Bonnie W. Morris

Agent-based analysis and simulation of the consumer airline market share for Frontier Airlines

The complex and interconnected world in which organizations operate presents many challenges to the traditional neo-classical view of research and management and associated research techniques. Fundamental to the operation of financial capital markets, investor confidence relies on accurate investment analyst earnings forecasts. We propose agent-based modeling (ABM) as a viable tool to account for the interaction of local and environmental factors to determine organizational success. In an illustrative case study of Frontier Airlines, we develop and execute an ABM of Frontiers consumer airline market to derive market share for the upcoming year. In the model, Frontier is impacted by internal policies, competitors, and environmental factors of fuel costs, federal regulation, and credit availability. We conclude with a discussion on how ABM can be effectively incorporated into future research activities and decision-making situations.

Secure Information Market: A Model to Support Information Sharing, Data Fusion, Privacy, and Decisions

ABSTRACT: There are instances where multiple organizations hold data that when considered individually are inconclusive, but collectively are useful to solve complex problems. Yet, frequently there is a hesitation for organizations to share data due to strategic, legal, and policy concerns. To address this hesitation, an electronic market for secure information sharing is described, in which data are contributed to the market by members, and made available from the market to members or preapproved information buyers. In this Secure Information Market (SIM), shared data are secure, and available in granular or aggregate form based on specific requirements of the information providers and consumers. The model is designed to protect member organizations and their shared data, while maximizing member value and incentives to share. The Secure Information Market model is presented, and then its applicability is demonstrated using a variety of examples.

Enabling Trust through Continuous Compliance Assurance

As the digital world expands the building of trust and the retention of privacy in information sharing becomes paramount. The impediment to information sharing is a lack of trust between the parties, based on security and privacy concerns, as well as information asymmetry. In an effort to foster trusted information sharing we propose a trusted enclave with an embedded Continuous Compliance Assurance (CCA) mechanism as a technology solution. The CCA mechanism if not too costly in processing, would assure compliance to all regulatory policies regarding the data to be shared. A test bed which mimics the trusted enclave with the embedded CCA module was built to capture realistic performance statistics. The performance statistics gathered through the test bed indicate that real time compliance assurance is feasible, thereby enabling trusted information sharing.

Is Continuous Compliance Assurance Possible

The increased threat of legal sanctions or fines for failure to comply with laws and regulations make it imperative that auditors assess the level of compliance with information sharing policies and regulations in a timely manner. Embedding a monitoring mechanism, such as our Continuous Compliance Assurance (CCA) module, into a technology solution for inter-organizational information sharing, if not too costly in processing, would ensure appropriately timed compliance enforcement. A test-bed, which incorporated our CCA module, was built to capture realistic processing statistics. Through this test-bed, we have observed a limiting factor imposed by XML based processing. The feasibility of CCA rests on the reduction of these limiting factors. Accordingly we present two approaches to mitigate these issues.

IT internal control weaknesses and the market value of firms

Purpose With computer technology fast becoming the engine that drives productivity, IT systems have become more pervasive in the daily operations of many businesses. Large, as well as small, businesses in the USA now rely heavily on IT systems to function effectively and efficiently. However, past studies have shown CEOs do not always understand how reliant their business is on IT systems. To the authors’ knowledge, no research has not yet examined if financial markets understand how IT affects the performance of businesses. The paper aims to discuss these issues. Design/methodology/approach In this study, the authors utilize the event study method to examine how financial markets interpret weaknesses in businesses IT systems. The authors examine this in the context of the Sarbanes-Oxley Act – Section 404 requirements and utilize the internal reporting requirement in the annual financial statement filing with the Securities Exchange Commission as a proxy to evaluate how the financial markets interpret IT weaknesses. Findings Using an event study, the authors show that the market does not necessarily understand and respond to the effects of IT weaknesses on overall financial performance of firms and thus challenge the efficient market hypothesis theory. Originality/value A second contribution is methodological in nature. IS researchers thus far have been using limited market benchmarks, statistical tests, and event windows in their respective event studies of market performance. This study shows shortcomings of that approach and the necessity of expanding usage of available event analysis tools. The authors show that using more than one market benchmark and statistical test across multiple time frames uncovers the effects that using a single benchmark and test over a single window would have overlooked.

A theory of complex adaptive inquiring organizations: application to continuous assurance of corporate financial information

Drawing upon the theories of complexity and complex adaptive systems and the Singerian inquiring system from C. West Churchmans seminal work The Design of Inquiring Systems , the study herein develops a systems design theory for continuous auditing systems. The discussion focuses on the two foundational theories, development of the theory of Complex Adaptive Inquiring Organizations (CAIO) and associated design principles for a continuous auditing system supporting a CAIO, and instantiation of the CAIO theory. The instantiation consists of an agent-based model depicting the marketplace for Frontier Airlines that generates an anticipated market share used as an integral component in a mock auditor going concern opinion for the airline. As a whole, the study addresses the lack of an underlying system design theory and comprehensive view needed to build upon and advance the continuous assurance movement and addresses the question of how continuous auditing systems should be designed to produce knowledge – knowledge that benefits auditors, clients, and society as a whole.

Information Systems Security Assurance Management at Municipal Software Solutions, Inc.

Based on an actual company, this case focuses on Business Continuity Planning issues for a small but growing software company, Municipal Software Solutions, Inc. (MSS). The firm experienced a catastrophic fire which completely eliminated all aspects of the information systems infrastructure, including the software product code repository, the client access infrastructure, the hardware operations center, and the software design facility. Fortunately, no one was harmed, and the firm survived despite the fact that it did not have a formal disaster recovery plan in place. MSS was very lucky. The case can be used in conjunction with coverage of risk assessment concepts in the context of the availability component of systems reliability and trust of services management. Accordingly, it is appropriate for use in courses covering information systems security, accounting information systems, or IT audit.