Creating value with IT - Creating value

13 important questions on Creating value with IT - Creating value

What is the structure of an IT business value model?

There are 3 layers
- the focal firm, which is the firm in charge of  the organization that invests in and deploys IT resources
- the competitive environment: environment where the company operates
- the macro environment: country, continent, etc

How is the focal firm layer setup?

This layer's domain is the company governing over the supply chains, providing direct contact to end consumers, and having bargain power over other actors in the supply chain. The organizational performance is estimated with the 'IT Business Value Generation Process'

Which include
- IT resources
- Complementary organizational resources
- Competitive environment domain
- Macro environment domain

How does the focal firm add value

Through technological and human IT resources
- with IT, greater efficiency
- Human IT skills complementary yet necessary

Through complementarity between IT and organizational resources
- rarity, magnitude all have an effect on the competitive advantage
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How is the competitive environment layer set up?

1. Industry characteristics
Include competitiveness, technological change, and other factors which shape how IT is applied within the local firm.

2. Trading partners resources and BP
In supply chains, finetuning communication between companies

3. Macro environment domain/layer
Country and metacountry specific factors that shape IT application for imporvement of organizational performance. Like regulations

How does the competitive environment affect the IT business value

Through industry characteristics
- which moderate the ability of firms to apply IT, difference between online shopping and bakeries
- the greater the competition, the greater the efficiency gains through IT
- the greater the competition, the smaller the ability to capture benefits or gains through IT

Through linking with trading parnets
- The communication, through IT, impact performance  
- The greatr focal firm power relative to its trade partners, the greater its share of new value from deployment of the systems

How is the macro environment layer set up? And how does it influence value

Country characteristics which affect the competitive environment. Think of regulations etc.

Telecommunications infrastructure moderate the economic value of an interorganizational information sstem.

What is the key wisdom from the IT business value model?

To improve organisational performance
- the right IT must be applied
- appropriate complementary investments must be done in the workplace and organisatioanl structure
- the competitive and macro environment must be taken into account

What is the expectancy value theory?
And the theory of reasoned action?

Theory to understand the motivation underlying the behaviour of individuals

Explains the determinants of consciously intended behaviour
- attitude = beliefs about the consequences
- subjective norm = the influence that others will have on the acceptance decision

What are the key variables of the TAM?

Perceived usefulness (PU)
- defined from perspective of the user
- the degree to which a user thinks this will add in job performance
- influences both A and BI
Perceived Ease of Use (PEOU)

What are the limitations of TAM?

- Research is based on self-reported usage, not on actual usage
- Frequent use of students for experimental research, how representative??
- Model developed to understand voluntary usage: cant be used for predictions of non-voluntary usage

What is UTAUT and its key variables?

Unified Theory of Acceptance and Use of Technology
- Performance Expectancy (PU)
- Effort Expectancy (PEOU)
- Social Influence (SN) = the degree to which someone believes that important others believe in it
- Facilitating conditions: the belief in the support systems

- Gender
- Age
- Experience
- Voluntariness of use

Which all affect:
- Behavioral intention
- Use of behavior

What is the DeLone & McLean IS Success Model

Constructs & Measures
1. System quality
Way of measuring: Perceived Ease of Use (TAM)

2. Information quality
Desirable quality of he output of the IS and its usefulness

3. Service quality  
The quality of the support the user receives of IT

4. Intention to Use / Use
Degree and manner in which a system is utilized by its users

5. User satisfaction
Especially useful when the use is mandatory, yet may overlap with information quality and system quality

6. Net benefits         
Subsumes organisational impact and individual impact.

What are the lessons for IS development?

Pay attention to determinants of us
Pay attention to determinants of IS success
Consider ALL stakeholders
Ensure complementarity of TIR + HIR + Organisational resources
Consider: Competitive + Macro environment

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