Evaluating the interdependencies between managing business change, IT sourcing and IT governance

Organisations need the right business and IT capabilities in order to achieve future business success. It follows that the sourcing of these capabilities is an important decision. Yet, there is a lack of consensus on the approach to decid-ing where and how to source the core operational capabilities. Furthermore, de-veloping its dynamic capability enables an organisation to effectively manage change its operational capabilities. Recent research has proposed that analysing business capabilities is a key pre-requisite to defining its Information Technology (IT) solutions. This research builds on these findings by considering the interde-pendencies between the dynamic business change capability and the sourcing of IT capabilities. Further it examines the decision-making oversight of these areas as implemented through IT governance. There is a good understanding of the direct impact of IT sourcing decision on operational capabilities However, there is a lack of research on the indirect impact to the capability of managing business change. Through a review of prior research and initial pilot field research, a capability framework and three main propositions are proposed, each examining a two-way interdependency. This paper describes the development of the integrated capa-bility framework and the rationale for the propositions. These respectively cover managing business change, IT sourcing and IT governance. Firstly, the sourcing of IT affects both the operational capabilities and the capability to manage business change. Similarly a business change may result in new or revised operational ca-pabilities, which can influence the IT sourcing decision resulting in a two-way rela-tionship. Secondly, this IT sourcing is directed under IT governance, which pro-vides a decision-making framework for the organisation. At the same time, the IT sourcing can have an impact on the IT governance capability, for example by out-sourcing key capabilities; hence this is potentially again a two-way relationship. Finally, there is a postulated two-way relationship between IT governance and managing business change in that IT governance provides an oversight of manag-ing business change through portfolio management while IT governance is a key element of the business change capability. Given the nature and novelty of this framework, a philosophical paradigm of constructivism is preferred. To illustrate and explore the theoretical perspectives provided, this paper reports on the find-ings of a case study incorporating eight high-level interviews with senior execu-tives in a German bank with 2300 employees. The collected data also include or-ganisational charts, annual reports, project and activity portfolio and benchmark reports for the IT budget. Recommendations are made for practitioners. An understanding of the interdependencies can support professionals in improving business success through effectively managing business change. Additionally, they can be assisted to evaluate the impact of IT sourcing decisions on the organisa-tion’s operational and dynamic capabilities, using an appropriate IT governance framework.

Service Descriptions and Linked Data for Integrating WSNs into Enterprise IT

This paper presents our ongoing work on enterprise IT integration of sensor networks based on the idea of service descriptions and applying linked data principles to them. We argue that using linked service descriptions facilitates a better integration of sensor nodes into enterprise IT systems and allows SOA principles to be used within the enterprise IT and within the sensor network itself.

Linked services for M2M communication with Enterprise IT systems

Linking the physical world to the Internet, also known as the Internet of Things, has increased available information and services in everyday life and in the Enterprise world. In Enterprise IT an increasing number of communication is done between IT backend systems and small IoT devices, for example sensor networks or RFID readers. This introduces some challenges in terms of complexity and integration. We are working on the integration of IoT devices into Enterprise IT by leveraging SOA techniques and Semantic Web technologies. We present a SOA based integration platform for connecting WSNs and large enterprise business processes. For ensuring interoperability our platform is based on Linked Services. These are thoroughly described, machine-readable, machine-reasonable service descriptions.

Definition of an it project portfolio management methodology for a pharmaceutical company

Con la creciente popularidad de las soluciones de IT como factor clave para aumentar la competitividad y la creación de valor para las empresas, la necesidad de invertir en proyectos de IT se incrementa considerablemente. La limitación de los recursos como un obstáculo para invertir ha obligado a las empresas a buscar metodologías para seleccionar y priorizar proyectos, asegurándose de que las decisiones que se toman son aquellas que van alineadas con las estrategias corporativas para asegurar la creación de valor y la maximización de los beneficios. Esta tesis proporciona los fundamentos para la implementación del Portafolio de dirección de Proyectos de IT (IT PPM) como una metodología eficaz para la gestión de proyectos basados en IT, y una herramienta para proporcionar criterios claros para los directores ejecutivos para la toma de decisiones. El documento proporciona la información acerca de cómo implementar el IT PPM en siete pasos, el análisis de los procesos y las funciones necesarias para su ejecución exitosa. Además, proporciona diferentes métodos y criterios para la selección y priorización de proyectos. Después de la parte teórica donde se describe el IT PPM, la tesis aporta un análisis del estudio de caso de una empresa farmacéutica. La empresa ya cuenta con un departamento de gestión de proyectos, pero se encontró la necesidad de implementar el IT PPM debido a su amplia cobertura de procesos End-to-End en Proyectos de IT, y la manera de asegurar la maximización de los beneficios. Con la investigación teórica y el análisis del estudio de caso, la tesis concluye con una definición práctica de un modelo aproximado IT PPM como una recomendación para su implementación en el Departamento de Gestión de Proyectos.

Towards a framework for managing IT-enabled change, sourcing and governance

In the resource-based view, organisations are represented by the sum of their physical, human and organisational assets, resources and capabilities. Operational capabilities maintain the status quo and allow an organisation to execute their existing business. Dynamic capabilities, otherwise, allow an organisation to change this status quo including a change of the operational ones. Competitive advantage, in this context, is an effect of continuously developing and reconfiguring these firm-specific assets through dynamic capabilities. Deciding where and how to source the core operational capabilities is a key success factor. Furthermore, developing its dynamic capabilities allows an organisation to effectively manage change its operational capabilities. Many organisations are asserted to have a high dependency on - as well as a high benefit from - the use of information technology (IT), making it a crucial and overarching resource. Furthermore, the IT function is assigned the role as a change enabler and so IT sourcing affects the capability of managing business change. IT sourcing means that organisations need to decide how to source their IT capabilities. Outsourcing of parts of the IT function will also outsource some of the IT capabilities and therefore some of the business capabilities. As a result, IT sourcing has an impact on the organisation's capabilities and consequently on the business success. And finally, a turbulent and fast moving business environment challenges organisations to effectively and efficiently managing business change. Our research builds on the existing theory of dynamic and operational capabilities by considering the interdependencies between the dynamic capabilities of business change and IT sourcing. Further it examines the decision-making oversight of these areas as implemented through IT governance. We introduce a new conceptual framework derived from the existing theory and extended through an illustrative case study conducted in a German bank. Under a philosophical paradigm of constructivism, we collected data from eight semi-structured interviews and used additional sources of evidence in form of annual accounts, strategy papers and IT benchmark reports. We applied an Interpretative Phenomenological Analysis (IPA), which emerged the superordinate themes for our tentative capabilities framework. An understanding of these interdependencies enables scholars and professionals to improve business success through effectively managing business change and evaluating the impact of IT sourcing decisions on the organisation's operational and dynamic capabilities.

PI Toolset Methodology for Virtual Enterprise Performance Assessment and Governance

Part 16: Performance Measurement Systems

Fenômeno da governança corporativa : um estudo de caso em uma pequena empresa familiar capixaba

Este estudo tem como objetivo compreender a forma com que os mecanismos de governança corporativa interferem na gestão de uma pequena empresa familiar. Para isso, adotaram-se a perspectiva de Hart (1995), que discorre sobre governança corporativa, e de Leone (2005) para empresas familiares. Para alcançar este objetivo, adotou-se, em relação à condução da pesquisa, uma abordagem qualitativa, por meio do método do estudo de caso. A triangulação de dados foi utilizada como instrumento de coleta de dados por meio de pesquisa documental, observação assistemática e entrevista semiestruturada, e a análise de dados foi realizada através da análise de conteúdo. Como contribuição teórica, este estudo amplia o Modelo de Quatro Círculos com Contexto e Sistema de Valores com a introdução de proprietários formais e informais, gerando o Modelo de Cinco Círculos. A presença da governança corporativa foi identificada através dos fatores de diferenciação e da implantação de onze mecanismos de governança que gerou mudanças no controle da empresa, no processo sucessório, na profissionalização e na captação de recursos. Os mecanismos encontrados foram denominados como: “empresa controladora”; “respeito fraternal”; “projetos pessoais”; “pró-labore dos gestores familiares”; “ausência de remuneração dos familiares não gestores”; “aconselhamento profissional”; “prestação de contas”; “proteção do empreendimento familiar”; “alinhamento de interesses na gestão”; “atribuições e responsabilidades”; e “atenção aos interesses dos stakeholders”. Tais mecanismos não possuem ordem cronológica, pois o respeito fraternal e projetos pessoas já existiam antes da criação da empresa familiar. Quanto ao controle, destaca-se o mecanismo prestação de contas, que possibilitou uma ligação entre a família e a empresa; permitiu clareza, transparência, igualdade entre todos os irmãos, diminuindo a assimetria informacional; facilitou uma comunicação aberta e honesta entre todos os proprietários, transmitindo uma sensação de segurança e previsibilidade; e contribuiu para eliminar e/ou minimizar conflitos entre os proprietários (formais e informais). Quanto à sucessão, os mecanismos proteção do empreendimento familiar, aconselhamento profissional, respeito fraternal estão possibilitando planejar o processo sucessório da empresa; facilitaram a comunicação entre os familiares, e assim, diminuiu a assimetria informacional; e realizaram a manutenção e administração dos bens mobiliários da família empresária. Quanto à profissionalização, os mecanismos proteção do empreendimento familiar e respeito fraternal viabilizaram a participação de todos para decidir sobre a profissionalização da empresa. Com relação à captação de recursos, os mecanismos atribuições e responsabilidades e atenção aos interesses dos stakeholders possibilitaram a empresa, durante todo seu ciclo de vida, a buscar recursos financeiros sem dificuldade, gerando um maior investimento, crescimento e geração de empregos

F/OSS to promote vendor independence/avoid lock-in in the enterprise

This paper focuses on the use of FLOSS to promote vendor independence/avoid lock-in in the enterprise. It looks at how FLOSS projects follow open standards, how forking prevents lock-in if a project threatens to migrate to a closed-source strategy and how FLOSS lowers the barrier to entry for SMEs wishing to implement and support software. However it also looks at how the adoption of policies mandating open standards instead of FLOSS and how the success of cloud computing threatens to erode those benefits. It discusses ways in which cloud computing can be adopted in the enterprise without forfeiting those advantages and urge corporate and government policy makers to mandate FLOSS rather than be satisfied with open standards.