IT Value Research Articles

FEATURES OF IT-AUDIT PROJECTS AND SPECIFICS OF MANAGING THEM

In the conditions of rapid development of infrastructure and deepening of informatization of economic processes efficiency of enterprises’ activity, establishments and the organizations more and more depends on the information technologies used in control systems. Today, the environment of information technology as a structural component of the organization is a complex system that combines a variety of information, software, technical, human and other resources to achieve the goals of the organization, enterprise or institution. This, in turn, leads to a growth in the need to increase the efficiency and cost-effectiveness of information technology, increase the advantages and eliminate the disadvantages of their use, as well as justification of information technology costs. To meet this need, the regular use of information technology audit in the enterprise management system is becoming increasingly important. The analysis of works of domestic and foreign scientists and researchers in the field of IT audit and projects management of IT audit is executed. Features of IT audit projects are revealed. Based on the results of the analysis of the features of IT audit projects, their classification is carried out. Models, methods and mechanisms of IT audit project management are analyzed. Based on the analysis, their weaknesses are identified, the main problems and factors influencing their management are identified. It is determined that IT audit projects have unique IT risk factors, quality aspects, criteria and basis of evaluation, as well as dependence on major stakeholders. Tasks and goals of IT audit project management are formulated. Stages of implementation of IT audit projects, criteria of their formation, mechanisms and tools of their management are allocated. Features of products of IT audit projects, its characteristics and value criteria are considered. The main stakeholders of the IT audit project have been identified. The categories of IT risks inherent in IT audit projects are identified.

An Assessment of Smart Factories in Korea: An Exploratory Empirical Investigation

After the Industry 4.0 discussion in Germany in 2011, much attention has been paid to smart factory in Korea. Since 2014, smart factories have been established and expanded in Korea. However, about 80% of them were established at a low level. In this paper, we analyze smart factory statuses in detail through an empirical research on 113 manufacturing companies that have established smart factories in Korea. We build a framework based on the resource-based view (RBV) and IT value creation process and analyze the results of five constructs—manufacturing strategy, organization, system, process, and performance—using basic statistical methodologies to derive the current statuses of manufacturing companies that have established smart factories. Our results show that implementing advanced technologies such as AI technology that can implement semi-finished and finished product quality inspection, manufacturing process optimization and product demand forecast is a challenge, particularly for SMEs. We also find that securing and managing facility data is a difficult problem. In addition, while output and material management ranked high, the utilization of integration systems, which is important when building a smart factory, was found to be extremely low. Lastly, the performance indicator results showed that yield management and defect rate were most important, while job creation through the introduction of smart factories was low. Based on the results of this study, the government may be able to determine effective smart factory policies and provide manufacturing companies with a guide on establishing a smart factory.

Differential effects of information technology on competitive positioning

PurposeInformation technology (IT), combined with complementary resources, can contribute to companies' competitive positioning. However, to assess the contribution of IT to value with respect to the contribution of complementary resources, it is crucial to understand the means by which IT creates value.Design/methodology/approachThis paper synthesizes empirical research on the inherent capabilities of IT and their moderating role to build an integrative model.FindingsWe found that IT creates value through three inherent capabilities: transactional, exchange and codification capabilities. These capabilities can be regarded as moderators of the relationship between IT and competitive advantage. This moderating role of IT in competitive positioning is illustrated by examples from previous empirical publications.Research limitations/implicationsThe paper contributes to IT business value (ITBV) literature by developing an integrative model that (1) conceptualizes an aspect of IT value creation, which, thus far, has received only limited attention (namely, inherent capabilities) and (2) illustrates the moderating role of these capabilities in competitive positioning.Practical implicationsInherent capabilities provide the theoretical foundation for a nuanced understanding of IT contribution with respect to complementary resources. This understanding may support IT executives in deriving adequate measurements and, thus, account for the differential effects of IT.Originality/valueCompared to the literature, the proposed model represents a more coherent and holistic perspective of ITBV. Thus, the model may constitute a foundation for future ITBV research and promote more detailed analytic perspectives of ITBV.

Production temperatures and mechanical performance of rubberized asphalt mixtures modified with two warm mix asphalt (WMA) additives

Studies show that warm mix asphalt (WMA) technology is a practical solution against the high production temperature of rubberized-asphalt (RA) mixtures. RA mixture containing WMA additive is considered as an eco-friendly technology contributing to noise reduction and performance optimization of asphalt mixtures. This study aims to introduce two organic WMA additives called slack wax (SW) and polypropylene wax (PPW) which are used to lower the production temperatures by reducing the viscosity of RA mixtures. Rotational viscosity (RV) as a common bitumen test (Equiviscous, ZSV, and S-ZSV methods), as well as tests related to mixtures including resilient modulus (Mr) and moisture susceptibility (TSR and MRR methods), were carried out on binder and mixture specimens. According to the results, 6% (by the binder’s weight) of both WMA additives reduced the mixing and compaction temperatures of the RA binder by about 20–25 °C. Also, CRM and both WMA additives improved the stiffness of mixtures by increasing the resilient modulus (Mr). In terms of moisture susceptibility, although nearly all specimens could pass the minimum requirement of SCDOT, both WMA additives and CRM caused a reduction in ITS value of wet mixtures and final TSR value. MRR test results followed a similar trend, though resilient modulus was more sensitive to moisture damage compared to ITS. The results suggest that PPW and SW are suitable and cost-effective warm additives that can be used in combination with CRM in areas with hot climates and low precipitation. Nevertheless, additional experiments should be done to further validate the performance of CRM mixtures with these two warm additives.

Industry 4.0 Technologies in Flexible Manufacturing for Sustainable Organizational Value: Reflections from a Multiple Case Study of Italian Manufacturers

In this study, we analyse the value creation of Industry 4.0 (I40) technologies in flexible manufacturing (FM) under a sustainability perspective. I40 is a popular strategy that Western manufacturing organizations adopt to face competition from low-cost producers. Organizations adopting I40 use advanced digital technologies to make production processes more flexible and increasingly automated. Several pieces of evidence confirm how I40 leads to higher productivity and higher-quality products, improving the economic performance of organizations. However, increasing automation may also lead to the reduction of human labour in the production process, which may contribute to the disappearance of jobs, the reduction of expertise and the loss of know-how in manufacturing organizations. While the literature acknowledges the technical and economic advantages of I40, the sustainability of the value created through these technologies deserves further investigation. To address the gap, we complement the IT value theory with the concept of sustainability, including the three dimensions of economic, environmental and social sustainability. We perform a multiple case study analysis of four Italian manufacturing organizations that have successfully implemented I40 technologies in FM. The cases show that I40 technologies support sustainable organizational value when they are deployed with a worker-centric approach. In this condition, the organization leverages workforce activities to continuously fine-tune the technologies and to exploit the adaptive features of the technologies to continuously improve processes.

E-government success assessment from a public value perspective

ABSTRACT Public organizations are massively using ICTs. Leading to e-government development, they expect creating public value. However, little empirical evidence about achieving the expected benefits exists. Focusing on the private sector, the extant theoretical models for IT value are not suitable for e-government. This research builds on the DeLone and McLean (D&M) IS success model and the e-government public value perspective to propose and test a model of e-government success from the perspective of government employees. Organizational performance and environmental sustainability are investigated as the two main dimensions of e-government public value in relation with the three quality variables, intention to use and user satisfaction. Based on PLS-SEM techniques, the results show that an intention to use the taxation system and user satisfaction lead to public value measured by organizational performance and environmental sustainability. They demonstrate the adequacy of the research model to assess e-government value from the standpoint of the government employees.

How do agribusinesses thrive through complexity? The pivotal role of e-commerce capability and business agility

The recent COVID-19 pandemic has clearly shown how agricultural foods and e-commerce initiatives are critical for many organizations, regions, and countries worldwide. Despite this vital importance, prior IS research on the business value of IT has not paid enough attention to the potential specificities of the agribusinesses. This study examines the impact of e-commerce capability on business agility in agribusinesses. Using a sample of Chinese agriculture firms, we find that: 1) The e-commerce capability of agribusinesses enables two types of business agility: market capitalizing agility and operational adjustment agility, and 2) while environmental complexity positively moderates the effects of e-commerce capability on the market capitalizing agility and operational adjustment agility, environmental dynamism does not. This study contributes to the IS research on the business value of IT by providing an eloquent theoretical explanation and empirical evidence on how e-commerce capability help agricultural firms to thrive through complexity by enabling market capitalizing agility (strategic focus) and operational adjustment agility (operational focus).

The quest in delivering quality IT services: The case of a higher education institution

IT leaders in higher education institutions (HEI) face a challenge to incorporate the continuous transformation of technology and the way it is applied in HEIs to improve the quality of IT service delivery. Managing IT per se, became more than managing IT systems with a fixed set of knowledge and skills. IT leaders needs to manage IT as a value stream not as separate entities. Various best practices, methodologies, standards and frameworks exist which all address some aspect of the IT value stream. A multi-dimensional framework was designed to address the entire IT value stream and to improve the quality of service delivery and thus satisfy stakeholders’ expectations. The framework incorporates various best practices, methodologies and standards. The framework was validated using in-depth interviews. Thirty interviewees from three entities within the HEI, participated in the research. The purpose of the interviews was to determine which elements of the framework contribute to quality IT services. Respondents completed a service quality matrix as part of the interview. The results were analysed to determine the respondents’ understanding and interpretation of the delivery of quality services. The results highlighted a discrepancy between the IT department’s perception of quality service and the recipients’ perception of said services. The results also highlighted that the framework can be used to align the various service quality perceptions.

Hybrid Configuration in Information Technology Value Model

Thus far, the IT value study model is typically in a serial configuration correlating its subsystems. This article attempts to propose a hybrid configuration merging serial and parallel configurations to be a proposed IT value model. A methodology is the meta-analysis approach to determine the subsystem model and to rationalize the relationships among subsystems. To complete the analysis, the research also puts on the partial adjustment valuation functioning as a valuation method to calculate the numerical magnitude of the operating revenue of each subsystem. The resulted model undergoes a case study using Telkom's data, which is the Indonesian information and communication technology industry provider. It indicates that the variance of the hybrid configuration is extraordinarily insignificant and tolerable, in which the portion of the average deviation to the Telkom's average revenue is only −0.08% during the period 2005–2015. Thus, the hybrid configuration can nearly be acceptable in the IT value study due to its validity theoretically and empirically.

Which Came First, it or Productivity? Virtuous Cycle of Investment and Use in Enterprise Systems

While it is now well established that IT intensive firms are more productive, a critical question remains: Does IT cause productivity or are productive firms simply willing to spend more on IT? We address this question by examining the productivity and performance effects of enterprise systems investments in a uniquely detailed and comprehensive data set of 623 large, public U.S firms. The data represent all U.S. customers of a large vendor during 1998-2005 and include the vendor's three main enterprise system suites: Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM). A particular benefit of our data is that they distinguish the purchase of enterprise systems from their installation and use. Since enterprise systems often take years to implement, firm performance at the time of purchase often differs markedly from performance after the systems go live. Specifically, in our ERP data, we find that purchase events are uncorrelated with performance while go-live events are positively correlated. This indicates that the use of ERP systems actually causes performance gains rather than strong performance driving the purchase of ERP. In contrast, for SCM and CRM, we find that performance is correlated with both purchase and go-live events. Because SCM and CRM are installed after ERP, these results imply that firms that experience performance gains from ERP go on to purchase SCM and CRM. Our results are robust against several alternative explanations and specifications and suggest that a causal relationship between ERP and performance triggers additional IT adoption in firms that derive value from their initial investment. These results provide an explanation of simultaneity in IT value research that fits with rational economic decision-making: Firms that successfully implement IT, react by investing in more IT. Our work suggests replacing either-or views of causality with a positive feedback loop conceptualization in which successful IT investments initiate a virtuous cycle of investment and gain. Our work also reveals other important estimation issues that can help researchers identify relationships between IT and business value.

A conceptual framework for valuing IT within a business system

Evaluation of IT value is challenging due to the complex nature of IT impacts and multifaceted interpretations of value. We introduce a conceptual framework for tackling the complexity of IT value evaluation within the scope of a single company. Our study applies design science research with analysis of experiences from five cases. The conceptual framework covers perspectives: 1) analysis levels for varying stakeholder views on value, 2) valuing logics for different interpretations of value, and 3) evaluation views for understanding systemic value. Together these perspectives create a basis for evaluating and communicating multifaceted IT value, and help to understand what kind of specific value information can serve the needs of IT- related decision making.

Evaluating Information Technology Investment with New Information Economic (NIE): A Study Case Greenspan Packaging System Co. Ltd.

The objectives of this research are to analyze the business process in the production division of Greenspan Packaging System Co. Ltd., to evaluate IT of the IT investment, and to give recommendations based on the result of the IT valuation in order to get an efficient budgeting for the company. Methods that were used in this research are analysis of the literature, analysis of the collected data by interviewing and observing the running business processes and the method of analysis that was used is the New Information Economic (NIE). Results achieved in this research are results of the IT evaluation in a form of values on IT that are used in the company in order to assess the alignment between the IT investment with the company’s strategic intentions. Conclusion of this research is the recommendation that given to company can help the company to achieve their vision and mission and also their strategic intentions with the help of recommended IT investment.

Strategy to respond gratification by identifying gift-giving to government employee

Gratification often called as the root of corruption. Gift-giving is usually considered a common tradition that has been entrenched in community life in Indonesia. However, it should be confirmed that even the slightest gift to civil servants or state administrators can be considered as an act of bribery if the gift is related to their position and contrary to their obligations or duties. Numerous gratification practices that lead to bribery have still been found indicating the lack of understanding and intention of civil servants in addressing gratification based on the regulation applied. The study is performed using qualitative descriptive methods with a description of the topic related. Data collected by observing study group discussion at Diklat Prajabatan for a non-permanent teacher in DKI Jakarta year 2018. The identification of gratification can be self-performed by recognizing the motive of the gift-giving act using PROVE IT (Purposes, Rule, Openness, Value, Ethics, Identity, and Timing). Besides, the improved understanding of the rights and obligations as a public servant as well as the change of mindset would initially provide the capability for every civil servant and state administrators in addressing gratification wisely and applicably. The integrity of civil servants is an indicator of a clean and corruption-free government that leads to good and accountable governance.

The effect of sea water soak on asphalt porous characteristics with and without waste of rubber tire waste as an asphalt addictive

The use of rubber tire scraded in the developement of porous asphalt technology as a part of flexible pavement aims to minimize the adverse effects of transportation facilities. The use of rubber tire scraded as an asphalt modifier in the pavement can provide several benefits, including reducing reflective cracking on overlays, reducing maintenance cost, increaseing resistance to new pavement cracking and rutting, increasing skid resistance an pavement age. This paper presents laboratory investigation on the effect of seawater immersion on porous asphalt performance using rubber tire scraded. Method use in laboratory investigation is based on AAPA 2004 and Bina Marga 2010. The results showed the permeability all types of mixture indicator “moderate drainage”. The results of testing the Marshall characteristics showed a decrease in the value of stability, flow, and MQ in the porous asphalt mixture with Pen 60/70 asphalt and rubber asphalt as the duration of sea water immersion increased. The porous asphalt mixture using Pen 60/70 asphalt and rubber asphalt has Index of Retained Strength values which tend to decrease with increasing sea water immersion duration. Indirect Tensile Stength test results due to seawater submersion indicate a decrease in ITS value in porous asphalt mixtures with Pen 60/70 asphalt and rubber asphalt. The Cantabro test results showed an increase along with the increasing duration of seawater immersion.

An analysis of the comparative and competitive advantage of sago processing business

The purpose of this study was (1) To analyze the level of comparative and competitive advantage of sago processing enterprises in East Kolaka Regency? (2) Examine the impact of government policy on the comparative and competitive advantage of sago processing enterprises in East Kolaka Regency. The study employed the Policy Analysis Matrix (PAM) analysis. The population of the study was sago-processing farmers in the sub-regency of Tirawuta of East Kolaka regency. The samples were 15 respondents. The variables of the study were output price, foreign costs, domestic costs, private price, and shadow prices. The results showed that the sago processing business in East Kolaka Generally sago processing business in East Kolaka have a positive level of comparative advantage with the value of Domestic Resource Cost Ratio (DRCR) of 0.27 and has a positive level of competitive advantage with value Private Cast ratio (PCR) 0.31. This suggests that the sago processing business in East Kolaka feasible to develop even enhanced in the future. Government policies that have not been in favor of sago processing business in East Kolaka lead this comparative effort advantage tend to decrease with Effective indicator Protection Coefficient (EPC) of 0.76, while the output policy causes Transfer Input value of IT value of Rp. (134.900). This indicates the absence of a purchase price policy on output area (Aci sago).

Understanding the Chinese information culture and its impact on IT perceptions

PurposeDrawing upon the theory of information culture from information science and prior research on Chinese information practices. The purpose of this paper is to posit that instead of over-relying on Hofstede’s national cultural values, the IS field should develop theories on national information culture to bridge the theoretical gaps found in explaining the differences in individuals’ IT perceptions and behaviors across cultures.Design/methodology/approachTo achieve the objectives of this study, two quantitative studies were conducted. The first study is exploratory in nature and focuses on the development and calibration of an instrument to measure the Chinese information culture (CIC). The second study takes a confirmatory approach to investigate the impact of the CIC on IT perceptions of manager.FindingsThe study develops and validates an instrument for measuring the CIC that comprises information source and format preference, information ownership and analysis style, and centralized decision-making and information control. The CIC is found to influence IT perceptions of managers including perceived performance improvement resulted from IT use, attitude toward using work technologies and attitude on the value of IT in general.Originality/valueThis study is one of the first studies to theorize national information culture to understand IT perceptions at the individual level. The development of the CIC measure provides the much needed methodological support for contextualizing cross-cultural research.

Impact of IT practices and business value of IT measurement

PurposeThe purpose of this paper is to measure the business value of IT (BVIT) and illustrate the relationship between IT practices and BVIT.Design/methodology/approachThe paper uses a case study approach to collect the subject firm data over a period of one year. The data are about various IT systems used in the firm and their associated capital and operational cost components. The derived data are then compared with industry benchmarks.FindingsThe IT practices employed by the firm enable it to achieve a BVIT which is higher than the industry norm, from both strategic and operational perspectives.Research limitations/implicationsIn this study, a year’s worth of data from a single firm is considered. The temporal frame of the research data limits the generalization of the results. To improve the generalizability, data from many years and across many firms may be used.Practical implicationsThe paper provides insights to managers to identify the measures of BVIT. Further, managers can make necessary interventions based on IT practices to derive IT capabilities which, in turn, impact the firm’s performance.Originality/valueThe contribution of the work is manifold: illustration of the relationship between IT practices and BVIT; illustration of a methodology to evaluate firm-level BVIT; and an approach to collect IT expenses – both capital and operational level.

Establishing a partnership between top and IT managers

PurposeA poor relationship between top management and IT personnel is often denoted as a business–IT gap. In an era of digital transformation, bridging this gap and establishing a strong relationship between business and IT are more important than ever before. The purpose of this paper is thus to examine a particular link between business and IT managers – a partnership relationship – together with the factors facilitating it.Design/methodology/approachA partnership construct is developed based on interdisciplinary studies and transferred to the business–IT context since it is not generally used in IT disciplines. The model was empirically tested with structural equation modelling using data obtained from 221 IT managers in Slovenian companies.FindingsThe results show that both the perceived value of IT and the business orientation of the IT department exert a positive influence on the partnership, while a mere technology-oriented IT department has a negative effect on the partnership relationship. Furthermore, the paper also presents the prerequisites for a business-oriented IT department.Originality/valueIn this digitalisation era, IT is becoming even more important for its strategic role in organisations. There is thus a strong need to bridge the business–IT gap. Despite significant efforts made to close this gap, it remains a major issue. This research contributes to understanding the business–IT gap and presents the key factors for ensuring a partnership relationship is in place. The study also combines the views of social exchange theory and knowledge-based theory and upgrades findings concerning the influence of social facilitators on collaboration outcomes.

Information Technology on the Beat: The Impacts of Body-Worn Camera and Facial Recognition Technology on Public Safety

Body-worn cameras (BWCs) have transformed the criminal justice system by facilitating information gathering and thereby enhancing public safety. Despite the promise of this technology, there is also much skepticism about its efficacy. This study examines the effect of BWC implementation on the likelihood of a suspect being arrested and on the overall crime rate. In addition, we delve into whether and how the BWC, an information gathering tool, interacts with facial recognition technology, a data analysis tool. To identify the impacts of BWC implementation, we exploit a quasi-experimental setting, in combination with a matching technique, by using a federal grant program for BWC implementation as a natural shock. Using granular crime incident–level data during the period 2010–2016, we find that the adoption of BWCs is positively associated with the probability of apprehension under its jurisdiction, especially on-view (warrantless) arrests based on a probable cause. Furthermore, machine learning–powered facial recognition technology appears to augment the effectiveness of BWC in apprehension. Using police agency–level data, the implementation of BWCs is found to be negatively associated with overall crime rates. This study sheds new light on the societal value of IT and machine learning in the public sector, beyond its business value, providing meaningful implications for policymakers and researchers.

Application and validation of the cohesion test to characterise reclaimed asphalt pavement

Cold recycled bituminous materials can consist of up to 100% reclaimed asphalt pavement (RAP) treated with different binders such as bituminous emulsion and foamed bitumen, as for Hot recycling the highest percentage is trying to be achieved, recent studies suggest 40% as a possible percentage of RAP in hot asphalt mixtures, actually some countries have this percentage in their specifications and others even more (i.e. Japan). These high percentages of RAP make it necessary to completely characterise the material before proceeding with the mix design, as it is done for all the other components of bituminous mixtures. There is only one protocol to characterise the RAP, recently published on Materials and Structures as a RILEM Recommendation: Recommendation of RILEM TC237-SIB: Protocol for characterisation of recycled asphalt (RA) materials for pavement applications. This paper aims to verify the capability of cohesion test developed in RILEM TC 237-SIB to differentiate RAP properties. To do this, cohesion tests were performed on four different RAP sources in two universities. The RAPs were forcibly aged with two different methods which are boiling + ultra-violet, and oven aged. The ITS values of RAP before and after ageing are significantly different, and the ITS change caused by the ageing differs for the two used lab ageing methods. The results obtained in the described experimental campaigns show that the cohesion test is able to clearly differentiate RAPs and that cohesion test can be efficiently used to classify RAPs.