Income differentials and corporate performance

Purpose – This paper seeks to make the case for new research into the perceived fairness and impact of executive pay. Design/methodology/approach – The paper reviews the literature regarding executive compensation and corporate performance and examines the evidence that a more egalitarian approach to pay could be justified in terms of long-term shareholder value. Findings – There would appear to be no evidence to suggest that the growing gap between the pay of executives and that of the average employee generates long-term enterprise value, and it may even be detrimental to firms, if not the liberal capitalist consensus on which the corporate licence to operate is based. Research limitations/implications – The paper outlines a new approach to tracking income differentials with corporate performance through the development of a corporate Gini coefficient “league table”. Social implications – The proposed research is expected to point towards better practice in executive remuneration, and support the growing momentum for a sustainable and enlightened approach to business, in which the key goal is long-term enterprise value based on a fair distribution of the rewards of business. Originality/value – In producing a deeper understanding of the impact of widening income differentials, the paper should be of interest to senior executives in publicly quoted companies as well as press commentators, government officials and academics.

Taxonomy of purpose of Enterprise Architecture

Initial phase of all Enterprise Architecture (EA) initiatives is important. One of the most crucial tasks in that phase is to sell EA to the top management by explaining its purpose. In this paper, by using semiotic framework we show that there is a clear gap between the definition of EA and its purpose. Contribution of this paper is a taxonomy that expands knowledge of pragmatics of EA, and that can be used as a tool for explaining the purpose of EA. Grounded theory is used to form the taxonomy. Data is collected from a discussion group used by EA practitioners. Results indicate that the purpose of EA is to meet organisations‟ stakeholder‟s goals and to create value to organisation. Results are in line with current literature. Most interesting result is that EA practitioners seem to realise that technical solutions are not the purpose of EA, but means for fulfilling it.

Theoretical perspectives of enterprise architecture

The number of published Enterprise Architecture (EA) research has increased during the last few years. As a discipline, EA is still young and lacking theoretical foundation. Lately some research trying to ground EA to theory has been published, including linkage to systems theory. Enterprise Architecture can be defined as; (i) a formal description of the current and future state(s) of an organisation, and (ii) a managed change between these states to meet organisation’s stakeholders’ goals and to create value to the organisation. Based on this definition, this conceptual paper tries to shed light to theoretical underpinnings of EA from three theoretical perspectives; EA as a communication media, EA as an activity, and EA as an information technology system. Our conclusions are that; (i) EA can be categorised as a communication media and theoretically underpinned by ontology and semiotics, (ii) EA can be explained and theoretically underpinned by Activity Theory, and (iii) EA can be categorised as an information technology system and theoretically underpinned by General Systems Theory and Technology Acceptance Theory.

Evaluating business value of IT towards optimisation of the application portfolio

Information technology has become heavily embedded in business operations. As business needs change over time, IT applications are expected to continue providing required support. Whether the existing IT applications are still fit for the business purpose they were intended or new IT applications should be introduced, is a strategic decision for business, IT and business-aligned IT. In this paper, we present a method which aims to analyse business functions and IT roles, and to evaluate business-aligned IT from both social and technical perspectives. The method introduces a set of techniques that systematically supports the evaluation of the existing IT applications in relation to their technical capabilities for maximising business value. Furthermore, we discuss the evaluation process and results which are illustrated and validated through a real-life case study of a UK borough council, and followed by discussion on implications for researchers and practitioners.

Enterprise Architecture adoption method for Higher Education Institutions

During the last few years Enterprise Architecture has received increasing attention among industry and academia. Enterprise Architecture (EA) can be defined as (i) a formal description of the current and future state(s) of an organisation, and (ii) a managed change between these states to meet organisation’s stakeholders’ goals and to create value to the organisation. By adopting EA, organisations may gain a number of benefits such as better decision making, increased revenues and cost reductions, and alignment of business and IT. To increase the performance of public sector operations, and to improve public services and their availability, the Finnish Parliament has ratified the Act on Information Management Governance in Public Administration in 2011. The Act mandates public sector organisations to start adopting EA by 2014, including Higher Education Institutions (HEIs). Despite the benefits of EA and the Act, EA adoption level and maturity in Finnish HEIs are low. This is partly caused by the fact that EA adoption has been found to be difficult. Thus there is a need for a solution to help organisations to adopt EA successfully. This thesis follows Design Science (DS) approach to improve traditional EA adoption method in order to increase the likelihood of successful adoption. First a model is developed to explain the change resistance during EA adoption. To find out problems associated with EA adoption, an EA-pilot conducted in 2010 among 12 Finnish HEIs was analysed using the model. It was found that most of the problems were caused by misunderstood EA concepts, attitudes, and lack of skills. The traditional EA adoption method does not pay attention to these. To overcome the limitations of the traditional EA adoption method, an improved EA Adoption Method (EAAM) is introduced. By following EAAM, organisations may increase the likelihood of successful EA adoption. EAAM helps in acquiring the mandate for EA adoption from top-management, which has been found to be crucial to success. It also helps in supporting individual and organisational learning, which has also found to be essential in successful adoption.