An introduction is presented in which the editor discusses various reports within the issue on topics including the implementation of digital business strategies (DBS), the importance of DBS and information transparency in leadership, and the disclosure of information outside the boundaries of business.
Information technology has arguably been one of the most important drivers of economic and social value in the last 50 years, enabling transformational change in virtually every aspect of society. Although the Information Systems community is engaged in significant research on IT, the reach of our findings may be limited. In this commentary, our objective is to focus the IS community's attention on the striking transformations in economic and social systems spawned by IT and to encourage more research that offers useful implications for policy. We present examples of transformations occurring in four distinct sectors of the economy and propose policy-relevant questions that need to be addressed. We urge researchers to write papers based on their findings that inform policy makers, managers, and decision makers about the issues that transformational technologies raise. Finally, we suggest a new outlet to publish these essays on the implications of transformational informational technology.
Over the last three decades, the prevailing view of information technology strategy has been that it is a functional-level strategy that must be aligned with the firm's chosen business strategy. Even within this so-called alignment view, business strategy directed IT strategy. During the last decade, the business infrastructure has become digital with increased interconnections among products, processes, and services. Across many firms spanning different industries and sectors, digital technologies (viewed as combinations of information, computing, communication, and connectivity technologies) are fundamentally transforming business strategies, business processes, firm capabilities, products and services, and key interfirm relationships in extended business networks. Accordingly, we argue that the time is right to rethink the role of IT strategy, from that of a functional-level strategy-aligned but essentially always subordinate to business strategy-to one that reflects a fusion between IT strategy and business strategy. This fusion is herein termed digital business strategy. We identify four key themes to guide our thinking on digital business strategy and help provide a framework to define the next generation of insights. The four themes are (1) the scope of digital business strategy, (2) the scale of digital business strategy, (3) the speed of digital business strategy, and (4) the sources of business value creation and capture in digital business strategy. After elaborating on each of these four themes, we discuss the success metrics and potential performance implications from pursuing a digital business strategy. We also show how the papers in the special issue shed light on digital strategies and offer directions to advance insights and shape future research.
A burning question for information systems (IS) researchers and practitioners is whether and how IT can build a competitive advantage in turbulent environments. To address this question, this study focuses on the business process level of analysis and introduces the construct of IT leveraging competence-the ability to effectively use IT functionalities. This construct is conceptualized in the context of new product development (NPD). IT leveraging competence is shown to indirectly influence competitive advantage in NPD through two key mediating links: functional competencies (the ability to effectively execute operational NPD processes) and dynamic capabilities (the ability to reconfigure functional competencies to address turbulent environments). Environmental turbulence is also shown to moderate the process by which IT leveraging competence influences competitive advantage in NPD. Empirical data were collected from 180 NPD managers. Through the construct of IT leveraging competence, the study shows that the effective use of IT functionalities, even generic functionalities, by business units can help build a competitive advantage. The study also shows that the strategic effect of IT leveraging competence is more pronounced in higher levels of environmental turbulence. This effect is not direct: It is fully mediated by both dynamic capabilities and functional competencies. Taken together, these findings suggest that IS researchers should look beyond the direct effects of firm-level IT infrastructures and focus their attention on how business units can leverage IT functionalities to better reconfigure and execute business processes. In turbulent environments, focusing on these aspects is even more vital.
The widespread use of information technology (IT) to create electronic linkages among supply chain partners with the objective of reducing transaction costs may have unintended adverse effects on supply chain flexibility. Increasing business dynamics, changing customer preferences, and disruptive technological shifts pose the need for two kinds of flexibility that interenterprise information systems must address--the ability of interenterprise linkages to support changes in offering characteristics (offering flexibility) and the ability to alter linkages to partner with different supply chain players (partnering flexibility). This study explores how enterprises in supply chains may forge supply chain linkages that enable both types of flexibility jointly, and allow them to deal with ubiquitous change. Drawing on March and Simon's coordination theory, we propose two design principles: (1) advance structuring of interorganizational processes and Information exchange that allows partnering organizations to be loosely coupled, and (2) IT-supported dynamic adjustment that allows enterprises to quickly sense change and adapt their supply chain linkages. This study reports on a survey of 41 supply chain relationships in the IT industry. For design principle, our empirical investigation of factors shows (I) that modular design of interconnected processes and structured data connectivity are associated with higher supply chain flexibility, and (2) that deep coordination-related knowledge is critical for supply chain flexibility. Also, sharing a broad range of information with partners is detrimental to supply chain flexibility, and organizations should instead focus on improving the quality of information shared. For Industry managers, the study provides clear insights for information infrastructure design. To manage their interdependencies, enterprises need to encapsulate their interconnected processes in modular chunks, and support these with IT platforms for...
This paper provides a new approach for managing the design and delivery of information and decision support systems for strategic decision making. It draws on experiences gained from implementing systems and services for enhancing the strategic decision-making process of the Cabinet of Egypt. The article challenges the conventional views of conceptualizing decision support systems and methods for managing them. It introduces an "issue-based" management method for the design and delivery processes. The distinctive features of this approach include a focus on issues rather than decisions, a distinction between information support services and decision support services, prototyping the management of delivery as well as design, and a dynamic tracking back-end. Finally, the article compares the conventional and issue-based DSS approaches. Such a comparison suggests that the issue-based approach can be an effective stepping stone for the design and delivery of executive information systems (EIS) in corporate contexts by providing DSS that are "EIS-ready."