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.

Research on policies and institutions to support small and medium scale enterprise in the Caribbean: Trinidad adn Tobago report

The Government of Trinidad and Tobago continues to provide support to SMEs in order to enhance their international competitiveness. The increasing effects of globalization and the reality of several trade agreements require that local businesses attain and maintain a level of competitiveness which ensures their continued survival and growth. This report examines in detail the policy environment within which these enterprises operate. It also examines the role of the key implementing agencies such as the BDC and NEDCO for government’s policy on the sector and also the role of the respective line ministries. These organizations strive to deliver value added technical, financial and export promotion services to its clients on a subsidised basis. The services offered reflect five key business areas such as financing, training, technical assistance, trade assistance, business re-engineering, project management and export promotion. In the case of the BDC its services target six sectors: food and beverage, metal processing, leisure marine, including yachting, information and communication technology/electronics, printing and packaging and entertainment. These said sectors are identified by the government, on the basis of a study which was done by TIDCO, for the promotion of a cluster development strategy. In the case of NEDCO it targets the following sectors: art and craft, food and beverages, fashion and fashion accessories, culture and ecotourism, bed and breakfast operations, indigenous entertainment and light manufacturing.

Driving the refactoring of Java Enterprise applications by evaluating the distance between application elements

Java Enterprise Applications (JEAs) are complex systems composed using various technologies that in turn rely on languages other than Java, such as XML or SQL. Given the complexity of these applications, the need to reverse engineer them in order to support further development becomes critical. In this paper we show how it is possible to split a system into layers and how is possible to interpret the distance between application elements in order to support the refactoring of JEAs. The purpose of this paper is to explore ways to provide suggestions about the refactoring operations to perform on the code by evaluating the distance between layers and elements belonging those layers. We split JEAs into layers by considering the kinds and the purposes of the elements composing the application. We measure distance between elements by using the notion of the shortest path in a graph. Also we present how to enrich the interpretation of the distance value with enterprise pattern detection in order to refine the suggestion about modifications to perform on the code.

Enterprise software adoption and perceived business performance — an empirical investigation in Germany and the U.S.

This work contributes to the ongoing debate on the productivity paradox by considering CIOs’ perceptions of IT business value. Applying regression analysis to data from an international survey, we study how the adoption of certain types of enterprise software affects the CIOs’ perception of the impact of IT on the firm’s business activities and vice versa. Other potentially important factors such as country, sector and size of the firms are also taken into account. Our results indicate a more significant support for the impact of perceived IT benefits on adoption of enterprise software than vice versa. CIOs based in the US perceive IT benefits more strongly than their German counterparts. Furthermore, certain types of enterprise software seem to be more prevalent in the US.

Evolving a core Banking enterprise architecture: leveraging business events exploitation

Business information has become a critical asset for companies and it has even more value when obtained and exploited in real time. This paper analyses how to integrate this information into an existing banking Enterprise Architecture, following an event-driven approach, and entails the study of three main issues: the definition of business events, the specification of a reference architecture, which identifies the specific integration points, and the description of a governance approach to manage the new elements. All the proposed solutions have been validated with a proof-of-concept test bed in an open source environment. It is based on a case study of the banking sector that allows an operational validation to be carried out, as well as ensuring compliance with non-functional requirements. We have focused these requirements on performance.

Understanding social enterprise country models: Spain

Purpose – The purpose of this paper is to describe the historical institutional context of Spain in the past 40 years and to analyze the influence of institutional factors in the current model of social enterprise existing in the country. Design/methodology/approach – This study draws on the theory of historical institutionalism, national-level empirical data and Kerlin conceptual framework (2013) that informs models of social enterprise. Findings – This paper describe some traits of Spain’s social enterprise that can be explained by the evolution of its institutional context in the past 40 years. It helps to validate, from a historical institutionalistic perspective, aspects of the Kerlin framework for social enterprise models. It also begins to show that the analysis of regional differences in the context should be taken into consideration when examining a country’s social enterprise space. Research limitations/implications – This discussion paper encourages academics to analyze regional differences in the emergence of social enterprise within a country. The main limitation of the paper is the lack of an “official” definition of social enterprise in Spain. Originality/value – This paper applies a valuable framework to a country with a unique political and economic history in the past 40 years. It contributes to enrich the research on the emergence and development of social enterprises in a variety of contexts and advances understanding of how regional differences inside a country influence the development of social enterprises.

Knowledge management applied to enterprise risk management

Risk and knowledge are two concepts and components of business management which have so far been studied almost independently. This is especially true where risk management (RM) is conceived mainly in financial terms, as for example, in the financial institutions sector. Financial institutions are affected by internal and external changes with the consequent accommodation to new business models, new regulations and new global competition that includes new big players. These changes induce financial institutions to develop different methodologies for managing risk, such as the enterprise risk management (ERM) approach, in order to adopt a holistic view of risk management and, consequently, to deal with different types of risk, levels of risk appetite, and policies in risk management. However, the methodologies for analysing risk do not explicitly include knowledge management (KM). This research examines the potential relationships between KM and two RM concepts: perceived quality of risk control and perceived value of ERM. To fulfill the objective of identifying how KM concepts can have a positive influence on some RM concepts, a literature review of KM and its processes and RM and its processes was performed. From this literature review eight hypotheses were analysed using a classification into people, process and technology variables. The data for this research was gathered from a survey applied to risk management employees in financial institutions and 121 answers were analysed. The analysis of the data was based on multivariate techniques, more specifically stepwise regression analysis. The results showed that the perceived quality of risk control is significantly associated with the variables: perceived quality of risk knowledge sharing, perceived quality of communication among people, web channel functionality, and risk management information system functionality. However, the relationships of the KM variables to the perceived value of ERM are not identified because of the low performance of the models describing these relationships. The analysis reveals important insights into the potential KM support to RM such as: the better adoption of KM people and technology actions, the better the perceived quality of risk control. Equally, the results suggest that the quality of risk control and the benefits of ERM follow different patterns given that there is no correlation between both concepts and the distinct influence of the KM variables in each concept. The ERM scenario is different from that of risk control because ERM, as an answer to RM failures and adaptation to new regulation in financial institutions, has led organizations to adopt new processes, technologies, and governance models. Thus, the search for factors influencing the perceived value of ERM implementation needs additional analysis because what is improved in RM processes individually is not having the same effect on the perceived value of ERM. Based on these model results and the literature review the basis of the ERKMAS (Enterprise Risk Knowledge Management System) is presented.

Developing an enterprise simulator to support electronic supply chain for B2B electronic process

The application of any e-Solution promises significant returns. In particular, using internet technologies both within enterprises and across the supply (value) chain provides real opportunity, not only for operational improvement but also for innovative strategic positioning. However, significant questions obscure potential investment; how any value will actually be created and, importantly, how this value will be shared across the value chain is not clear. This paper will describe a programme of research that is developing an enterprise simulator that will provide a more fundamental understanding of the impact of e-Solutions across operational supply chains, in terms of both standard operational and financial measures of performance. An efficient supply chain reduces total costs of operations by sharing accurate real-time information and coordinating inter-organizational business processes. This form of electronic link between organizations is known as business-to-business (B2B) e-Business. The financial measures go beyond simple cost calculations to real bottom-line performance by modelling the financial transactions that business processes generate. The paper will show how this enterprise simulator allows for a complete supply chain to be modelled in this way across four key applications: control system design, virtual enterprises, pan-supply-chain performance metrics and supporting e-Supply-chain design methodology.

Using QFD for e-business planning and analysis in a micro-sized enterprise

Purpose - The purpose of this paper is to show how QFD can be used as part of a structured planning and analysis framework for micro-sized enterprises to build-up their e-business capabilities. Design/methodology/approach - This case study has been produced using a new framework which integrates the balanced scorecard, value chain and quality function deployment techniques into an integrated framework known as the E-Business Planning and Analysis Framework (E-PAF). It has been produced using an action research approach. Findings - A new framework with a supporting case study is provided. This case study has demonstrated that the framework can be applied successfully to micro-sized enterprises (those with less than ten employees) to successfully plan new strategic and technical developments. This will enhance the online service that the company is able to provide. Research limitations/implications - This paper presents a single case study. The technical recommendations are currently being implemented. Originality/value - Such analytical techniques are most commonly associated with large organisations, and are not specifically associated with e-business planning. This paper provides a new framework that will be of general applicability to other similarly sized enterprises that are looking to improve e-business capabilities. © Emerald Group Publishing Limited.

Enterprise resource planning and the post bureaucratic organization:'formalization' as trust in the system versus 'solidarity' as trust in individuals

Purpose – The purpose of the paper is to use a case study setting involving the implementation of an enterprise resource planning (ERP) system to expose and analyze the conflicts in the characterizations of the post bureaucratic organisation (PBO) in the literature. ERP implementations are often accompanied by increasing levels of stress in organizations that place pressures on organizational relationships and structures. Additionally, ERPs are regarded as introducing their own techno-logic of centralization, standardization and formalization that provides an apparent contrast to the exhortations about employee empowerment. Design/methodology/approach – A case study of ERP implementation in a medium-sized entity is presented. The paper explores aspects of ERP and PBO from the context of postmodern organization theory. Findings – Some concerns about PBO identified in the literature are reflected in the case situation. For example, there is a commitment to give up private time and work flexibly by some employees. The paper also provides evidence of the way the management team substitute their reliance on a key individual knowledge worker for that of an ERP system and external vendor support. Paradoxically, trust in that same knowledge worker and between core users of the system is essential to enable the implementation of the system. Originality/value – This paper adds empirical insight to a predominantly theoretical literature. The case evidence indicates some conflicting implications in the concurrent adoption of PBO and ERP.

Managing enterprise resource planning projects

Purpose – The purpose of this paper is to help managers to successfully plan, implement, and operate enterprise resource planning (ERP) projects using a risk management framework. Design/methodology/approach – This paper adopted a combined literature review and case study method. Using literature review, the paper first identified major issues of managing ERP projects and develops a risk management framework for managing those issues. The proposed risk management framework was then applied to a ERP implementation project of a UK-based energy services group and its effectiveness for managing ERP projects implementation had been demonstrated. Additionally, the risk factors as identified from the case application are compared with the risk factors from the previous researches so as to suggest mitigating measures. Findings – All the risk factors are categorized into planning, implementation and operations phases along with project processes, organizational transformation and information technology (IT) perspectives. Project implementation phase is the most vulnerable to failure. The case study results reveal that the effect of other projects on on-going ERP project, management of overall IT architecture and non-availability of resources for organizational transformation are most critical from likelihood and impact perspectives. Managing risk across various phases of project and equal emphasize to effective project management, organizational transformation and IT adoption are the key to success in ERP implementation. Practical implications – The risk factors, which were identified using literature review and the case study, have great significance as mitigating measures of those risks may result successful implementation of ERP projects in the industry. Additionally, proposed risk management framework could be customized to implement ERP projects elsewhere. Originality/value – ERP projects are risky as they are capital intensive, technically complex, and call for organizational transformation. There are both success and failure stories. However, both researchers and practitioners agree, that if it can be implemented and operated successfully and benefits should be achievable. Although there are many studies on ERP implementation, little has been discussed on managing risks of ERP projects. Therefore, this paper bridges the gap.

Collaborative enterprise governance : sustainable management of inter-firm R&D relationships in the German car industry

This research reports on the appropriate governance, i.e. design and management, of inter-firm R&D relationships in order to achieve sustainable competitive success for the whole partnership as well as its individual members. An exploratory study in the German automotive industry using inductive Grounded Theory was conducted. This involved data collection via 28 semi-structured interviews with 16 companies in order to form a set of 35 tentative propositions that have been validated via a questionnaire survey receiving 110 responses from 52 companies. The research has resulted in the consolidation of the validated propositions into a novel concept termed Collaborative Enterprise Governance. The core of the concept is a competence based contingency framework that helps decision makers in selecting the most appropriate governance strategy (i.e. sourcing strategy) for an inter-firm R&D relationship between a buyer and its supplier. Thereby, the concept does not draw on whole company-to-company connectivity. It rather conceptualises an inter-firm relationship to be composed of autonomous cross-functional units of the individual partner companies that contribute value to a particular joint R&D project via the possession of task specific competencies. The novel concept and its elements have been evaluated in a focus group with industrial experts of the German automotive industry and revealed positive effects on the sustainable competitive success of the whole partnership and the individual partner companies. However, it also showed that current practice does not apply the right mechanisms for its implementation and hence guidelines for practitioners and decision makers involved in inter-firm R&D collaboration in the automotive industry are offered on how to facilitate the implementation and usage of the Collaborative Enterprise Governance philosophy.

A new dynamic framework for managing ERP development and enterprise strategy

The enterprise management (EM) approach provides a holistic view of organizations and their related information systems. In order to align information technology (IT) innovation with global markets and volatile virtualization, traditional firms are seeking to reconstruct their enterprise structures alongside repositioning strategy and establish new information system (IS) architectures to transform from single autonomous entities into more open enterprises supported by new Enterprise Resource Planning (ERP) systems. This chapter shows how ERP engage-abilities cater to three distinctive EM patterns and resultant strategies. The purpose is to examine the presumptions and importance of combing ERP and inter-firm relations relying on the virtual value chain concept. From a review of the literature on ERP development and enterprise strategy, exploratory inductive research studies in Zoomlion and Lanye have been conducted. In addition, the authors propose a dynamic conceptual framework to demonstrate the adoption and governance of ERP in the three enterprise management forms and points to a new architectural type (ERPIII) for operating in the virtual enterprise paradigm. © 2012, IGI Global.