The Evaluation of IT Investments through Real Options

The decisions about IT investments are increasingly more complex, due to technical uncertainties and to the dynamics of organizational and strategic issues. One promising alternative for solving this problem would be the use of real options. Thus, this chapter intends to apply a relatively new methodology, called real options, used in corporate strategy for evaluating and deciding about new investments in IT. In order to do so, an analytic review of the literature is presented. The real options methodology is particularly recommended in two situations: in the case of the existence of a significant level of uncertainty about the benefits to be achieved by IT investments, or when IT benefits do not impact directly the current business but create a platform for future investments, capable of producing future new business impacts.

Enterprise 2.0

The Web is becoming in many respects a powerful tool for supporting business strategy as companies are quickly becoming more and more reliant on new Web-based technologies to capitalize on new business opportunities. However, this introduces additional managerial problems and risks that have to be taken into consideration, if they are not to be left behind. In this chapter we explore the Web’s present and future potential in relation to information sharing, knowledge management, innovation management, and the automation of cross-organizational business transactions. The suggested approach will provide entrepreneurs, managers, and IT leaders with guidance on how to adopt the latest Web 2.0-based technologies in their everyday work with a view to setting up a business Web strategy. Specifically, Enterprise 2.0 is presented as a key enabler for businesses to expand their ecosystems and partnerships. Enterprise 2.0 also acts as a catalyst for improving innovation processes and knowledge work.

Web & RFID Technology

Radio frequency identification (RFId) has recently begun to receive increased interest from practitioners and academics. This type of technology has been widely used in healthcare organizations for different purposes, like to localize patients, devices, and medical instruments. This chapter presents the results of a study in which we used RFId technology and modern systems of cost management methodologies (e.g., activity-based costing, activity-based management, and process management) in a “proof of application” aimed at defining some specific data on care needs of a person with a disability, costs of the main activities performed during the person’s rehabilitation process, and level of performance which could be reached in order to improve the “disability management” process, from a clinical as well as a managerial perspective.

Strategic Use of the Internet and Organizational Structure for E-Business

The Internet provides a global network infrastructure that is shifting business models, strategies, and processes. Many authors reflect on the importance of incorporating e-business into the firm’s global strategy. This chapter deals with these issues in discussing the introduction of e-business activities by General Motors Brazil, specifically in connection with the launch of the Celta car, an entry-level car designed to be sold on the Internet. A historical examination of e-business strategy shows that many organizations have formulated excellent conceptual strategies for e-business but failed to deliver sound execution. A key to successful Internet strategies is the leadership shown by senior management. Technological demands may also conflict with the successful implementation of e-business initiatives, requiring greater interaction between the CEO and CIO. The organizational structure implemented for the launching and sales of Celta car warranted the integration between employees on the business side and in IT in the context of GM Brazil’s strategic objective of growing the market share for lower-priced cars.

Innovating through the Web

In recent years, the financial services industry has been witness to considerable consolidation (Berger & Udell, 2006; De Nicolò, Bartholomew, Zaman, & Zephirin, 2004; Figueira, Neills, & Schoenberg, 2007) and organizational progress in order to sustain two main objectives: efficiency and commercial effectiveness (Epsten, 2005; Sherman & Rupert, 2005). In order to sustain customer-oriented and efficiency strategies, banks have started to explore new ways of conducting their business, introducing areas of innovation in their services, practices, and structures to offer the most complete array of services possible (Quinn et al., 2000). On the other hand, new services and products drive retail banks to explore new ways of producing or delivering these novelties. This is true especially for Internet banking services that offer services to customers 24/7, and it becomes clear that adding new services, that is, trading online or bill payments, is easily and quickly geared towards improving commercial effectiveness. The following chapter aims at describing to what extent the Internet has developed new services and businesses, and what are the main figures of the phenomenon in Europe. Moreover, the Internet has introduced new coordination processes within each financial institution. Let us think about Intranet portal, content management tools, and business process management suites, which are now quite spread in banks due mainly to their technological ease-of-use. Thus, Internet is representing an innovation wave extremely relevant for the financial industry as a whole, and the effects on banks’ performance is emerging. What do we expect in the near future? In all probability, the usage of Web-based application will be bigger and bigger also in other contexts of the bank processes, even if some risks could occur when clear strategies and change management practices do not direct the innovation.

Integration of Public University Web Sites and Learning Management Systems

Internet technology has found its way into all areas of business and research. The World Wide Web is also used at universities to achieve different goals. On the one hand, it acts as a means of outer appearance, on the other hand, as an instrument of knowledge transfer and knowledge examination. Of course other purposes in addition to those named above do exist. Often different systems are used to achieve the different goals; usually, Web content management systems (WCMS) are used for the outer appearance and learning management systems (LMS) for transfer and examination of knowledge. Although these systems use the same medium (i.e., the WWW), it can be stated that often there is a heterogeneous landscape of systems. Resultant is the object of investigation of the present chapter. The chapter analyses the challenges concerning the integration of public Web sites and LMS a typical European university has to face.

Customer Relationship Management (CRM)

This chapter discusses customer relationship management (CRM) as a customer-focused business strategy enhanced by technology that automates and enhances business processes to proactively manage profitable and long-term customer relationships. CRM solutions span a continuum of implementations from a narrow tactical implementation of a specific technical solution to a broad strategic implementation of a customer centric solution. Furthermore, the authors hope that understanding the underlying assumptions and theoretical constructs through the use of CRM will not only inform researchers of a better CRM design for studying e-commerce and Internet marketing, but also assist in the understanding of intricate relationships between different factors.

The Impact of New Trends in the Delivery and Utilization of Enterprise ICT on Supplier and User Organizations

Enterprise information systems have rapidly evolved over the last decade. We expect these changes to accelerate during this decade as a result of new trends in enterprise computing. We argue in this chapter that information and communication technology (ICT) remains strategically important to organizations in the 21st century despite the prevailing trend to outsource ICT and related business processes. We have identified a number of important trends that include the move towards the software as a service (SaaS) model for enterprise applications, increased commitment to process orientation, and emphasis on managing the relationship between business and ICT using services. These trends lead to more effective management of ICT and closer integration of ICT with entrepreneurial activities and business processes in organizations, resulting in improvements in return on investment. These trends will have dramatic impact on both the suppliers and users of ICT, and will necessitate the reevaluation of the approach to ICT education as both the composition and qualifications of ICT workforce will undergo a fundamental change.

An Action Research Case Study of the Facilitators and Inhibitors of E-Commerce Adoption

This research has studied an established Irish retail business as it takes its first tentative steps into the e-commerce arena. Although the adoption of e-commerce is widely studied in the academic world, only a small percentage of these studies focus on the small to medium size enterprise (SME) retail sector. SMEs account for 97% of Irish companies and employ up to 800,000 people (Chamber of Commerce Ireland, 2006). While examining the SME’s adoption of e-commerce, the factors that affected the adoption process were specifically identified and understood. This was achieved by conducting an action research case study. Action research merges research and practice, thus producing exceedingly relevant research findings. This chapter demonstrates how the research was undertaken, and also discusses the justification, benefits, and limitations of using action research. The research concluded that the adoption of e-commerce within the SME sector tends to be slow and fragmented, the presence of a ‘Web champion’ is paramount to the success of the project, and Internet adoption is faster with the recognition of a business need. It also supported the evidence that a SME is more likely to adopt e-commerce when the SME owner has a positive attitude towards IT.

On the Use of Soft Computing Techniques for Web Personalization

Due to the growing variety and quantity of information available on the Web, there is urgent need for developing Web-based applications capable of adapting their services to the needs of the users. This is the main rationale behind the flourishing area of Web personalization that finds in soft computing (SC) techniques a valid tool to handle uncertainty in Web usage data and develop Web-based applications tailored to user preferences. The main reason for this success seems to be the synergy resulting from SC paradigms, such as fuzzy logic, neural networks, and genetic algorithms. Each of these computing paradigms provides complementary reasoning and searching methods that allow the use of domain knowledge and empirical data to solve complex problems. In this chapter, we emphasize the suitability of hybrid schemes combining different SC techniques for the development of effective Web personalization systems. In particular, we present a neuro-fuzzy approach for Web personalization that combines techniques from the fuzzy and the neural paradigms to derive knowledge from Web usage data and represent the knowledge in the comprehensible form of fuzzy rules. The derived knowledge is ultimately used to dynamically suggest interesting links to the user of a Web site.