Model-Supported Alignment of Information Systems Architecture

The chapter presents an alignment framework and an associated representation framework for information systems (IS) architecture management. The alignment framework supports identification of high-level longer-term principles for evolution of IS architectures. The fundamental idea of the alignment framework is to generate alternative future IS architectures by grouping IS-architecture phenomena into IS-architecture areas in different ways. The representation framework supports the creation of IS-architecture models that can support IS-architecture alignment and other IS-architecture management tasks. In addition, the representation framework is a conceptual model for thinking about IS-architectures. Together, the alignment and representation frameworks constitute an early theory of IS architectures and IS-architecture work. They are part of a comprehensive methodology that results from several years of case and theory studies, tool developments, industrial projects and consulting.

The Resource-Based Theory of the Firm

This chapter explores the theoretical foundations of the digital economy. In doing that, it first discusses micro-economics – actually the eight main theories of the 20th century firm. A reasoning, through a literary review, is presented, which shows that no other theory of firm explored provides a suitable background for the digital economy, except the resource-based view of the firm. Starting from this finding, the paper further explores the strategic formulations based on the resource-based view of the firm, as well as its implications to organizational learning and competitive advantage created by information resources management. The conclusions suggest that the resource-based view of the firm, and its implications to strategic management and information resources management, form a solid base for further studies on the foundations of the digital economy. Therefore, the paper suggests that studies of the digital economy could be more fruitful, when studied under the premises of the resource-based theory, than any other modern theory of the firm.

How to Prioritize Information Systems Selection Decisions Under Time Pressure

This chapter reports on an action research study that used the Strategic Choice method. This method was used to support the prioritization of information systems with respect to enhancing these systems within a public sector health department. Such decisions are notoriously complex, fuzzy, time-consuming and political for stakeholders. The results of this study indicate that the Strategic Choice method offers the potential to reduce time commitment for stakeholders in a satisfactory manner.

The South African Online Consumer

This chapter attempts to develop a profile of online consumers in South Africa. Firstly, a profile of the South African online consumer is developed based on various research sources. The chapter then focuses on what the web consumers in South Africa want, and the challenges facing web developers and organizations developing web sites in South Africa.

A Theoretical Framework for Measuring the Success of Customer Relationship Management Outsourcing

Dramatic growth of e-commerce has increased the bargaining power of customers requiring changes in strategies for Customer Relationship Management (CRM) development and implementation on the part of firms. Success of CRM implementations is thus critical for firms to survive in the 21st century. Because of the complex technologies involved in CRM, companies are choosing to outsource to vendors that specialize in CRM. In this study, we propose a theoretical framework that examines the CRM outsourcing success. Based on prior literature, we propose that CRM outsourcing success is influenced by degree of CRM outsourcing, partnership quality between the outsourcing firm and the vendor, organizational factors of the outsourcing firm, and the service quality of the vendor.

National Culture and the Meaning of Information Systems Success

Information system (IS) success is still one of the most researched topics in the IS discipline, but most research on defining and measuring IS success was conducted in North America. As the world globalizes, multinational organizations consider information technology and IS as crucial and necessary tools to glue together all of their units. Moreover, IS standardization (i.e., the same IS implemented in all the units), particularly through enterprise systems (ERPs), has attracted these organizations because of the economic benefits standard applications can eventually yield to. However, researchers in the international management discipline have assessed that culture may be a major factor that influences organizational structure and management practices. Some researchers in the field of IS have also confirmed that national cultures do, indeed, have an impact on IS design and acceptance. As culture is defined as “a shared system of meaning,” the success of IS should hold different meanings in different cultures. We found only sparse research work on how people from different national cultures perceive, define and operationalize IS success. The objective of this chapter is twofold: first, discuss why organizations that intend to standardize IS in different cultures should consider culture as an important factor in the achievement of success and second, propose a comprehensive framework for future cross-national research on IS success in multinational organizations. After the introductory section, the four main components of the proposed framework and their interrelations are presented: IS success, culture, IS standardization, and IS built-in success assumptions. The chapter concludes with the presentation of the new framework.

Explaining Information Systems Strategic Planning (ISSP) Behavior

Contingency theory suggests that various environmental, organizational and managerial factors will influence an organization’s approach to IT management. This chapter discusses the contingent nature of information systems strategic planning (ISSP) practices and presents the results of an empirical study of ISSP and the role of IS within 90 leading companies in South Africa. Results of a partial least squares analysis demonstrate the significant effect that perceptions of the future strategic role of IS within an organization have on ISSP behavior. Moreover, it was found that those organizations in the strategic quadrant of the McFarlan grid emphasized ISSP activities, committed more resources to the ISSP process and attributed greater importance to ISSP-business strategic planning integration mechanisms, than those organizations in the other quadrants of the grid. The relationship between ISSP and IS function performance was also significantly higher for firms in the strategic IS environment.

Technology Trust in B2B Electronic Commerce

A comprehensive conceptualization of trust in B2B electronic commerce should include trust in the infrastructure and the underlying control and support mechanisms. We refer to this new target of trust as “technology trust,” which is described as the subjective belief by which an organization assesses that the underlying technology infrastructure and support mechanisms are capable of supporting inter-organizational communications, transactions, and collaborations. We describe technology trust as a higher-order construct comprising of transaction (a) confidentiality, (b) integrity, (c) authentication, (d) non-repudiation, (e) access control, (f) availability, and (g) best business practices. We conceptualize technology trust drawing upon the notion of institutional trust, and particularly the dimension of situational normality. We describe how bi-lateral (dyadic) and third-party institutionalized technology-related practices can institute situational normality in B2B electronic commerce. This chapter contributes to the understanding of the conceptual foundations of technology trust by bridging the gap between technological solutions from an institutional trust perspective (technology trust), interorganizational trust, and value creation in B2B electronic commerce. We conclude by discussing the study’s theoretical and managerial implications toward instituting and making use of technology trust.

Partnering for Success in Application Service Provision

Application Service Provision (ASP), which consists of deploying, managing and remotely hosting software applications through centrally located servers, is emerging as a new form of application outsourcing that is attractive to many sectors. This chapter shows that the concept of strategic alliances is highly relevant to the ASP model. The chapter illustrates this with two cases, one of which was a failure because of inappropriate partnership management. The authors highlight the importance of focusing on the management of alliances instead of how to form them, by presenting a life cycle approach to alliances. The chapter also relates the immaturity of the ASP market to the difficulty in measuring the success of strategic alliances formed in this context. This chapter concludes by presenting predictions about the future of ASP.

IT Architecture in Strategic Alliance Negotiations

In forming strategic alliances managers should consider information technological fit along with other business considerations among partners. The development of IT architecture for the new situation and its use in the negotiation process could potentially be rewarding for all the parties involved. This chapter uses a case study to describe the way in which the development of IT architecture for the proposed alliance between an information and communications technology (ICT) organisation and its partners helped in the negotiation process. A telecommunications organisation (TEL) intended to enter into the retail electricity distribution business in alliance with existing operators in the retail electricity industry so that TEL could improve its market position. An IT architecture for the new market situation was developed, which helped in understanding the future informational requirements and dependence of partners on each other.