Artificial Intelligence as a Service: Trade-Offs Impacting Service Design and Selection

2023 | International Conference on Information Systems | Citations: 0

Authors: Brecker, Kathrin; Lins, Sebastian; Trenz, Manuel; Sunyaev, Ali

Abstract: AI as a Service (AIaaS) is a promising path to leverage AI capabilities from th ... Expand

Abstract: AI as a Service (AIaaS) is a promising path to leverage AI capabilities from the cloud. However, there is no one-size-fits-all service, but heterogenous service options since interdependent AIaaS characteristics require trade-offs. We lack knowledge on these tradeoffs and how they result from conflicting characteristics. Therefore, we interviewed 39 AIaaS providers, customers, and consultants to provide rich descriptions of interdependent characteristics and uncover resulting trade-offs and their consequences. This study contributes to a better understanding of the inner functioning and interplay of AIaaS characteristics and discusses how this complex nature of service offerings impacts providers' design and customers' selection decisions. Collapse

Topics: artificial intelligence cloud computing ease of use data protection economies of scale

Methods: qualitative interview design artifact constant comparative analysis qualitative coding triangulation

Theories: SERVQUAL core competency theory

Does IT Enable Collusion or Competition: Examining the Effects of IT on Service Pricing in Multimarket Multihospital Systems

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Du, Kui; Tanriverdi, Hüseyin

Abstract: In the U.S., multihospital systems (MHSs) charge significantly higher prices fo ... Expand

Abstract: In the U.S., multihospital systems (MHSs) charge significantly higher prices for hospital services than stand-alone hospitals. Rivalry restraint theory suggests that MHS with multimarket contact (MMC) can tacitly collude and mutually forebear from price competition to keep their prices above competitive levels. We posit that the success of such MMC-induced rivalry restraints (the truce) is affected by two conflicting roles of IT at the corporate level and market unit levels, respectively. The corporate parent seeks to standardize IT applications enterprise-wide to coordinate market units as a means of jointly implementing the rivalry restraint strategy and keeping prices high enterprise-wide. However, market units, i.e., the member hospitals of MHS clustered in geographic patient markets, face competitive pressures to reduce their service costs. Market units seek to use differentiated IT applications to achieve cost reductions, which then fuel price competition in local markets, jeopardize the sustainability of the truce, and weaken the enterprise-wide price effects of the corporate parent's rivalry restraint strategy. In a longitudinal study of 195 multihospital systems in the U.S. in the 2005-2013 time period, we found support for these ideas. The corporate-wide standardization of the operational IT of MHS complements the rivalry restraint strategy to increase enterprise-wide prices. Market units' use of differentiated analytical IT reduces costs in local markets and weakens the price effects of the rivalry restraint strategy. The study advances IS research and practice by theorizing how the corporate-level and the market unit-level IT of a multi-unit, multimarket (MUMM) organization can have opposing moderating effects on the link between MMC and the average prices charged by the MUMM organization. Collapse

Topics: analytical information system operational information system database system health information system decision making

Methods: theory development robustness check instrumental variables estimation longitudinal research data modeling

Banking the Unbanked: Conceptualizing Success of the Business Correspondent Model

2023 | Information Systems Frontiers | Citations: 0

Authors: Goel, Kanika; Bandara, Wasana; Gable, Guy

Abstract: The Business Correspondent (BC) model is an IT-enabled business process outsourc ... Expand

Abstract: The Business Correspondent (BC) model is an IT-enabled business process outsourcing initiative to provide financial services to the unbanked. It is a complex banking system involving multiple actors, system elements and settings, intended to address financial exclusion. Given the BC-Model’s potentially significant role in economic sustainability, it is important to evaluate its success. Efforts to measure the success of the BC-Model have been limited to date; this paper therefore presents a conceptual framework of BC-Model-Success consisting of six dimensions- economic, strategic, technological, customer satisfaction, employee satisfaction, and social, resulting from a three-phase study design. The relevance of the framework was empirically validated across four implementations of the BC-Model. The resulting framework provides strong theoretical foundations for understanding what BC model success is, for assisting practitioners with evaluating the success of the BC-Model and with identifying possible improvements, and for facilitating future research on the BC-Model. Collapse

Topics: customer satisfaction database system economies of scale outsourcing business process outsourcing

Methods: qualitative interview case study multiple case study personal interview structured literature research

The Role of Internationalization Strategy in Fostering Innovation: An Empirical Study Using Machine Learning Technique

2023 | International Conference on Information Systems | Citations: 0

Authors: Mayer, Pascal; Schaeper, Thomas

Abstract: In today's highly dynamic global market, firms increasingly conduct R&D interna ... Expand

Abstract: In today's highly dynamic global market, firms increasingly conduct R&D internationally to enhance their innovation and competitiveness. We analyze the relationship between firm internationalization strategy and innovation performance. We argue that the relationship is inverse U-shaped, due to concave returns and convex costs of firm internationalization regarding innovation performance. We test our hypothesis using a novel machine-learning technique and develop a dictionary on internationalization, based on the most-cited papers on firm internationalization. We then apply this dictionary to firms' 10-K annual reports to obtain a unique score of each firm's internationalization strategy and use panel data econometrics to analyze the relationship with innovation performance. The results support the hypothesis of an inverted U-shape relationship between firms' internationalization strategy and innovation performance. Further tests substantiate the findings. Our study contributes to the literature on firm internationalization and firm innovation by identifying a trade-off in benefits and costs of firm internationalization. Collapse

Topics: innovation management database system research and development advertising management missing data

Methods: longitudinal research machine learning descriptive statistic Compustat computational algorithm

Interorganizational Data Sharing in Health Ecosystems - A Case Sudy

2023 | European Conference On Information Systems | Citations: 0

Authors: Nienstedt, Jonas; Schulze, Laura; Trenz, Manuel

Abstract: The integration of external data offers enormous potential for new and expanded ... Expand

Abstract: The integration of external data offers enormous potential for new and expanded value propositions for companies. Despite this potential, organizations often hesitate to share data due to the anticipated negative consequences. This study delves into the decision-making process of organizations regarding data sharing within an ecosystem and explores strategies to motivate other organizations to share data. By combining privacy calculus and ecosystems theory, we employ a qualitative case study approach to examine the German orthopedic market. Our findings reveal three risks (weakening one's position in the ecosystem, IT alignment investments, and penalties for data protection violations) and three benefits (increased value creation for the ecosystem, competitive advantage over other ecosystems, and gaining additional transactions) that organizations perceive when contemplating data sharing. Moreover, we identify three strategies for obtaining data from other organizations: mitigating the risks, emphasizing the benefits, and bypassing the calculus. Collapse

Topics: healthcare data value creation competitive advantage legal context General Data Protection Regulation

Methods: qualitative interview case study qualitative coding archival research grounded theory

Theories: privacy calculus theory motivation theory

The impact of IT–business strategic alignment on firm performance: The evolving role of IT in industries

2023 | Information & Management | Citations: 0

Authors: Pesce, Danilo; Neirotti, Paolo

Abstract: This study proposes and validates a new industry taxonomy to understand the use ... Expand

Abstract: This study proposes and validates a new industry taxonomy to understand the use of IT that generates superior economic returns based on the specific economic and competitive characteristics of four different industry types and the strategic role of IT in each of these industry environments. Our findings extend the well-established industry taxonomy on the strategic role of IT (Automate, Informate, Transform) by considering how IT is changing the nature of the product/service in industries where transformational logics prevail. We found that in industries where the product/service is digital in nature, the firms that achieve higher economic returns are those where IT is used to support dual strategies based on the integration of cost leadership and differentiation. Conversely, in other industries – with the exception of those producing commodities – the firms that achieve superior returns are those that use IT to support differentiation. The results of this study can help managers make intelligent decisions about competitive strategies and IT investments, depending on the business environment of the sector in which the firm operates and the generative potential of emerging technologies to do new things. Collapse

Topics: productivity strategic management organizational productivity information systems strategy business model

Methods: longitudinal research cross sectional research econometric modeling regression analysis method descriptive statistic

Theories: theory of economic growth theory of economic cycles

The Longitudinal Financial Impact of Health Information Technology Investments in Hospitals: A Panel Data Analysis

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Somarouthu, Durga Prasad; Shah, Sahil; Bhattacherjee, Anol

Abstract: Investments in health information technology (HIT) are known to improve operati ... Expand

Abstract: Investments in health information technology (HIT) are known to improve operational and financial outcomes in hospitals. However, it is less understood whether this effect is short-term, medium-term, or long-term. This paper investigates the effect of HIT investments on hospitals' cost-to-charge ratio, a financial metric that accounts for hospital costs and revenues, at different time lags following the initial investment. Using panel data on U.S. hospitals from 2010 to 2021, we report that the impact of HIT on hospital cost-to-charge ratio is realized with a lag of 0 to 4 years, when controlled for hospital differences such as rural vs urban location, public vs private ownership, proportion of uncompensated care, and yearover-year variations. This effect becomes non-significant in subsequent years as the effect of HIT wears out. We also quantify the returns from HIT investment. Every 1% increase in HIT investment results in a reduction of 3.3 to 6.0% in cost-to-charge ratio between 0 and 4 years after the HIT investment. Implications of these findings for research and practice are described. Collapse

Topics: data quality financial performance economies of scale

Methods: longitudinal research

Network Orchestration: Managing the Scaling of Platform-based Ecosystems

2023 | HICSS | Citations: 0

Authors: Svendsrud, Daniel Stedjan; Smith, Peter; Hydle, Katja

Abstract: Multi-sided platform-based ecosystems have emerged as an important organizationa ... Expand

Abstract: Multi-sided platform-based ecosystems have emerged as an important organizational arrangement and business model that sees the transformation of pipeline economies into network economies. How managers in these ecosystems approach scaling—as a means to grow their firms—is qualitatively different from what is prevalent in pipeline economies. This paper investigates how two platform companies in B2B markets scale their platform offering to users. We find that the type of platform, whether it is an innovation platform or transaction platform, involves different network effects. We show that innovation platforms need direct orchestration due to a lack of network effects, whereas transaction platforms follow a market logic which makes it easier to create network effects without direct interference by management. Collapse

Topics: network effect innovation management digital platform digital ecosystem economies of scale

Methods: qualitative interview case study theory development cross sectional research company material

Theories: economic theory

Business model archetypes for data marketplaces in the automotive industry

2022 | Electronic Markets | Citations: 6

Authors: Bergman, Rômy; Abbas, Antragama Ewa; Jung, Sven; Werker, Claudia; de Reuver, Mark

Abstract: Policymakers and analysts are heavily promoting data marketplaces to foster data ... Expand

Abstract: Policymakers and analysts are heavily promoting data marketplaces to foster data trading between companies. Existing business model literature covers individually owned, multilateral data marketplaces. However, these particular types of data marketplaces hardly reach commercial exploitation. This paper develops business model archetypes for the full array of data marketplace types, ranging from private to independent ownership and from a hierarchical to a market orientation. Through exploratory interviews and case analyses, we create a business model taxonomy. Patterns in our taxonomy reveal four business model archetypes. We find that privately-owned data marketplaces with hierarchical orientation apply the aggregating data marketplace archetype. Consortium-owned data marketplaces apply the archetypes of aggregating data marketplace with additional brokering service and consulting data marketplace. Independently owned data marketplaces with market orientation apply the facilitating data marketplace archetype. Our results provide a basis for configurational theory that explains the performance of data marketplace business models. Our results also provide a basis for specifying boundary conditions for theory on data marketplace business models, as, for instance, the importance of network effects differs strongly between the archetypes. Collapse

Topics: business model value creation business-to-business network effect data quality

Methods: qualitative interview literature study archival research grounded theory personal interview

Theories: economic theory

AI Acquisition in Question: Process Improvement and Process Innovation

2022 | Americas Conference on Information Systems | Citations: 0

Authors: Bogodistov, Yevgen; Moormann, Jürgen

Abstract: We investigate the capacity of firms to acquire and assimilate artificial intel ... Expand

Abstract: We investigate the capacity of firms to acquire and assimilate artificial intelligence (AI) technology. AI has become a magic term for digital innovation in all industries worldwide. Therefore, we first focus on antecedents which foster the development of the capacity to acquire and assimilate AI. We hypothesize that strong capabilities with regard to process improvement and process innovation should help absorb AI. Second, we hypothesize a mediation relationship. We assume that the capability of a firm to innovate processes arises from the capability to improve processes and allows for a better AI absorption. With a quantitative study, we show the strength of the proposed model. Our empirical data collection reveals that process improvement has a positive impact on AI absorption, whereby process innovation capability is a mediator. We show that uncertainty avoidance matters: it directly and indirectly impacts process improvement, process innovation, and AI absorption. Collapse

Topics: artificial intelligence innovation management business process innovation business process improvement absorptive capacity

Methods: survey data transformation principal component analysis chi squared test statistical hypothesis test

Theories: absorptive capacity theory