Business-IT alignment as a coevolution process: An empirical study

2023 | Journal of Strategic Information Systems | Citations: 0

Authors: Amarilli, Fabrizio; Van Den Hooff, Bart; Van Vliet, Mario

Abstract: In this paper, we provide a detailed insight into the complex coevolution dynami ... Expand

Abstract: In this paper, we provide a detailed insight into the complex coevolution dynamics that shape the alignment process by analyzing how different mechanisms and factors are mutually related in complex networks of feedback loops. We combine insights from the literature on alignment as a (coevolution) process with literature on alignment as a state to identify the different components of the organization’s socio-technical system that influence alignment, the relationships between these components, and the role that different factors play. In our empirical analysis (based multiple case studies) we then focus on the actual interplay between relevant factors. Using a causal loop diagramming approach - based on system dynamics – we analyze how these factors mutually influence each other through various feedback loops and thus shape the alignment process. We extend previous literature on the alignment process by identifying the way that the complex interplay between different factors shapes this process. By identifying the feedback loops between relevant factors, we also provide more insight into the complex bottom-up and top-down dynamics that shape the process, and that provide explanations for why this process is charac­ terized by transitions between alignment and misalignment. For practice, our paper provides a deeper understanding of the alignment process, which is a precondition for improving alignment practices in organisations. Collapse

Topics: Chief Information Officer IT alignment strategic management IT project enterprise information system

Methods: qualitative interview case study multiple case study theoretical contribution system dynamics

Theories: co-evolution theory socio technical theory complex adaptive system

Right Place, Right Time: Configurations of Technology Use for Business Model Innovation

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Böttcher, Timo; Krcmar, Helmut

Abstract: In the rapidly evolving digital era, firms need to innovate their business mode ... Expand

Abstract: In the rapidly evolving digital era, firms need to innovate their business models (BMs) to thrive and benefit from new digital technologies. While digital BM innovation (DBMI) can create competitive advantage through differentiation, firms often struggle to create and extract value from digital technologies. In this paper, we analyze 41 cases of BM change and identify three configurations that lead to DBMI and two configurations that do not. These configurations illustrate the BM elements in which digital technologies are used for DBMI and explain how firms use digital technologies for strategic innovation. Combined with existing research on DBMI, this research provides a missing piece of the puzzle to connect specific technologies in the BM to implement a digital business strategy and undergo a digital transformation. For practical purposes, the findings suggest three alternative strategies for DBMI that identify which elements need to be changed together to achieve DBMI. Collapse

Topics: business model value creation innovation management database system mobile application

Methods: case study survey qualitative content analysis triangulation literature sample

Theories: core competency theory

Exploring the value of IoT data as an enabler of the transformation towards servitization: an action design research approach

2023 | European Journal of Information Systems | Citations: 0

Authors: Chen, Kuan-Lin; Lassen, Astrid; Li, Chen; Møller, Charles

Abstract: Servitization is a well-recognised phenomenon in the manufacturing industry. Bus ... Expand

Abstract: Servitization is a well-recognised phenomenon in the manufacturing industry. Business potentials are demonstrated mainly from the marketing perspective on servitization. However, increased digitalisation makes servitization interesting to other research areas. This paper applies the resource-based view (RBV) to argue how to value the data and explore its potential and impact on servitization. We examine the evolving role of information technology (IT), particularly of the Internet of Things (IoT), and the role of data in the servitization journey. This research is based on a longitudinal study of a product-oriented manufacturing company’s transformation towards servitization. The engagement with the company also includes the development of an IT platform that consolidates IoT and enterprise data, which enables managers to explore new data-based insights. Our goal is to investigate the organisation and in particular cross-functional effects of data-based insights and their impact on supporting strategic decision-making. The action design research (ADR) approach is applied to unfold the servitizing activities inside the organisation and extract the lesson learned into the joint domains of servitization and information systems research. First, we argued that exploring the value of data is becoming a more complex process. Rather than having one design perspective, technical concerns, business considerations, and operational purpose must be aligned to frame the value of data to support decision-making. Second, we discuss the emerging managerial implications, especially the role of IT in the transformation. A cross-functional team is a prerequisite to exploring complex transformation projects. Thus, managers must recognise the problematic situation and bootstrap the available organisational resources. Finally, we provide empirical evidence on how scholars and practitioners can address mutual interests by applying the ADR approach to a transformation project. In summary, servitizing a product-centric manufacturing firm to have a digital services business model is a transformation involving complex social and organisational relations. This study advocates resource-based analysis as a lens and demonstrates how IT and data as heterogeneous and imperfectly mobile resources create value for a product-oriented manufacturing company. However, a critical question remains on how to manage the expanding operational condition of a servitizing organisation and its business system to sustain its competitive advantage and win the digital market. Collapse

Topics: mobile system internet of things enterprise information system enterprise resource planning smart device

Methods: action design research experiment qualitative interview longitudinal research design artifact

Theories: resource based view of the firm

Shopping for digital innovation— The role of startup acquisitions for digital innovation in incumbents

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Dekova, Ani; Böttcher, Timo; Krcmar, Helmut

Abstract: Incumbent firms increasingly acquire startups for digital innovation. Startups ... Expand

Abstract: Incumbent firms increasingly acquire startups for digital innovation. Startups excel at sensing market opportunities, and incumbents provide valuable resources and knowledge to seize these opportunities in digital business models. While extant research has explored the benefits resulting from such acquisitions, the reasons and strategic motivations for startup acquisitions remain unclear. This paper seeks to explore the motivations behind such acquisitions and their impact on digital business strategies. Drawing on a qualitative analysis of 124 startup acquisitions by retail incumbents, we identify six reasons incumbents acquire digital startups and two strategic goals pursued through these acquisitions. They illustrate how and why the acquisitions contribute to the incumbents' strategic goals for digital innovation and growth, and propose three testable hypotheses to deepen our understanding of this relationship. This study provides valuable insights for incumbents seeking to collaborate with startups and identifies startups suited for acquisition or collaboration. Collapse

Topics: digital innovation innovation management digital entrepreneurship business model digital business strategy

Methods: literature study qualitative coding triangulation survey grounded theory

Software-Vendor Diversification: A Source of Organizational Rigidity in Adversity?

2023 | Journal of Management Information Systems | Citations: 0

Authors: Gong, Jing; Liang, Yi; Ramasubbu, Narayan

Abstract: Firms often assemble digital infrastructures using continuously evolving softwar ... Expand

Abstract: Firms often assemble digital infrastructures using continuously evolving software applications sourced from a multitude of vendors. Using the theoretical lens of the threat-rigidity thesis, we raise the possibility that during adverse environmental conditions, software-vendor diversification can be a source of organizational rigidity that may dampen firm performance. Empirical analysis using data on 918 large public U.S. firms operating during two severe environmental shocks, the global financial crisis and the burst of the dot-com bubble, lends strong support to our thesis. Results indicate that a variety of firm performance indicators (e.g., stock return and operating income measures) are negatively associated with software-vendor diversification during crisis periods. Mediation analysis highlights the role of IT-related material weakness in firms' internal controls in transmitting threat-rigidity effects that decrease performance. These results underscore the importance of software portfolio optimization for countering the dysfunctional effects of software-vendor diversification during adverse environmental shocks. Collapse

Topics: organizational productivity accounting computer hardware information technology infrastructure database system

Methods: mediation analysis structural equation modeling cross sectional research propensity score method longitudinal research

The emergence of smart service ecosystems—The role of socio-technical antecedents and affordances

2023 | Information Systems Journal | Citations: 0

Authors: Herterich, Matthias M.; Dremel, Christian; Wulf, Jochen; vom Brocke, Jan

Abstract: As physical products are increasingly augmented with digital technology, manufac ... Expand

Abstract: As physical products are increasingly augmented with digital technology, manufacturing firms have become part of the development of so-called smart products and smart services. As such, manufacturing firms are challenged by new market participants and ecosystem partners, particularly from the software development industry, and by the dynamic nature of business relationships. While the academic literature on the distinctive characteristics of ecosystems, particularly digital ecosystems, is rich, the effect of smart service ecosystems' emergence on the foundation of smart products remains uncertain. This study reports on case study research based on 47 semi-structured interviews with four companies that participate in an industrial smart service ecosystem. Taking an affordance-theoretic perspective, we uncover the antecedents of and the process of emergent smart service ecosystems. We find that smart service ecosystems have three socio-technical antecedents: a shared worldview, structural flexibility and integrity, and architecture of participation. We explain the emergence of smart service ecosystems as the result of specialisation in shared affordances and integration of idiosyncratic affordances into collective affordances. We derive seven propositions regarding the emergence of smart services, outline opportunities for further research, and present practical guidelines for manufacturing firms. Collapse

Topics: affordance smart device value creation user experience innovation management

Methods: qualitative interview qualitative coding case study focus group personal interview

Theories: theory of affordance stakeholder theory service-dominant logic

Digital Business Strategy Implementation: Investigating the Use of Managerial Actions by the Leadership Team

2023 | HICSS | Citations: 0

Authors: Klopper, Joep; Kalgovas, Bradley; Borgman, Hans; Benlian, Alexander

Abstract: Incumbent business models are being challenged by technological developments, re ... Expand

Abstract: Incumbent business models are being challenged by technological developments, resulting in tension in these organizations. Thus, Leadership Teams (LT) need to execute Managerial Actions (MAs) which assist in Digital Business Strategy Implementation (DBSI). To explore these MAs in the context of the DBSI, we conducted seven in-depth case studies of Dutch incumbent firms across a diverse range of industries that were undertaking a DBSI. Five propositions were tested to identify the challenges that the LT encounters when using MAs in a DBSI, and their differences compared to a standard strategy implementation. All five propositions are supported, allowing us to form specific and practical recommendations for enabling the DBSI in various business contexts. Collapse

Topics: digital business information systems strategy digital business strategy business model video conference

Methods: qualitative interview case study quantitative observational study personal interview

Pathways to digital business models: The connection of sensing and seizing in business model innovation

2022 | Journal of Strategic Information Systems | Citations: 0

Authors: Böttcher, Timo Phillip; Weking, Jörg; Hein, Andreas; Böhm, Markus; Krcmar, Helmut

Abstract: Digital business model innovation (BMI) is critical to achieving and sustaining ... Expand

Abstract: Digital business model innovation (BMI) is critical to achieving and sustaining competitiveness in technology-driven environments. In those environments, firms must not only sense changes to identify opportunities but also effectively seize them in BMI. Therefore, sensing and seizing cannot be considered as isolated dynamic capabilities, but must be combined for successful BMI. However, research on sensing and seizing does not offer compelling suggestions for firms that struggle with connecting both while pursuing digital BMI. We use qualitative configurational analysis (QCA) to analyze a sample of 49 case studies on digital BMI to identify the antecedents that firms sense before seizing these changes with digital BMI. Based on ten configurations of sensing (represented by six antecedents) and seizing (represented by four BMI types), we explain the relationship between sensed antecedents and seized digital BMI. In addition, we derived four variables that explain “what” and “how” firms connect sensing and seizing. Based on the sensingseizing connection, we introduce consolidating BMI as a new type of BMI unique to the digital context. This novel type enables firms to exploit and explore new BMs and subsequent digital BMIs through the means of digital infrastructure. This study extends the understanding of how different business models emerge and how firms create digital BMIs. Collapse

Topics: innovation management digital platform information technology infrastructure digital innovation value creation

Methods: case study survey qualitative coding theory development triangulation

Theories: dynamic capabilities theory resource based view of the firm

Which Digital Transformation Strategy for Non-profit Organisations

2022 | European Conference On Information Systems | Citations: 0

Authors: Cipriano, Michele; Za, Stefano

Abstract: Scholars largely debate digital transformation (DT) initiatives in several orga ... Expand

Abstract: Scholars largely debate digital transformation (DT) initiatives in several organisational contexts and consider multiple aspects. Some scholars develop DT strategies providing frameworks to support researchers, practitioners, policymakers, and IT specialists in governing DT initiatives. However, from the industries perspective, only a few studies discuss DT focusing specifically on non-profit organisations (NPOs). The interest in investigating DT in NPOs derives from the way how NPOs strive to reach their objectives, which often differ significantly from those of public and for-profit firms. Then, our aim is twofold: (i) developing a meta-synthesis of the literature discussing DT initiatives in NPOs identifying characteristics and strategy traits and (ii) proposing a taxonomy framework focused on DT in NPOs comparing it with the DT strategies framework unfocused on any particular industry. This research contributes to explore the discourse of DT in NPOs, stressing industries-based aspects and proposing a further lens of analysis of DT phenomena. Collapse

Topics: value creation organizational change information system use mobile system internet of things

Methods: synthesis theoretical contribution literature sample group interview mixed method

Strategic innovation through outsourcing – A theoretical review

2022 | Journal of Strategic Information Systems | Citations: 0

Authors: Gambal, Marfri-Jay; Asatiani, Aleksandre; Kotlarsky, Julia

Abstract: Competition in the Information Technology Outsourcing (ITO) and Business Process ... Expand

Abstract: Competition in the Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) industry is increasingly moving from being motivated by cost savings towards strategic benefits that service providers can offer to their clients. Innovation is one such benefit that is expected nowadays in outsourcing engagements. The rising importance of innovation has been noticed and acknowledged not only in the Information Systems (IS) literature, but also in other management streams such as innovation and strategy. However, to date, these individual strands of research remain largely isolated from each other. Our theoretical review addresses this gap by consolidating and analyzing research on strategic innovation in the ITO and BPO context. The article set includes 95 papers published between 1998 and 2020 in outlets from the IS and related management fields. We craft a four-phase framework that integrates prior insights about (1) the antecedents of the decision to pursue strategic innovation in outsourcing settings; (2) arrange­ ment options that facilitate strategic innovation in outsourcing relationships; (3) the generation of strategic innovations; and (4) realized strategic innovation outcomes, as assessed in the literature. We find that the research landscape to date is skewed, with many studies focusing on the first two phases. The last two phases remain relatively uncharted. We also discuss how innovation-oriented outsourcing insights compare with established research on cost-oriented outsourcing engage­ ments. Finally, we offer directions for future research. Collapse

Topics: innovation management outsourcing IS sourcing price management research and development

Methods: grounded theory mixed method literature sample literature study