Configuring Software-as-a-Service (SaaS) Enterprise Systems to Mitigate Idiosyncratic Risk

Business evaluation of information technology (IT) value is one of the key aspects in technology management. In order to examine the relationship between IT and corresponding performance, including revenue and profit, we by satiating and analysing 34 firms that enter top 100 electric enterprises over the period from 2003 to 2006 by using Eviews statistical analysis software to analyse time-series data. On the base of empirical research, this paper presents an analysis framework of evaluation of IT value. Producing IT value is a long-term process and IT value is consecutive, so evaluation of IT value is very complex. In this paper, author put forward three factors that inference IT evaluation. Three factors are: 1) IT value is various; 2) IT value is indiscernible; 3) IT value is continuity.

PurposeIn the context of the digital economy, information technology (IT) investment has become a necessary way for enterprises to transform digitally. However, why and how IT investment can enhance digital transformation is lacking in the literature. Based on the resource-based view (RBV), this study explored the impact mechanism of IT infrastructure on the digital transformation of enterprises from the perspective of the digital transformation strategy. Further, this study examined the moderating role of top management on the relationships between IT infrastructure and digital transformation strategy and between digital transformation strategy and enterprise's digital transformation.Design/methodology/approachThrough a questionnaire survey of Chinese enterprises, 180 sample data were collected, and the partial least squares-structural equation modeling (PLS-SEM) method was used to test the hypothesis.FindingsDigital transformation strategy fully mediates the relationship between IT infrastructure and enterprise digital transformation. Furthermore, top management has a significant positive moderating effect on the relationship between IT infrastructure and digital transformation strategy, as well as the relationship between digital transformation strategy and digital transformation.Originality/valueThis study explores the moderating role of top management in the relationship between IT and enterprise performance, as well as the mediating role of digital transformation strategy in the relationship between IT infrastructure investment and digital transformation performance. As a result, the study adds significantly to the body of knowledge on IT business value, digital transformation and strategic management. The authors' findings can help update managers' perceptions of IT value and provide theoretical guidance on deriving digital transformation performance from IT infrastructure investments.

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Under conditions of uncertainty caused by sanctions and geopolitical changes, the correct choice of both strategic development priorities and management tools for their implementation becomes important. Given the global trend towards digitalization and the growing supply from software developers, it is necessary to understand clearly, which software products and for what purposes can be used effectively at specific enterprises. The challenge here is that due to instability, sanctions pressure, and withdrawals of foreign software from the Russian market, enterprises are forced to change business and technological processes, and to look for new tools for implementing development strategies. The purpose of the article is to determine the basic principles for choosing strategic management tools and information technologies as elements of strategic management at enterprises in the context of digital transformation. The article shows that due to the ongoing digitalization of industrial enterprises any tools for implementing the strategies must be considered within the framework of an automated process management model. It can be based on various information technologies or platform solutions, depending on the coverage of enterprise business processes, and the readiness to adopt digital technologies in strategic and operational management. The modern trend is to implement strategic development directions, relying on the internal ecosystem of the enterprise. Making the right choice of information technology within an enterprise ecosystem requires that technology investments are aligned with the company’s business goals, adaptable to changing needs, can integrate with existing systems, are user-friendly, secure, and provide a short-term return on investment. Ultimately, these principles enable businesses to successfully navigate the digital transformation journey and leverage technology as a strategic enabler for sustainable growth.

Padang Karunia Group (PKG) is engaged in four main business areas coal mining, coal trading, mining contractor and infrastructure and has consistently delivered coal product to domestic and overseas market. There are problems in the business processes of PKG’s everyday operations, such as: the waiting time for reports is over one day when it should be a few hours, data has more than one version and is not accurate, and demurrage (a charge payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time agreed). Issues occur because the role of IT is not optimal. The purpose of this study was to design an information technology (IT) architecture suitable for supporting the operation of the PKG. The correct IT architecture design can help companies to achieve their vision and mission. The right IT architecture for PKG will support all of its operations. The design of the IT architecture could be done with the existing framework using: EAP, TOGAF, FEA, DODAF, and Gartner Methodology. For this work the TOGAF was selected because it is open source, systematic, and thorough. Analysis was done using a business processes approach to obtain the IT needs mapped to the principles of business, information systems, applications, and information technology. The results from this study are a business architecture design, an information systems architecture, and a technology architecture appropriate to support the business of PKG.

Assessment of the value of information technology (IT) is one of the most challenging priorities for modern organizations. The topic has been studied for decades but the continuous nature of digital transformation in industry (DTI) has added a new dimension to the problem. This paper presents a framework to capture IT value over time, supporting industries in (1) monitoring the outcomes of their digital transformation and (2) evaluating the need for new investments. The framework is inspired in the literature of IT value and extended to the dynamic, integrated and boundary spanning logic of Industry 4.0. The difficulty to prove the holistic value of IT investments is an obstacle to the necessary developments in industry. Moreover, similarly to DTI, IT value assessment is multidimensional and should be the result of an ongoing evaluation supported by evidence. Our proposal offers a starting point to create new tools to assist C-level managers steer their investments and make visible the inevitability of digitalization to compete.

Use of Information Technology (IT) at the functional level by the small and medium enterprises (SMEs) is a recent phenomenon. Moreover, IT adaptation by the SMEs in India is at an emerging phase. As investments in IT continue to grow, SMEs managers’ awareness of the need to derive the value of IT is also increasing. Research has shown that SME managers are increasingly adopting new IT technologies in all aspects of business activities. On the backdrop, this research intends to measure information technology capability (ITC) in SMEs in Rajasthan state. ITC is a firm’s ability to acquire, deploy, and leverage its IT related resources in combination with other resources in order to achieve business objectives through IT implementation. The paper identifies four dimensions, viz. IT infrastructure, IT architecture, IT human resource, and IT relationship resource, in an effort to measure the ITC construct. To accomplish the above objective a sample of 193 SMEs have been surveyed through a pre-tested questionnaire. Results suggest that model fit statistics are reasonably acceptable and IT human resource as a significant contributor to the ITC construct followed by IT architecture. The study may help the firms to leverage technology to differentiate them from competition. SME managers and entrepreneurs will be able to develop a clear understanding of the critical components of ITC and their role in supporting and shaping business strategy.

A use of DEA–DA to measure importance of R&D expenditure in Japanese information technology industry

There is no doubt that strategic management tools and techniques are important parts of the strategic management process. Their use in organizations should be observed in a practice-based context. This paper analyzes the empirical studies on the usage of strategic management tools and techniques. Hence, the main aim of this study is to investigate and analyze which enterprises, according to their country development level, use more strategic management tools and techniques and which of these are used the most. Also, this paper investigates which strategic management tools and techniques are used globally according to the results of empirical studies. The study presents a summary of empirical studies for the period 1990–2015. The research results indicate that more strategic tools and techniques are used in developed countries, followed by developing countries and fewest in countries in transition. This study is likely to contribute to the field of strategic management because it summarizes the most used strategic tools and techniques at the global level according to varying stages of countries’ economic development. Also, the findings from this study may be utilized to maximize the full potential of enterprises and reduce the cases of entrepreneurship failures, through creating awareness of the importance of using strategic management tools and techniques.

Effect of data privacy and security investment on the value of big data firms

:Information technology (IT) value has been measured at various levels of analysis, yet few authors would contend that the search for value has reached a point where practitioners and theoreticians are satisfied with its outcomes. We present a new perspective that emphasizes the importance of understanding where potential value lies and how best to relate it contextually to the measurement of the firm’s realized value across multiple levels of analysis. We develop the idea that complementary assets (especially business process design and human capital) influence the firm’s realization of value, using concepts such as locus of value and value conversion contingencies. Expanding beyond earlier process models of IT value, which begin with IT expenditure, our analysis of IT value emphasizes the consideration of potential value for an IT investment both in ex ante project selection, and ex post investment evaluation. We illustrate and validate the application of our framework using IT investments in a variety of business domains.

Recent contributions to information systems theory suggest that the primary role of a firm’s information technology (IT) architecture is to facilitate, and therefore ensure the continued alignment of a firm’s IT investments with a constantly changing business environment. Despite the advances we lack robust methods with which to operationalize enterprise IT architecture, in a way that allows us to analyze performance, in terms of the ability to adapt and evolve over time. We develop a methodology for analyzing enterprise IT architecture based on “Design Structure Matrices” (DSMs), which capture the coupling between all components in the architecture. Our method addresses the limitations of prior work, in that it i) captures the architecture “in-use” as opposed to high level plans or conceptual models; ii) identifies discrete layers in the architecture associated with different technologies; iii) reveals the “flow of control” within the architecture; and iv) generates measures that can be used to analyze performance. We apply our methodology to a dataset from a large pharmaceutical firm. We show that measures of coupling derived from an IT architecture DSM predict IT modifiability – defined as the cost to change software applications. Specifically, applications that are tightly coupled cost significantly more to change.

This study addresses the theoretically neglected interplay between organizational information technology (IT) architecture and IT governance structure in shaping IT alignment. We theoretically develop the idea that IT architecture modularity helps sustain IT alignment by increasing IT agility, and that decentralization of IT governance strengthens this relationship. IT architecture therefore complements IT governance structure. Tests of the proposed mediated-moderation model using data from 223 organizations support these ideas. Implications for theory and practice are also discussed.

There are many studies regarding the IT (Information Technology) value, however until now there are not yet any researches discussing an exact method to estimate this value. Accordingly, this study tries to present a methodology to assess this value using both qualitative and quantitative methods. The offered methodology addresses valuation of IT by means of IT value definition approach as a division of functions by costs. This valuation will be achieved by analyzing functions and costs previously, in turn, results in the intrinsic IT value. Additionally, this methodology using the Telkom data is simulated to test its accuracy. The results show that there is an alignment between the offered methodology and the case study, although there still should be improved here.

Until today, industries know about their Information Technology (IT) spending year by year. Those industries calculate and understand that the spending always grows. The problem is they only know that their IT spending is just costs and no effect to performance in term of revenue. This study aim is to create model that can explain relation between IT spending and industry's performance. The research process employs IT value analysis as a basis. This approach can generate IT value through capabilities and core competencies. Hence it will impact on performance. The study will employ Downstream Petroleum (DP) industry. We take DP because the case study is non IT industry. As non IT industry, DP industry only spends low cost on IT. The industry has a need to know the IT value. The research result shows that certain IT resources may have positive impacts to IT value by deploying IT value model.