Business Value Research Papers - Academia.edu (original) (raw)
Return on Investment (ROI) is one of the most popular performance measurement and evaluation metrics used in business analysis. ROI analysis (when applied correctly) is a powerful tool for evaluating existing information systems and... more
Return on Investment (ROI) is one of the most popular performance measurement and evaluation metrics used in business analysis. ROI analysis (when applied correctly) is a powerful tool for evaluating existing information systems and making informed decisions on software acquisitions and other projects. Decades ago, ROI was conceived as a financial term and defined as a concept based on a rigorous and quantifiable analysis of financial returns and costs. At present, ROI has been widely recognized and accepted in business and financial management in the private and public sectors. Wide proliferation of the ROI method, though, has lead to the situation today where ROI is often experienced as a non-rigorous, amorphous bundle of mixed approaches, prone to the risks of inaccuracy and biased judgement.
The main contribution of this study is in presenting a systematic view of ROI by identifying its key attributes and classifying ROI types by these attributes. ROI taxonomy has been developed and discussed, including traditional ROI extensions, virtualizations, and imitations. All ROI types are described through simple real life examples and business cases. Inherent limitations of ROI have been identified and advice is provided to keep ROI-based recommendations useful and meaningful.
The paper is intended for researchers in information systems, technology solutions, and business management, and also for information specialists, project managers, program managers, technol-ogy directors, and information systems evaluators.
- by Peter Andru and +1
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- Information Systems, Taxonomy, Evaluation, Performance Measures
Companies have focused for decades on maximizing the value creation process of direct productive business activities. The information revolution has left its mark and has started an irreversible transformation of classical business... more
Companies have focused for decades on maximizing the value creation process of direct productive business activities. The information revolution has left its mark and has started an irreversible transformation of classical business processes and activities. In the new 21 st century information and data driven society, commodity is value and knowledge, making Porters value chain concept an important key factor for successful and innovative businesses. Business value creation was during the industrial revolution a topic strictly liked to direct productive activities. The increased and transformed business environment required innovative and sustainable competitive advantages for business organizations. The indirect productive business activities, and the business support services have been considered business value consuming and having no contribution towards the company value chain. 21 st century accounting has evolved from the role of record keeper to a business value driver that assures and contributes to the company value chain by using its internal knowledge pool. The existing scientific publications are approaching accounting from different perspectives and support the main conclusion of the paper: accounting, in the 21 st century is not a " bean counter " anymore, accounting is a certain and consistent business value driver. JEL Classification Numbers: D46, L84, M41; DOI: http://dx.doi.org/10.12955/cbup.v5.909
Sustainable Marketing strategies are unavoidable for 21st century businesses. Companies have started investing huge amount on these activities. Consumers do expect companies to adopt sustainable strategies but realizing one's need is the... more
Sustainable Marketing strategies are unavoidable for 21st century businesses. Companies have started investing huge amount on these activities. Consumers do expect companies to adopt sustainable strategies but realizing one's need is the only drive for any consumer. Thus, there is gap between business sustainability practices and consumers' expectations. To address this gap, the paper proposes a conceptual framework for sustainability strategies that businesses must adopt. The proposed framework can be an important standpoint for businesses to meet consumers' expectations without compromising business value. The paper identified four major sustainable marketing strategies to be integrated into business practices. According to World Bank Report of 2015, economic growth of past two decades has lifted more than 660 million people out of poverty and has raised the income levels of millions more. Along with the development of emerging markets, the size and growth of affluent class in these markets has also improved. However, the development comes at an expense of environment and poor communities. Growth patterns have left hundreds of millions of people behind: 1.2 billion still lack access to electricity, 870 million are malnourished, and 780 million are still without access to clean, safe drinking water. This lopsided development has contributed too many environmental and social challenges (United Nations Environment Program, 2012). The emerging countries are new industrial economies and their economic, social and environmental infrastructure and systems are not ready to handle these challenges. Therefore, we can say that development is not on the track with need of growing population and resource constraints. On the other hand, today's executives are dealing with a complex and unique social, environmental,
This contribution deals with the business value of radio frequency identification (RFID) technology in the apparel retail industry. We present a case study of an RFID project at Galeria Kaufhof, a subsidiary of Metro Group and one of the... more
This contribution deals with the business value of radio frequency identification (RFID) technology in the apparel retail industry. We present a case study of an RFID project at Galeria Kaufhof, a subsidiary of Metro Group and one of the largest department store chains in Europe. The trial shows that operational efficiency gains through the automation of logistical in-store processes, such as inventory counting or goods receipt, are possible. Moreover, RFID enables new customer applications on the sales floor, which allow for a redesign of the customer interface, and thus an improvement of the service processes and the service quality. In addition, the analyses of the gathered data on the sales floor help to close the “data void” between the goods receipt and the point of sales of the department store, thus offering the opportunity to directly observe and analyze physical in-store processes. The RFID data analyses allow for deriving valuable information for the department store management in the areas of inventory management, category management, store layout management , and department store processes .
This research develops a framework for organizational value creation from agile IT applications. Based on the four themes in the business value research—business process perspective, complementarities, application level of analysis, and... more
This research develops a framework for organizational value creation from agile IT applications. Based on the four themes in the business value research—business process perspective, complementarities, application level of analysis, and extent of use—three antecedents (organizational fit, process assimilation, and network adoption) are identified as pre-requisites for realizing the value of agile supply chain applications. Advanced planning and scheduling (APS) systems are used as examples, and two case studies for their implementation in the electronics and consumer goods industry are reported to support the propositions. The theories of diffusion of innovation, complementarities, network externalities, and technology structuration are applied to develop the propositions for fit, assimilation, and network effects. Information sharing and industry clockspeed are identified as the moderating factors in the proposed model. The framework has both managerial and research relevance. The research guides managers regarding ways to more fully realize the value of agile applications and forms a basis for future research on the business value of IT applications.
Organizations create competitive advantage by creating more economic value than their rivals. Increasing business competition and information technology development have both led to huge corporate organizational changes and have raised... more
Organizations create competitive advantage by creating more economic value than their rivals. Increasing business competition and information technology development have both led to huge corporate organizational changes and have raised the importance of intangible assets along the value chain. Value creation and the success of organizations increasingly depends on the leverage of knowledge available internally, as nowadays it has become essential to understand employee
portals’ business value and to build adequate change management programmes. The Balanced Scorecard (BSC) and Strategy Map (SM) show an organization’s objectives, how they are achieved, and the link between the goals of the various sub-units and how these act together to produce the overall results. BSC and SM clarify how intangible assets are aligned with strategy, to create value for the organization. However, the concerns related to change management seem not to have been properly addressed. To conveniently deal with these matters, the authors
propose a framework to map the cause-effect relationships that generates business value, as well as provides top management and decision makers with the information needed for a suitable top-down commitment and sponsorship, which is essential to bring about the appropriate change management and benefits’ realization. SM and Benefits Dependency Network (BDN) were combined, resulting in a suitable
framework to help organizations enhance their knowledge, mitigating the risk of
investment failure or misuse, and a timely contribution to capture more value from investments in intangible assets. The developed framework helps organizations address their concerns related to value creation and change management, and it has been applied to this Employee Portal case study. This case study allows us to conclude that, although the promotion of organizational culture and corporate alignment are not usually frequent goals of organizations, and do not motivate investments in the development of employee portals, they are generally recognised as being essential tools for decision-making and value creation.
A business process maturity model provides standards and measures to organizations in assessing, defining and improving business processes, thereby guiding them to achieving business goals and values. In this paper, we present a business... more
A business process maturity model provides standards and measures to organizations in assessing, defining and improving business processes, thereby guiding them to achieving business goals and values. In this paper, we present a business process maturity model called Value based Process Maturity Model (vPMM) that overcomes the limitations of the existing models. The vPMM is a model that can be used to determine the maturity of an organization’s current business process practices by considering an organization’s business value creation capability as well. It helps an organization set priorities for improving its product production and/or service provisioning using a proven strategy and for developing the capability required to accomplish its business values.
Across industries, firms have adopted e-business initiatives to better manage their internal business processes as well as their interfaces with the environment. In this study, a unified framework that captures the antecedents of... more
Across industries, firms have adopted e-business initiatives to better manage their internal business processes as well as their interfaces with the environment. In this study, a unified framework that captures the antecedents of e-business adoption, adoption intensity, and performance outcomes is proposed and empirically tested using data collected from senior managers in four technology-intensive industries. Applying a framework that captures
Nonfinancial reporting (NFR) is a relatively new topic in the business practice ; it evolved a couple of decades ago. Initially, NFR was mostly disclosed on a voluntary basis. Because of deeper awareness regarding climate change and... more
Nonfinancial reporting (NFR) is a relatively new topic in the business practice ; it evolved a couple of decades ago. Initially, NFR was mostly disclosed on a voluntary basis. Because of deeper awareness regarding climate change and environmental challenges, as well as pressure from investors, customers, and competition, nonfinancial reporting developed from a voluntary to a mandatory highly standardized practice. This research sought to address the following questions: How understanding of business value creation determines business reporting? How sustainability approach manifests on the company level? What is nonfinancial reporting and why should companies care about it? What are the motivations and benefits for companies and for whom do they publish sustainability reports? What about experiences in public sector? How contemporary concepts of green, circular, and zero-waste economy influence business reporting? Which open questions do organizations face on the path of sustainability reporting? This study contributes to the discussion on NFR and stimulates paradigm shift from profitability toward sustainability as adopting a holistic perspective, respecting people and the planet. This research stimulates business community to invest time and energy into sustainability reporting and encourages scholars to explore new ways of business reporting and therefore contributes to our knowledge and well-being.
In recent times, globalization has brought us not only new opportunities but also new challenges. The theme of innovation has become a mandatory topic for all industries—it has become a focal point for the enterprise, society, and the... more
In recent times, globalization has brought us not only new opportunities but also new challenges. The theme of innovation has become a mandatory topic for all industries—it has become a focal point for the enterprise, society, and the world. The goal of innovation is to create business value by developing worthwhile ideas into a customer-centric marketable reality. This, for most