Why Invest in CRM Programs When So Many Appear to Fail?

The market enthusiasm generated around investment in CRM technology is in stark contrast to the nay saying by many academic and business commentators. Building on the resource-based view of the firm this study shows the human, technological and business capabilities required to effectively execute a CRM program. Further, the study demonstrates that CRM programs are most valuable when directing attention towards a proactive market orientation. Lastly, the study cautions that in seeking to compete through superior service, CRM programs must first be feasible and this requires a wider understanding of the structural and behavioural limits to performance

Designing IS service strategy: an information acceleration approach

Information technology-based innovation involves considerable risk that requires insight and foresight. Yet, our understanding of how managers develop the insight to support new breakthrough applications is limited and remains obscured by high levels of technical and market uncertainty. This paper applies a new experimental method based on “discrete choice analysis” and “information acceleration” to directly examine how decisions are made in a way that is behaviourally sound. The method is highly applicable to information systems researchers because it provides relative importance measures on a common scale, greater control over alternate explanations and stronger evidence of causality. The practical implications are that information acceleration reduces the levels of uncertainty and generates a more accurate rationale for IS service strategy decisions

On the Conceptualization of Strategic Information Technology Alignment: Development and Validation of a Multidimensional Construct

In this study we conceptualize strategic information technology (IT) alignment as a two-way relationship where business strategy influences IT, and IT influences business strategy. This implies that a multidimensional rather than the traditional unidimensional conceptualization of strategic IT alignment is appropriate. To validate this approach we develop and test a new multidimensional measure that captures the first-order effects of IT alignment at the process-level, where they are expected to be realized. We test the model using survey data from 94 companies that span three countries ─ US, Australia and Germany. Results reveal that the multidimensional measure of strategic IT alignment is a better predictor of both business unit agility and performance than the unidimensional measure of strategic IT alignment

INFORMATION TECHNOLOGY AND THE RENEWAL OF BUSINESS MODELS

With the advent of the information age, shrinking product lifecycles and intense competition, organizations continuously seek to renew their business models to exploit new market opportunities. Existing literature suggests that advances in IT and the rise of corporate-wide IT platforms facilitate the use of IT resources across the organization and can drive the evolution of business models. However, we still know little about the role of IT in enabling successful business models. This study investigates the relationship between corporate IT platforms and business model evolution. We examine the case of DHL Express to understand how its efforts to build a corporate IT platform influenced the company’s business model. Drawing on insights from prior literature and findings from the DHL case, we discuss evidence that corporate IT platforms enable business model evolution to the extent that they generate digital options that can be exercised by managers to renew value propositions for customers

Corporate Knows Best (Maybe): The Impact of Global versus Local IT Capabilities on Business Unit Agility

The relationship between the corporate unit and its strategic business units (SBUs) has been variously described in the IS literature as either antagonistic or affable. At a time when corporate units are considering how to share platform-based capabilities (dubbed global IT) with SBUs, some SBUs may feel a loss of control while others see it as a chance to focus local IT on solving problems that are best handled by SBUs. Using data from an international survey of CIOs in the U.S., Germany, and Australia, we find that platform or global IT capabilities are associated with higher SBU agility notably when SBUs operate in a relatively stable environment. We also find that local IT influences SBU agility, particularly if SBUs have high levels of IT autonomy. Thus, the search for SBU agility may prompt corporate units to balance use of local and global IT resources and capabilities

Integrating value-driven feedback and recommendation mechanisms into business intelligence systems

Most leading organizations, in all sectors of industry, commerce and government are dependent upon ERP for their organizational survival. Yet despite the importance of the decision to adopt ERP and its impact on the entire firm’s performance the IT literature has been in the large part silent on the nature of the ERP investment decision. This study is the first of its kind to determine the preference structure of senior managers around the organizational benefits and risks of adopting ERP. We present the results which provide interesting insights into how managers’ perceive the benefit and risk factors salient to the organization’s adoption decision. In line with prior research we found that improved productivity, and information and planning are important drivers of the ERP adoption decision. Moreover our findings reveal that the benefits of ERP are weighted almost twice as important as the risks when making an ERP investment decision. However when it comes to risk, interestingly managers consider issues such as top management commitment and vendor support as more important than financial ris

Digital Infrastructure, Business Unit Competitiveness, and Firm Performance Growth: The Moderating Effects of Business Unit IT Autonomy

This study examines the benefits that firms accrue from digital infrastructures that are effective in supporting corporate and business unit strategic objectives—which we term digital infrastructure effectiveness. We hypothesize that digital infrastructure effectiveness influences two types of performance outcomes—namely, business unit competitive performance and firm performance growth. We further hypothesize that these relationships are both moderated by the degree of business unit IT autonomy. Using data from an international survey of multi-business firms, we find that business unit IT autonomy exerts differential moderation effects on the relationships between digital infrastructure effectiveness and the two types of performance outcomes. As business unit IT autonomy increases, the effect of digital infrastructure effectiveness on business unit competitive performance gets stronger, while its effect on firm performance growth gets weaker. The primary contribution of this paper is explaining how and when digital infrastructures influence business unit performance and firm performance growth

Unpacking the ERP investment decision: an empirical assessment of the benefits and risks

Most leading organizations, in all sectors of industry, commerce and government are dependent upon ERP for their organizational survival. Yet despite the importance of the decision to adopt ERP and its impact on the entire firm’s performance the IT literature has been in the large part silent on the nature of the ERP investment decision. This study is the first of its kind to determine the preference structure of senior managers around the organizational benefits and risks of adopting ERP. We present the results which provide interesting insights into how managers’ perceive the benefit and risk factors salient to the organization’s adoption decision. In line with prior research we found that improved productivity, and information and planning are important drivers of the ERP adoption decision. Moreover our findings reveal that the benefits of ERP are weighted almost twice as important as the risks when making an ERP investment decision. However when it comes to risk, interestingly managers consider issues such as top management commitment and vendor support as more important than financial risks

Business Process and Information Technology Alignment: Construct Conceptualization, Empirical Illustration, and Directions for Future Research

Since strategic alignment first rose to prominence with Henderson and Venkatraman’s (1993) seminal paper, research has tended to focus on the extent of fit between IT and business strategy at the firm level. Although useful, a firm-level view of alignment could mask what firms are doing to realize intellectual alignment between business and IT strategy and whether their actions will likely succeed. In this study, we build on an emergent stream of research that considers alignment between IT and business strategy at the process level. Since research tends to view this form of alignment through the lens of IT support for business strategy, this perspective fails to account for how IT can enable the development of new business strategies. Accordingly, we conceptualize alignment between IT and business strategy at the process level using the lens of IT shortfall (a lack of IT support for business activities) and IT slack (having more IT than needed to support current business activities). Using data from matched surveys of IT and business executives at 317 U.S. and E.U. firms, we illustrate the value of this conceptualization and its process measures. Our results show that IT shortfall is negatively correlated with IT business value, while IT slack is positively correlated with IT business value. We further note that the existence of IT shortfall and IT slack depends on differences in firms’ chosen business strategy and whether a process is critical or non-critical to that strategy’s success

The Role of IT Application Orchestration Capability in Improving Agility and Performance

This paper investigates how IT application orchestration – a dynamic capability encapsulating a firm’s ability to refresh its application portfolio through a process of building, buying, and retiring IT applications – impacts firm performance. We propose a conceptual model in which the effect of IT application orchestration on firm performance is mediated by process agility. We further propose that a firm’s strategic orientation moderates the effect of IT application orchestration capability on process agility. Analysis of data from an international survey of IT executives supports our proposed hypotheses. This research contributes to the emergent literature on dynamic capabilities by proposing and testing a theory of how IT application orchestration capability affects agility and firm performance