Senior IT Research Articles

Senior Executives, IT Reputation Building & Implications for Market Valuation

The objective of this study is to identify factors that help build an IT reputation, and to evaluate whether markets value a firm’s ability to develop and sustain its IT reputation. Building on IT strategic leadership and IT business value literature, we argue that a similarity in the background and hierarchical proximity between CEO and senior IT executive increases the likelihood that the firm will develop an IT reputation, and this similarity/proximity is more important for product differentiating companies. Building on signaling theory, we argue that IT reputation matters to investors because it reduces information asymmetry. Investors interpret a firm’s sustainable IT reputation as a signal of its superior past IT strategy and future IT investment prospects thus raising its market value. The predicted relationships are validated by results from over 1300 US firms that have appeared in the Information Week 500 lists in the period from 1997 to 2009.

Reciprocity between Senior IT Executives and IT-Capable Firms: A Source of Competitive Advantage

This study introduces a causality-based framework of antecedents and consequences in order to examine the positive reciprocity between senior IT executives (sITes) and IT capable firms. More specif...

A model to explain a business contingency process

PurposeThe purpose of this paper is to present a model to explain a business contingency process to senior management and other employees in organizations during education or training on business continuity planning.Design/methodology/approachThe model has been developed and evaluated/tested in three comprehensive cases. Senior management, IT managers and employees in the three case organizations participated in this action research effort during the development, implementation, education or training on business continuity plans and planning.FindingsThe model has been evaluated/tested, and is suitable for explaining what may characterize a business contingency process to senior managements and employees in both public and private sector organizations.Practical implicationsThe model can be used for explaining the issues to senior management and to form the fundament for building a business continuity plan which is part of an organization's IT and information security program. It may also be used to explain what a business contingency process is to other staff in an organization. The model can also be used to model parts of business continuity planning, as a basis for training planning, and as support in different training contexts to achieve individual and organizational learning on business continuity plans and activities.Originality/valueThe model is graphically visualized and the concept can be adapted to any organization.

A Comparative Study of Risk Assessment Methodologies for Information Systems

In todays dynamic and changing economic environment, businesses are subjected to greater risks than ever before. As a result of this, IT Project Leaders/Managers/Director/Senior Technical Staff should be in a position to identify the business risks that an organization faces and the risk management policies that an organization has to effectively manage those risks. These risks may be related with the Finance, Accounting, Information Systems and their security etc. Here, in this paper, we are emphasizing on Information Systems Security risks. Risk assessment is currently used as a key technique for managing Information Systems Security. Every organization is implementing the risk management methods. Risk assessment is a part of this superset, Risk Management. There are various information security risk assessment methods available that can be implemented by the organization, and each has different approaches to assess the information security risks. Organizations find it difficult to select an information security risk assessment method; therefore there is a need for a critical review of existing risk assessment methodologies. This paper presents a brief discussion on the top risk assessment methodologies, particularly COBRA, CORAS, CRAMM, OCTAVE, SOMAP, and NIST Guide, along with strengths and weaknesses of each one. After that a comparative study is also done on the basis of the review results. Further research directions may also be taken by the weaknesses section. This work provides an evaluation to determine whether an information security risk assessment method is in line with information technology governance or not. The research paper will help the Senior IT Personnel to provide their recommendations for using a risk assessment methodology based on the specific requirements of an organization.

The Impact of Senior IT Executives on IT Capability

This study introduces a causality-based framework of antecedents and consequences in order to examine the positive reciprocity between senior IT executives (sITes) and IT capable firms. More specifically we propose that: 1. There is a positive association between accrued sources of managerial power of sITes, such as structural and expert power, and a firm's ability to develop superior IT capability. 2. Firms that achieve such superiority are more likely to signal their appreciation and reward (promote) their sITes. 3. If sITes value this reward, they are more likely to stay longer with their firm. There is a positive association between continuity of an already successful IT leadership and a firm’s ability to sustain its IT superiority. Results based on panel data of 1326 large US firms from a wide spectrum of industries over a 13-year period (1997-2009) support our propositions. Empirical evidence validates our position that firms that want to achieve and sustain IT superiority need to create an organizational climate of positive reciprocity. Such an organization climate can only be developed over time and there is no short cut that competitors can take in order to replicate it

Technology

Jim Reimer, MEd, RN, is Senior IT Clinical Applications Specialist, Dräger, Telford, PA. E-mail: [email protected]. The author has disclosed that he has no significant relationships with, or financial interest in, any commercial companies pertaining to this article.

Role of IT executives in the firm's ability to achieve competitive advantage through IT capability

Contrary to prior studies that have tried to examine the role of IT capabilities (ITC) on firm performance in isolation from the role of senior IT executives, we propose that the two are linked. More specifically we argue that there is a positive relationship between the structural power of senior IT executives and the likelihood that the firm will develop superior ITC. Furthermore, the contribution of ITC to a firm's competitive advantage is much stronger in firms with powerful senior IT executives as they are the driving force that may ensure the continuous renewal of ITC. We develop a two-stage econometric model designed to test this chain hypothesis that the structural power of senior IT executives will affect a firm's ability to achieve superior ITC, in turn driving firm performance. Empirical evidence based on a sample of large US firms strongly supports both of our hypotheses.

Reciprocity Between Power of Senior IT Managers and Superior Organizational IT Capability

Reciprocity Between Power of Senior IT Managers and Superior Organizational IT Capability

A Study on the Relationship between Activities of the Information Technology Governance and IS Performance, Corporate Performance

Despite the increasing importance of information technology in firms, the extent to which IT governance are established varies widely across the firms. To perform desirably the role of IS needed in most companies, high level of IT governance and the effective management should precede. However, the impacts of such activities and management on the IT governance have not been empirically examined in depth until now. Thus, building on the theory of governance and the institutionalization, the research model and the hypotheses of the study were formed and then empirically tested. The study used a survey of senior IT managers from 108 firms in order to examine hypothesized relationship among the following constructs: strategic alignment, IT governance committee, IT planning, EA, PMO, SLM, IT compliance, incident management, IS effectiveness, visibility, and corporate performance. A structural equation model is developed by using LISREL to assess the relative effects and interrelationship among these constructs. The results show that strategic alignment has positive influence on IT governance committee and IT planning. IT governance committee, IT planning, SLM, incident management from IT governance activities have positive effects on IS effectiveness, whereas IT compliance has a negative effect on IS effectiveness. Visibility is positively influenced by IT planning, EA, SLM. IT compliance, and both IS effectiveness and visibility have positive effects on corporate performance.

Understanding career commitment of IT professionals: Perspectives of push–pull–mooring framework and investment model

Using push–pull–mooring framework and investment model as theoretical lenses, this study provides a compelling theoretical model that helps understand the important antecedents of career commitment of IT professionals. Especially, we examined the moderating role of IT career tenure. Data to test the hypotheses were drawn from a cross-sectional field study of MIS departments from top-1000 large-scale companies in Taiwan. The results generally supported the research model. Career satisfaction was the most important determinant of career commitment, followed by professional self-efficacy, threat of professional obsolescence and career investment. The moderating analysis revealed distinct patterns that IT professionals seemed to hold different attitudes about the careers at different stages. The career attitudes of senior IT professionals were largely driven by push factors. On the contrary, the expelling forces which driving people away from their current careers (push effects) and personal inhibitors and facilitators (mooring effects) seemed equally important to junior IT professionals on their attitudes toward committing to the IT career. Insight and implications on management strategy for IT/HR managers are discussed.

Business continuity planning methodology

PurposeThe purpose of this paper is to present a multi‐usable business continuity planning methodology. It comprises business continuity planning on the organizational and departmental levels.Design/methodology/approachThe methodology has been developed, tested and confirmed in three comprehensive cases. Senior management, IT managers and employees in the three case organizations have participated in this action research effort during the development, implementation or training on business continuity plans and planning.FindingsThe methodology has been tested and confirmed, and is suitable for explaining business continuity planning to senior managements and employees in both public and private sector organizations.Practical implicationsThe methodology description can be used for explaining the issues to senior managements and forms the foundation for a business continuity plan, which is part of an organization's IT‐ and information security program. It may also be used to explain business continuity planning to other staff in an organization. The methodology can also be used to model business continuity planning, as a basis for training planning, and as support in different training contexts to achieve individual and organizational learning on business continuity plans and activities.Originality/valueThe methodology of using a staircase or capability maturity model is a commonly used concept and can be adapted to any organization.

Developments in Practice XXXIV: Application Portfolio Management

APM is the ongoing management process of categorization, assessment and rationalization of the IT application portfolio which allows organizations to identify which applications to maintain, invest in, replace, or retire. To understand current APM strategies and practices, the authors convened a focus group of senior IT managers from a number of organizations. Results of the focus group discussion pointed to the need to develop three inter-related APM capabilities: (1) strategy and governance, (2) inventory management, and (3) reporting and rationalization. To deliver value with APM, organizations must establish all three capabilities. Experience suggests that organizations tend to start by inventorying applications and work from the “middle out” to refine their APM strategy (and how it is governed) as well as to establish efforts to rationalize their applications portfolio. As such, APM represents a process of continual refinement. Fortunately, experience also suggests that there are real benefits to be reaped from the successful development of each capability. The paper concludes with some lessons learned based on the collective experience of the members of the focus group.

Developments in Practice XXXVII: Total Cost of Ownership

Total Cost of Ownership (TCO) advocates for a holistic view of IT costs across the enterprise over time, grouped into a series of direct and indirect cost elements. Knowing the full costs allows organizations to make optimal decisions regarding the enhancement, retirement, renewal, and/or replacement of critical IT assets. The authors convened a focus group of senior IT managers who were asked to describe their firm’s adoption of TCO, TCO processes, tools to assist with TCO implementations, the effectiveness of these tools, and the governance practices which guide their TCO processes. The group concluded that TCO, despite facing significant implementation challenges, remains a concept worth pursuing. This article reviews current literature, summarizes the focus group discussion, and offers practical guidance for those IT managers considering adopting TCO.

Developments in Practice XXXVI: How to Talk So Business Will Listen … And Listen So Business Will Talk

One of the most important skills all IT staff need to develop today is how to communicate effectively with business. Over and over, research has shown that if IT and business cannot speak the same language, focus on the same issues and communicate constructively, they cannot build a trusting relationship. And business is consistently more negative about IT’s ability to communicate effectively than IT is. In fact, even while IT collaboration is improving, business’s assessment of IT’s communication skills is declining. While much attention has been paid to organizational alignment between IT and business (e.g., governance, structure) very little has been paid to the nature and impact of the social dimension of alignment, a big element of which involves communication. To explore the business and interpersonal competencies that IT staff will need in order to do their jobs effectively over the next five–seven years and what companies should be doing to help develop them, the authors convened a focus group of senior IT managers from a variety of different organizations. This paper documents the results of this discussion, integrating them with findings from the research and practitioner literature. It begins by characterizing the state of communication in the business–IT relationship and why “good communication” is becoming increasingly important. Then, it explores what is meant by “good communication” in this relationship and looks at some of the inhibitors of effective communication between these groups. Finally, it discusses the key communication skills that need to be developed by IT staff and makes recommendations for how organizations can improve or develop communication in the business–IT relationship. It concludes that good communication has both social and organizational dimensions, both of which need to be appropriately managed. It also shows that there is a “virtuous circle” of communication, with is associated with improved IT performance and perceptions of IT value.

Developments in Practice XXXIII: A Holistic Approach to Managing IT-based Risk

Not long ago, IT-based risk was a fairly low-key activity focused on whether IT could deliver projects successfully and keep applications up and running. But with the opening up of the organization‘s boundaries to external partners, service providers, external electronic communications, and online services, managing IT-based risk has morphed into a ―bet the company‖ proposition. Not only is the scope of the job bigger, the stakes are much higher. As companies have become more dependent on IT for everything they do, the costs of service disruption and inadequate security practices have escalated exponentially. Therefore, the job of managing IT-based risk has become broader and more complex. Whereas in the past companies have sought security through physical or technological means (e.g., locked rooms, virus scanners), there is now growing understanding that managing ITbased risk must be a strategic and holistic activity that is not just the responsibility of a small group of IT specialists, but part of a mindset that extends from partners and suppliers to employees and customers. This paper explores how organizations are addressing and coping with increasing IT-based risk. It presents the results of an in-depth discussion of this issue with 20 senior IT practitioners and the challenges facing them. It proposes a holistic view of risk and examines the characteristics and components needed to develop an effective risk management framework, presenting a generic framework for integrating the growing number of elements involved in it. Finally, it describes successful practices organizations could use for improving their risk management capabilities.

Exploring COBIT Processes for ITG in Saudi Organizations An empirical Study

Control Objectives for Information and Related Tech nology (COBIT) has become one of the most important guidelines for information te chnology governance (ITG), which provides organizations with a useful tool to start evaluatin g their own ITG systems. COBIT introduces an ITG framework and supporting toolset that allows IT managers to bridge the gap between control requirements, technical issues and business risks. The objective of this study is to investigate the formality, auditing, responsibility and accountabil ity of implementing COBIT processes for ITG in Saudi organizations. An empirical survey, using a s elf-administered questionnaire, was conducted to achieve these objectives. Five hundred questionn aires were distributed to a sample of Saudi organizations in a selected number of Saudi cities. One hundred and twenty seven valid questionnaires - representing a 25.4 percent respon se rate -were collected and analyzed using the Statistical Package for Social Sciences (SPSS) vers ion 16. While the results of the study reveal that the majority of respondents reported that implement ing ITG COBIT processes and domains is the responsibility of IT departments in Saudi organizat ions, most of the respondents reported that the COBIT processes and domains are neither audited nor formally conducted in their organizations. From a practical standpoint, managers and practitio ners alike stand to gain from the findings of this study. The study provides useful information f or senior management, IT managers, accountants, auditors, and academics to understand the implementation phase and the impact of COBIT on ITG in Saudi organizations.

Innovative Practices for IT Projects

Based on 57 interviews with senior IT project managers in the UK Canada, USA and New Zealand, this article presents innovative practices they have developed during difficult projects. In our respondents' view, traditional project management methods and techniques are only a starting point. Through their quotes, they show how one has to be creative and entrepreneurial to lead projects successfully.

Factors Affecting the Buy vs Build Decision in Large Australian Organisations

When developing an information system, organisations are faced with a fundamental choice: to buy a pre-developed package (potentially customise it or redesign/reengineer the business processes of the company concerned to fit the package), or to build the system in-house. Past literature has indicated the importance of the buy vs build decision to the organisation even suggesting that correctly managing the choice could be the key to managing IT. This research aims to identify the factors that an organisation should consider when making an information systems buy vs build decision. Interviews were conducted with 10 organisations across a spread of industries, involving key strategic IT decision-making personnel at the senior IT executive level. By examining the operational approaches adopted in each of these organisations and the key drivers behind these approaches, we identify the core factors that affect real-world buy vs build decisions in large Australian organisations with a turnover in excess of $750 million. We found that a number of core factors - strategy, commodity and competitive advantage, maturity, cost and requirements fit - critically affect buy vs build, while peripheral factors - risk, time and timing, political factors, and ongoing support - are secondary considerations.

Identification and Ranking of Software Project Risks

The paper identifies and ranks the risks affecting the software projects globally. This study is based on 12 researches which have been conducted in different parts of the world. The results of the study have also been shared with some senior IT professionals working in Noida. Based on their inputs, the paper also reveals that the top five risks identified in this study have important linkages amongst them and their management is crucial for the success of the project

The Impact of Outsourcing on Client Project Managers

In this article the offshore outsourcing of IT work (Palgrave Macmillan, 2008), which details the client-side roles of chief information officers, program management officers, and client project managers and identifies characteristics that distinguish successful projects. The study sample included interviews with 67 project managers. Whereas senior IT leaders design global outsourcing strategies, project managers are responsible for integrating supplier employees and delivering the promised value. We found that offshore outsourcing made their jobs easier in four ways but also created 20 challenges - our collective term for what they actually described as problems, headaches, or crises.