Adoption of Design Thinking, Agile Software Development and Co-creation: A Qualitative Study towards Digital Banking Innovation Success

Digitalization in the financial sector challenges banking institutions to develop new methods of innovation processes by incorporating current concepts such as design thinking (DT), agile software development (ASD), and cocreation. This qualitative study is based on empirical research conducted at three Indonesian banks. Semi-structured interviews with three IT executives and a questioner of 31 middle managers participating in digital banking efforts were used to gather data. A Systematic Literature Review based on Kitchenheim processes generates keywords in the VOS Viewer software. NVIVO 12 qualitative software is employed to aid data analysis for illustrating the process integration. The research's contribution is identified, including process integration, obstacles, potential solutions, and enhanced framework on adopting DT, ASD, and Co-creation. Keywords— design thinking, agile software development, co-creation, Innovation

Digital Strategy Decision Support Systems: Agrifood Supply Chain Management in SMEs

The specific attributes of agrifood supply chains, along with their importance for the economy and society, have led to an increased interest in the parameters that enhance their effectiveness. Recently, numerous digital tools aimed at improving supply chain effectiveness have been developed. The majority of existing research focuses on optimizing individual processes rather than the overall growth of a food supply chain. This study aims to identify the stages of the information systems planning (ISP) process that affect the success of developing a strategic decision support system (DSS) for improving the decision-making process in the agrifood supply chains. Data were collected from 66 IT executives from Greek small and medium-sized enterprises (SMEs) in the agrifood sector and analyzed using regression analysis. The results revealed that situation analysis is the only stage of ISP that predicts ISP success. These findings can assist managers in appreciating the critical role of ISP for improving the performance of agrifood supply chain operations. Implementing the most appropriate information systems (IS) and digital tools results in increased competitive advantage, cost savings, and increased customer value.

Towards a Model for Discourse Ethics-based Digital Business Strategy Development

© 2016 Oliver Degner & Andreas Drechsler. We develop a decision-making process model that implements generic discourse ethics and business ethics proposals specifically for ethical digital business strategy (DBS) development. The model’s objective is to answer the question how DBS initiatives – with the potential to affect the wider society – can be developed and justified considering economic, ecological and social criteria, based on consensus among the relevant stakeholders. We evaluate the model by examining two past DBS initiatives that were reported in the media as being controversial because of a lack of stakeholder consensus. With the model, we contribute a pragmatization of the business and discourse ethics literature for the IS discipline that covers the time before actual IS design and development decisions take place. Business and IT executives in practice can draw on the model to guide their DBS processes along ethical lines.

Towards a Model for Discourse Ethics-based Digital Business Strategy Development

© 2016 Oliver Degner & Andreas Drechsler. We develop a decision-making process model that implements generic discourse ethics and business ethics proposals specifically for ethical digital business strategy (DBS) development. The model’s objective is to answer the question how DBS initiatives – with the potential to affect the wider society – can be developed and justified considering economic, ecological and social criteria, based on consensus among the relevant stakeholders. We evaluate the model by examining two past DBS initiatives that were reported in the media as being controversial because of a lack of stakeholder consensus. With the model, we contribute a pragmatization of the business and discourse ethics literature for the IS discipline that covers the time before actual IS design and development decisions take place. Business and IT executives in practice can draw on the model to guide their DBS processes along ethical lines.

Differential effects of information technology on competitive positioning

PurposeInformation technology (IT), combined with complementary resources, can contribute to companies' competitive positioning. However, to assess the contribution of IT to value with respect to the contribution of complementary resources, it is crucial to understand the means by which IT creates value.Design/methodology/approachThis paper synthesizes empirical research on the inherent capabilities of IT and their moderating role to build an integrative model.FindingsWe found that IT creates value through three inherent capabilities: transactional, exchange and codification capabilities. These capabilities can be regarded as moderators of the relationship between IT and competitive advantage. This moderating role of IT in competitive positioning is illustrated by examples from previous empirical publications.Research limitations/implicationsThe paper contributes to IT business value (ITBV) literature by developing an integrative model that (1) conceptualizes an aspect of IT value creation, which, thus far, has received only limited attention (namely, inherent capabilities) and (2) illustrates the moderating role of these capabilities in competitive positioning.Practical implicationsInherent capabilities provide the theoretical foundation for a nuanced understanding of IT contribution with respect to complementary resources. This understanding may support IT executives in deriving adequate measurements and, thus, account for the differential effects of IT.Originality/valueCompared to the literature, the proposed model represents a more coherent and holistic perspective of ITBV. Thus, the model may constitute a foundation for future ITBV research and promote more detailed analytic perspectives of ITBV.

CLOUD IMPLEMENTATION IN EMERGING MARKET BANKS: THE IMPORTANCE OF SERVICE QUALITY

Cloud computing is emerging as key a technology platform for banking operations globally. In Asia, the progress of cloud application is relatively slow. This paper considers the major factors which influence a bank’s decision to contract with a technology service provider to implement a cloud based strategy. This research study identifies the trends in applying cloud computing in global banking with a focus on banks in Thailand. It will analyze the criteria IT executives in banks use to decide on the selection of technology service providers. Banks require the service provider to meet specific requirements for a cloud implementation project in a bank. A survey approach was used to identify the important criteria IT executives in banks use to select an IT technology provider for cloud applications. The sample included 367 bank IT executives and professionals in Thai and international banks based in Bangkok. SEM was used to analyze the data. Interviews were conducted with 21 IT executives for insights into their decision criteria. Service quality which is based on the conventional SERVQUAL indicators strongly influence the decision to choose a technology service provider. This selection is also influenced by the capability of service provider, their technical capability and the cloud application features. There are few studies in the literature on the decision criteria that banks use to select a provider for cloud computing application.

IT risk management: interrelationships based on strategy implementation

Purpose Risk management is an under-explored topic in information systems (IS) research that involves complex and interrelated activities. Consequently, the authors explore the importance of interrelated activities by examining how the maturity of one type of information technology risk management (ITRM) practice is influenced by the maturity of other types of ITRM practices. The purpose of this paper is to explore these relationships, the authors develop a model based on organizational strategy implementation theory and the COBIT framework. The model identifies four types of ITRM practices, namely, IT governance (ITG); communications; operations; and monitoring. Design/methodology/approach The authors use a survey methodology to collect data on senior information technology (IT) executives' perceptions on ITRM practices. The authors use an exploratory factor analysis (EFA) to identify four dimensions of ITR M practices and conduct a structural equation model to observe the associations. Findings The survey of senior IT executives' perceptions suggests that the maturity of ITRM practices related to ITG, communications and monitoring positively influence the maturity of operations-related ITRM practices. Further, the maturity of communications-related ITRM practices mediates the relationship between ITG and operations-related ITRM practices. The aggregate results demonstrate the inter-relatedness of ITRM practices and highlight the importance of taking a holistic view of ITRM. Research limitations/implications Given the content and complexity of the study, it is difficult to obtain senior executives’ responses in large firms. Therefore, this study did not use a separate sample to conduct the EFA to obtain the underlying four constructs. Also, the ITRM practices identified are perceptions. Even though the authors consider this to be a limitation, it also communicates the pressing areas that senior IT professionals are expected to focus given various external and internal pressures. This study focuses on large firms, hence, small to midsize firms are not well represented. Practical implications Given the demanding regulatory and financial reporting requirements and the complexity of IT, there is an increasing possibility that the accounting profession will require IT professionals to focus on operations-related ITRM practices, such as security, availability and confidentially of data and IS are closely related to internal controls. However, as this study demonstrates, the maturity of operations-related ITRM practices cannot be achieved by focusing solely on operations-related IT risks. Therefore, IT practitioners can use this study to raise awareness of the complex interrelationships among ITRM practices among managers to improve the overall ITRM practices in a firm. Social implications The study also shows the importance of establishing proper communication channels among various business functions with regard to ITRM. Extant IT research identifies the importance of the firm’s communication structure on various firm performance measures. For example, Krotov (2015) mentions the importance of communication in improving trust between the Chief Executive Officer and Chief Financial Officer. Firms with established communication channels have the necessary medium to educate and involve other departments with regard to the security of data. Thus, such firms are more likely to have mature risk management practices because of increased awareness of risks and preventive techniques. Originality/value The study contributes to ITG and risk management literature by identifying the role of monitoring-related ITRM practices on improving other areas of risk management. The study also extends the existing ITRM literature by providing an organizational strategy perspective to ITRM practices and showing how ITRM practices follow organizational strategy implementation. Further, the authors identify four underlying ITRM categories. Consequently, researchers could choose between two factors (Vincent et al., 2017) or four factors based on the level of detail required for the particular study.

The joint effects of IT resources and CEO support in IT assimilation

Purpose The purpose of this paper is to explore the joint effects of different types of IT resources and top management support. Especially, the authors attempt to mainly examine a negative synergy or substitution relationship between IT infrastructure resources and CEO support, and a positive synergy or complementary relationship between IT human resources and CEO support among the large-sized enterprises. Design/methodology/approach A research model that integrates IT infrastructure resources, IT human resources, CEO support and the degree of usage of IT for business objectives (i.e. IT business spanning capability) is developed. Based on a sample of 112 large-sized enterprises, partial least squares is used to analyze the research model. Findings Whereas the positive moderating role of CEO support in the effectiveness of IT human resources is insignificant, CEO support and IT infrastructure resources have a substitution relationship in predicting IT business spanning capability. Furthermore, the results can explain under which conditions IT infrastructure resources insignificantly or significantly affect IT business spanning capability in large-sized enterprises. Specially, IT infrastructure resources significantly affect IT business spanning capability only when CEO support is low. Thus, in the presence of high CEO support, IT executives in large-sized enterprises should prioritize developing highly effective IT resources, such as IT human resources. Originality/value This paper highlights the joint effects of two critical IT resource types (i.e. IT infrastructure and IT human resources) and CEO support in the IT assimilation process among the large-sized enterprises, ultimately contributing to information systems theories and practices.

Green information system integration for environmental performance in organizations

PurposeThe purpose of this paper is to develop an eccentric model to examine the factors that influence environmental performance in organizations based on belief–action–outcome framework and natural resource-based view theory.Design/methodology/approachData were collected by employing online survey from respondents in organizations to statistically test the eccentric model and its associated hypotheses. Partial least squares–structural equation modeling and Statistical Package for Social Sciences were utilized to analyze the survey data.FindingsThe results show that information technology (IT) professionals and IT executives’ behavior positively influences environmental performance. Further results suggest that the belief of IT professionals and IT executives is significantly influenced by the action of IT infrastructure, institutional pressure, organizational strategy and information diffusion. In addition, results reveal that the action of IT infrastructure, institutional pressure, organizational strategy and information diffusion in organizations significantly has an impact on the outcome of environmental performance. Moreover, results indicate that green information systems (IS) for pollution prevention, product stewardship and clean development initiatives adopted positively influence the environmental performance of organizations.Research limitations/implicationsThe developed eccentric model further shows how green IS practice integration can improve environmental performance. However, the selected respondents are from a single country as such findings from this study cannot be generalized to other countries.Practical implicationsPractically, this paper has implications for the capability of IS to promote environmental performance in organizations.Social implicationsThis study provides a pertinent contribution in developing and validating an eccentric model for green IS adoption. Besides, a survey instrument is developed that can be used by future studies.Originality/valueThe developed model helps to explore the factors that influence environmental performance and also the outcomes of green IS adoption for environmental performance. Accordingly, IT professionals and IT executives can draw upon the eccentric model in assessing their current environmental-friendly practice for the effective initialization of green IS for corporate value.

An Intangible-Asset Approach to Strategic Business-IT Alignment

The correct use of information technology (IT) in business is a longstanding critical issue due to the competitive advantages and performance that IT generates when it is managed strategically and correctly aligned with a business’ strategies and processes. A conceptual model is presented to investigate the effects of intangible assets and organizational capabilities on business-IT strategic alignment. Social networks between business and IT executives conform to relational capital that permits the creation of combinative capabilities; these capabilities encourage the transfer, integration, learning, and strategic use of business and IT executives’ knowledge, and affect the level of strategic business-IT alignment. This combination of social-network characteristics and organizational capabilities in order to generate strategic business-IT alignment is new.