UnderstandingtheOrganizationalImpactofITApplicationInfrastructure

1、Understanding the Organizational Impact of IT Application Infrastructure Through AgilityDaniel Chen University of Georgia1AMCIS 2003 Doctoral ConsortiumAgendaBackgroundMotivationResearch QuestionsLiterature Review Initial Conceptual ModelCase StudiesResearch Model and HypothesesResearch Methodology0

2、8/03/20032AMCIS 2003 Doctoral ConsortiumBackgroundIT infrastructure is the first place that CIOs look to reduce expenses (CIO, 2002). Systems integration and process integration remain the top spending priority for IT executives in 2003 (Ware, 2003) ERP is a prominent aspect of IT InfrastructureERP

3、still tops corporate IT budget (AMR Research 2002). Global ERP market is expected to grow significantly in the next five years (ARC 2003)08/03/20033AMCIS 2003 Doctoral ConsortiumMotivationHow and why IT investments in general enhance firm performance is still unclear (Sambamurthy et al., 2003).ERP a

4、s a specific IT application infrastructure investments has a very mixed reputation 86% businesses described it successful (HBS survey 2002)Most companies achieved less than half of the anticipated benefits (Accenture study 2003)08/03/20034AMCIS 2003 Doctoral ConsortiumA New Theoretical Lens Focus on

5、 AgilityIT Competence Investment scale IT CapabilityDigital Options Process reach Process richness Knowledge reach Knowledge richnessAgility Customer agility Partnering agility Operational agilityCompetitive Actions Number of actions Complexity of action repertoireEntrepreneurial Alertness Strategic

6、 foresight Systemic insightSource: Sambamurthy et al., 200308/03/20035AMCIS 2003 Doctoral ConsortiumResearch QuestionsDoes the investment of integrated IT application infrastructure (such as ERP infrastructure) have positive or negative impacts on a firms competitive agility? If the answer to 1) is

7、yes (i.e., positive or negative), what are the major mechanisms by which it affects competitive agility?08/03/20036AMCIS 2003 Doctoral ConsortiumLiterature ReviewStrategic Management Literature to clarify agility as a strategy constructIT infrastructure and ERP literature to identify the critical ch

8、aracteristics of IT application infrastructure that potentially contribute to agility. Organizational theories to identify other essential organizational characteristics that also facilitate agility. 08/03/20037AMCIS 2003 Doctoral ConsortiumDefining Agility An organizational ability to quickly detec

9、topportunities for business performance improvement, and to assemble requisite resources to make a rapid and effective response to changingdemands. (Goldman et al., 1995; Gunneson, 1997; Amos, 1998; Sambamurthy et al., 2003) 08/03/20038AMCIS 2003 Doctoral ConsortiumAgility DimensionsSensing and resp

10、onseFollowing and leading08/03/20039AMCIS 2003 Doctoral ConsortiumInitial Conceptual Model08/03/200310AMCIS 2003 Doctoral ConsortiumUnanswered QuestionsScope and dimension of agilityPossible missing IT application infrastructure characteristicsMechanisms for agility08/03/200311AMCIS 2003 Doctoral Co

11、nsortiumCase Studies Purposes1)Identify main sources of agility challenges for industrial organizations 2)Identify key ERP infrastructure characteristics that contribute to competitive agility3)Identify the mechanisms through which ERP infrastructure influences firm agility08/03/200312AMCIS 2003 Doc

12、toral ConsortiumCase Studies DesignSpring 2003Phone interviews with ERP adoptersSeven large US based companiesHigh level IT or business managersWithin and across cases analyses08/03/200313AMCIS 2003 Doctoral ConsortiumCase Studies FindingsERP infrastructure is good for both sensing and response agil

13、ityERP infrastructure facilitates both following and leading agilitySensing/response may be a more useful distinction for understanding ERP impact on agility08/03/200314AMCIS 2003 Doctoral ConsortiumCase Studies Implications9 sources of agility challenges3 elements of achieved agilityBetter informat

14、ion, better processes, more efficient response to mandatory changes2 general agility mechanismsNew ways of combining and analyzing data, process change options 3 new IT application infrastructure characteristicsConfiguration capability, common across businesses, external consultant knowledge08/03/20

15、0315AMCIS 2003 Doctoral ConsortiumResearch Model08/03/200316AMCIS 2003 Doctoral ConsortiumResearch MethodologyPen-and-pencil surveyIndustrial organizations Both ERP adopter and non-adopterTwo respondentsBusiness and IT leadersStructural Equation Modeling 08/03/200317AMCIS 2003 Doctoral ConsortiumQue

16、stions ?08/03/200318AMCIS 2003 Doctoral ConsortiumSupporting Slides08/03/200319AMCIS 2003 Doctoral ConsortiumSensing AgilitySensing agility emphasizes on a firms capacity to rapidly discover and interpret the changing opportunities. It implies not only an ability to distinguish information from nois

17、e quickly, but also to transform apparent noise into meaning faster (Haeckel, 1999). Back08/03/200320AMCIS 2003 Doctoral ConsortiumResponse AgilityResponse agility relates to the organizational capability to quickly transform knowledge into action in response to the changing demands (Haeckel, 1999;

18、Zaheer and Zaheer, 1997), such as marshaling and reallocating resources to capture the opportunities.Back08/03/200321AMCIS 2003 Doctoral ConsortiumFollowing AgilityFollowing agility refers to the capacity of a firm to quickly realize and adapt to the demands of its business environment for changes.

19、Back08/03/200322AMCIS 2003 Doctoral ConsortiumLeading agilityLeading agility is the capability of organizations to rapidly discover innovative ways of doing business and take earlier actions than competitors (e.g., first mover advantage). Back08/03/200323AMCIS 2003 Doctoral ConsortiumSystems Integra

20、tionThe degree of tighter connections are created between different computer-based information systems and databases (Markus, 2000). Consists of data integration and process integration08/03/200324AMCIS 2003 Doctoral ConsortiumProfiles of ERP Case SitesCompany NameIndustryERP vendorModules ImplementedWent liveOngoing upgrades?TeleCoCommunic