E-Finance Lab Team

2010

Schlosser, F; Wagner, H; Beimborn, D; Weitzel, T

Role of Internal Business/IT Alignment and IT Governance for Service Quality in IT Outsourcing Arrangements

In: Proceedings of the 43rd Hawaii International Conference on System Sciences (HICSS); Kauai, HI, USA

Category: Proceedings

Reference No.: 2010-6

2009

Blumenberg, S; Wagner, H; Beimborn, D

Knowledge Transfer Processes in IT Outsourcing Relationships and their Impact on Shared Knowledge and Outsourcing Performance

In: International Journal of Information Management (IJIM), Volume 29, Issue 5

Category: Publications in scientific journals [Find it]

Abstract

What is the impact of specific knowledge transfer processes on the level of shared knowledge and, in turn, on outsourcing performance in outsourcing relationships? Drawing on a series of case studies covering IT providers and banks, we investigate several applied knowledge transfer processes dedicated to the transfer of explicit or tacit knowledge between outsourcing banks and their providers. We examine the differential influence of various types of knowledge transfer on shared knowledge between the parties and on the resulting outsourcing performance. Results depict the differential impact of various knowledge transfer processes dedicated to the transfer of explicit, or tacit knowledge, respectively, on the development of shared knowledge. Interestingly, the combination of both knowledge transfer processes dedicated to the transfer of explicit knowledge and those dedicated to the transfer of tacit knowledge proves to be most effective. Furthermore the results indicate that high levels of shared knowledge positively influence outsourcing performance. In addition to previous literature, we found transfer processes for explicit knowledge in an outsourcing context to consist of two dimensions: The content dimension, primarily focused on in literature, and the sender-receiver dimension of transfer processes which are rarely addressed in outsourcing literature. The content dimension embraces mechanisms such as trainings, SLAs and standards that define how content has to be interpreted, whereas the sender-receiver dimension of transfer processes of explicit knowledge defines explicit, documented interaction structures between parties.

Reference No.: 2009-1051

2008

Beimborn, D; Franke, J; Gomber, P; König, W; Wagner, H; Weitzel, T

Business-IT-Alignment in deutschen Banken - Die Rolle von IT für die Geschäftsprozesse und die Wettbewerbsposition deutscher Kreditinstitute

In: Books on Demand GmbH; Norderstedt

Category: Book

Reference No.: 2008-1226

Martin, S; Wagner, H; Beimborn, D

Process Documentation, Operational Alignment, and Flexibility in IT Outsourcing Relationships: A Knowledge-Based Perspective

In: Proceedings of the International Conference on Information Systems (ICIS); Paris, France

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

What is the impact of process documentation on the relationship between operational alignment and IT provider flexibility in IT outsourcing relationships? Drawing on a sample of application management outsourcing relationships from the German banking industry, we analyze the connections between interorganizational alignment of IT and business domains and IT provider flexibility. Results show that provider’s tacit knowledge about the client’s business domain is a strong enabler of flexibility on the provider side. If the client’s business processes are poorly documented, tacit knowledge is also the main element that fosters trust, acceptance, and respect (the cognitive dimension of operational alignment) on the client side. However, when extended up-to-date business process documentation is available, tacit knowledge, while still enabling flexibility, becomes irrelevant for fostering cognitive linkages between client and provider. Instead, IT provider flexibility becomes the main driver for the cognitive dimension of operational alignment.

Reference No.: 2008-1184

Wagner, H; Weitzel, T

IT Business Alignment as Governance Tool for Firm-Internal Relationship Quality: A Longitudinal Case Study

In: Proceedings of the 41th Hawaii International Conference on System Sciences; Hawaii, USA

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

Many business processes are relying on a smooth and flexible IT support. A major finding of IS research is that in order to generate value from IT the complementarities between IT and non-IT resources need to be understood and orchestrated. Especially, IT Business Alignment has been found to be a key driver of both, IT value and business process quality. But how to achieve alignment?

We present the results of a longitudinal case study in a globally active firm from the aerospace industry that shows how a new CEO implemented better business processes by increasing alignment. The results show an enhancing relationship between business and IT resources and concretize key findings from the resource based view. Overall, the case contributes by indicating that business value accrues from a simultaneous change of IS and business practices that was enabled by an increase in the level of IT business alignment.

Reference No.: 2008-498

2007

Gomber, P; König, W; Beimborn, D; Franke, J; Wagner, H; Weitzel, T

Kritische Erfolgsfaktoren in Finanzprozessen - IT-Management und Alignment im Kreditprozess der 1.000 größten Banken in Deutschland

Category: Working papers

Abstract

Management Summary Aufgrund einer Befragung der 1.020 größten Banken Deutschlands (Rücklaufquote 13,3%, repräsentativ bzgl. Bilanzsumme) zum Kreditgeschäft mit kleinen und mittleren Unternehmen (KMU) untersucht diese Studie Fragen zum geeigneten Einsatz von IT- und Fachressourcen und zu kritischen Erfolgsfaktoren im KMU-Kreditprozess. Befragt wurden die für diesen Geschäftsprozess verantwortlichen Entscheider. Dabei bestätigte sich die Grundvermutung, dass insbesondere Abstimmungsprozesse zwischen Fachabteilungen und der IT einen wichtigen Erfolgsfaktor für die Leistung des Geschäftsprozesses darstellen. *Kreditprozess:* Das betreute KMU-Kreditvolumen der befragten Banken beläuft sich im Schnitt auf 580,7 Mio. EUR und setzt sich aus 2030 Krediten zusammen. Im Mittel erzielen die befragten Institute eine Zinsmarge von 1,68% (Zinsmarge = Differenz zwischen Kundenzinssatz und fristenkongruentem Interbankenzinssatz) für KMU-Kredite guter Bonität. *IT:* Neben der Kernapplikation zur Unterstützung des KMU-Kreditprozesses nutzen 17,9% eine elektronische Kreditakte und ein Fünftel ein Workflow-Management-System (bei weiteren 45% geplant). In allen Teilen des Kreditprozesses werden von der Mehrheit eine intensivere IT-Unterstützung sowie Funktionserweiterungen bei der Kernapplikation gewünscht. *Alignment:* Die Zusammenarbeit der Fachbereiche Markt und Marktfolge wird in der Regel als gut eingeschätzt und es gibt viele formelle und informelle Beziehungen. Die Abstimmung zwischen IT- und Fachabteilungen ist dagegen deutlich problematischer. Neben kaum stattfindender gegenseitiger Beratung zwischen diesen beiden Bereichen sind die IT- und/oder Geschäftsstrategie entweder nicht explizit vorhanden oder nicht gegenseitig bekannt. Dabei zeigt sich, dass in Banken mit intensiveren Kommunikationsbeziehungen zwischen IT- und Fachabteilungen beispielsweise änderungsanfragen deutlich schneller umgesetzt werden können. Ebenso sehen nur 38,1% Vertrauen und Respekt zwischen beiden Seiten; diese werden jedoch in der Literatur als wichtige Vorbedingung für erfolgreiche Zusammenarbeit beschrieben. Entsprechend sind die Fachabteilungen mit der Umsetzung von Change Requests an der Kreditapplikation unzufrieden und empfinden die Reaktion der IT-Einheit auf änderungsanfragen als unflexibel (63,9%) und die Umsetzung als langsam (60,9%) und teilweise auch als nicht effektiv: Nur 29,4% empfinden die Umsetzungen von Change Requests als nützlich. Wird die Applikation von einem externen Dienstleister bereitgestellt, so sind diese Bewertungen noch schlechter. *Prozessqualität:* Die Mehrheit ist tendenziell zufrieden mit dem KMU-Kreditprozess. Es besteht jedoch insbesondere im Bereich Problemkredite und in der Intensivbetreuung Verbesserungspotenzial. Im Hinblick auf interne Leistungsparameter ist vor allem die mangelnde Kenntnis von Prozesskosten ein Problem. Nur etwa ein Viertel der antwortenden Banken kennt die Kosten für die Bearbeitung eines KMU-Kredites, die bei durchschnittlich 1.357,60 EUR liegen. Wiederum ein Viertel dieser Banken gab sogar Kosten von über EUR 2.000 an. Ebenso ist bemerkenswert, dass Firmenkundenberater im Durchschnitt lediglich 34,5% ihrer Arbeitszeit im direkten Kontakt mit Kunden verbringen. Die Analyse zeigt weiterhin, dass Banken mit geringer Prozessdurchlaufzeit auch geringere Stückkosten haben. Die mittlere Durchlaufzeit (Einreichung aller notwendigen Unterlagen durch den Kunden bis zur Kreditzu- oder -absage) liegt bei einem Standardkredit bei 8,06 Arbeitstagen und bei 14,25 Arbeitstagen für komplexe Finanzierungen. Dabei können durch eine Verkürzung der Durchlaufzeit um einen Tag im Durchschnitt Kosteneinsparungen von EUR 117 bei Standardkrediten und von EUR 59 bei komplexeren Finanzierungen erzielt werden. Die Umsetzung eines Change Requests der Art "Hinzufügen eines neuen Datenfeldes" dauert im Durchschnitt 16,5 Wochen, die Berücksichtigung eines aufgrund regulatorischer Vorgaben geänderten Arbeitsablaufes durchschnittlich 9,9 Wochen; die Schwankungsbreite beider Werte ist jedoch recht groß. Dabei ist in Banken mit gutem IT-Business-Alignment die Reaktionsgeschwindigkeit der IT-Abteilung höher. *Outsourcing:* Die generelle Einstellung gegenüber der Auslagerung von Teilen des KMUKreditprozesses ist negativ. Interessanterweise sind Nutzungsintensität der IT, Automatisierungsgrad der Geschäftsprozesse, Anzahl an Medienbrüchen sowie die Einschätzung der Kompetenz und Innovationsfähigkeit des IT-Personals davon unabhängig, ob die IT intern betrieben wird oder ausgelagert wurde. Einzig die Einschätzung der IT-Flexibilität wird von Banken, die ihre Kernapplikation ausgelagert haben, deutlich schlechter beurteilt. *Wettbewerb:* Jede Bank sieht sich durchschnittlich 3-4 Wettbewerbern gegenüber. Speziell in regionalen Märkten mit einer hohen Anzahl an Wettbewerbern zeigen sich eine hohe Wettbewerbsintensität und ein niedriger preislicher Handlungsspielraum der befragten Banken. Im Durchschnitt erreichen die Kreditinstitute in ihrem relevanten Markt einen Marktanteil von 37,5%. *Prozessgestaltung:* Auch wenn die Ausgestaltung des Kreditprozesses von den Banken derzeit nicht als Wettbewerbsfaktor gesehen wird, zeigt die Studie, dass diejenigen Banken, die dies dennoch tun, höhere Marktanteile haben und zufriedener mit der Profitabilität ihres Kreditgeschäftes sind. Diese Gruppe zeichnet sich auch dadurch aus, in den letzten Jahren verstärkt Marktanteile hinzu gewonnen zu haben. Insgesamt zeigt sich, dass die Kompetenz der Fachseite den höchsten Anteil an einer überdurchschnittlichen Prozessleistung besitzt, die IT allerdings deutliche Unterstützung leisten kann. Während es keinen Einfluss der Institutsgröße auf die Prozessqualität gibt, hat auch die Flexibilität der Fachabteilung einen direkten Einfluss auf die Wettbewerbsposition. Der folgende Abschnitt bietet einen genaueren überblick über die Ergebnisse der Studie. Bei Fragen oder Anregungen freuen wir uns auf ihre Rückmeldung unter it-management@efinancelab.com

Reference No.: 2007-1078

Wagner, H

A Resource-based Perspective on IT Business Alignment and Firm Performance: Theoretical foundation and empirical evidence

Category: Dissertation thesis

Reference No.: 2007-924

Wagner, H; Weitzel, T

Towards an IT production function: understanding routines as fundamental for IT value creation

In: Journal of Enterprise Information Management (JEIM), Vol. 20, No. 4, 380-395

Category: Publications in scientific journals [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

Purpose of this paper
The goal of this paper is to identify core IT value drivers in firms and to model them as an IT production function to help disclose and measure the IT value creation process and to guide managers in seeking adequate ways of employing the IT resource.

Design/methodology/approach
Based on a critical review of the literature on the resource-based view, an IT value framework based on the constructs IT capability, resource, and routine is developed and then formalized as an IT production function.

Findings
Organizational routines are decisive for turning firm resources into an IT capability and in turn into better business process performance. We show how the IT value creation process in general and routines in particular can be measured and formalized.

Practical implications
As the interaction between IT and business units is crucial for IT value generation, or-ganizational routines provide for important knowledge flows that turn firm resources into value generating capabilities. We propose a concrete method to measure and evaluate these routines and thereby contribute to making the IT resource controllable.

What is original/value of paper
Our main contribution is the identification and analytical formalization of the role of rou-tines for IT value creation. We show how insights from the resource-based view, micro-economic theory (Cobb-Douglas/CES production function), and Granovetter's strength of ties argument can be used to describe, measure, and guide IT value creation and to develop an IT production function.

Reference No.: 2007-804

Beimborn, D; Franke, J; Wagner, H; Weitzel, T

The Impact of Operational Alignment on IT Flexibility - Empirical Evidence from a Survey in the German Banking Industry

In: 13th Americas Conference on Information Systems (AMCIS 2007); Keystone (CO), USA

Category: Proceedings

Abstract

Alignment and IT flexibility have been found to be crucial for a firm’s long-term success in many indus-tries. This paper investigates how alignment and flexibility are interrelated at an operational level. Based on a survey with Germany’s Top 1,000 banks we show on a business process level that shared knowledge and mutual understanding (as dimensions of alignment) between IT unit and business department have a positive impact on IT flexibility. On the other hand, higher degrees of communication between business and IT units do not correlate with higher IT flexibility.

Reference No.: 2007-647

Beimborn, D; Franke, J; Wagner, H; Weitzel, T

The Influence of Alignment on the Post-Implementation Success of a Core Banking Information System: An Embedded Case Study

In: 40th Hawaii International Conference on Information Systems; Hawaii

Category: Proceedings

Password protected due to former publication, please contact the author

Abstract

The literature suggests that the success of an information system among others depends on its utilization. In this paper, we argue that operational IT business alignment is an important driver of system usage and thereby of the market success of the supported business process.

Using an embedded case study in four branches, the back office, and the IT department of a retail bank, many findings of the recent alignment literature can be supported. Using a strict business process perspective, we also offer new insights by showing that alignment is important for IS success in operations as well and positively influences post-implementation IS usage. In particular, mutual understanding between the units and shared domain knowledge not only between IT and business but also between different business units supported by the same core IS turned out to be very important factors of IS usage that have so far been neglected.

Reference No.: 2007-43

2006

Beimborn, D; Franke, J; Wagner, H; Weitzel, T

The Impact of Outsourcing on IT Business Alignment and IT Flexibility: A Survey in the German Banking Industry

In: 12th Americas Conference on Information Systems (AMCIS 2006); Acapulco, Mexico

Category: Proceedings

Password protected due to former publication, please contact the author

Abstract

The ability to outsource IT has been suggested as a major driver of IT productivity. At the same time, the literature on the business value of IT suggests that IT business alignment and IT flexibility are important drivers for the performance of IT. But what is, then, the impact of outsourcing on these key value drivers? In this paper, we empirically show that firms with internal IT exhibit significantly better IT business alignment and IT flexibility.

Reference No.: 2006-532

Gomber, P; König, W; Beimborn, D; Franke, J; Wagner, H; Weitzel, T

Kritische Erfolgsfaktoren in Finanzprozessen - IT-Management und Alignment im Kreditprozess der 1.000 größten Banken in Deutschland

Category: Miscellaneous

Reference No.: 2006-388

Beimborn, D; Franke, J; Gomber, P; Wagner, H; Weitzel, T

Die Bedeutung des Alignments von IT und Fachressourcen in Finanzprozessen: Eine empirische Untersuchung

In: WIRTSCHAFTSINFORMATIK 48 (5) , S. 331-339

Category: Publications in scientific journals [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

Wie kann die Ressource IT wertschaffend eingesetzt werden? Auf der theoretischen Grundlage des Resource-based View of IT sowie der Alignment-Literatur argumentieren wir, dass die tatsächliche Nutzung der IT sowie das Zusammenspiel zwischen IT und Fachabteilungen grundlegend für die Leistung von IT-intensiven Geschäftsprozessen sind. Das entwickelte Wirkmodell wird in einer Studie unter den 1.000 größten Banken Deutschlands empirisch untersucht.

Es zeigt sich, dass die Leistung des untersuchten Geschäftsprozesses, wie hypothetisiert, stark von einem Alignment zwischen der IT- und der Geschäftsdomäne abhängt. Ebenso wird deutlich, dass ein bestimmtes Ausmaß fachlicher Ressourcen entscheidend ist und auch eine herausragende IT-Ausstattung und -Unterstützung keine Mängel hinsichtlich dieser fachlichen Ressourcen ausgleichen kann. Die Ergebnisse bestätigen damit wichtige Einsichten der Literatur zu Alignment auch auf Prozessebene und zeigen im Gegensatz zu bestehender Literatur theoretisch wie empirisch, dass der Wertbeitrag der IT nicht ohne Berücksichtigung der Nicht-IT-Fachkompetenz untersucht werden kann.

Reference No.: 2006-302

Wagner, H

The role of alignment and IS usage for business process performance: An empirical survey among German banks

In: 10th Pacific Asia Conference on Information Systems (PACIS); Kuala Lumpur, Malaysia

Category: Proceedings

Abstract

There is still a lack of coherent theoretical explanations for why and how IT Business alignment (ITBA) influences process outcomes. This study draws on the knowledge-based theory to develop and test a process-level model that links different types of alignment and IS usage to process outcomes. While prior research has mostly focused on strategic alignment, we posit that the implementation of strategies into an operational process also is important to achieve beneficial outcomes. Therefore, we investigate the impact of ITBA on performance at a process-level of analysis. Additionally, we propose that business-internal alignment is an important construct contributing to the explanation of performance. Furthermore, we include IS usage and business skills to encompass further essential resources of the business process. Testing the model using data from 136 banks shows that ITBA and business-internal alignment have direct and positive effects on performance at the process level. Furthermore, IS usage and business skills proved to have significant effects on process performance. Overall, the result contribute to the IT value creation debate by empirically showing the effect of alignment and IS usage on a process level and by revealing the role of business-internal alignment.

Reference No.: 2006-134

Wagner, H; Weitzel, T

Operational IT Business Alignment as the Missing Link from IT Strategy to Firm Success

In: 12th Americas Conference on Information Systems (AMCIS 2006) (nominated best paper); Acapulco, Mexico

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

Strategic alignment deals with the capability of IT to both shape and support business strategy. It can be interpreted as an organizational learning process that combines business and IT knowledge to support business objectives and can positively affect organizational profitability by creating superior strategies that achieve a competitive advantage. These strategies have to be implemented, because strategies are only effective when they are translated into actions readily. Therefore, in this paper we introduce the concept of operational IT business alignment, reflecting the functional integration at the structural level and representing the link between business and IT structure. Using structural equation modeling and data from 136 banks we show that operational IT business alignment positively impacts dynamic IT and business capabilities and in turn strategic alignment and firm performance.

Reference No.: 2006-114

Wagner, H; Weitzel, T

Social Interaction as Constituting Element of Routines: Incorporating Social Network Analysis into IS research

In: forthcoming in 12th Americas Conference on Information Systems (AMCIS 2006); Acapulco, Mexico

Category: Proceedings

Abstract

Organizational routines known from the Resource-based View (RBV) are considered elementary for IT value creation as they determine the efficiency with which firms transform inputs to outputs. As routines are socially complex patterns of inter-action, we incorporate findings from the literature on the Resource-based view and Social Network Analysis to disclose the social formation of organizational routines as a constituting element. Our model extends the central findings of the RBV by considering the impact of the social embeddedness of a firm’s employees using Granovetter’s strength of ties argument. The proposed model can be used for a sensitivity analysis regarding the impact of different interaction patterns between and among organizational units on business process performance. The model provides good support for the effects cited in the literature and is illustrated by a case.

Reference No.: 2006-113

Beimborn, D; Franke, J; Wagner, H; Weitzel, T

Strategy Matters – The Role of Strategy Type for IT Business Value

In: 12th Americas Conference on Information Systems (AMCIS 2006); Acapulco, Mexico

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

There is a general consensus among practitioners and researchers alike that IT business alignment improves business performance. Alignment mostly is researched at a strategic level, but has to be implemented in daily operations to be effective. Therefore, in this paper we introduce the concept of operational IT business alignment, reflecting the functional integration at the structural level and representing the linkage between business and IT structure. Using structural equation modeling and data from 136 banks we show that operational IT business alignment positively impacts IS usage and IT flexibility and in turn process performance. Furthermore it is shown that the effect of IT business alignment strongly depends on the type of business strategy a bank follows.

Reference No.: 2006-111

Wagner, H

Managing the Impact of IT on Firm Success: The Link between the Resource-based View and the IT Infrastructure Library

In: Proceedings of the 39th Hawaiian Conference on System Sciences; Kaui, Hawaii, USA

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

How to use IT to gain a sustainable competitive advantage (SCA) is a key question in IS research. Different research strands of the resource based view (RBV) deal with this question. Another discipline en-gaged in IT is information management. Both ap-proaches provide valuable insights into the effective and efficient use of the IS resource but are rather in-dependent from one another. On the side of informa-tion management broadly accepted best practice frameworks like the IT Infrastructure Library (ITIL) evolved but lacking theoretical grounding, regarding RBV lots of valuable findings regarding the deploy-ment of IT for gaining and sustaining a competitive advantage arised but lacking of concrete practical linkage. This paper aims to link both approaches in order to make the RBV more applicable to practical prob-lems and to inject theoretical grounding into a best practice framework thereby enhancing the value for managers. It is shown that ITIL can be theoretically based on the notion of a capability and be employed in order to gain complementary effects between resources push-ing forward positive effects of IT deployment by en-hanced IT usage.

Reference No.: 2006-10

Wagner, H; Beimborn, D; Franke, J; Weitzel, T

IT Business Alignment and IT Usage in Operational Processes: A Retail Banking Case

In: Proceedings of the 39th Hawaii International Conference on System Sciences; Kauai, USA

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

What is the impact of operational (i.e. non-strategic) IT business alignment on IT usage? Using case studies in three branches of a retail bank employing identical information systems, many findings of the alignment literature can be supported. The cases also add new insights by showing that alignment is important in operations as well, and that alignment positively impacts IT usage. Especially mutual understanding between the business units and the IT unit turned out to be the single most important factor of IT usage that resulted from frequent interaction and, as far as the IT unit is concerned, from the business orientation of the IT personnel.

Reference No.: 2006-7

2005

Wagner, H; Beimborn, D; Franke, J; Weitzel, T

IT Management in Banks - The Role of Alignment and Usage

In: EFL-Quarterly 4/2005; Frankfurt am Main

Category: Publications in journals

Abstract

In a case study in the German retail banking business it is shown that alignment between IT and business unit is crucial for the actual usage of IT systems which in turn is a key driver for business process quality. Banks should therefore foster interrelationships between IT and business as well as cross functional work biographies of team leaders.

Reference No.: 2005-241

Franke, J; Wagner, H; Weitzel, T

The Role of IT Business Alignment for Value Creation: A Multiple Case Study among German Banks

In: Proceedings of the 26th International Conference on Information Systems (ICIS05); Las Vegas, Nevada

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

The ways in which IT creates business value is a key question in IS research and practice. In this paper, we aim to help reveal the role of alignment between IT and business resources in business value creation. In particular, we propose that the contribution of IT to business process performance should be investigated in the context of actual IT usage, with IT business alignment as a moderating variable. Also, IT flexibility should be explicitly considered. Using five case studies from the German financial services industry based on a causal model of IT business value creation reveals that the process of IT business value creation indeed strongly depends on the alignment between business and IT. But it also turns out that actual presence of business competencies is crucial and that even superior IT cannot compensate for business competency deficiencies.

Reference No.: 2005-205

Wagner, H; Weitzel, T

The role of alignment for strategic information systems: extending the resource-based perspective of IT

In: Proceedings of the Eleventh Americas Conference on Information Systems (AMCIS 2005); Omaha, Nebraska, USA

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

The importance of strategic information systems in the financial industry is documented in many studies. But still there is a virulent lack of frameworks to explain the profit impact of IT in general and to guide firms in exploiting the IT resource as a source of competitive advantage.

By incorporating findings from different research strands on the resource based view (RBV) and the strategic alignment literature we elaborate key concepts potentially leading to a sustained competitive advantage. These concepts are explicitly modeled and integrated into a financial services production function using the well-developed instruments of microeconomic theory. Especially interactions between the IT and business domain are found to be a key success driver. Supported by four case studies from the financial services industry it is shown how IT business alignment positively impacts process quality and in turn establishes a competitive advantage. Our findings suggest that the exploitation of strategic information systems in the sense of achieving a sustainable competitive advantage requires establishing an organizational routine of cross-departmental interaction.

Reference No.: 2005-96

Wagner, H; Weitzel, T

The Impact of IT On Competitive Advantage: A microeconomic approach to making the resource-based view explicit

In: 13th European Conference on Information Systems; Regensburg

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

How can an organization establish an efficient IS resource? Over the years, the resource-based view (RBV) has provided important insights into the value creation by IT. Unfortunately, large parts of the literature suffer from broad and ambiguous constructs that are problematic to validate and difficult to concretely apply. Furthermore, the transmission from IT resources on one side to competitive advan-tage on the other is not yet sufficiently understood. Goal of this paper is to clarify some of the often used constructs and build a framework for the transmission from the endowment with resources to the achievement of competitive advantage. In this paper, we aim to contribute to this research strand in two ways. First, a model incorporating many isolated findings from the RBV is developed. Reflecting the need for a process view as proposed by large parts of the alignment and strategic management literature, this is integrated into a single process framework of analysis. Second, by developing a microeconomic IT service production function incorporating organizational routines the transmission from IT resource to better business process performance is explicated, allowing simultaneous parameter sensitivity analysis and contributing to making the RBV applicable and open for empirical research.

Reference No.: 2005-44

Wagner, H; Weitzel, T

Modeling the Impact of Alignment Routines on IT Performance: An Approach to Making the Resource based View Explicit

In: Proceedings of the 38th Hawaiian International Conference on System Sciences (HICSS-38); Hilton Waikoloa Village, Big Island, Hawaii

Category: Proceedings [Protected Download] Password protected due to former publication, please contact the author

Password protected due to former publication, please contact the author

Abstract

This paper investigates the link between IT and firm performance by combining different theoretical perspectives and emphasizing the role of routines in IT-Business alignment. The basic concept of routines is operationalized and presented in an algebraic form allowing for explicit modeling and using of findings from the literature on the resource based view (RBV) and IT-Business alignment.

How to use IT to gain a sustainable competitive advantage and in turn a plus in firm performance is a key question in IS research. This paper examines the RBV and alignment literature and elaborates the importance of routines in both perspectives. The results show routines are a basic underlying concept to understand the linkage between IT resources and firm performance. This basic concept is operationalized showing the functional relationships known from literature. The paper therefore advances theory and informs practice by combining different theoretical perspectives and making them explicit.

Reference No.: 2005-7

2004

Franke, J; Möbs, A; Son, S; Wagner, H

Bridging the gap: Linking IT-Infrastructure and Business Processes

Category: Miscellaneous

Reference No.: 2004-147

2003

Son, S; Wagner, H

Nutzen und Grenzen des ITIL-Prozessmodells

In: Kennzahlen in der IT; Heidelberg

Category: Book [Find it]

Reference No.: 2003-205