Y. Alex Tung

A framework for selecting business process modeling methods

The techniques for representing and analyzing business processes are referred to as business process modeling. Many business process modeling methods and their associated tools have been used to capture the characteristics of business processes. However, most methods view business processes from different perspectives and have different features and capabilities. Thus, an important research question is how process designers should select appropriate modeling methods for their BPR initiatives. In this paper, we propose a framework for selecting business process modeling methods based on modeling objectives. This framework can serve as the basis for evaluating modeling methods and generating selection procedures. A general selection procedure is also described. We use an expense claim process as an example to illustrate the application of the selection procedure.

Digital signature: use and modification to achieve success in next generational e-business processes

A US law, the electronic signatures (E-Sign) in Global and National Commerce Act (signed by then President Clinton on 30 June 2000 with an effective date of 1 October 2000), grants electronic signatures legal validity equivalent to traditional handwritten counterparts. The intention of this law is to cut costs while providing more stringent security. In the emerging e-commerce arena, electronic signatures hold great potential for facilitating secure electronic transactions. But signatures are used in many critical business processes that occur prior to or independent of final transactions. Contract development and numerous other processes entail a series of draft modifications and sign-offs. Can electronic signatures provide cost savings and security in these activities? In this paper, we (i) detail fundamentals and the current status of electronic signatures; (ii) describe the integration of electronic signatures with electronic verification and authentication technologies; (iii) explore e-commerce applications, especially document management processes, that could benefit from adopting electronic signatures; and (iv) propose modifications to the electronic signature process to enable innovative document management processes. We propose modifications using partial document ownership, soft signatures, and hard signatures.

Managing Risks in Multiple Online Auctions: An Options Approach*

The scenario of established business sellers utilizing online auction markets to reach consumers and sell new products is becoming increasingly common. We propose a class of risk management tools, loosely based on the concept of financial options that can be employed by such sellers. While conceptually similar to options in financial markets, we empirically demonstrate that option instruments within auction markets cannot be developed employing similar methodologies, because the fundamental tenets of extant option pricing models do not hold within online auction markets. We provide a framework to analyze the value proposition of options to potential sellers, option-holder behavior implications on auction processes, and seller strategies to write and price options that maximize potential revenues. We then develop an approach that enables a seller to assess the demand for options under different option price and volume scenarios. We compare option prices derived from our approach with those derived from the Black-Scholes model (Black & Scholes, 1973) and discuss the implications of the price differences. Experiments based on actual auction data suggest that options can provide significant benefits under a variety of option-holder behavioral patterns.

Time complexity and consistency issues in using the AHP for making group decisions

Two different ways of using the AHP in making group decisions are compared and evaluated. The first method combines different experts’ opinions before applying an eigenvalue method to obtain final weights for decision alternatives. The second, in contrast, derives each experts rating for the decision alternatives before combining them. Both methods take into account the relative importance of different experts in making decisions. Comparison and evaluation of these two methods are made by using two criteria: time complexity and consistency indices. A numerical example is provided to illustrate the use of these two methods, and results of a mathematical simulation are presented for comparing the time complexity in different-sized problems.

Trading Volumes with and Without Private Information: A Study Using Computerized Market Experiments

Insider trading and asymmetric information have been the subject of a significant body of research since the 1960s. Yet little work has been directed at analyzing the impact of different market regulations. Along with difficulties in correctly identifying trades made on inside information, empirical field study methods have not been capable of analyzing the impact of different market regulations. We develop a controllable networked market trading environment that incorporates accurate identification of information possessed by each trader studied and that provides the flexibility necessary to analyze market impacts of different regulatory schemes to limit trading on inside information. We illustrate our methods through a series of controlled induced-value laboratory experiments using human subjects. Subject rewards are performance-based, with cash incentives tied to the outcomes of each market transaction. Experimental results indicate that markets with inside, privately informed traders led to greater trading volumes than markets with traders having access to private information only. In addition to reporting the results of initial sets of the experiments, we use these outcomes to frame future research issues involving the use of IT systems in surveillance and links between trading patterns and insider activity.

Efficiency Considerations in Online Auction Markets

The main contention of this article is that online auction markets are amenable to efficiency considerations akin to traditional financial markets. While the underlying assets traded are dissimilar between the financial and online auction markets, the fundamental principles that drive these markets are consanguineous in that similar efficiency notions are applicable. Based on the principles of arbitrage, we develop a set of efficiency criteria to evaluate the auction activity of new and identically described items. Two arbitrage principles, seller arbitrage and buyer arbitrage, are developed. These principles can be employed to evaluate the price behavior of temporally proximate auctions and to generate a useful benchmark to make efficiency evaluations. We find evidence of inefficiency for each of the items we empirically tested based on the data from eBay, currently the largest online auction house.

Seller heterogeneity in electronic marketplaces

Most online auction studies focus on the buyer side of the marketplace. To bridge the imbalance gap, we investigate seller behavior in this research. Specifically emphasized on seller heterogeneity, an area that has not been well studied in the electronic marketplace literature, this study classifies sellers into new and experienced seller groups and compares their auction performance based on three outcome measures: success rates, ending prices, and feedback ratings. We find that the performance of new sellers is worse than that of experienced sellers in all three measures, namely, lower auction success rates, lower auction ending prices, less likely to receive positive feedback ratings and more likely to receive negative feedback ratings. We also show the dynamics of these auction performances while new sellers evolve into experienced ones. Our empirical analysis reveals structural differences in auction success and price determinants between new and experienced sellers. That is, the determining factors for auction success and ending prices are significantly different between the two seller groups. We also identify several key factors for non-positive (i.e. neutral or negative) feedback ratings received by the two groups and find no significant difference between these factors for both new and experienced sellers. We believe our findings in this study have significant implications to the online auction house and sellers, and contribute towards building more effective and efficient electronic marketplaces. We studied seller heterogeneity in electronic marketplaces.We discovered new sellers worse than experienced sellers in three outcome measures.We demonstrated auction performance dynamics when sellers evolve with experiences.

Test of market efficiencies using experimental electronic markets

Abstract The overall efficient market hypotheses (EMH) has been divided into three categories: (1) weak form EMH, (2) semi-strong form EMH, and (3) strong form EMH. Numerous researchers have used empirical data to test these hypotheses. Results have varied greatly. Some concluded that market prices reflect all available information, public and private, and therefore strong form efficient conditions are met. Others, however, drew opposite conclusions. Lack of control in field studies may have been a key contributing factor to the conflicting results. The purpose of this study is to take advantage of the recent technological advances and provide a controlled environment for performing investigations of market trader behavior and market efficiency. Results of this research show a positive relationship between information quality and trading profits in a market, evidence supporting semi-strong form EMH.

HypEs : an architecture for hypermedia-enabled expert systems

Abstract Expert systems and hypermedia constitute two important technologies for organizations to create, store, and manage information products. The purpose of our research is to develop an architectural blueprint for the construction of hypermedia-enabled expert systems. We propose an architecture termed HypEs ( Hyp ermedia-enabled E xpert S ystem) for the development of media-rich expert systems. The integration of hypermedia technologies and expert systems can provide significant potential benefits by enabling the storage and manipulation of non-textual knowledge, enhancing the effectiveness of both knowledge acquisition from the sources of expertise and knowledge transfer to non-expert users. An experimental analysis that contrasts the hypermedia-enabled and text-restricted expert systems provides results that underscore the usefulness of hypermedia techniques in enhancing the effectiveness of expert systems in practical applications.

Asymmetric information A laboratory experimental analysis

Abstract Modern information systems technology, including expanded availability of local area networks, provides potentially fertile means for studying information related problems across functional business areas. Our work demonstrates the development and use of a networked system designed to investigate a traditionally controversial problem in financial markets, the impact of insider information. The research methodology used to tackle this issue incorporates the use of a networked system that we developed to conduct carefully controlled laboratory experiments. We emphasize this methodology as an alternative to techniques using recorded historical market data. The latter approaches are limited by an inability to accurately identify which traders possess and access inside information. Our system incorporates a communication and recording network among work stations with each station possessing stand alone decision support system capabilities. We demonstrate use of the system and present the results and accompanying analyses of a series of experiments relating to impacts of inside information.