Value-Based Business Process Reengineering : An Objective Approach to Value Added

The promise of business process reengineering (BPR) must be validated by its effect on the "bottom line." It will be taken seriously as a new process improvement framework only when executives can be assured, a priori, that it will produce the desired ROI特別寄

Measuring the Return on Information Technology: A Knowledge-Based Approach for Revenue Allocation at the Process and Firm Level

This paper proposes an approach for measuring the return on Information Technology (IT) investments. A review of existing methods suggests the difficulty in adequately measuring the returns of IT at various levels of analysis (e.g., firm or process level). To address this issue, this study aims to develop a method for allocating the revenue and cost of IT initiatives at any level of analysis using a common unit of measurement. Following the knowledge-based view (KBV), this paper proposes an analytic method for measuring the historical revenue and cost of IT investments by estimating the amount of knowledge necessary to generate a common unit of output from any business process. The amount of required knowledge is operationalized using the ¡®average learning time\u27 measure. The proposed operationalization is illustrated with a practical case example. The proposed KBV approach is extended specifically for IT resources, allowing us to assess the Return on IT (ROIT) using a typical productivity ratio (similar to ROI or ROA) that accurately captures the true business value of IT (despite any complementarities) at virtually any level of analysis

An information-theoretic approach to software test-retest problems

Symposium Presentation (for Acquisition Research Program)Symposium PresentationNaval Postgraduate School Acquisition Research ProgramApproved for public release; distribution is unlimited

Microfoundations of collaborative networks: The impact of social capital formation and learning on investment risk assessment

Both traditional financial and intangible asset (IA) performance measures aid in the design of micromanagement organizational systems. We shed light on the microfoundational processes of collaborative networks and their impact on investment risk assessment by exploring IA performance measures in response to decomposing macro-level constructs. The IA measures focus on the exploration of individual human capital and their actions and interactions that influence investment risk assessments, which is critical for long-term prosperity. Additionally, human capital herein includes social factors such as social capital, which research has demonstrated can be developed from intellectual capital, and vice versa. Findings from an experiment with 40 professional investors (resulting in 160 independent observations) suggested that belonging to a company’s collaborative networks—where they would gain access to IA performance information—led them to adjust their investment risk assessments downward or upward in response to material weakness or strength disclosures pertaining to IA performance. Additionally, a laboratory experiment revealed that 121 novice investors who learned how to interpret and use their social networks to gain access to IA performance information also led them to adjust their investment risk assessments in response to material IA information deficiencies in target companies. The results showed IA knowledge can be learned and transferred to impact social change.</p

Exploratory and exploitative knowledge learning by investment analysts

The article of record as published may be located at http://dx.doi.org/10.2139/ssrn.1304128Corporate executives attempt to educate investment analysts about their company’s potential as an investment option by providing traditional financial and supplemental information. As an example, the Spanish companies examined by Garcia-meca et al. (2007) typically disclose information regarding strategy, customers, business processes, and intellectual capital in regular presentations to sell-side analysts

Measuring the Value Added of Management: A Knowledge Value Added Approach

Working Paper (for Acquisition Research Program)This article is one in a series of papers addressing one or more issues of critical importance to the acquisition profession. A working paper is a forum to accomplish a variety of objectives, such as: (1) present a rough draft of a particular piece of acquisition research, (2) structure a ''white paper'' to present opinion or reasoning, (3) put down one''s thoughts in a ''think piece'' for collegial review, (4) present a preliminary draft of an eventual article in an acquisition periodical, (5) provide a tutorial (such as a technical note) to accompany a case study, and (6) develop a dialogue among practitioners and researchers that encourages debate and discussion on topics of mutual importance. A working paper is generally the ''internal'' outlet for academic and research institutions to cultivate an idea, argument or hypothesis, particularly when in its infant stages. The primary intent is to induce critical thinking about crucial acquisition issues/problems that will become part of the acquisition professional body of knowledge. It is expected that articles in the working paper series will eventually be published in other venues, such as in refereed journals and other periodicals, as technical reports, as chapters in a book, as cases or case studies, as monographs, or as a variety of other similar publications. Readers are encouraged to provide both written and oral feedback to working paper authors. Through rigorous discussion and discourse, it is anticipated that underlying assumptions, concepts, conventional wisdom, theories and principles will be challenged, examined and articulated.Naval Postgraduate School Acquisition Research ProgramApproved for public release; distribution is unlimited

Measuring the value added of management: a knowledge value added approach

Acquisition research (Graduate School of Business & Public Policy)That management adds value to organizations is one of the unquestioned truisms of business, government, military, and any other multi-member organization. The question left largely unanswered is, How much value does management add to an organization? The central research focus of this study is to establish a method for objectively measuring the value management adds to an organization. Determining the value added by management becomes particularly important as Navy acquisition managers deal with increasingly complex, open business models that engage many more participants in the development and implementation of products and services to support warfighters. There is a recognition that emerging, increasingly complex acquisition environments require more direction, collaboration, and control to achieve the reductions in costs as well as the increases in warfighting effectiveness that initiatives, such as the Open Architecture (OA) system acquisition and development framework, promise. The increasing burden on management in such environments largely derives from the amount of complexity managers must deal with by attempting to mitigate risks, improve predictions, and exercise the control and oversight necessary to be successful.Approved for public release; distribution is unlimited

Measuring the Value Added of Management: A Knowledge Value Added Approach

Proceedings Paper (for Acquisition Research Program)That management adds value to organizations is one of the unquestioned truisms of business, government, military, and any other multi-member organization. The question left largely unanswered is, ''How much value does management add to an organization?'' The central research focus of this study is to establish a method for objectively measuring the value management adds to an organization. Determining the value added by management becomes particularly important as Navy acquisition managers deal with increasingly complex, open business models that engage many more participants in the development and implementation of products and services to support warfighters. There is a recognition that emerging, increasingly complex acquisition environments require more direction, collaboration, and control to achieve the reductions in costs as well as the increases in warfighting effectiveness that initiatives, such as the Open Architecture (OA) system acquisition and development framework, promise. The increasing burden on management in such environments largely derives from the amount of complexity managers must deal with by attempting to mitigate risks, improve predictions, and exercise the control and oversight necessary to be successful.Naval Postgraduate School Acquisition Research ProgramApproved for public release; distribution is unlimited

Improvement of global performance measures related to intangible assets

Global reporting practices will eventually change as the dominance of intangible assets is increasingly dominating organizations most valuable commodities. Yet, the general consensus seems to be that before any real progress can be made in the area of converging performance measures with financial information, the international standard setters need more active participation regarding the depiction of intangible assets metrics. This research article suggests that knowledge value added (KVA) metrics may assist standard setters and market participants in providing for more transparency in an organization’s operations. While the accounting standards used must be high quality, they must be supported by intangible measures performance metrics that ensures that the standards are rigorously interpreted and applied, and that issues and problematic practices are identified and resolved in a timely fashion. KVA can partially address these issues