Improving the Business Value of IS

Author(s):  
Sunghun Chung

This review surveys recent study on the business value of Information Systems (IS). The topics covered include theoretical and empirical evidence on the business value of IS, the productivity using Information Technology (IT), the firm value with IT, IT and firm boundaries, IT outsourcing, and supply chain with IT. This work critically reviews the growing literature on improving market performance through IS, discusses various perspectives, raises conceptual and empirical concerns, underscores challenges for further development of this literature, and provides directions for future research.

2008 ◽  
Vol 22 (1) ◽  
pp. 125-159 ◽  
Author(s):  
Li Wang ◽  
Kholekile L. Gwebu ◽  
Jing Wang ◽  
David X. Zhu

Increasingly, organizations are jumping onto the information technology (IT) outsourcing bandwagon in an effort to create value. However, evidence indicating the positive economic consequences of such initiatives has been limited. This study attempts to fill this void by synthesizing the process-oriented research in IT business value literature and the resource-based theory to develop an integrative research framework for assessing the value proposition of IT outsourcing. With a process-oriented lens, the framework suggests that the effects of IT outsourcing are best documented at the process level and hence, it is imperative that one takes into consideration the impact of IT outsourcing on performance at both the process level as well as the firm level. Grounded in the resource-based view, the framework also accounts for the complementary role of firms' core IT capability as a critical condition for the value creation of IT outsourcing. Consistent with the process-oriented prediction, the findings suggest that the positive effects of IT outsourcing appear mostly at the process level, but not at the firm level. Moreover, it is found that the level of business value created by IT outsourcing is contingent on firms' core IT capability. Firms with superior core IT capability are found to enjoy an advantage in leveraging their outsourcing initiatives to enhance firm value.


Author(s):  
Laurence Lock Lee

The information technology (IT) industry has a relatively short history in global markets but can put claim to a disproportionate number of “business innovations” that it either participated in or has been the catalyst for. Concepts such as business process re-engineering (BPR), supply chain management (SCM), IT outsourcing (ITO), business process outsourcing (BPO), off-shoring and now multisourcing are tightly associated with the IT industry. The growth in the services economy and rapid escalation in the use of alliances and joint ventures for business growth is also clearly evident in the IT sector. A characteristic of an industry being a leader in the introduction of new business concepts is that it gets to experience both the excitement of forging new paths but unfortunately also the pain of unfulfilled aspirations.


Author(s):  
Felix R. Doldán Tie ◽  
Paula Luna Huertas ◽  
Francisco Jose Martínez Lopez ◽  
Carlos Piñeiro Sanchez

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.


2011 ◽  
Vol 25 (2) ◽  
pp. 81-116 ◽  
Author(s):  
Adi Masli ◽  
Vernon J. Richardson ◽  
Juan Manuel Sanchez ◽  
Rodney E. Smith

ABSTRACT This paper synthesizes recent empirical archival research investigating the link between information technology investment and business value. It examines (1) financial and nonfinancial measures to represent different elements of business value, (2) IT investment measures and links with firm performance, (3) IT and business complementarities that affect firm performance, and (4) the impact of business context and IT alignment with business strategy on resulting performance. The review of prior research is guided by a balanced scorecard framework that places IT in a business context and highlights the role of potential drivers and contextual factors that impact the association between IT and firm value. The paper concludes by proposing several broad avenues of future research that may be of particular interest to archival accounting information systems researchers.


2012 ◽  
Vol 16 (3) ◽  
pp. 89-102 ◽  
Author(s):  
Govindan Marthandan ◽  
Chun Meng Tang

On the topic of information technology (IT) business value, there has been great interest among IT researchers, IT vendors, and business managers in demonstrating what organisations can achieve with IT, thus providing reasons to justify investments in IT. To understand how organisations leverage IT to their advantage, this paper searched in three major electronic databases for journal articles that studied information technology or information systems success, performance, value, benefit, evaluation, payoff, productivity, effectiveness, and efficiency. Having summarized a vast number of past findings reported in the journal articles, this paper concludes that there is still much work to do on the topic of IT business value and recommends several future research directions. This paper is a timely effort to complement past literature reviews on IT business value, updating what has been reported since the early 2000s.


Electronics ◽  
2020 ◽  
Vol 9 (11) ◽  
pp. 1864
Author(s):  
Theresa Sobb ◽  
Benjamin Turnbull ◽  
Nour Moustafa

Supply chain 4.0 denotes the fourth revolution of supply chain management systems, integrating manufacturing operations with telecommunication and Information Technology processes. Although the overarching aim of supply chain 4.0 is the enhancement of production systems within supply chains, making use of global reach, increasing agility and emerging technology, with the ultimate goal of increasing efficiency, timeliness and profitability, Supply chain 4.0 suffers from unique and emerging operational and cyber risks. Supply chain 4.0 has a lack of semantic standards, poor interoperability, and a dearth of security in the operation of its manufacturing and Information Technology processes. The technologies that underpin supply chain 4.0 include blockchain, smart contracts, applications of Artificial Intelligence, cyber-physical systems, Internet of Things and Industrial Internet of Things. Each of these technologies, individually and combined, create cyber security issues that should be addressed. This paper explains the nature of the military supply chains 4.0 and how it uniquely differs from the commercial supply chain, revealing their strengths, weaknesses, dependencies and the fundamental technologies upon which they are built. This encompasses an assessment of the cyber risks and opportunities for research in the field, including consideration of connectivity, sensing and convergence of systems. Current and emerging semantic models related to the standardization, development and safety assurance considerations for implementing new technologies into military supply chains 4.0 are also discussed. This is examined from a holistic standpoint and through technology-specific lenses to determine current states and implications for future research directions.


2014 ◽  
Vol 28 (2) ◽  
pp. 41-65 ◽  
Author(s):  
Adi Masli ◽  
Vernon J. Richardson ◽  
Juan Manuel Sanchez ◽  
Rodney E. Smith

ABSTRACT We examine the interrelationships between information technology spending, CEO equity compensation incentives, and firm value. We present two related pieces of evidence. First, we find that CEO equity incentives are associated with IT spending, suggesting that CEOs with higher incentives are more likely to invest in a risky asset such as IT. Second, we find that the association between IT spending and business value is stronger for firms that grant CEOs higher equity incentives. Our study contributes to the CEO compensation and IT governance literatures.


2010 ◽  
pp. 1333-1359
Author(s):  
Felix Doldan Tie ◽  
Paula Luna Huertas ◽  
Francisco Jose Martinez Lopez ◽  
Carlos Pineiro Sanchez

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.


2008 ◽  
pp. 2618-2632
Author(s):  
Yi-chen Lan

This chapter investigates issues related to the global transition of an enterprise through the application of information technology and information systems. It starts with the discussion of the issues that are critical to the successful transition of an enterprise to transborder business operations using information systems. The expected outcome of such transition would be a globalized organization that would not be limited by geographical and time zone barriers, nor restricted by cultural differences. The global transition issues are further classified into five categories embracing business information systems management, information technology management, people management, end user management, and culture. It is then followed by a comprehensive examination of individual issues that is vital in understanding their impact on the transition and how to alleviate that impact. The chapter concludes by indicating a future research direction that might augment the development of this emerging field.


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