The Application of Fuzzy Performance Modelling Procedures in Extended Enterprise Performance Measurement

The concept of performance, as it is measured and evaluated, is undergoing a transformation in modern business organisations, so that partnering companies who form enterprise networks that work together across the value chain, can apply evolving performance measurement structures that more accurately capture value chain realities. In this chapter an Extended Enterprise (EE) performance measurement system that can theoretically present models, measures and data from all aspects of the participating companies’ functions in an EE is presented; together with the innovative development of a fuzzy-based performance modelling method, which acts as a supplement to the original procedural measurement framework, enabling the development of a system of performance measurement that is of greater relevance to both intra-organisational and inter-organisational levels, and which goes beyond current efforts to achieve greater reliability in the selection and implementation of performance measures.

The Benefits of an E-Business Performance Measurement System

This chapter investigates how organizations have been adapting their performance measurement practices in response to their adoption of e-business in their business operations. It aims to identify the features and benefits of an effective e-business performance measurement system. Twelve organizations known to have had some success in developing performance measurement systems suitable for the online environment were studied. The researchers found that these organizations adopted an incremental rather than a radical approach to changing their performance measurement system for e-business, thereby avoiding the costs and disruption associated with the introduction of more complex performance metrics. Secondly, they eschewed the use of best practice recipes (such as the balanced scorecard). The study concludes that although these results may be at odds with the prescriptive generic performance measurement literature, they may be appropriate for the current state of development of e-business.

On Leadership, Intellectual Capital Creation and IT Governance

This chapter positions a discussion of intellectual capital, governance, IT and leadership in the context of a resource-based and dynamic capabilities view of the firm. It then discusses in very pragmatic terms how leadership may be associated with IT governance and both knowledge sharing and knowledge creation from a micro-practices perspective. The chapter then presents four vignettes on the experiences of exemplary pioneering leaders to illustrate this argument. The leaders chosen are Leif Edvinsson of Scandia in Sweden, Robert Buckman of Buckman Laboratories in the United States, Hu Gang of NCD in China, and Lars Kolind of Oticon in Denmark. The chapter concludes with the pragmatic argument that leadership matters.

On the Determinants of Enterprise Risk Management Implementation

Corporate governance failures and new legislation have emphasized the importance of enterprise risk management (ERM) in preventing fraudulent reporting. Despite the increased attention to ERM, little research has been done to explain why some organizations embrace ERM while others do not. The objective of this paper is to explore how the board composition is related to the degree of enterprise risk management implementation. Our main results reveal that the position of the CEO in the board has an important influence on the level of ERM. Furthermore, we find that board independence by itself is not sufficient to induce higher levels of ERM. Board independence is only significantly related to ERM when there is a separation of CEO and chairman. Firms with an independent board and a separation of CEO and chairman show the highest level of ERM. One possible explanation for our results is that CEOs do not favour ERM implementation and are able to withstand pressure from the board when they are occupying the seat of chairman.

IT-Assurance with CobiT

Strategic IT management is increasingly concerned with requirements from regulatory bodies. This conformance part of IT management complements the classic performance side. Ideally both are integrated into IT Governance of an enterprise or organization. With the need to prove compliance with a wide diversity of laws and rules for IT systems (technology, processes, rules) the demand for proven support methods grows. Specifically best practice models are beginning to gain awareness and acceptance for IT Audits and for the less formal IT Assurance projects. The Control Objectives for Information and Related Technology (CobiT) reference model is increasingly being discussed as a framework of choice for IT Audits and IT Assurance. This chapter introduces requirements for IT Audits and IT Assurance projects and discuss the boundaries of applying the CobiT IT Assurance Guide in such environments.

Adoption of Information Technology Governance in the Electronics Manufacturing Sector in Malaysia

Past studies and surveys of top management in business and information technology (IT) have shown the importance of strong IT governance in delivering results to the business. This research investigates the extent to which empirical results from past studies is applicable to the electronics manufacturing sector in Malaysia. Empirical evidence from 33 organisations in this sector indicates that having the right decision owners making appropriate decision types lead to better IT governance performance. Organisations with growth as their primary goal demonstrate marginally higher IT governance performance, contrary to expected outcomes. The research also shows that awareness of industry IT governance frameworks is not related to IT governance performance. We conclude that adoption of IT governance is on track, though familiarity with technicalities of the available frameworks should be improved.

Practical Approach for Implementation of Governance Process in IT

Brazilian companies have been looking for more effective approaches to the governance of Information Technology (IT). Therefore, they have put into practice models developed in European countries or North America and published in the literature. Researchers debate the applicability of these models, with or without adaptations, in Brazilian companies. This chapter presents and discusses a survey performed in Brazil with the objective of developing IT Governance models applicable to Brazilian companies.

Performance Measurement in an Outsourcing Environment

In the UK, 88% of companies utilise some form of outsourcing of their Information Technology (IT) operations. The evidence from the literature indicates that approximately 50% of these outsourcing decisions results in complications and in some cases failure. There is a need for outsourcing management frameworks to provide strategic direction and guidance in the decision-making process. This chapter describes the application of one such framework, known as the Holistic Approach {Business, Information, Organisation} (HABIO) framework, to two major commercial organisations indicating financial assessment, monitoring information for performance and quality of service which can be incorporated into service operations and benchmarking criteria.

The Relationship between Business Strategy, IT Strategy and Alignment Capability

A key factor for in company’s success in a dynamic environment is effective and efficient information technology (IT) supporting business strategies and processes. Research has shown that organizations that successfully align their business strategy and their IT strategy outperform their non-aligned peers. This chapter explores the relationship between business strategy, IT strategy, and alignment capability. The author found no conclusive relationship between business strategy and IT strategy. Each business strategy can be supported by all IT strategies, but certain combinations provide a better fit than others. He also found no conclusive relationship between business strategy and alignment capability either. However the author found a clear relationship between IT strategy and alignment capability. The chapter explores this relationship further in a dual case study of two organizations having distinctly different IT strategies. One organization sees IT as an enabler for the business processes with mainly an internal impact, whereas the other organization IT sees as a driver for business innovation that can create competitive advantage in the marketplace. Based upon an assessment of their alignment capabilities, the author found that the company with the innovative IT strategy scored a distinctly higher alignment capability than the company with the essential IT strategy. Although this conclusion may not be surprising, it provides further evidence for the statement that a more progressive IT strategy pairs with a better alignment of business and IT.

Technology Partner Governance

This chapter is intended to serve as a guide for those intending to introduce principles supporting the effective governance of Information Technology and Telecommunications (IT&T) outsourcing. The methods outlined are drawn from industry knowledge and experience in governing and resolving complex technology outsourcing relationships. It is not designed as an academic dissertation; however, it does draw on contemporary thought and current practice to support IT vendor governance concepts and methods.