Strategic Use Of IT Research Articles

Strategic role of IT and IT governance mechanisms for the context of small and medium enterprises

The role of small and medium-sized enterprises in the economy is indisputable. However, these companies face great challenges to continue operating. Among them is the use of IT resources and the return on investments made. Using agency theory as a theoretical lens, this article aims to assess the relationship between the strategic use of IT in small and medium-sized companies and the IT governance mechanisms used in the context. From a survey of 68 companies in the service sector, it was possible to identify that relational IT governance mechanisms are more present in the context than structural or procedural mechanisms. It was also possible to identify that information technology, in the context, has a more operational use. Finally, using the Spearman coefficient and the Logistic Regression analyses, it was found that higher strategic levels of IT use led to greater use of governance mechanisms in the three dimensions, structural, procedural, and relational, which corroborates the view that governance is achieved from a mix of formal and informal elements.

The impact of blockchain on business models in banking

Blockchain technology is predicted to reshape existing business models of the financial services industry. But although blockchain is often seen as a strategic technology, research focusing on its impact on business models is still rare. This research derives a hypotheses model that connects IT innovations with the three generic value disciplines of banks “operational excellence”, “customer intimacy” and “product leadership” as well as the four generic elements of business models “what”, “who”, “how” and “value”. A business model acts as a mediator for IT innovation. To test the hypothesis model data provided from an international survey of 104 financial services institutions and start-up companies was applied. The results support the hypothesis that all three value disciplines might be impacted by blockchain technology in the future. The regression analysis reveals that especially banks’ operations could be significantly changed. With these results, this research contributes to the emerging literature on blockchain and business models and the strategic use of IT.

GraceKennedy Group: The new Chief Information Officer and IT Governance

Grace Kennedy Group was the fourth largest Jamaican company listed on the Jamaican Stock Exchange by market capitalization in 2016. The company operated in several market segments focusing mainly on foods and financial services industries. Geographically, GraceKennedy Group had a diversified revenue stream operating across the Caribbean, Central and North America, Europe and Africa. Diversification had led to a diverse set of Information Technology platforms to serve the needs of the various subsidiaries of GraceKennedy Group. With the emergence of new technological trends like big data, social and cloud computing, the Group’s Audit Committee in 2014 conducted a risk profile around the company’s IT governance structure. The Committee recommended a change in the decentralized model of IT governance and the hiring of a Chief Information Officer to inter alia, strategically using IT to create value and to coordinate system security. The Chief Information Officer position was externally advertised; however, after several interviews, the Chief Executive Officer decided to offer the position to Robert Sutherland the then general manager of one of its subsidiaries. Sutherland was a former chairman of the Business Technology (BizTech) Council which was established in 2006 to oversee the delivery of IT services within the group and to provide guidance to the business leadership on enterprise-wide related matters such as the strategic use of IT. The case focuses on the issues faced by a newly promoted Chief Information Officer, in an environment in which the Chief Executive Officer has articulated the need for a new, transformative, strategic and value creating vision for IT.

Predictive maintenance: strategic use of IT in manufacturing organizations

A combination of big data and predictive analytics orchestrated through the Internet of Things (IoT) offers many opportunities for researchers in Information Systems, Operations Management and Strategy to look at old problems in new ways, and to identify completely new research areas. While there is much hype, little research has been conducted that informs companies about how to profitably integrate the IoT with strategic or operational processes. This paper views the IoT through the lens of predictive maintenance -- the use of real-time data and predictive analytics algorithms to dynamically manage preventive maintenance policies. These are being used by numerous manufacturing organizations to transition from product-oriented to service-oriented business models. In particular, we analyze optimal preventive maintenance policies in an environment where equipment is subject to a deterioration, which shifts it from its initial, fully-productive state, having a specified, age-dependent failure rate to a less-productive or deteriorated state, having a different, presumably higher, age-dependent failure rate. The deterioration, itself, is a random process.

Alinhamento dos projetos de TI aos modelos de negócio das organizações

A necessidade de alinhar objetivos e estratégias da organização à execução dos portfólios, programas e projetos não é uma tarefa trivial. Muitas vezes, os projetos de TI são entregues com tecnologia revolucionária, no entanto, não em aderência plena às necessidades do negócio. O modelo de negócio (MN) pode ser visto como ferramenta conceitual essencial para capturar, compartilhar e criar uma visão comum do modelo da organização. O presente estudo buscou identificar o nível de maturidade do alinhamento dos projetos de tecnologia da informação (TI) aos modelos de negócio nas organizações no Brasil. Para tanto, foi realizada uma pesquisa exploratório-descritiva de natureza quantitativa com utilização do método levantamento de campo (survey). Responderam ao questionário 327 profissionais atuantes em projetos de TI de fevereiro a abril de 2012. Foram aplicadas técnicas estatísticas descritivas e univariadas, como a distribuição das frequências percentuais, além da análise multivariada, especificamente a técnica exploratória de Análise de Componentes Principais para Dados Categóricos (CATPCA). Em resposta ao objetivo principal desta pesquisa, obteve-se um escore de 3,42, classificado como nível de maturidade '3-estabilizado/ focado', isto indica o início da utilização da TI de forma estratégica nos negócios. A análise dos resultados também demonstrou que a formalização de uma sistemática de gestão de projetos de TI é um processo em solidificação crescente dentro das organizações, a estrutura organizacional funcional ainda é a mais praticada, embora a estrutura 'projetizada' tenha conquistado seu espaço, apresentando-se na segunda posição. O escritório de projetos lidera como sendo a área que seleciona, prioriza e monitora projetos. Por meio de testes de hipóteses, verificou-se que o escritório de projetos e a estrutura organizacional 'projetizada' são aspectos positivos e significativos no alinhamento dos projetos de TI aos modelos de negócios.

국내 금융기관의 IT 거버넌스 체계에 관한 연구 : IT 거버넌스 원칙을 중심으로

In recent years, research has begun to place greater emphasis on the strategic use of IT in seeking to build firm`s capability, thus innovating firm`s business value. Many leading firms have been put efforts to formulate and implement IT governance (ITG) structures, processes, and mechanisms for firm`s IT activities. However, recent literatures reviews found that ITG framework have been discussed independently rather than in an integrated and on convergent manner failing to provide comprehensive conceptual framework. The objective of this paper is therefore, to develop a conceptual framework that enable to conduct a comparative ITG case studies. The proposed framework, developed by one of author, has extensively applied in real case study to validate its usefulness and also aims to contribute practitioners to understand how well IT principles are formed within the organization as well as corelate with ITG objectives and ITG execution.

A model and empirical test of information technology strategy success

Organisations are looking for IT solutions to propel their business, and meet the needs of an overly competitive landscape. Successful implementation of a sound IT strategy, then, is the key. Strategic use of IT and alignment with business strategies can be achieved only by developing a successful information technology strategy (ITS). A successful ITS has consequently become a vital part of strategic thinking in organisations. Despite the growing number of IT strategic planning frameworks proposed, organisations still fail. The main reason for this failure is organisations' tendency to emphasise the technical and technological aspects while neglecting the organisational (non-technical) factors of IT strategy. In this paper, we will identify the main organisational factors-related to successful implementation of ITS and ultimately, the organisation's success in the marketplace.

Strategic Use of Information Technology in the Spanish Microfinance Sector

This paper analyzes the relationships between IT and microfinance in a developed country. Its main purpose is the study of the intensity of IT use in the sector, focusing on IT-related management of its organizations. Two different goals related to actual IT use have been identified. Information Technologies have indeed been used as a tool to provide information, both to prospective clients and with a more general scope. Furthermore, improvements on management due to IT use have also been encountered, such as on-line direct support to would-be entrepreneurs through specific software. The paper also considers whether IT use adds effective value to the performance of some or all Spanish Microfinance Institutions (MFIs). It is found that such strategic use of IT is less widespread, related primarily to financial transparency issues, more clearly shown by MFIs linked to the social economy.

Relative size and complexity: e‐business use in small and medium sized tourism enterprises in Thailand

PurposeThe research documented in this paper aims to explore e‐business uses in small and medium‐sized tourism enterprises compared with their larger counterparts.Design/methodology/approachFive case studies were conducted with Thai tourism SMEs to investigate their technology adoption and use experiences. For large‐sized enterprises, an extensive review of industry's practice was conducted. A comparison was then carried out based on the scope of the technology, namely inter‐organisation, intra‐organisation, and front‐end side linking to customers.FindingsIn terms of e‐business use, it is not surprising that Thai SMEs remain less advanced in utilising e‐business technology. However, size is found to be a significant factor in determining SME behaviour not only in comparison to larger travel agencies or hotels, but also with the SME sector itself. Associated with this is application complexity that is again significant and linked to relative size. Finally, the choices made by small hotels and travel agents are shown to be influenced by the technology providers.Research limitations/implicationsThe main research limitation is a limited generalisibility. Future research on SMEs in developing countries would make the comparison more sound and increase generalisability.Practical implicationsSMEs should pay more attention on strategic use of IT in order to compete with their larger competitors. At the policy level, more education on IT development skills and business potentials of IT are needed.Originality/valueThe paper adds to the literature on IT adoption in SMEs particularly with respect to size within the SME sector, the importance of complexity and the role of technology provider.

Mass customization and strategic benefits: a case study in Brazil

AbstractThis article presents an overview of the academic debate about mass customization (MC). The objective is to describe how the MC strategy was introduced in a Brazilian company and the results obtained, relating them to theoretical considerations. This is illustrated through a case study in an industry of the Brazilian household appliances sector. The context was the launch of a totally customized product, to be sold on the Internet to consumers with high purchasing power, with the strategic use of IT. The aim was to create value for these customers by reinforcing the brand's own values using a clear differentiation strategy. MC is already used alongside conventional strategies in a growing number of worldwide organizations, but in Brazil the use of this tool is still in its infancy, hence the importance of this study. Its qualities have transformed it into a valuable marketing device in the search for consumer loyalty. This has the effect of strengthening the brand, drawing customers into a closer relationship and making it a powerful tool for sustaining company competitiveness, via a differentiation strategy.

Factors Influencing Strategic Use of Information Technology and Its Impact on Business Performance of SMEs

In this paper, we study the relationship between factors influencing the strategic use of IT and business performance by conducting a survey of small and medium-size enterprises (SMEs). From the results of our survey we came to several conclusions which are presented here. First, IT investment has a significant impact on the strategic use of IT, and the strategic use of IT has a significant impact on business performance. Second, SME investment in IT and strategic use of IT are influenced by both the intensity of competition in the market environment and partnership with other organizations. Third, the support from the management group in SMEs is a core factor for IT investment and strategic use of IT. Finally, for SMEs to use IT strategically and successfully, it is necessary to combine members’ participation with a flexible organizational structure and culture.

The Strategic Use of Information Technology by Nonprofit Organizations: Increasing Capacity and Untapped Potential

How are nonprofits using information technology to enhance mission‐related outcomes and boost organizational performance? The authors examine a large‐scale survey of nonprofits’ technology planning, acquisition, and implementation to assess the strategic use of IT in these organizations. They evaluate nonprofits’ strategic technology‐use potential by examining IT‐related competencies and practices that are critical for the successful strategic employment of technology resources. Several promising developments are found, alongside significant deficits in the strategic utilization of IT, especially in the areas of financial sustainability, strategic communications and relationship building, and collaborations and partnerships. To boost IT’s mission‐related impact, nonprofits must enhance their organizational capacities in long‐term IT planning, budgeting, staffing, and training; performance measurement; Internet and Web site capabilities; and the vision, support, and involvement of senior management.

Toward strategic use of IT in SMEs: a developing country perspective

This article analyzes the strategic use of microcomputers and software packages in corporate planning and decision making in SMEs. Data were collected from 44 SMEs from three cities in the Republic of Botswana to study their perceptions about the use of computer‐based technology to solve managerial problems, and analysed using simple descriptive statistics. The findings indicate that SMEs conduct both strategic and operational planning activities. However, microcomputers and software packages were used primarily for operational and administrative tasks rather than for strategic planning. SMEs perceive that strategic planning is costly and time‐consuming, and hence appropriate only for large firms. The study also showed that firm size and strategic orientation are related to the use of computer technology for strategic decision making. The major implication of the findings for future research has been identified and presented.

Critical success factors in the alignment of IS plans with business plans

The alignment of IS plans with business plans is not an easy task and knowing which are the critical areas to manage will certainly enhance the success of such efforts. Although there is a large amount of research on critical success factors (CSFs), past studies usually examine CSFs of specific systems implementation (e.g., MRP) and total quality management (TQM). Relatively few studies exist on the CSFs related to aligning IS plans with business plans. This paper presents the results of an empirical study of IS executives on the relative importance of various CSFs for aligning IS plans with business plans. The results indicate that top management commitment to the strategic use of IT, IS management knowledge about business, and top management confidence in the IS department are the top three CSFs. Implications of the results are discussed.

Information Technology for World-Class Manufacturing: Quo-vadis India!

The success of Indian manufacturing in meeting the global competition will depend on its readiness to move itself from a protected domestic to world-class global manufacturing status quickly and confidently. The present paper aims at exploring the current status of IT applications and management practices in manufacturing in India; examining the discrepancies with world-class practices; and identifying important issues which need to be addressed in order to facilitate strategic use of IT in manufacturing. The findings of the survey are somewhat alarming and they show that fragmented information management systems may not enable Indian manufacturing companies to deliver superior value to their customers and to lead them to world-class status. They must, therefore, direct their IT initiatives towards agile manufacturing rather than introducing IT to merely enhance their operations in a conventional manner.

Planning Technology Transitions

The challenge inherent in making the transition to advanced technologies lies in ensuring coexistence between newer open, scalable architectures and legacy systems, applications, development tools, and staff. A transition methodology that focuses not only on technology but also takes a participative approach to planning and ensures that business processes are efficient increases an organization's chances of meeting this challenge and benefiting from a more strategic use of IT.

Establishing business strategy with information technology

For many companies the use of information technology starts with the purchase of hardware such as mainframes, PCs and networks. In these cases the use of IT is based on the opportunities of technology. These companies often find it hard to indicate to what extent the specific resources and systems contribute to their business and their market position. In such a case, IT is, above all, regarded as an item of expense. On the other hand more and more organizations have become aware of the possibilities offered by IT to achieve competitive advantage. This strategic use of IT requires, first of all, a distinct business strategy that indicates what the organization is aiming at in terms of customers, suppliers, competitors, shareholders and authorities, and what role IT is playing in all this. On the basis of the business strategy, the specific use of IT can be established, in terms of an architecture and an infrastructure. As a result, a company is able to indicate where and how IT supports the business and t...

BPR as ‘IT‐enabled organizational change’: an assessment

This article examines the emergence of BPR from the literature on the strategic use of IT. Two case studies of BPR are then presented. Analysis of this material suggests that there is a tension between strategic re‐orientation and cost‐saving in many BPR projects which is difficult to resolve. This tension is explored further using a historical analysis of ‘frameworks' of computing.

The Use of Information Technology to Achieve Accurate Pricing in Agricultural Commodity Markets in Japan

At one level, the function of a marketplace is to enable sellers and buyers to meet, to agree to terms and conditions, and effect contracts. At another level, however, a marketplace is a mechanism for ensuring that information which might affect the terms and conditions is readily available to all participants, so that the pricing for sales will not be unduly influenced by participants with special information or other advantages, but rather will approach the theoretical price at which the market will settle. Information technology is increasingly being applied to support the exchange of goods and services. It may be used simply to automate existing practices. Alternatively, the introduction of technology into the market may provide an opportunity to rationalize the arrangements. In some instances, however, the implementation of IT may be grasped as a strategic weapon, by a buyer, a seller, or by an organization which provides marketplace services to buyers and sellers. Considers another kind of strategic use of IT in relation to marketplaces. This is the enforcement of fairness in the setting of prices, by drawing participants into a marketplace in which key differences in market power are equalized. Evaluates the outcomes of an electronic exchange supporting trading in chilled and frozen meat.

Action learning in information management education

Strategic Information Systems Planning (SISP) is the process of deciding the objectives for organizational computing and identifying the potential computer applications which the organization should implement. Information Management Education (IME) has become increasingly necessary for executive education, as a result of the competitive effects of Information Systems (IS). Managers also need to set the strategic guidelines for IS planning, and effective planning can be supported by management education. The problem is how to determine a suitable way to teach the knowledge and skills needed in Information Management. Managers are a very difficult group to teach, due to their other responsibilities and their lack of time. This paper explores some potential approaches for IME, and presents Action Learning (AL) as one way to introduce managers to the strategic use of IT. The experiences and the tentative findings from the use of the AL approach in one case study company are discussed at the end of the paper.