Business Value Creation Research Articles

TRANSFORMING SERVICE OPERATIONS WITH AI: A CASE FOR BUSINESS VALUE

Artificial Intelligence (AI) has rapidly become a critical technology for businesses seeking to improve efficiency and profitability. One area where AI is proving particularly impactful is in service operations management, where it is used to create AI-powered service operations (AIServiceOps) that deliver highvalue services to customers. AIServiceOps involve the use of AI to automate and optimize various business processes, such as customer service, sales, marketing, and supply chain management. The rapid development of Artificial Intelligence has prompted many changes in the field of Information Technology (IT) Service Operations. IT Service Operations are driven by AI, i.e., AIServiceOps. AI has empowered new vitality and addressed many challenges in IT Service Operations. However, there is a literature gap on the Business Value Impact of Artificial intelligence (AI) Powered IT Service Operations. It can help IT build optimized business resilience by creating value in complex and ever-changing environments as product organizations move faster than IT can handle. So, this research paper examines how AIServiceOps creates business value and sustainability, basically how AIServiceOps makes the IT staff liberation from a low-level, repetitive workout and traditional IT practices for a continuously optimized process. One of the research objectives is to compare Traditional IT Service Operations with AIServiceOPs. This paper provides the basis for how enterprises can evaluate AIServiceOps and consider it a digital transformation tool. The paper presents a case study of a company that implemented AI-powered service operations (AIServiceOps) and analyzes the resulting business outcomes. The study shows that AIServiceOps can significantly improve service delivery, reduce response times, and increase customer satisfaction. Furthermore, it demonstrates how AIServiceOps can deliver substantial cost savings, such as reducing labor costs and minimizing downtime.

Toward the industry 5.0 paradigm: Increasing value creation through the robust integration of humans and machines

This study proposes a flexible architecture under the LAsim Smart FActor Plus reference framework, fostering the integration of different related data sources—processes, products and the human dimension (operators or other agents)—to increase business value creation. The proposed architecture promotes distributed component perspectives at different levels using different types of digital assets. Integrated reusable services to build composed business applications are found to help increase business understanding and transparency. The robustness attribute is related to the concept of persistence and seeks to reduce the degree of intervention required and thus enable integration. Use cases are presented to demonstrate the advantages provided by the proposed architecture.

Managing Information Technology Risks to Achieve Business Goals: A Case of Pharmaceutical Company

Extant literature has shown that sectoral characteristics play a critical role in business value creation through information technology (IT). Therefore, managing IT and its associated risks needs to consider specific industrial traits to understand the distinct business nature and regulations that shape IT-enabled business value creation. This study presents an in-depth analysis of business goals, IT processes, and IT risks in the case of a pharmaceutical company through which appropriate controls are designed to ensure business value creation through IT. Drawing on a case study of a pharmaceutical company in Indonesia, we found that managing IT risks in the pharmaceutical industry entails two main objectives: 1) ensuring compliance with external laws and regulations as well as internal policies, 2) supporting the optimization of business functions, processes, and costs. Throughout one year of engagement during the project, this study identified ten risks associated with the operation of business processes. Risks are dominated by moderate levels given the current state of controls and appetite, most of which emerge from the company’s existing internal processes. Internal actors are involved in all risks, with most events occurring due to laws and regulations. Further, the study designs and elaborates IT risk controls by drawing from COBIT 5 Seven Enablers. Overall, IT risk management through cascading processes of analysis ensures the alignment of IT risk controls with achieving business goals in the pharmaceutical industry.

DIGITALIZATION AS A POWERFUL FACTOR IN ENSURING HIGH COMPETITIVENESS OF THE ENTERPRISE

DIGITALIZATION AS A POWERFUL FACTOR IN ENSURING HIGH COMPETITIVENESS OF THE ENTERPRISE

Big Data Analytics and Firm Performance in the Hotel Sector

Big data (BD) analytics play a key role in helping hotel firms gain competitive advantages and achieve superior performance. The purpose of this study was to determine which factors encourage the use of big data analytics (BDA) by hotel firms and the impact of BDA on hotel firms’ performance. Understanding the impacts of big data analytics in the hotel sector is important to help hotel managers use big data for creating business value by increasing hotel performance. A research model was developed and tested with data collected through a questionnaire sent to hotel managers in a European country and analysed with PLS. The results indicate that organisational readiness and competitive pressure encourage the use of BDA through the mediating role of top management support. The findings also indicate that the use of BDA can create business value by increasing the main dimensions of hotel performance: financial performance, customer retention rate, and hotel reputation.

INTELLECTUAL CAPITAL AND INNOVATION IN BUSINESS ACTIVITIES FOR VALUE CREATION AND COMPETITIVENESS

The Objective is to find out what makes SMEs able to continue to survive by utilizing their internal resources in the SMEs. The research method uses qualitative analysis, with the case study method, and with 120 informants who are small and medium business actors in the city of Medan, Indonesia, and is presented graphically and in tables, using NVIVO 12 plus. Data collection and analysis included participant observation, interviews, and interpretation data and videosThe findings show that business actors are always continuously trying to find creative ideas that are better known to them as Intellectual Capital, which are appropriate for their business. The creative ideas created will be related to the inherent characteristics of the business. Because the characteristics will distinguish one business from another, even though the business is similar. The process of finding business characteristics requires a long time, with three stages until the creation of innovation to create business value and competitive advantage.Limitations of Research, Data only used This study used 102 participants, and was considered by the researcher to be sufficient because he had obtained the same findings, it was suggested to further researchers to develop a research modelPractical implications. This business is very different from large businesses, especially in the form of its business, its activities, and the assets it owns. Intellectual Capital as knowledge possessed by SME’s their business activities. The effect is obvious by having innovation and performance, being key factors for the competitiveness of their businesses.
 Originality/ Value: Research has found that research and development activities in SME’s business actors can create assets that provide business value and business competitiveness.

Understanding marketing strategy and value creation in the era of business competition

This study discusses marketing understanding and strategy as well as value creation in business in an era full of competition. To discuss this study, we get support from various publications about marketing and new strategies and products so that a company can compete and make it one of the companies that can survive in an era where competition is—obtaining data through a google school search on literature which is scientific evidence of how business marketing currently has a strategy and creates new value for businesses to compete. After the data is collected, we analyze it under a phenomenological approach, an attempt to get data evidence to answer phenomenal problems on the validity and reliability of findings. Where the business is very competitive, of course, the strategy has one concept and can create value in marketing by following various trends that will occur in the following year; likewise, the marketing strategy has components and planning that follow the characteristics of the business being carried out with of course having a budget that sufficient so that the business can compete as expected.

Regulation of data-driven market power in the digital economy: Business value creation and competitive advantages from big data

Recent high-profile antitrust cases and policy proposals have put a spotlight on the relationship between firms’ access to big data and sustained competitive advantages in digital markets. In Europe, concerns about data-driven market power have led policymakers to propose far-reaching regulations of information technology (IT) in these markets. Despite the global policy relevance, the regulation of big data and its competitive effects has so far received little attention in information systems (IS) research. This article addresses this research gap by developing an overarching framework for future IS research on the role of IT for the regulation of data-driven market power. The proposed research framework builds upon a three-part analysis: First, we review the academic literature and show that there is extensive, although nuanced, empirical evidence for business value creation from big (user) data. Second, we draw on the resource-based view of the firm and recent policy reports to derive six facilitating factors that enable firms to establish market power based on sustained data-driven competitive advantages. Third, we characterize three regulatory approaches to govern market power and competition in data-driven digital markets: (i) empowering consumers, (ii) data openness, and (iii) limiting data scale. For each of these approaches, we highlight the key role of IT artifacts in mediating the effect of regulatory rules on actual practice.

The Empirical Nexus between Data-Driven Decision-Making and Productivity: Evidence from Pakistan’s Banking Sector

The effective use of digital technologies to create business value has generated enormous data, and using data in decision-making is vital. Although there is growing empirical evidence in favour of a positive association between informed decision-making and firm performance in developed countries, there is little to no evidence of a large-scale study in an emerging economic context. Moreover, there has been scant empirical evidence on how DDDM affects productivity in the banking sector of developing countries. This study examined the impact of DDDM on the productivity of Pakistan’s banking sector from 2016 to 2020 based on primary and secondary data collected from banks registered in Pakistan. The findings suggest that banks who adopt DDDM practices show a 4–7% increase in productivity depending on adjustment to change. We believe this study would shed light on the importance of DDDM in the banking sector of developing countries.

Factors Influencing Customer Purchase Intention in B2B Telecommunication Industry

Digital transformation has the potential to improve consumers’ lives by providing new opportunities for business firms to create business value. This phenomenon forces the telecommunications industry to become one of the leading industries in digital transformation as the main digitalization mover and to be able to adapt to the changing trends of the digital transformation era. The increasing trend of digitization and consumption of digital media platforms by global and domestic customers has led to a demand for higher bandwidth with high-speed connectivity. This phenomenon creates new business opportunities for the telecommunication industry. With all the developments in the digital era, the telecommunications industry must adapt to achieve new opportunities in transformation and digital ecosystems that are rapidly developing by increasing the economic value and services of more data-oriented companies. This study aims to determine what factors influence customer purchase intention in B2B telecommunication companies, namely the DWS Telkom division under PT Telkom Indonesia, which plays a role and focuses on carrying out wholesale business portfolio management activities. The division’s mission is to provide sustainable value to wholesale customers through digital connectivity solutions, digital platforms, and communications. This research was conducted using qualitative methods by interviewing 7 existing customers of Telkom DWS using question guidelines to determine B2B product purchasing factors. Results from interviews with customers were analyzed using the triangulation method. The results show that the factors influencing purchasing decisions in the B2B industry are product quality, service quality, relationship commitment, trust, customer satisfaction, and loyalty.

The Use of Inside-Out and Outside-In Big Data Analytics on E-Platforms: Performance Impacts and Heterogeneity Analysis

ABSTRACT Big data has brought unprecedented opportunities and challenges, prompting global firms to grow big data analytics (BDA) investments, especially in a turbulent business environment. However, there is insufficient empirical evidence in scholarly research on whether and how using BDA functions of various types creates business value. The current study divides BDA into inside-out and outside-in types and explores whether and how firms can create value by using functions of these two types of BDA. Then, the knowledge-based view (KBV) is applied as a theoretical foundation to investigate the independent and combined impacts of inside-out and outside-in BDA usage on firms’ sales performance. Furthermore, we build a quantile regression model to analyze the heterogeneity of independent and combined impacts among firms with different performance levels. The empirical study is based on a unique dataset collected on one of the largest electronic platforms (e-platforms) in China from 785 firms in 35 weeks. The results of the benchmark model based on two-way fixed effects show that both inside-out and outside-in BDA usage, as well as their interactions, are positively related to the sales performance of firms on e-platforms. The heterogeneity analysis indicates that inside-out (outside-in) BDA functions have a greater degree of impact on firms with lower (higher) sales performance. Through the theoretical and empirical analysis of the complex performance impacts of BDA usage, this study enriches the understanding of value creation in using multiple BDA functions and extends the theoretical account of KBV in the field of BDA.

Big Data Analytics in the Metaverse: Business Value Creation with Artificial Intelligence and Data-Driven Decision Making

Big Data Analytics in the Metaverse: Business Value Creation with Artificial Intelligence and Data-Driven Decision Making

Удосконалення теоретичних засад формування стратегії бізнес-структур

The study focuses on a detailed analysis and evaluation of the key elements that foster the development of more effective and adaptive business strategies. The study found that the process of creating business strategies reflects a variety of approaches, ranging from traditional methods to modern innovative solutions. The main approaches are divided into: business value creation, targeted planning and integrated measures. It is revealed that modern business strategies are evolving, taking into account a wide range of important aspects, including environmental and social benchmarks of sustainable development. It is also noted that the development of information technology contributes to approaches to business strategies, forcing companies to be more flexible and quickly adapt to changes. It is found that the development and selection of business strategies are fundamental to the success of each company, requiring a thorough analysis of external and internal factors that affect its opportunities and risks. It is noted that the external environment affects the availability of resources and determines the competitive position of an enterprise, while the internal environment determines the internal capabilities and potential of an organization to implement strategic plans. It is emphasized that the effectiveness of a strategy is ensured by continuous collection of information about the external and internal environment, evaluation of results and making adjustments to the strategy in accordance with changes in the external and internal environment of the enterprise. It is emphasized that understanding the needs and expectations of stakeholders, such as customers, employees, suppliers, shareholders, government and the local community, is key to creating effective strategies that contribute to the achievement of the company's goals. It is indicated that the choice of a particular strategy largely depends on stakeholders and resources. It is also emphasized that in the context of strategic planning, the resources of enterprises need to be transformed, in particular, staff – into intellectual capital, current assets – into innovations, capital investments – into sustainable development technologies, and information – into interaction. The practical significance of the topic is to improve the process of forming effective business strategies, which contributes to the competitive advantage and sustainable development of the company.

Data Driven Process-Based Unicage Architecture

Digital transformation necessitates the creation of business value or innovation using digital technology in every industry. Enterprises are facing an unprecedented business environment and competition for resources and market, which forces them to be more adaptive. Consequently, their Enterprise Information Systems (EIS) must also be adaptive. The conventional information system architecture has high dependencies between their application components to realize the loosely-coupled, microservice application architecture required for adaptiveness. In this paper, we propose a loosely-coupled, process-based enterprise information system architecture - Unicage - which consists of business, application, data, and technology architectures, especially for Enterprise Resource Planning system, with only input and output data-based building blocks. As a result, it enables a Full Cycle Development. We also propose a model for the architecture using ArchiMate.

IoT-based Diagnostic Assistance for Energy Optimization of Air Conditioning Facilities

The Internet of Things (IoT) is a significant trend in the field of information technology and encourages the implementation of cyber-physical systems, smart connected products, and new business models. Many enterprises struggle to create business value from IoT technology because they have difficulties defining their organizational integration. Model-driven engineering (MDE) is considered an effective technique to address the complexity of IoT application development. Existing approaches focus on requirements from a technical perspective and exhibit a lack of integration with organizational and business model aspects. The paper proposes a modeling approach and a tool to support the development and configuration of IoT solutions in the example of air conditioning and cleanroom technologies (ACT) facilities. The main contributions of this paper are (a) an architecture for the IoT application, (b) a modeling language and tool support for IoT modeling, and (c) the expected practical benefits in the industrial case.

Assessing the Connections among Top Management Support, IT Assimilation, and the Business Value of IT: A Meta-Analysis

Scholars and practitioners have long tried to understand the antecedents and consequences of information technology (IT) assimilation. Studies suggest that top management support is an important driver of IT assimilation; however, this broad takeaway provides little substantive guidance to researchers and practitioners. We also have a limited understanding of whether and when IT assimilation creates business value. We take stock of this literature with a meta-analysis. We found that top management support is positively related to IT assimilation, and assimilation is in turn positively related to the business value of IT. We also found that explicit support does not have any special effect on IT assimilation (compared to implicit support) and may not be related to business value at all. However, our results indicate that IT assimilation has a stronger effect on business value at the process level (versus firm level) and for enterprise IT innovations (versus function IT innovations). Finally, we found that support-assimilation and assimilation-value relationships are stronger in high (versus low) power distance cultures. Our collective findings can facilitate future research and help practitioners navigate IT assimilation initiatives.

Ідентифікація та класифікація факторів створення вартості бізнесу

A reliable assessment of the value of a business and its ability to create, preserve, and lose value depends on identifying the factors that affect it. The factors are determined taking into account the interests of financial capital providers and the ability to increase the investment attractiveness of the enterprise. The relevance of the study is due to the need to identify key factors in the context of integrated reporting. That is, there is a need to determine what key factors are of interest to financial capital providers, have an impact on the cost of capital and the total value of the enterprise. The aim of the article is to analyze approaches in scientific publications to the classification of business value creation factors as a basis for their identification and monitoring. The following methods were used in the course of the study: analysis and synthesis; comparison; systematization; deduction. During the study, approaches to the classification of value creation factors used by domestic and foreign scientists were analyzed, as well as approaches to classification, which are provided by the International Framework for Integrated Reporting. It is found that the vast majority of scholars distinguish the factors of both the internal and external environment. Upon closer examination, it is found that there are differences in their understanding. In addition, it is found that the International Framework for Integrated Reporting focuses on external factors that are not controlled by the enterprise. As a result of the study, a system of approaches to the classification of factors of business value creation has been developed using such features as: place of occurrence of the factor; method of impact; the ability to control (manage) the impact; the time of manifestation of the factor; duration of impact; degree of dependence on other factors; consequences (nature) of the impact and materiality of the impact. In practice, the application of the proposed system of classification of business value creation factors in any case will help to identify and define the key factors that have a significant impact on the cost of capital and the value of the enterprise as a whole. In addition, it will allow the enterprise to assess the likelihood of a risk of reduction and the possibility of increasing the value of the business, the scale of such changes; identify the specific circumstances that may lead to the materialization of the risk or the exploitation of the opportunity; take appropriate measures and develop targets to monitor the impact of key factors on business value.

Shareholder invisível: uma perspectiva teórica da relação entre capital natural, negócios e sociedade

Abstract The term “natural capital” originated in the field of economics but has gained increasing prominence in accounting in recent years. Natural capital is the stock of renewable or non-renewable natural resources that benefit both society and businesses, providing value through ecosystem services. This essay proposes the theoretical perspective of the invisible shareholder, highlighting the often unacknowledged contribution of society as a supplier of natural capital to businesses. This perspective is grounded in the following observations: a) natural capital arises from the natural resources that constitute our natural heritage, b) the combination of these resources contributes to the value creation of businesses, and c) accounting disclosures typically do not account for society’s participation in the value generated by businesses The study examines the relationship between natural capital, business, and society based on aspects associated with ownership and control, the contribution of natural capital in the business value creation process, and the elements that involve disclosing this relationship in accounting.

Розвиток концепції обліку в системі управління підприємством

The purpose of this article is to research and systematize existing approaches to understanding the essence of the concept of accounting in the management system in order to determine the current stage of its development. It has been substantiated that the concept of accounting should not be separated from the life of the economic object as a main link of the social economic reproduction and should fully incorporate the internal and systematic information needs of management, employees, and owners. It has been proved that the transformation of the economic environment, revolutionary changes in information technologies necessitate the development of accounting theory and, as a result, a change in accounting concepts. The implementation of the concept was investigated depending on the point of view from which they are considered: from a general point of view or from a point of view of a specific point of view. The circumstances that determined the content of the modern concept of accounting in the enterprise management system in Ukraine are analyzed. International concepts of management accounting, as the basis of accounting in the enterprise management system, were studied. The methodological tasks of the strategic management accounting have been clarified. It has been proven that management information support should be aimed at building such an accounting model in the management system, which allows harmonizing the goals of all participants, resources, personnel, their level of knowledge and motivation, aspirations and interests of external participants. The characteristics of integrated management efficiency systems based on strategic indicators, based on the compatible, consistent and coordinated use of tangible and intangible factors of business value creation, based on the accounting concepts of balanced cards (accounts) or strategic cards, were studied. It is proved that the identification of strategic indicators of activity efficiency and the creation of their integrated system should be carried out according to the process-module approach, which involves the grouping of homogeneous strategic indicators in a module according to the stages of economic processes, which will ensure the growing information needs of the management of the enterprise system.

AR as a Value-Creating Business Tool and Beyond: An Illustrative Study on Current Practices

AR as a Value-Creating Business Tool and Beyond: An Illustrative Study on Current Practices