Towards a better understanding of how effective IT governance leads to business value : a literature review and future research directions

This paper reviews the existing literature on IT governance to assess whether IT governance has contributed to delivering business value from IT and if so, how. The conducted literature review has shown the scarce number of studies that focus on why and how effective IT governance may lead to business value. By using a structured literature review analysis, the paper has offered a number of insights to the topic of IT governance: a) provided a systematic definition of effective IT governance based on a multi-dimensional framework, b) listed benefits of effective IT governance, and c) identified mechanisms that lead effective IT governance to those benefits. This paper takes a step towards addressing the ‘why’ and ‘how’ knowledge gaps by synthesising the fragmented knowledge to provide the best that is known about the subject and to identify future research directions.

The use of a nursing informatics system as an exemplar to investigate business value of IT in healthcare

Researchers and decision makers in healthcare are taking great interest in clinical practices where there is a high potential to improve healthcare outcomes and reduce costs by incorporating a myriad of technology solutions. However, to date very few, if any of these IS/IT (information systems/information technology) solutions have realised the expected improvements to quality care with the expected cost reductions. This makes the need to evaluate the impact of IT on overall performance of clinical practices i.e. business value of IT a key strategic imperative in healthcare. To address this key need, we propose a comprehensive framework that conceptualises business value of IT in healthcare in different layers. To illustrate the proposed framework, a case study is used, which serves to examine the proposed conceptual model. The exemplar case study is an Australian-made nursing documentation system; an enterprise system that caters for multiple clinical users in acute healthcare contexts and hence provides appropriate richness to validate the proposed model.

The role of IT governance in generating business value from IT investments in healthcare: lessons from an Australian experience

Digitizing the core processes of healthcare delivery is looked at as a solution to control the escalating costs without compromising quality or patient outcomes. However, to date the business value of such IT solutions remains elusive, especially in view of the high failure rate of many solutions coupled with the high user resistance. The uniqueness of the healthcare industry makes measuring the business value of IT a complex missions, yet it is the thesis of this research that such an activity is an essential first step if we are to realise the full potential of IT in healthcare. The role IT governance can play is of high importance to generate business value from IT investments in healthcare. This is investigated using an integrative model that is proffered to conceptualise the business value of IT in healthcare. This conceptual model is then used to guide an exploratory case study based at a leading private healthcare provider in Melbourne-Australia.

Strategies for B2B electronic markets : delivering business value to buyers and sellers

This paper discusses the key elements of effective and successful strategies for organisations engaging in Business-to-Business (B2B) Electronic Markets. Existing literature have concentrated on developing schemas for categorising B2B Electronic Markets, and evaluating the innovative business models they employ, with less focus on understanding the business value of B2B Electronic Markets from a multi-stakeholder, business strategy perspective. In the present business climate, business managers and executives are keen to discover strategies to maximise performance improvements associated with ICT adoption. Based on case studies of B2B Electronic Markets, this paper discusses the importance of (i) creating and distributing business value among the various stakeholders, (ii) determining a pragmatic approach for engaging in B2B Electronic Markets, and (iii) managing the transformation of business processes associated with B2B Electronic Markets. The study contributes to practice and research by presenting rich empirical insights into the operations ofB2B Electronic Markets, and providing suggestions for future research in the topic area.

B2B electronic markets: a conceptual model for analyzing the sources of business value

This paper describes research supporting the development of a conceptual model for understanding the sources of business value of Business-to-Business (B2B) Electronic Markets. Based on six case studies and an analysis of current literature, Aggregation, Matching, and Integration emerged as the three key sources of business value. The framework provides a structured and systematic approach for understanding various B2B Electronic Market models, and helps develop strategies to leverage these sources of business value.

Creating value in an introductory business IS and IT unit

Given the downturn in student enrolments in Information Systems (IS) and Information Technology (IT) units, and the poor performance of a first-year IS and IT common-core unit in a business school, a new unit was developed. Action and design science research methods were employed. The new unit has a unique focus on two key skills and on modern IT and information literacy. The first skill involves describing information systems, and the second, determining how to create business value with IT in specific business contexts. Modern IT tools like a Web-based productivity suite and professional networking services are introduced, together with advanced search techniques and services and an information quality evaluation framework. The evaluation of the utility and efficacy of the unit is based on the institutional standard student feedback survey and unsolicited feedback. The unit has achieved a significant improvement in evaluation results and feedback from students, as well as converting students who were previously averse to IS and IT to study further in these areas.

From websites to portals: success factors For business community portals

Many Governments are using funding initiatives to encourage businesses, particularly small businesses to adopt e-commerce technology. One currently popular approach in Australia, has been to fund internet portal developments with a specific community or business focus. The success of such portals however, as with many Web developments has been mixed. This paper reports on the establishment of a B2B portal in Australia. The paper explores issues and expectations from the perspective of the business people involved. A survey was conducted amongst the participants of the portal shortly after it was launched. Then follow-up interviews were conducted with business owners 2 years later just before the portal closed. The researchers sought to understand what the business community expected from the portal and to identify what factors contribute to success. The research found that in addition to the factors identified through the literature that, technological readiness of business owners, understanding the business community, realizing business value and managing participant’s expectations are also factors impacting on success. A model is proposed to describe the success factors.

A network analysis of IT governance practices : a case study of an IT centralisation project

Information technology governance (ITG) practices rely on both human and nonhuman actors to support the creation of business value in organisations. The role of nonhuman actors in shaping the ITG practices has been given limited attention within the ITG literature. In proposing a model of ITG, this paper highlights the interplay of human and technological artefacts in shaping the ITG practices. Using a case study approach, this paper explores the relationship and interaction between ITG arrangements and IT infrastructure in an IT centralisation project conducted over a number of years in a university. The analysis from this study highlights how problems in aligning actors’ interests and lack of appropriate strategies lead to a failure in establishing a stable ITG network.

Security and ethical issues in the virtual world of Second Life

In recent times, Virtual Worlds such as Second Life have generated substantial publicity due to the participation of Fortune 500 companies, and other public and private organisations. As practitioners continue to discuss how organisations could derive business value from Virtual Worlds, new security and ethical issues in Virtual Worlds have emerged to challenge Virtual World users and stakeholders. This paper discusses privacy, intellectual property and a host of other security and ethical issues in Virtual Worlds. It contributes to practice and research by (i) providing insight into emerging security and ethical issues in Virtual Worlds, (ii) analysing the implication of these issues, within and beyond Virtual Worlds, and (iii) raising awareness on security and ethics among Virtual World users and stakeholders.

Quality as the criterion for delivered information systems effectiveness

One of the major challenges of MIS activities is the difficulty in measuring the effectiveness of delivered systems. The principal purpose of my research is to explore this field in order to develop an instrument by which to measure such effectiveness. Conceptualisation of Information System (IS) Effectiveness has been substantially framed by DeLone and McLean's (1992) Success; Model. But with the innovation in Information Technology (IT) over the past decade, and the constant pressure in IT to improve performance, there is merit in undertaking a fresh appraisal of the issue. This study built on the model of IS Success developed by DeLone and MeLean, but was broadened to include related research from the domains of IS, Management and Marketing. This analysis found that an effective IS function is built on three pillars: the systems implemented; the information held and delivered by these systems; and, the service provided in support of the IS function. A common foundation for these pillars is the concept of stakeholder needs. In seeking to appreciate the effectiveness: of delivered IS applications in relation to the job performance of stakeholders, this research developed an understanding of what quality means in an IT context I argue that quality is a more useful criterion for effectiveness than the more customary measures of use and user satisfaction. Respecification of the IS Success Model was then proposed. The second phase of the research was to test this model empirically through judgment panels, focus groups and interviews. Results consistently supported the structure and components of the respecified model. Quality was determined as a multi-dimensional construct, with the key dimensions for the quality of delivered IS differing from those used in the research from other disciplines. Empirical work indicated that end-user stakeholders derived their evaluations of quality by internally evaluating perceived performance of delivered IS in relation to their expectations for such performance. A short trial explored whether, when overt measurement of expectations was concurrent with the measurement of perceptions, a more revealing appraisal of delivered IS quality was provided than when perceptions alone were measured. Results revealed a difference between the two measures. Using the New IS Success Model as the foundation, and drawing upon the related theoretical and empirical research, an instrument was developed to measure the quality/effectiveness of delivered IS applications. Four trials of this instrument, QUALIT, are documented. Analysis of results from preliminary trials indicates promise in terms of business value: the instrument is simple to administer and has the capacity to pinpoint areas of weakness. The research related to the respecification of the New IS Success Model and the associated empirical studies, including the development of QTJALIT, have both contributed to the development of theory about IS Effectiveness. More precisely, my research has reviewed the components of an information system, the dimensions comprising these components and the indicators of each, and based upon these findings, formulated an instrument by which to measure the effectiveness of a delivered IS.

Enterprise systems for innovation in products and processes : beyond operational efficiency

It has been widely accepted now in industry and academia that Enterprise Systems (ES) can create value for adopting organizations by enabling operational efficiency. However, given the enormous investments they warrant, the potential of such systems to deliver more than improving operations is emerging as a popular area of investigation. This paper reports a research-in-progress that proposes innovation as a means of creating business value with Enterprise Systems. The primary contribution of this paper is a process model that proposes that Enterprise Systems can enable innovation - in products and processes, and supports it with empirical evidence using three case studies. The intention is to test this model further with more case studies and a survey.

Factors affecting SME owner-managers' willingness to share knowledge online in rural local business networks

This article integrates typically separate SME research on e-commerce, business networking, and knowledge management into a model explaining factors influencing the willingness of SME owner-managers to share knowledge online in business networks in rural districts. This is important because e-commerce can assist owner-managers, often dispersed in rural districts, to share knowledge between face-to-face networking events. The main factors associated with willingness to share knowledge online were their willingness to share knowledge face-to-face and their intensity of Internet use. Entrepreneurial factors such as owner-managers' expectations of rapid growth, trading outside the district, and seeking information about customers/competitors were indirectly associated with online sharing via intensity of Internet use only. The model suggests network coordinators could encourage online knowledge sharing by assisting owner-managers to see the business value of e-commerce and by ensuring that networking events are suitable for owner-managers, whether or not they have entrepreneurial goals, to facilitate face-to-face knowledge sharing.

Exploring differences between smaller and large organizations' corporate governance of information technology

Corporate governance of information technology (CGIT) is targeted at maximizing IT investment to achieve business objectives and value. Yet there is little empirical evidence about organizations' attitudes to and use of CGIT to deliver such value, or the role of related policies, practices, frameworks and methodologies. This study explored the views of Chief Information Officers and executive managers of smaller and large, primarily Australian organizations, regarding governance of IT. Through a survey, we investigated their views regarding the perc eived relevance, influential drivers, challenges and perceived benefits from the use of CGIT. Regardless of organizational size, our findings demonstrate substantially the same benefits, influences and challenges. Further, besides the widely acknowledged importance of strategic alignment of business and IT, risk management was found to be significant both in influencing the decision to adopt CGIT and as a perceived key capability for delivering improved organizational performance and resource-based value. As such, the study contributes new knowledge related to delivering business value through governing IT.