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Article
Publication date: 12 May 2020

Serge-Lopez Wamba-Taguimdje, Samuel Fosso Wamba, Jean Robert Kala Kamdjoug and Chris Emmanuel Tchatchouang Wanko

The main purpose of our study is to analyze the influence of Artificial Intelligence (AI) on firm performance, notably by building on the business value of AI-based…

Abstract

Purpose

The main purpose of our study is to analyze the influence of Artificial Intelligence (AI) on firm performance, notably by building on the business value of AI-based transformation projects. This study was conducted using a four-step sequential approach: (1) analysis of AI and AI concepts/technologies; (2) in-depth exploration of case studies from a great number of industrial sectors; (3) data collection from the databases (websites) of AI-based solution providers; and (4) a review of AI literature to identify their impact on the performance of organizations while highlighting the business value of AI-enabled projects transformation within organizations.

Design/methodology/approach

This study has called on the theory of IT capabilities to seize the influence of AI business value on firm performance (at the organizational and process levels). The research process (responding to the research question, making discussions, interpretations and comparisons, and formulating recommendations) was based on a review of 500 case studies from IBM, AWS, Cloudera, Nvidia, Conversica, Universal Robots websites, etc. Studying the influence of AI on the performance of organizations, and more specifically, of the business value of such organizations’ AI-enabled transformation projects, required us to make an archival data analysis following the three steps, namely the conceptual phase, the refinement and development phase, and the assessment phase.

Findings

AI covers a wide range of technologies, including machine translation, chatbots and self-learning algorithms, all of which can allow individuals to better understand their environment and act accordingly. Organizations have been adopting AI technological innovations with a view to adapting to or disrupting their ecosystem while developing and optimizing their strategic and competitive advantages. AI fully expresses its potential through its ability to optimize existing processes and improve automation, information and transformation effects, but also to detect, predict and interact with humans. Thus, the results of our study have highlighted such AI benefits in organizations, and more specifically, its ability to improve on performance at both the organizational (financial, marketing and administrative) and process levels. By building on these AI attributes, organizations can, therefore, enhance the business value of their transformed projects. The same results also showed that organizations achieve performance through AI capabilities only when they use their features/technologies to reconfigure their processes.

Research limitations/implications

AI obviously influences the way businesses are done today. Therefore, practitioners and researchers need to consider AI as a valuable support or even a pilot for a new business model. For the purpose of our study, we adopted a research framework geared toward a more inclusive and comprehensive approach so as to better account for the intangible benefits of AI within organizations. In terms of interest, this study nurtures a scientific interest, which aims at proposing a model for analyzing the influence of AI on the performance of organizations, and at the same time, filling the associated gap in the literature. As for the managerial interest, our study aims to provide managers with elements to be reconfigured or added in order to take advantage of the full benefits of AI, and therefore improve organizations’ performance, the profitability of their investments in AI transformation projects, and some competitive advantage. This study also allows managers to consider AI not as a single technology but as a set/combination of several different configurations of IT in the various company’s business areas because multiple key elements must be brought together to ensure the success of AI: data, talent mix, domain knowledge, key decisions, external partnerships and scalable infrastructure.

Originality/value

This article analyses case studies on the reuse of secondary data from AI deployment reports in organizations. The transformation of projects based on the use of AI focuses mainly on business process innovations and indirectly on those occurring at the organizational level. Thus, 500 case studies are being examined to provide significant and tangible evidence about the business value of AI-based projects and the impact of AI on firm performance. More specifically, this article, through these case studies, exposes the influence of AI at both the organizational and process performance levels, while considering it not as a single technology but as a set/combination of the several different configurations of IT in various industries.

Details

Business Process Management Journal, vol. 26 no. 7
Type: Research Article
ISSN: 1463-7154

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Article
Publication date: 1 August 2016

Guangming Cao, Yanqing Duan, Trevor Cadden and Sonal Minocha

– The purpose of this paper is to develop, and explicate the significance of the need for a systemic conceptual framework for understanding IT business value.

Abstract

Purpose

The purpose of this paper is to develop, and explicate the significance of the need for a systemic conceptual framework for understanding IT business value.

Design/methodology/approach

Embracing a systems perspective, this paper examines the interrelationship between IT and other organisational factors at the organisational level and its impact on the business value of IT. As a result, a systemic conceptual framework for understanding IT business value is developed. An example of enhancing IT business value through developing systemic capabilities is then used to test and demonstrate the value of this framework.

Findings

The findings suggest that IT business value would be significantly enhanced when systemic capabilities are generated from the synergistic interrelations among IT and other organisational factors at the systems level, while the system’s human agents play a critical role in developing systemic capabilities by purposely configuring and reconfiguring organisational factors.

Practical implications

The conceptual framework advanced provides the means to recognise the significance of the need for understanding IT business value systemically and dynamically. It encourages an organisation to focus on developing systemic capabilities by ensuring that IT and other organisational factors work together as a synergistic whole, better managing the role its human agents play in shaping the systems interrelations, and developing and redeveloping systemic capabilities by configuring its subsystems purposely with the changing business environment.

Originality/value

This paper reveals the nature of systemic capabilities underpinned by a systems perspective. The resultant systemic conceptual framework for understanding IT business value can help us move away from pairwise resource complementarity to focusing on the whole system and its interrelations while responding to the changing business environment. It is hoped that the framework can help organisations delineate important IT investment considerations and the priorities that they must adopt to create superior IT business value.

Details

Information Technology & People, vol. 29 no. 3
Type: Research Article
ISSN: 0959-3845

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Article
Publication date: 1 February 2016

Simona Popa, Pedro Soto-Acosta and Euripidis Loukis

In recent years, there has been much debate about the value generated by the firms’ investments in information technology (IT). Although literature suggests that…

Abstract

Purpose

In recent years, there has been much debate about the value generated by the firms’ investments in information technology (IT). Although literature suggests that technology itself will rarely create superiority, web infrastructure can be critical for knowledge sharing and the formation of virtual teams to execute innovation processes which, in turn, may enhance e-innovation and business value. Building on these antecedents, the purpose of this paper is to explore whether and how web infrastructure and e-innovation can create business value by complementing each other.

Design/methodology/approach

Based on the resource-based view (RBV) of the firm this paper develops a conceptual model to assess the effects of web infrastructure and e-innovation on business value as well as the complementarity between these resources. To test the associated hypotheses, a regression model was estimated and tested on a large sample of Spanish firms from different industries.

Findings

The results show that web infrastructure is not positively related to business value, but on the contrary e-innovation has a positive impact on business value. However, support for complementarity between web infrastructure and e-innovation was not found.

Originality/value

The present study tests the RBV logic, arguing that not all IT resources are source of competitive advantage. In the same vein, this study shows that e-innovation, as it requires combination of IT infrastructure with other unique intangible resources, is much more difficult to imitate, leading to competitive advantages.

Details

Program, vol. 50 no. 1
Type: Research Article
ISSN: 0033-0337

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Article
Publication date: 28 January 2014

Yi Jiang and Jing Zhao

IT-based supply chain performance is co-created through inter-organizational business processes. This research is motivated to explore how business value of IT in supply…

Abstract

Purpose

IT-based supply chain performance is co-created through inter-organizational business processes. This research is motivated to explore how business value of IT in supply chain is co-created in downstream process and probe into the possible complementary effect of relational resources from retailers and customers during the cooperative process. The paper aims to discuss these issues.

Design/methodology/approach

A model is proposed to conceptualize the process with three dimensions and six constructs, which emerges a causal link between organization resources application, e-supply chain capability (ESCC) and process performance. And then the research model was validated using partial least squares with data collected from 128 manufacturing firms in China.

Findings

The results provide broad support for the following: the casual relationship among inter-organizational resources interaction, ESCC and process performance; the mediating role of ESCC in the e-CRM process is more significant than that in e-ordering process; and there is the moderating effect between relational resources and internal resources in e-CRM process.

Practical implications

It offers guidelines for managers to plan the roles played by resource, capabilities and performance for e-supply chain success in multi-firm environments.

Originality/value

This study provides a novel perspective and offers important implications for e-supply chain research and practice, by exploring intermediate factors and shedding light on the process of co-creating business value of IT in supply chain.

Details

Industrial Management & Data Systems, vol. 114 no. 1
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 14 December 2020

Morten Brinch, Jan Stentoft and Dag Näslund

While big data creates business value, knowledge on how value is created remains limited and research is needed to discover big data’s value mechanism. The purpose of this…

Abstract

Purpose

While big data creates business value, knowledge on how value is created remains limited and research is needed to discover big data’s value mechanism. The purpose of this paper is to explore value creation capabilities of big data through an alignment perspective.

Design/methodology/approach

The paper is based on a single case study of a service division of a large Danish wind turbine generator manufacturer based on 18 semi-structured interviews.

Findings

A strategic alignment framework comprising human, information technology, organization, performance, process and strategic practices are used as a basis to identify 15 types of alignment capabilities and their inter-dependent variables fostering the value creation of big data. The alignment framework is accompanied by seven propositions to obtain alignment of big data in service processes.

Research limitations/implications

The study demonstrates empirical anchoring of how alignment capabilities affect a company’s ability to create value from big data as identified in a service supply chain.

Practical implications

Service supply chains and big data are complex matters. Therefore, understanding how alignment affects a company’s ability to create value of big data may help the company to overcome challenges of big data.

Originality/value

The study demonstrates how value from big data can be created following an alignment logic. By this, both critical and complementary alignment capabilities have been identified.

Details

Supply Chain Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 8 May 2018

Clare Victoria Thornley and Catherine Anne Crowley

The purpose of this paper is to address the problem of ensuring that the capabilities are in place to identify when a project can no longer deliver value and to take…

Abstract

Purpose

The purpose of this paper is to address the problem of ensuring that the capabilities are in place to identify when a project can no longer deliver value and to take appropriate action to terminate the project.

Design/methodology/approach

Focus groups with project management practitioners were used to collect in-depth qualitative data. This was then supplemented with a questionnaire, which included both closed questions and the opportunity for free text answers.

Findings

The problem of getting better at stopping projects is both common and difficult to solve. It has many facets, which include complex people and cultural issues, processes and procedures as well as financial reporting and project governance. In order to improve, therefore, it is useful to address these different facets in a coordinated way using a capability approach with a focus on business value.

Research limitations/implications

The data from practitioners are retrospective, as their actions were not actually observed by the researchers as they were happening. This means that faulty recollection may influence the results but, it also allows for insights from reflection to be incorporated.

Practical implications

An organizational capability approach focusing on all three aspects of capability; people, processes and technology, can help organizations get better at stopping projects. Specific recommendations are provided and analyzed in terms of their respective capability focus.

Social implications

If performance in terminating projects is improved, it has the potential for significant benefits and cost saving for society in terms of improved government services and the ability to halt projects around new policy initiatives when emerging evidence shows they will not work.

Originality/value

It provides detailed practitioner input on the problem of stopping projects and suggests recommendations for improvement in the context of a structured organizational capability approach with reference to a particular framework, IT-CMF.

Details

International Journal of Managing Projects in Business, vol. 11 no. 2
Type: Research Article
ISSN: 1753-8378

Keywords

Content available
Article
Publication date: 5 August 2019

Anton Manfreda and Mojca Indihar Štemberger

A poor relationship between top management and IT personnel is often denoted as a businessIT gap. In an era of digital transformation, bridging this gap and establishing…

Abstract

Purpose

A poor relationship between top management and IT personnel is often denoted as a businessIT gap. In an era of digital transformation, bridging this gap and establishing a strong relationship between business and IT are more important than ever before. The purpose of this paper is thus to examine a particular link between business and IT managers – a partnership relationship – together with the factors facilitating it.

Design/methodology/approach

A partnership construct is developed based on interdisciplinary studies and transferred to the businessIT context since it is not generally used in IT disciplines. The model was empirically tested with structural equation modelling using data obtained from 221 IT managers in Slovenian companies.

Findings

The results show that both the perceived value of IT and the business orientation of the IT department exert a positive influence on the partnership, while a mere technology-oriented IT department has a negative effect on the partnership relationship. Furthermore, the paper also presents the prerequisites for a business-oriented IT department.

Originality/value

In this digitalisation era, IT is becoming even more important for its strategic role in organisations. There is thus a strong need to bridge the businessIT gap. Despite significant efforts made to close this gap, it remains a major issue. This research contributes to understanding the businessIT gap and presents the key factors for ensuring a partnership relationship is in place. The study also combines the views of social exchange theory and knowledge-based theory and upgrades findings concerning the influence of social facilitators on collaboration outcomes.

Details

Information Technology & People, vol. 32 no. 4
Type: Research Article
ISSN: 0959-3845

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Article
Publication date: 1 August 2001

Patrick McAllister

This paper explores the conceptual and methodological issues relating to the valuation and appraisal of commercial properties where revenue generated by the provision of

Abstract

This paper explores the conceptual and methodological issues relating to the valuation and appraisal of commercial properties where revenue generated by the provision of additional services constitutes a significant proportion of the total income flow. The paper focuses on two main areas. First, the valuation and development of the serviced office model is discussed. Second, the implications of the growing interest of landlords in acting as access managers and suppliers to their tenants are considered. The US debate on business enterprise value and hotel appraisal is reviewed. It is concluded serviced offices owner occupiers have two main assets – the tangible property asset and intangible business asset(s) – which are symbiotically linked but separable. In order to appraise these interests valuers need to be able to value businesses and property since the income flows derived from service provision will have different drivers and risk profiles than pure property‐derived income flows.

Details

Journal of Property Investment & Finance, vol. 19 no. 4
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 5 September 2013

Yi Wang, Yuan Liu, Yeyuan Dai and Danming Lin

– The purpose of this paper is to elicit the rich implications of IT business value for small- and medium-sized enterprises (SMEs) from the perspective of IT leaders.

Abstract

Purpose

The purpose of this paper is to elicit the rich implications of IT business value for small- and medium-sized enterprises (SMEs) from the perspective of IT leaders.

Design/methodology/approach

This paper uses case study and the repertory grid technique to explore cognition of IT business value of the IT leader in Guangdong CHJ Industry Co., Ltd (CHJ), a fast-growing jewelry company in China. The paper further examines this cognitive structure of IT business value by using cluster analysis technique.

Findings

This paper develops a six-category framework of IT business value from IT leaders' perspective, which provides insights for future research of IT applications in SMEs.

Originality/value

This study contributes to IT business value research by providing empirically grounded insight from perspectives of IT leaders in SMEs. The identified IT business value framework can also serve as a practical tool to help managers comprehensively assess and evaluate IT applications in SMEs.

Details

Journal of Chinese Entrepreneurship, vol. 5 no. 3
Type: Research Article
ISSN: 1756-1396

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Article
Publication date: 2 July 2018

Abdallah Khalaf Alsaad, Kawther Jameel Yousif and Mohamad Noor AlJedaiah

The purpose of this paper is to investigate the role of electronic collaboration (e-collaboration) including information sharing, resource sharing and joint knowledge…

Abstract

Purpose

The purpose of this paper is to investigate the role of electronic collaboration (e-collaboration) including information sharing, resource sharing and joint knowledge creation in value creation within pharmaceutical supply chain (SC) and achieving competitive priorities for pharmaceutical companies in Jordan.

Design/methodology/approach

A descriptive analytical methodology was used through a comprehensive review of published and unpublished work from secondary sources of information in the areas of specific interest: e-collaboration and competitive priorities. The study was conducted at Jordan Food and Drug Administration (JFDA) (of which many pharmaceutical companies are linked electronically through JFDA workflow system). Data were collected (using paper questionnaire) from 90 electronically collaborating pharmaceutical companies and 81 complete responses were received, forming a 90 percent response rate. The analysis of collected data was performed using partial least square structure equation modeling.

Findings

The results of the analysis indicated that e-collaboration dimensions, information sharing and resource sharing, have a positive impact on competitive priorities, while joint knowledge creation was not significantly related to them. The results suggest that value creation in SC electronic systems is contingent on mutual resource synergy and joint collaboration among trading partners.

Research limitations/implications

The sample size for this study does not include all pharmaceutical companies in Jordan, as this electronic linkage within the pharmaceutical companies is at its early stage. Moreover, competitive priorities examined in this research are limited to a single industry context.

Practical implications

This study offers a new insight into information technologies (IT)/business values that can be beneficial to IT and SC managers. By proposing the association between e-collaboration activities and competitive priorities, IT and SC managers are provided with a useful tool to link IT with collaborative activities that lead to value creation. To the best of the authors’ knowledge, this research is one of the early studies about e-collaboration in pharmaceutical SC and competitive priorities in Jordan. As such, managers of manufacturing companies can use the outcome of this study to establish more collaborative partnerships within their SCs. This research contributes to encouraging pharmaceutical firms to focus on their export and marketing capabilities regionally and abroad which would establish a globally competitive pharmaceutical technology industry in Jordan.

Social implications

It reveals that the adoption of IT alone to manage SC relationships is not sufficient to generate value. Both information- and resource-sharing activities are the core to do so .The results suggest that value creation in SC electronic systems is contingent on mutual resource synergy and joint collaboration among trading partners. The results of the analysis indicated that the dimension of e-collaboration, joint knowledge creation, was not significantly related to competitive priorities.

Originality/value

This study offers a contextual contribution. To the best of the authors’ knowledge, this research is one of the early studies about e-collaboration in pharmaceutical SC and competitive priorities in Jordan.

Details

EuroMed Journal of Business, vol. 13 no. 2
Type: Research Article
ISSN: 1450-2194

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