Stefan Blumenberg

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.

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.

Determinants of Outsourcing Success in the Financial Industry: The Impact of Importance

How does the overall importance of a particular outsourcing deal, as perceived by the provider, affect the quality and, subsequently, the performance of an outsourcing relationship? This work contributes to outsourcing research by investigating the role of relational governance and its drivers for achieving more successful outsourcing relationships. We focus on the impact of a particular contextual variable which describes the importance of the outsourcing deal to the vendor, thereby turning the traditional perspective of resource dependency theory on outsourcing upside down. Using a case study approach, we show the significance of the importance of a deal between an IT outsourcing provider and its client to both the relationship quality and overall outsourcing success. Clients whose relative deal sizes are large compared to

Enhancing the Prognostic Power of IT Balanced Scorecards with Bayesian Belief Networks

Balanced Scorecard (BSC) is one of the most important and widely adopted performance measurement methods, and especially its recently evolving usage for IT governance makes it an attractive tool to measure and evaluate IT contribution to firm performance. Integral parts are corporate causality relationships that are modeled within the BSC. Surprisingly, these causalities within the Balanced Scorecard approach are neither thoroughly introduced in theory nor applied in practice in a sound way. In this paper, an integrated approach is developed which addresses both challenges. It is shown how causal modeling employing Bayesian Belief Networks can be used to improve Balanced Scorecard methodology and to support organizations in introducing a Balanced Scorecard. The integration allows for an a priori validation of causalities with significantly reduced effort in validity maintenance and results in better prediction of value chain figures and enhanced corporate learning.

Added Value and Challenges of Industry-Academic Research Partnerships – The Example of the E-Finance Lab

The financial service industry is believed to be on the verge of a dramatic [r]evolution. A substantial redesign of its value chains aimed at reducing costs, providing more efficient and flexible services and enabling new products and revenue streams is imminent. But there seems to be no clear migration path or goal which can cast light on the question where the finance industry and its various players will be and should be in a decade from now. The imperative necessity for action taking has been recognized by practitioners as well as the academic world. This is why the E-Finance Lab (EFL) was founded in 2003 as a cooperation of the Universities Frankfurt and Darmstadt together with industry partners Accenture, Bearing- Point, Deutsche Bank, Deutsche Borse, Deutsche Postbank, FinanzIT, IBM, Microsoft, Siemens, T-Systems, as well as DAB bank and IS.Teledata. The mission of the EFL is the development of industrial methods for the impending change process of the financial service industry. Important challenges include the design of smart production infrastructures, the development and evaluation of advantageous sourcing strategies, and smart selling concepts to enable new revenue streams for financial service providers in the future. The overall goal is to contribute methods and views to the realignment of the financial supply chain.