Daniel Beimborn

The impact of process standardization on business process outsourcing success

What is the impact of business process standardization on business process outsourcing (BPO) success? This paper argues that there is a direct impact of process standardization on BPO success, due to production cost economies, and also an indirect effect via improved contractual and relational governance resulting from better monitoring opportunities and facilitated communication and coordination. This threefold impact of standardization on BPO success is empirically confirmed using data from 335 BPO ventures in 215 German banks.

A unified economic model of standard diffusion: the impact of standardization cost, network effects, and network topology

This paper is motivated by the following question: What drives the diffusion of a communication standard and what results can we expect? Past literature provides many instructive but mostly unrelated answers. Frequent findings are startup problems, penguin effects, and tendencies toward monopoly. But substantial problems in applying the models to concrete standardization problems reveal that the dynamics are probably more complex. Not all networks are ultimately conquered by a single standard once it has attracted a certain number of users. And not all diffusion results are either complete or no standardization. We address the question of the conditions of particular diffusion behaviors by developing a formal standardization model that captures all fragmented phenomena in a unified approach. Drawing from findings of other research, we incorporate the structure of the underlying user network as an important determinant for diffusion behaviors. The approach allows us to disclose varying conditions that generate frequently observed standardization behaviors as special parameter constellations of the model. Using equilibrium analysis and computer simulations we identify a standardization gap that reveals the magnitude of available standardization gains for individuals and the network as a whole. The analysis shows that network topology and density have a strong impact on standard diffusion and that the renowned tendency toward monopoly is far less common. We also report how the model can be used to solve corporate standardization problems.

Knowledge transfer processes in IT outsourcing relationships and their impact on shared knowledge and outsourcing performance

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.

The influence of SOA governance mechanisms on IT flexibility and service reuse

While many firms have introduced SOA, only one in five have achieved anticipated benefits such as increased IT flexibility or reuse. Industry analysts assume that a lack of SOA governance is the main reason why SOA projects fail. Addressing the substantial research gap on SOA governance this paper theoretically and empirically investigates which SOA governance mechanisms are needed to achieve the benefits of SOA, such as increasing IT flexibility and reusing services. The proposed theoretical SOA governance model is evaluated using data from 81 SOA-using organizations. Overall, the results confirm the relevance of a variety of SOA governance mechanisms (structures, processes, and employees/relations), but at the same time, that IT infrastructure flexibility and service reuse are influenced by different mechanisms. Key governance mechanisms that show a strong effect on infrastructure flexibility are using standards, service management processes, educating employees, and IT/business communication while reuse can only be increased through service management, standards and qualification. Contrary to expectations, implementing new, dedicated decision-making bodies for SOA hampers organizations in achieving higher degrees of IT flexibility and reuse, and a firm is better off using existing IT decision-making bodies.

The joint impact of service-oriented architectures and business process management on business process quality: an empirical evaluation and comparison

What is the interplay between business process management (BPM) and service-oriented architecture (SOA) in achieving high business process quality? In this paper, we empirically investigate the impact of both SOA and BPM on business process quality in terms of straight-through processing, business-to-business integration, quality control, as well as standardization and consolidation of business processes. For the empirical evaluation of our model, we use the data of 157 German service firms. The results show that the SOA paradigm has still received rather low adoption rates in the industry. However, SOA, BPM, and related information technologies have a direct positive impact on business process quality and the analysis provides evidence for the complementarities of BPM and SOA since interaction effects between them have an additional significant impact on business process quality. Consequently, firms having adopted SOA can more effectively apply BPM.

Network effects as drivers of individual technology adoption: Analyzing adoption and diffusion of mobile communication services

Adoption research has largely ignored the dynamic impact of network effects on technology adoption and diffusion. For example, some technologies become more attractive the more social peers use them as well. But adoption at the same time increases the value for the peers and thereby their adoption decisions as well. Unfortunately, interdependencies like these make adoption and diffusion patterns very complex. Drawing on network effect theory, we develop an adoption and diffusion model that explicitly considers the role of direct and indirect network effects for individual technology adoption, using mobile commerce adoption as application example. By applying a simulation approach we can exemplify and analyze the fundamental adoption dynamics given rise to by network effects. We thereby propose a way of how to incorporate network effects into adoption research and disclose the role of the technology diffusion lifecycle for individual adoption.

Determinants of IT Outsourcing Relationships: A Conceptual Model

How can relationship quality in outsourcing partnerships be achieved, sustained, and improved? In this paper we present a conceptual model that focuses on the identification of the relevant determinants for a successful IT outsourcing relationship as well as on the operationalization IT outsourcing relationship quality. We contribute to existing relationship literature by thoroughly examining existing constructs and, if applicable, spliting and redistributing them. We also consider additional relationship quality dimensions and determinants. The derived eleven dimensions and fifteen determinants are empirically validated in a subsequent three step empirical approach providing a much more detailed and throroughly structured relationship quality model which will eventually help practitioners in improving their cross- organizational IT-business relationships.

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

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.

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

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

Achieving social alignment between business and IT – an empirical evaluation of the efficacy of IT governance mechanisms

How can firms improve the degree of social alignment between their business and IT units? Many years of research have shown the importance of business-IT alignment and its various facets, yet research on the efficacy of IT governance mechanisms to improve business-IT alignment is scarce. In this paper, we develop a model of social alignment at the operational level that considers the degree of social capital between an organization’s business and IT units, IT personnel’s business understanding, and a set of formal and informal IT governance mechanisms that drive the creation of social alignment and business value. Using survey data from 132 US banks, we show that social alignment is driven to varying degrees by a broad variety of IT governance mechanisms ranging from top management support and IT representation on the executive board to joint IT planning and IS training, regular meeting cycles, and liaison units. Our research contributes substantially to the practical demand on business-IT alignment research for an effective toolkit of IT governance mechanisms.