM model to resolve both the equity premium and the risk-free rate puzzles as well as the risk-free rate volatility puzzle. By adding other relevant risk factors, the resulting pricing model is able to explain these puzzles relying on admissible range of local relative risk aversion. The model generates, also, a time-varying relative risk aversion and intertemporal elasticity of substitution.Common factors, factor analysis, principal components, asset pricing, equity premium puzzle, risk free rate puzzle.

Measuring the Dynamic Cost of Living Index from Consumption Data

In the U.S., the objective of consumer price index (CPI) measurement is to measure the cost of living. However, the current CPI or, in other words, cost of living index (COLI) measures the cost of living in a static optimization problem. This paper proposes a new method to construct a dynamic cost of living index (DCOLI). Our method offers several advantages compared to other dynamic cost of living indices proposed in the literature. First, our measure is based on total wealth. Previous indices limited attention to financial wealth. Second, we consider an Epstein-Zin preference structure. Most previous literature has used log preferences. We derive formulas that relate our DCOLI to the COLI and derive conditions under which the two coincide. We also produce empirical measures of our DCOLI. We find that under standard assumptions on preferences, the volatility of our DCOLI is about the same as that of the COLI. In certain periods, e.g., 1977–1983, our measure differs sharply from the COLI.dynamic cost of living index; cost of life; CPI

IS Support for Top Managers\u27 Dynamic Capabilities, Environmental Dynamism, and Firm Performance: An Empirical Investigation

Despite a continual interest in developing information systems (IS) to support the work of top managers, assessing the impact of IS support for top managers and their capabilities on the bottom-line performance of firms has received little attention in existing literature. Drawing upon the resource based view of competitive advantage, this paper argues that firms that provide IS support for their top managers’ dynamic capabilities may enjoy competitive advantage and superior firm performance. The performance impact of IS support for two key dynamic capabilities of top managers (fast response and mental model building) under different (dynamic vs. stable) external environments was then examined and assessed with both survey and archival data. The results show that IS support for the fast response capability of top managers improved both profitability and labor productivity in a dynamic external environment. On the other hand, the study did not find either direct or indirect effects of IS support for the mental model building capability of top managers

Supporting decision making process with "Ideal" software agents: what do business executives want?

According to Simon’s (1977) decision making theory, intelligence is the first and most important phase in the decision making process. With the escalation of information resources available to business executives, it is becoming imperative to explore the potential and challenges of using agent-based systems to support the intelligence phase of decision-making. This research examines UK executives’ perceptions of using agent-based support systems and the criteria for design and development of their “ideal” intelligent software agents. The study adopted an inductive approach using focus groups to generate a preliminary set of design criteria of “ideal” agents. It then followed a deductive approach using semi-structured interviews to validate and enhance the criteria. This qualitative research has generated unique insights into executives’ perceptions of the design and use of agent-based support systems. The systematic content analysis of qualitative data led to the proposal and validation of design criteria at three levels. The findings revealed the most desirable criteria for agent based support systems from the end users’ point view. The design criteria can be used not only to guide intelligent agent system design but also system evaluation

Designing Economic Instruments for the Environment in a Decentralized Fiscal System

When external effects are important, markets will be inefficient, and economists have considered several broad classes of economic instruments to correct these inefficiencies. However, the standard economic analysis has tended to take the region, and the government, as a given; that is, this work has neglected important distinctions and interactions between the geographic scope of different pollutants, the enforcement authority of various levels of government, and the fiscal responsibilities of the various levels of government. It typically ignores the possibility that the externality may be created and addressed by local governments, and it does not consider the implications of decentralization for the design of economic instruments targeted at environmental problems. This paper examines the implications of decentralization for the design of corrective policies; that is, how does one design economic instruments in a decentralized fiscal system in which externalities exist at the local level and in which subnational governments have the power to provide local public services and to choose tax instruments that can both finance these expenditures and correct the market failures of externalities?market failure, environmental federalism, externalities, fiscal decentralization, subsidiarity principle, economic instruments