6th European Conference - Academic Conferences

Proceedings
of the
2nd International
Conference on Information
Management and
Evaluation
Ryerson University
Toronto
Canada
27-28 April 2011
Edited by
Professor Kenneth Grant
Ryerson University
Toronto
Canada

Copyright The Authors, 2011. All Rights Reserved.
No reproduction, copy or transmission may be made without written permission from the individual authors.
Papers have been double-blind peer reviewed before final submission to the conference. Initially, paper
abstracts were read and selected by the conference panel for submission as possible papers for the
conference.
Many thanks to the reviewers who helped ensure the quality of the full papers.
These Conference Proceedings have been submitted to Thomson ISI for indexing.
Further copies of this book and previous year’s proceedings can be purchased from http://academicconferences.org/2-proceedings.htm
ISBN:97-1-906638-97-9 Book
Published by Academic Publishing International Limited
Reading
UK
44-118-972-4148
www.academic-publishing.org

Contents
Paper Title Author(s) Page
No.
Preface v
Biographies of Conference Chairs,
Programme Chair, Keynote Speaker and
Mini-track Chairs
Biographies of contributing authors vi
Performance Management of the NHS’
Mental Health Care Service Delivery in
England: The Role of the Service’ Actors’
(Clients) Collaboration Through Dialogism
The Acceptance and Use of Educational
Technology in Kingdom of Bahrain
Comparison of Feature Selection Techniques
Using Fully-Controlled Simulation-Based
Datasets
A Delphi-Multi-Criteria Decision Making
Approach in the Selection of an Enterprise-
Wide Integration Strategy
Selection, Implementation and Post
Production of an ERP System
Evolution of eProcurement Model in the
Italian Public Sector: From Government
Centralisation to Regional Delocalisation
ICTs as Weapons of Mass Interaction -
Motivations and Implications of Mediated
Control
Investigating the Factors Inhibiting SMEs
from Recognizing and Measuring Losses
From Cyber Crime in South Africa
Kwesi Korsa Aggrey 1
Jaflah Al-Ammary 9
Suzan Arslanturk, Mohammad Siadat,
Theophilus Ogunyemi , Ishwar Sethi and
Ananias Diokno
Tridip Bardhan, James Ngeru, and Richard
Pitts
Imran Batada and Asmita Rahman 38
Clara Benevolo and Renata Paola Dameri 45
Kofi Agyenim Boateng 54
Gino Bougaardt and Michael Kyobe 62
Sharing Knowledge – The CoP way Sheryl Buckley and Apostolos Giannakopoulos 72
An Empirical Framework of key Success
Factors for Software Process Improvement
Assessing Information Management
Competencies in Organisations
A Semiotic Approach to Analyse the
Influencing Factors in Knowledge Transfer
Exploring the Emotional Exhaustion of
Healthcare Providers Using an In-Hospital
Employee Communication Network
The Implementation of RSS-Based Clinical
Reminders
Factors Determining the Adoption of ICTs in
Healthcare Service Delivery: A Developing
Country Context
Evaluation of Application Embedded
Knowledge Migration Issues
Nuntarat Bunditwongrat, Mathupayas
Thongmak and Atcharawan Ngarmyarn
Andy Bytheway 91
Supaporn Chai-Arayalert and Keiichi Nakata 103
Cheng-Yi Chiang, Ya-Ying Kuo, Ying-Hui Hou
and I-Chiu Chang
Wen-Chou Ch, Chia-Hsien Wen, Sek-Kwong
Poon and Shih-Che Huang 3
Taurai Chikotie, Jonathan Oni and Vesper
Owei
vi
18
24
82
112
120
127
Mitchell Cochran 134
i

Paper Title Author(s) Page
No.
Motivations for IT Outsourcing in Public
Sector Local Government
Documenting Innovation: A Methodological
Proposal and Application
Legal, Privacy, Security, Access and
Regulatory Issues in Cloud Computing
Interoperability Monitoring for eGovernment
Service Delivery Based on Enterprise
Architecture
Enterprise Resource Planning
Implementation Differences Within the Same
Methodology - Case Study From West
Europe and Turkey
A Meta-Analysis of how the Adoption of
Innovative Web 2.0 Tools Like Digital
Business Ecosystems can Lead to Improved
SME Collaboration
Ideas About Profitability in Research and
Development and the Selective Pressure
From Management Accounting
Case Study on Information Evaluation by GIS
for Aging Society Urban Planning: GIS
Application on Urban Planning-
Distortion Free Algorithm to Handle
Secondary Watermark Attack in Relational
Databases
Engineering Change Through the Domains of
Enterprise Architecture
Evaluating Interoperability Artifacts for the
Exchange of Public Service Information:
Outline of a Conceptual Framework
Free and Open Source Software for Public
Sector Enterprise Applications in Sri Lanka
Evaluating the Success of Customer
Relationship Management (CRM) Systems
Toward a Novel Methodology for IT Strategic
Planning
Applying an Innovative Information System to
Improve the Effects of Community Health
Promotion
Information Security Practices in Zambian
Copper Mines: An Investigation Into the
State-of-Practice of Information Security
Within Zambian Copper Mines Based on the
ISO/IEC 27002 Standard
Proposing an Optimized Change
Management Process by Analyzing ITSM
Frameworks
Michael Cox, Martyn Roberts and John Walton 141
Stefano De Falco 150
Nomusa Dlodlo 161
Badr Elmir, Nabil Alrajeh and Bouchaib
Bounabat
169
Turan Erman Erkan 181
Francesc Estanyol 187
Albrecht Fritzsche 196
Hiroatsu Fukuda, Yupeng Wang and Kiyoshi
Shinriki
Sajid Iqbal, Azhar Rauf, Huma Javed and
Shabir Ahmad
204
214
Tiko Iyamu 222
Veit Jahns 231
Srimal Jayawardena and Gihan Dias 239
Farnoosh Khodakarami and Yolande Chan 253
Mouhsine Lakhdissi and Bouchaib Bounabat 263
Chih-Yu Lin, Wen-Yu Ho, Chia-Hsien Wen and
Hui-Mei Hsu
274
Chishala Lukwesa and Christopher Upfold 281
Negar Madani, Ali Suzangar, Mohamad Kajbaf,
Shirin Nasher and Mehrdad Kalantarian
ii
291

Paper Title Author(s) Page
No.
The use of RFID and Web 2.0 Technologies
to Improve Inventory Management in South
African Enterprises
Modeling the Genetic Schemes of Human
Memory Information in the Process of
Production and Reparation of Knowledge
Copyright Protection for GIS Vector Map
Based on Wavelet Transform
Evaluation of IT Investment Methods and
Proposing a Decision Making Model
Critical Factors in the use of Mobile Learning
by “Digital Natives” on Portuguese Teaching
A Framework for Information Systems
Innovation: A Case of Competitive
Intelligence in Organisations
RFID: A Review of its Relevance and
Application in South African Retailing
Systems
Towards a Comprehensive Evaluation
Framework for ICT for Development
Evaluation – an Analysis of Evaluation
Frameworks
User Adoption of the New Health Information
System - Individual and Organizational
Determinants
Relationship Between Organizational Factors
and RFID Adoption in Iranian Gas Company
Central Warehouses
Business Intelligence as Decision Support in
Business Processes: An Empirical
Investigation
Assessing Future Value of Investments in
Security-Related IT Governance Control
Objectives – Surveying IT Professionals
Evaluation Information Extraction for Health
Text Categories Using C4.5 and Naïve Bayes
Optimizing Information Technology Value
Governance Framework Based on Val IT
Developing an Outpatient Electronic Medical
Record System in Taiwan From a Physicians’
Perspective
MTN Foundation's Digital Library Project in
Nigerian Universities: An Evaluative Study
Cloud Computing-Based IT Solutions for
Organizations With Multiregional Branch
Offices
Case Study on Information Evaluation by GIS
for Aging Society Urban Planning:
Information Evaluation of Shrinking Cities
Sizakele Mathaba, Nomusa Dlodlo, Quentin
Williams and Mathew Adigun
Fatemeh Mohammadi, Tahereh Mohammadi
and Bahram Rezaie
300
308
Amer Sedeeq Mustafa 317
Shirin Nasher, Mehrdad Kalantarian, Ahmad
Akbari, Ali Suzangar, Mohammad Kajbaf and
Negar Madani
324
Mário Carrilho Negas and Paulo Ramos 333
Phathutshedzo Nemutanzhela and Tiko Iyamu 341
Jonathan Oni, Edward Dakora and Vesper
Owei
351
Caroline Pade-Khene and Dave Sewry 360
Bahlol Rahimi 370
Farnaz Rahimi and Gholamabas Arabshahi 378
Ari Riabacke, Aron Larsson and Mats
Danielson
Waldo Rocha Flores, Teodor Sommestad,
Hannes Holm and Mathias Ekstedt
Klaokanlaya Silachan and Panjai
Tantasanawong
Ali Suzangar, Mehrdad Kalantarian , Shirin
Nasher , Mohammad Kajbaf and Negar Madani
Hsiao-Ting Tseng, Pei-Ting Chang and Ray
Chang
384
393
403
412
420
Ngozi Blessing Ukachi 428
Harris Wang 435
Yupeng Wang, Hiroatsu Fukuda and Kiyoshi
Shinriki
iii
441

Paper Title Author(s) Page
No.
The Impact of Software Test Constraints on
Software Test Effectiveness
Strategic Considerations for the Effective
Mapping of Educational Technology to
Academic Outcomes
Grafton Whyte and Donovan Lindsay Mulder 450
Hossein Zadeh, Arthur Shelley and Rod
McCrohan
PhD Research Papers 471
Evaluating the Performance of ERP Systems
in Saudi Arabian Higher Education: A
Stakeholders’ Perspective
The Benefits of ICT Adoption: An Empirical
Study of Nigerian SMEs
Establishing the Suitability of Dynamic Web
Applications Development Platforms for
Learning web Techniques in Tertiary
Institutions
Human Resources Transformation Beyond
Boundaries in Outsourcing Business Model
s- Expatriate Benchmarking
The Diffusion of Mobile Phones for Business
and Information Management in Kenya
Querying DTI Analysis Results Within Deep
Perisylvian Area
Towards an Evaluation Method for
Information Quality Management of Health
Information Systems
Developing a Change Management Model for
Iranian Academic Libraries: A Delphi Study
Mona Althonayan and Anastasia
Papazafeiropoulou
461
473
Idisemi Apulu and Ann Latham 483
Johnson Dehinbo 492
Swathi Duppada and Rama Chandra Aryasri 502
Wakari Gikenye 511
Sarmad Istephan and Mohammad Siadat 521
Siti Asma Mohammed and Maryati Mohd Yusof 529
Maryam Nakhoda and Sirous Alidousti 539
Adding Action to the Information Audit Huan Vo-Tran 546
Business Intelligence Best Practices for
Success
Joseph Woodside 556
Work in Progress 563
The Evolution of IT Governance in Multiple
Industry Units and the Business Case for an
Outside Partner
The Relationship Between Quality
Management and Knowledge Management in
the Service Industries
Construction and Validation of eSchool
Success Model
Ganeshprasad Chandrasekaran,
Chandramohan Annavarapu and Balaji
Rathinasamy
565
Amir Honarpour and Ahmad Jusoh 568
Hesbon Nyagowa, Dennis Ocholla and
Stephen Mutula
iv
572

Preface
Following on from the continued success of the European Conference on Information Management and
Evaluation, we are delighted at the Ted Rogers School of Management, Ryerson University to be able to
host the 2nd International Conference on Information Management and Evaluation (ICIME 2011).
ICIME aims to bring together individuals researching and working in the broad field of information
management, including information technology evaluation. We hope that this year’s conference will provide
you with plenty of opportunities to share your expertise with colleagues from around the world.
This year’s opening keynote address will be delivered by Dr Catherine Middleton, Ted Rogers School of
Information Technology Management, Ryerson University, Toronto, Canada.
A second keynote address on day two will be delivered by Gary Davenport, Vice-President of Information
Technology, AllStream Inc, Canada.
ICIME 2011 received an initial submission of 180 abstracts. Of this 65 papers have been accepted for these
Conference Proceedings as a result of the double blind, peer review process of full paper submissions.
These papers come from all parts of the world including Australia, Canada, India, Iran, Italy, Japan,
Malaysia, Morocco, Nigeria, Pakistan, Portugal, South Africa, Sri Lanka, Sweden, Thailand, Taiwan, the
United Kingdom, the United States of America Zambia and Zimbabwe. So ICIME is set to be a truly
international conference!
We wish you a most interesting and enjoyable time in Canada
Ken Grant
Conference Chair
April 2011
v

Biographies of Conference Chairs, Programme Chairs
and Keynote Speakers
Conference Chair
Ken Grant is an associate professor in the Ted Rogers School of Management at
Ryerson University, His teaching and research interests are in the areas of Business
& Technology Strategy, Innovation & Knowledge Management and Electronic
Commerce. He holds the Ted Rogers School of Management Faculty Teaching Chair
and is a former Director of the School of Information Technology Management at
Ryerson. Prior to becoming part of the Ryerson community, Ken spent over 30 years
in industry, mainly as a management consultant. He has held senior partner/vice
president positions in major consulting firms, including A.T. Kearney, EDS and KPMG.
He holds a BA from The Open University, UK., an MBA from York University, Toronto
and is just completing his DBA at Henley Business School, University of Reading.
Keynote Speakers
Dr Catherine Middleton holds a Canada Research Chair in Communication
Technologies in the Information Society. Her research focuses on the
development and use of new communication technologies, with specific interests
in mobile devices and fixed and wireless broadband networks. She is also
interested in how Canadians use (or don't use) the internet in their daily lives. A
member of the GRAND Networks of Centres of Excellence projece, she is the
Leader of the New Media Challenges and Opportunities research theme and also
leads the GRAND Digital Infrastructures project. Catherine teaches Innovation and
Organization Theory in the MBA/MMSc program in the Ted Rogers School of
Management, and teaches and supervises students in the Communication and
Culture graduate program.
Gary Davenport As Vice-President of Information Technology, Gary is responsible for
the definition and implementation of transformational business initiatives using
information technology for the Allstream business unit of MTS Allstream Inc. In this
role, Gary leads a team of dedicated IT professionals focused on improving business
capabilities in a very competitive telecommunications industry. He is also the
Executive Sponsor for Allstream's Workplace 2.0 Program enabling much greater
levels of employee mobility, productivity and engagement. Gary has participated on
many North American and European CIO Councils and also served on the Board of
Directors of the Voluntary Inter-industry Communications Standards (VICS)
organization. He is currently a Board
Member of the CIO Association of Canada. Gary holds a Bachelor of
Arts
degree from York University.
Biographies of contributing authors (in alphabetical order)
Kwesikorsa Aggrey is a PhD student of the University of Lincoln, UK. Kwesikorsa research area is in health
service delivery, mental health service delivery in particular. His research topic is on collaboration between
the NHS Trusts (Lincolnshire Partnership Foundation
Trusts) and the Voluntary Sector in Performance of
Mental
Health Care Delivery in Lincolnshire.
Jaflah Hassan AlAmmary is assistant professor in the Information System Department of the college of the
IT at University of Bahrain. She holds PhD from University of Murdoch. Al-Ammary’s research interest
focuses on Strategic alignment, Knowledge Management, and E-learning and Educational
Technology. She
has
published many papers on these topics on conferences, journals and books.
Mona Althonayan is a research student at the school of information
systems, computing and mathematics,
Brunel
University, UK, working on ERP systems evaluation.
Al-Mallah Amer is an Assistant Professor at the College of Science, he obtained a Ph.D. degree in
Computer Science. Then he worked at the University of Technology. Subsequently, served as M.Sc.
students supervisor at the postgraduate studies department. Dr. Amer
has published eleven journal articles.
His
publications reflect his research interests in information security.
vi

Idisemi Apulu is currently a PhD student at the School of Technology, University of Wolverhampton, United
Kingdom where she also obtained her Masters degree in Strategic Information Technology Management.
She also holds a BSc degree in Computer Science from the University of Abuja, Nigeria.
Suzan Arslanturk is a masters student at the Department of Computer Science, Oakland University. She
holds a B.S in Computer Engineering. Her research interests are image processing, pattern recognition and
data mining. Suzan‘s master research focused on data mining and machine learning.
Rahimi Bahlol, PhD: studied informatics at Linköping University. He is now assistant Professor at Urmia
University of Medical Sciences. His research interests are; Individual, organizational and social issues and IT
solution, collaborative work through ICT, IT solutions in health care setting, implementation and use and
evaluation of integrated HIS, Adoption of IT solution.
Tridip Kumar Bardhan is working as Chairperson and Director of Manufacturing Process Laboratory at the
Department of Industrial and Systems Engineering (ISE) of Morgan State University in Baltimore, Maryland,
USA. He received his BSc degree in Industrial Arts from Dhaka University and BSIE, MSIE and PhD in
Industrial Engineering from Wichita State University, USA.
Imran Batada is a senior IT Professional with over 10 years of experience in the IT industry. As an IT
Professional he has worked in USA and Asia. He is currently working in Institute of Business Administration,
Karachi Pakistan as Head of Information System Department. He is also responsible for overall ERP
Implementation.
Kofi Agyenim Boateng completed his PhD in Information Systems at the London School of Economics and
Political Science, UK, in December 2009 and, currently, a lecturer at the British Institute of Technology & Ecommerce.
Kofi’s research interests fundamentally lie in the innovative application of ICTs and their
psychological consequences in organisational strategising.
Sheryl Buckley is Deputy Head of Department in the Department of Business Information Technology (BIT)
at the University of Johannesburg (UJ). Her passion lies in the Information Science discipline. She is a
committee member of a number of international organisations as well as an active peer reviewer. She has
presented and published papers locally and internationally.
Nuntarat Bunditwongrat received her Bachelor’s Degree (2005) in Information Technology for Business
from Chulalongkorn University, Thailand. She is now a Master’s degree student of Management Information
Systems program at the Faculty of Commerce and Accountancy, Thammasat University. She also serves as
a Senior Consultant at the Department of Global Business Services, IBM Thailand Company Limited.
Supaporn Chai-Arayalert is a Ph.D. student in Informatics at Informatics Research Centre, Henley
Business School, University of Reading, UK. Her research areas focus on knowledge management,
semiotic approach and Green ICT. She graduated Master of Science in Management of Information
Technology and she recently works as lecturer at Prince of Songkhla University, Thailand
Yolande Chan is a Professor, MIS at Queen’s School of Business and Director, The Monieson Centre. She
holds a Ph.D. from the Richard Ivey School of Business, an M.Phil. in Management Studies from Oxford, and
S.M. and S.B. degrees in Electrical Engineering and Computer Science from M.I.T. She is a Rhodes Scholar.
Dr. Chan conducts research on knowledge management and information technology strategy.
Ganeshprasad Chandrasekaran B.E., M. Tech., M.B.A., is an associate of India’s largest Software
Company TCS Limited, where he is focused with aligning the IT goals with Business priorities. He has been
awarded with Chief Minister Award and University Gold medal for the best academic excellence. Ganesh
has been a research scholar in SRM University, India.
Taurai Chikotie is a student and researcher at the Cape Peninsula University of Technology in the fields of
ICT and Healthcare for Development. He holds a BSc Honors degree in Information Science from the
National University of Science and Technology in Zimbabwe and a Masters Degree in Information
Technology cum laude from the Cape Peninsula University of Technology.
Wen-Chou Chi is a Doctoral Student in the MIS program at the National Chung Cheng University in Taiwan.
His current research interests include hospital information systems, knowledge management and decision
support system.
vii

Mitchell Cochran has been the Information Systems Manager for the City of Monrovia for 14 years. He has
also worked in the Court System and for IBM. He is currently working on his Information Systems PhD from
Claremont Graduate University and has completed Masters Degrees in Administration and Homeland
Security. He has a CISM certification.
Renata Paola Dameri is senior lecturer in Business Administration at the Faculty of Economics, University of
Genova, Italy. She is professor in Accounting and Information Systems in Genova, visiting professor in IT
Governance at Université de Paris Dauphine and Fellow of the SDA Bocconi School of Management, Milano,
Italy. Her research interest covers IT investments evaluation, IT governance, IT security and compliance.
Mats Danielson is a full Professor in Computer and Systems Sciences and Vice Dean of the Social Science
Faculty at Stockholm University. He holds a Ph.D in Computer and Systems Sciences as well as degrees in
Business Administration and Computer Engineering. He has been working with decision and risk analysis
professionally and academically for almost 20 years.
Stefano De Falco Holds a Degree and a Ph.D degree in electrical engineering, University of Naples
Federico II. His research interests concern the modelling and testing of the measures for quality of firms. His
publications are present in international congresses and journals. He is the inventor and the advisor of a
national magazine “TT-Techology Transfer”.
Johnson Dehinbo obtained B.Sc. degree in Computer Science & Statistics from Ogun State University in
1989, and B.Sc. Honors in Information Systems from UNISA in 2000. He obtained M.Sc. degree in
Information Systems specializing in software engineering from UNISA in 2006. He is currently busy his
M.Phil/Ph.D studies in Informatics at the University of Pretoria.
Nomusa Dlodlo holds a PhD in Computer Science. She is currently employed as a Senior Researcher at
the Council for Scientific and Industrial Research (CSIR)'s Meraka Institute in Pretoria, South Africa. Dr.
Dlodlo works in the Internet-of-Things (IoT) group. Her main research interests lie in applying IoT
technologies to improve teaching and learning at primary and secondary school levels
Swathi Duppada received her Master’s degree in Human Resource Management from Andhra University,
Visakhapatnam, India, and is currently working with Satyam Computer Services Limited, Canada. She is
currently a Ph.D. candidate at Jawaharlal Nehru Technological University, Hyderabad, India. Her research
interests include Benchmarking of Human Resource Management, Modernization of HR using ERP and
Software Testing.
Badr Elmir is a Software Engineer graduated from ENSIAS (2002), holder of an Extended Higher Studies
Diploma from ENSIAS (2006) and is a “Ph.D. candidate” at ENSIAS since 2009. His research focuses on
interoperability monitoring within public administration. He is an integration architect on the Ministry of
Economy and Finance of Morocco since 2002.
Turan Erman Erkan is an Assistant Professor at the Department of Industrial Engineering in Atılım
University. After a career in management consultancy, he worked as an international SAP consultant and
then started a research career. His research and consultancy interests include ERP, BPR, SCM, CRM and
performance measurement.
Francesc Estanyol is research assistant at the University of Edinburgh Business School. He received his
degree in Computer Engineering from the Universitat Pompeu Fabra, Spain, and also holds masters degrees
in Bioinformatics for Health Sciences and in Management. Currently he is the Scientific Manager of
EcoBusiness Marie Curie project. His research interests include how the adoption of innovative ICT tools can
benefit SMEs and the translation of research into real market applications.
Albrecht Fritzsche has a Master's degree in mathematics, and educational science, D.Phil. Vehicle
scheduling expert in the IT Management department of Daimer, A.G., Stuttgart. Doctoral dissertation in
industrial economics on heuristic search in complex environments, doctoral dissertation in philosophy on
indeterminacy in technical systems. Interdisciplinary research on innovation at TU Darmstadt.
Hiroatsu Fukuda is a professor at the University of Kitakyushu of Japan. A doctor of engineering, registered
architect of Japan, member of Architectural Institute of Japan (AIJ). Research interests are environment
design of architecture, recyclable buildings, and urban planning for compact cities, urban environmental
evaluation and suggestion.
viii

Waldo Rocha Flores received his B.Sc. in Business Administration and Economics from the Stockholm
University in 2007 and his M.Sc. in Electrical Engineering from the Royal Institute of Technology (KTH) in
Stockholm in 2008. He is now pursuing a Ph.D. in Industrial Information and Control Systems.
Wakari Gikenye, B.A. M.A. University of Nairobi, PGD University of Wales, is a Senior Librarian at the
University of Nairobi Library, Nairobi, Kenya, and a PhD Student at University of Zululand, South Africa. Has
recently presented papers on the diffusion of Information and Communication Technologies in the informal
sector in Kenya.
Amir Honarpour is currently a PhD. Student at Faculty of Management and Human Resource Development
(FPPMS) University Technology Malaysia. Amir graduated with a M.Sc. in system management in 2009.
After graduation, he worked in a project to help Design an integrated research system among Iran's
universities. His research interests include: Knowledge Management, Web-based Courseware Tools, Quality
Management and Research information Systems.
Sajid Iqbal received his Masters degree in computer science from University of Peshawar Pakistan.
Currently he is a research student at Department of computer science, university of Peshawar Pakistan. His
area of interest includes information security, relational database watermarking and data mining.
Sarmad Istephan is a Computer Science PhD student at Oakland University. His research focuses on the
storage and querying of Medical Images (e.g., MRI). In addition to being a PhD student, Istephan was a
Java/C# Software Engineer and currently is a Senior SQL Server Database Engineer at Quicken Loans.
Istephan eagerly awaits publishing more scientific papers in his field.
Tiko Iyamu is a Professor of Information Systems at the Tshwane University of Technology, Pretoria. His
research interests include Mobile Computing, Enterprise Architecture and Information Technology Strategy.
Theoretically, he focuses on Actor Network Theory (ANT) and Structuration Theory (ST). Iyamu is author of
numerous peer-reviewed journal and conference proceedings articles.
Veit Jahns has a German Diploma in Computer Science and works as a software developer and consultant
at the otris software AG in Dortmund, Germany. Additionally, he is finishing his Ph.D. thesis at the University
of Duisburg-Essen. His research interests are the all aspects of information systems interoperability, in
particular between information systems in public authorities.
Srimal Jayawardena obtained his BSc Engineering from the University of Peradeniya and BIT from the
University of Colombo School of Computing, both with first class honours. He has served in the Central Bank
of Sri Lanka as an Assistant Director/IT d and at the Information and Communication Technology Agency of
Sri Lanka as a Technology Specialist. He is currently a PhD candidate at the Australian National University.
Mehrdad Kalantarian is ITSM specialist of Infoamn CO., a consulting firm that provides services and
solutions for security, compliance & IT Management. He works with a professional team studying on IT fields
such as ITIL, ISMS, COBIT and Val IT. His experimental field is COBIT. He has M.S. degree in ICT
engineering and lives in Tehran.
Farnoosh Khodakarami has an MSc in Management from Queen’s School of Business, Queen's University,
Canada. Currently, she is working as a researcher at The Monieson Centre, Queen’s University. Her
research interests include customer relationship management, e-commerce, information systems and
knowledge management.
Ya-Ying Kuo is a master of Healthcare Information Management at National Chung Cheng University,
Chiayi, Taiwan. Her current research interests include hospital information systems and patient privacy.
Michael Kyobe is an associate Professor in the department of Information Systems, University of Cape
Town. He holds a PhD and an MBA. Prior to joining academia, Michael worked for over 15 years in the
public and private sectors in the IS and Computer forensics fields. His research include information security,
business alignment and KM
Mouhsine Lakhdissi is a Partner in a consulting firm specialized in IT Architecture. He received a Master
degree in Software Engineering in a leading engineering school in Morocco. He also served as Chief IT
Architecture in many companies with international exposure. His research interests include Enterprise
Architecture, IT Governance and processes and Software industrialization.
ix

Aron Larsson, Ph.D. in Computer and Systems Science and MBA. Senior lecturer and researcher at
Stockholm University and Mid Sweden University. Research interests include methods, procedures and
applications of computer based decision support, as well as risk and decision analysis. Research projects
include process models and methods for public decision making, landmine clearance activities, procurement
processes, and distributed artificial intelligence in wireless networks.
Chih-Yu Lin is a Doctoral Student in the MIS program at the National Chung Cheng University in Taiwan.
His current research interests include hospital information systems, knowledge management and decision
support system
Sizakele Untonette Mathaba has competed her degree in Bsc Information Systems (2007) honours degree
in Computer Science (2008) at the University of Zululand. In 2009, she joined CSIR (Council for Scientific
and Industrial Research) as an internship student. Currently, she is registered for her Masters degree in
Computer Science. She is working with the Internet of Things Engineering Group at CSIR (Meraka).
Fatemeh Mohammadi has a Ph.D in Educational management. Faculty member of Islamic Azad University-
Shiraz Branch, Iran.He is an inventor with 5 registered inventories. The author of 6 books and 24 essays
articles and papers with 12 presentations in National Conferences. Instructor of 38 educational terms for
faculty members and Theory builder of Human Information Life.
Siti Asma Mohammed is currently a PhD student at National University of Malaysia. She finished Masters of
IT specializing in Information Systems at University of Sydney, Australia. She worked as a Test Engineer for
one year and Assistant Lecturer in Information Systems for four years before pursuing PhD. Her research
interests are IS Evaluation and information quality.
Maryam Nakhoda is a PhD candidate in Library and Information Science (LIS) at University of Tehran,
faculty of Psychology and Education. She is the author of papers in Persian and English. Her research
interests include Information Technology (IT) application in academic libraries, library management, and
managing change in academic libraries.
Shirin Nasher is ITSM specialist of Infoamn CO., a consulting firm that provides services and solutions for
security, compliance & IT Management. She works with a professional team studying on IT fields such as
ITIL, ISMS and COBIT. Her experimental field is Val IT. She has M.S. degree in IT management and lives in
Tehran.
Mário Carrilho Negas is an assistant professor of management at the Open University (Portugal). He
received his Ph.D. in Management. His main research interests include the adoption of systems and
information technology in SMEs, strategic planning of information systems and management of Innovation.
Phathutshedzo Nemutanzhela is a Masters student at the Tshwane University of Technology. She has a
Baccalaureus Technologies (BTech): Information Technology (Informatics). Her principle research interest is
Competitive Intelligence and Information Systems.
Hesbon Nyagowa is a Ph.D student at the University of Zululand, South Africa specializing in Information
Studies. He obtained Master of Business and Administration specializing in Management Information
Systems at University of Nairobi Kenya in 2002. His Bachelor’s degree was in Education (Science) obtained
at Kenyatta University, Kenya in 1988. Is currently the Academic Registrar, Kenya Polytechnic University
College.
Jonathan Oni is a Post Graduate student and researcher at the Cape Peninsula University of Technology,
Cape Town, South Africa, with an interest in e-business. He holds a BSc Honors in Computer Science.
Jonathan consults for various Information Technology companies and involved in managing IT projects. He
is also a part-time lecturer at a higher educational institution.
Farnaz Rahimi is studying IT management in Alzahra University(MS degree) and work in contract
department in Mashhad Gas Company. Farnaz is interested in the field of "knowledge management" and
"implementing new IT technologies in organization"
Azhar Rauf received his doctorate degree in computer science from Colorado Technical University,
Colorado Springs CO, USA in 2007. Currently he is teaching as Assistant Professor at the Department of
Computer Science, University of Peshawar, Peshawar, Khyber Pakhtunkhwa, Pakistan. His areas of interest
include Relational Database Watermarking, Fine-Grained Security techniques in Relational Databases,
Encryption, Anonymity and Information Security.
x

Ari Riabacke, Ph.D. in Risk- and Decision Analysis (Computer Science), Head of Business Intelligence at
the largest Swedish Management and IT Consultant Company, also has a M.Sc. in Organizational Decision
Making, and is a member of the DECIDE Research Group at Stockholm University.
Martyn Roberts spent the first few years of his career in industry working in information systems, but
transferred to academia over 20 years ago. He is now Principal Lecturer at the University of Portsmouth. He
has taught various aspects of IS on a wide of programmes at both undergraduate and post graduate levels.
He has published mainly in the areas of strategic information systems and eCommerce.
Klaokanlaya Silachan works at the Computer technology department, Facultly of Science Nakorn pathom
Rajabhat University, Thailand. She is currently pursuing in computer information technology, Silpakorn
University,Thailand major in data mining, Health medical data, ontology. She received her master’s degree in
Information Management Technology from Mahidol University, Thailand, in 1998. She has publication in
national conference and international conference proceedings.
Ali Suzangar is a Chief System Officer of Infoamn CO., a consulting firm that provides services and
solutions for security, compliance & IT Management. He works with a professional team studying on IT fields
such as ITIL, ISMS and COBIT. His experimental field is Val IT. He has M.S. degree in IT management and
lives in Tehran.
Panjai Tantassanawong is currently pursuing his doctoral degree in Computer Science majoring in
networking and software engineering at AIT . He received his master’s degree in Computer science from
Chulalongkorn University, Thailand in 1992. He is Assistant Professional the Computing Program, Facultly
of Science, Silpakorn University, Thailand. He has publications in national and international conference
proceedings
Hsiao-Ting Tseng is a graduate student of Healthcare Information Management at National Chung Cheng
University, Chiayi, Taiwan. Her current research interests include patient privacy, electronic medical records
and exchange of medical images.
Ngozi Ukachi is a librarian at University of Lagos, and presently doing her PhD at University of Nigeria,
Nsukka. A member of International Federation of Library Associations (IFLA), American Library Association
(ALA) and, Nigerian Library Association (NLA). She was IFLA 2010 Essay Competition Award Winner
(organized by IFLA Academic and Research Section).
Chris Upfold is currently a lecturer in the Department of Information Systems at Rhodes University, South
Africa. He also teaches in the Rhodes Business School. His areas of interest and research are Information
Security, Radio Frequency Identification (RFID), Project Management, Virtual Teams and Corporate
Communications.
Huan Vo-Tran is a lecturer and the program director of the Bachelor of Business (Information and
Knowledge Management) within the School of Business IT & Logistics at RMIT University. He is currently
completing a PhD in business computing. Prior to becoming an academic he worked in various fields, which
included project management, systems analysis and high school teaching. His areas of interest include
information management and Web 2.0.
Harris Wang is an associate professor in the School of Computing and Information Systems at Athabasca
University, Canada. He received a PhD in computer science from the Australian National University,
Australia. His research interests include advanced technology for education, information systems and
information security.
Joseph Woodside is a Doctoral candidate in Information Systems at Cleveland State University, with
publications and research interests in topics of business intelligence, informatics, healthcare systems
integration, geo-spatial-temporal modeling, HIT adoption, machine learning, and object-oriented database
technology. Joseph is employed with KePRO, a national care management company, as the Director of
Healthcare Informatics and Business Intelligence.
Hossein Zadeh has taught undergraduate and postgraduate courses in Australia, Hong Kong, Vietnam,
Singapore, and Sweden. Hossein is the recipient of 2008 University Team Teaching Award and 2009
University Certificate of Achievement in innovative teaching. In 2004, Hossein was a visiting scholar at
Linkoping University, Sweden, and in 2009/2010, was a Distinguished Visiting Scholar at IBM Almaden
Research Labs, Silicon Valley (San Jose), USA. Hossein is the recipient of the prestigious 2010 IBM Faculty
Award.
xi

Performance Management of the NHS’ Mental Health Care
Service Delivery in England: The Role of the Service’ Actors’
(Clients) Collaboration Through Dialogism
Kwesi Korsa Aggrey
University of Lincoln, UK
kaggrey@lincoln.ac.uk
Abstract: A welfare state has a responsibility to provide health and social services to the citizenry. The state
delegates that responsibility to a number of actors, each of which has its own performance management criteria. To
ensure coherence, it is important to managing their performances collectively taking into consideration all the actors
inputs rather than only that of government or its agent, the NHS This turns out to be difficult task especially that of the
mental health care services. The author will be looking at a possible solution to this problem based on the
assumption that it is possible to change the way the actors present their stories by bringing them together to share
their purposes and common action through the notion of dialogism as way of maintaining plurality of logics: different
voices (polyphonic), styles (stylistic), space-time conception (chronotopic), interanimating discourse (architectonics)
and the dynamic interplay of different dialogisms (polypi). It is this process of plurality of logic that the researcher
termed, the Third Cybernetics Evolution, as a way of sequential processes from the First Cybernetics through the
Second Cybernetics to the Third Cybernetics. It is argued that implementing these, allows for improved
communication among actors, as a way of achieving high quality service. It is suggested that implementation of these
concepts and processes implies the use of storytelling as a facilitatory system. It is shown that all actors in the mental
healthcare services delivery make use of this system, albeit often inefficiently. Therefore may lead to dissipation of
the system in the future. To prevent such dissipation, the existing structure needs to be improved through spiral
relationships via communication (dialogism)
Keywords: third cybernetics evolution, mental health care system, NHS, collaboration and dialogism
1. Introduction
In qualitative research, one of the issues is how to explore the meaning that actors bring and generate
within social interactions. However, in most researches on mental health care services, the concentration
has been on the inputs of the strong actors namely the government, the NHS and the voluntary
organisations with less attention to the weaker actors like service users, the family, or relatives, carers
and advocates. This paper will focus not only on moving the ‘gear’ to higher level of service users’
controlled and ‘emancipatory’ approach to research but further to the level of dialogism where all
stakeholders are involved in a collaborative effort.
The state through its agent, the NHS, is responsible for ensuring that the health needs of the citizenry are
adequately met. The NHS sometimes sub-contracts some of the services to other organisations (actors,
in this case, they are also clients) like the voluntary sector organisations, private organisations etc. The
government provides the resources in terms of equipment, funds, facilities and personnel needed to
deliver the services to the patients. The government in the process of resourcing the NHS sets targets
through the Department of Health for health and social service providers. But for the health care system
to be effective in meeting the local needs and expectations, it has to include the inputs of the clients and
patients. According to some clients (patients) interviewed in Lincolnshire in England, the system is not
performing because some of their colleagues had to go back to the hospital after their medical treatment
because the ‘system’ has no adequate provision for social integration and social needs of the patients. It
is argued that, where such provisions exist, the government decide what is needed and the criteria for
measuring and managing the performance without considering the local needs of the citizens which may
be different from one locality to another. The clients (patients) claimed that where the system seems to
give attention to their needs, the government thinks the system is not performing because it is not
meeting the targets set and therefore closes down such hospitals or departments in the hospitals even
when the citizens protest.
It is being argued that mainstream mental health care researches tend to be clinically dominated,
reflecting the linear and hierarchical approaches of medical professionals who based their analysis on
quantitative and experimental testing with less attention to qualitative research. One of the focuses of the
paper therefore is to give attention to qualitative research in mental health services by analysing how to
give audience to and manage service users, carers, the family and the community’s inputs through the
actors-dialogism-system.
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2. Mental health care services in UK
Kwesi Korsa Aggrey
Mental health problems account for significant proportions of diseases in UK. However, access to
treatment though available is not being fully utilised because of a number of issues in which
reorganisation of the service is urgently needed. The issues of mental health care have become
important because of its significant burden on the government and the community. It is argued that, it
accounts for nearly 12% of the global burden of disease and will hit the target of 15% of disability
adjusted life years lost to illness by 2020 (WHO, 2003).
The economic and social costs to the state and the community have increased with the development of
science and medicine. Before the 17 th century, issues of mental disorders were attributed to spiritual
explanation and therefore its treatment. However, with the development in science and medicine, secular
explanations were given to the mental disorder as a physical state of the mind leading to the confinement
of such people in secured places.
During the first part of the 18 th century however, the dominant view of mental disorders being incurable
and the justification of being sub-humans and therefore their status, living conditions and physical
restraints to places of confinement changed.
The pressure from society and humanitarian groups about the human right of people with mental
disorders led to a call for reforms in the treatment of mental patients and therefore the introduction of
moral treatment programmes. This led to deinstitutionalisation or de-hospitalisation of the service delivery
aimed at creating the opportunity to implement some of the ideas developed on social network and
community support system as alternatives outside psychiatric institutions.
However, the way mental health care service delivery is organised determines the effectiveness of the
interventions and the ultimate fulfilment of the objective of the service. The quality of the service
determines the likelihood of one achieving the desired outcome of becoming employable, independent,
self organised and part of the community. The quality of the service delivery is important because it
ensures that service users receive the care and support they require; it also ensures that there is
improvement in their daily life activities and living; provide acceptable and relevant clinical and non
clinical care to reduce the impact of mental health problems; and to make efficient and effective use of
resources available to them (Murray and Lopez, 1996).
In UK, the government’s policy on community care services was strongly developed with the third sector
in mind. This is evidenced in the Community Care Act (Department of Health, 1990) which embraces the
full involvement of other actors in mental health care services in particularly, the Third Sector. Despite
this policy however, the collaboration between the statutory and the actors particularly the voluntary
sector organisations to improve the quality of the service is weak (Simpson, 1996) and problematic,
(Adams, 1990). The weakness of this collaboration has been attributed to lack of understanding of each
other’s objectives, missions or vision and organisational practices, methods and significantly, differences
in respect of their structures, resources (Wilson, 1994) and their value systems (Mosher and Burti, 1994).
There is also an issue of confidence and trust by the professionals of the formal sector about the
capabilities of semi skilled personnel of the Third Sector and the private sector. Gratham (1995) surveyed
55 general practitioners in his area and found that only 18 per cent had made some referral to the
Alzheimer’s disease Society. Some professional even see any sharing of skills, knowledge and
experiences with the non-professional as a threat to their profession (Gussow and Tracy, 1976). The
paper aims at proposing a method of resolving the problem of collaboration among the actors through
participatory communication (dialogism). We will now look at the methodology used in this research to
identify the problem of limited communication among actors of the system.
3. Methodology and design
The study is intended to expand on our understanding of how to improve performance or improve the
quality service through increase of interaction among the stakeholders in health service delivery,
particularly in mental health care delivery system. A phenomenological method was used in this research
because it is one of the methods which help to identify phenomena through the perspectives of the actors
in the situation. In human interactive situations like the mental health care service delivery, it enables the
researcher to gather in depth information and perceptions through qualitative methods of interviewing and
focal group discussions (Gerber, 2001).
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Kwesi Korsa Aggrey
Phenomenology could be looked at as a philosophy, but also as a research method for gathering and
analysing data (Goulding, 1999). As a method, phenomenology allows for the discovering of people’s
‘world views’ thus capturing their subjective experiences. In all, eighteen (18) managers from the
Lincolnshire Partnership Foundation Trust (LPFT), Lincoln County Council (LCC) Lincoln County Hospital
(LCH) and some voluntary sector organisations in Lincolnshire were interviewed. In addition two focal
groups’ discussions were also conducted.
Using the phenomenological methods of interviews and focal groups discussions, the experiences of the
participants were organised by means of storytelling and interwove with living story method. The living
story theory, which is the bedrock of living story method is defined as the emergence, trajectory, and
morphing of living story from ante-narrative-conception to the end of decomposition of a story (Boje,
2007b; Boje, 2008). A living story is a story which lies in-between dead and alive narrative and between
forgotten and revitalised story. It is therefore a critical ante-narrative, where a living story traces and predeconstructs
an ongoing interweaving living story narrative and ante-narrative to become selfdeconstruct.
In the process of deconstructing stories, some stories die and others rejuvenate or emerge
and better still some revolve. The living story method is therefore interplay of dead (ended) narratives
with living emergent stories. It tells the emergent stories in the context of fragmented dead narratives.
The data collected were transcribed and analysed by reading and analysing the data in depth to search
for differences and patterns in relation to how to improve service delivery. Each interview was used to
probe into issues from the previous interviews which were not clear, in order to create a ‘rich picture’ of
the situation (lack of adequate communication among the actors). The data were interpreted,
continuously revised and the context broadened using the notion of ‘Ideal interpreter’.
Interpretivism is assumed to be mental content judgement-dependent; that is, the facts about
propositional attitude of people is exactly what is being captured by the judgement of the Ideal Interpreter
(Johnston, 1993a). However, for Dennett and Davidson (sited in Wright, 1989), the Ideal Interpreter is a
third-person who interpreters someone else. The interpreter can also be a first- personal account where
the interpreter is taken to be the subject of interpretation. Dennett’s and Davidson’s version of interpreter
is however, formulated on the thesis of biconditional: that X belief Q, therefore if there is an informed
Ideal Interpreter, the Ideal Interpreter would be disposed to attribute to X the belief that is Q. There is
however, a problem with this line of argument of interpretivism. There is no a priori guarantee that the
Ideal Interpreter will find answers to all the meaning of the subjects’ beliefs particularly those that are
linguistically expressed. It is therefore necessary that some sufficient conditions are held as a constraint
to strengthen this identified weakness of interpretivism, that is, there is an appropriate informed Ideal
Interpreter who would be disposed to attribute X the belief that Q. Interpretivism presupposes therefore
that facts or believes given by the Ideal Interpreter will be the facts participants believe in an ideal
situation, that is the assumption.
For the purposes of this research, the Ideal Interpreter is assumed to have a sufficient database of nonintentional
and intentional sources of information, knowledge and experience to interpret the subjects’
meanings, believes, experiences and desires. The Ideal Interpreter uses daily life application of intentions
in addition to scientific minded observations and experiences of non-intentional in order to arrive at the
best possible meanings of the participants’ experiences and believes in order to detach the meanings of
the participants’ experiences at the individual level. The next section looks at how interaction among the
actors through participatory communication will help to achieve the ultimate level of collaboration that will
encourage improvement in the quality of the service delivery system.
4. Actors’ collaboration: Way forward to improve the quality of service
It is proposed that to improve the quality of service, collaboration among all interested parties of the
mental health care delivery system is necessary in order to meet the needs and expectations of clients.
One can say therefore that, the collaboration among the stakeholders is not happening because of
communication problems among the actors of the service delivery system. This was identified and
confirmed from the data collected and organised as per the emerged sub themes (namely: state control
of the mental healthcare system; organisational culture; service delivery as continuous process; service
users needs and expectations; and participatory communication) from interviews conducted among
managers and directors from the Lincolnshire Partnership Foundation Trust (LPFT), Lincoln County
Hospital (LCH), Lincoln County Council (LCC),some voluntary sector organisations and some service
users from the county, (these are some of the actors of the mental health care system).
There are a number of possibilities to resolve the problem identified:
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Kwesi Korsa Aggrey
One possibility is to focus on information overload in the organisation of the NHS. It is proposed, by
increasing the level of interaction among all the interested parties via the use of participatory
communication after a suitable destabilisation of the existing communication system, the quality of
service will be improved.
Another possibility is the proposal to use the method of ‘information overload’, i.e. an intentional increase
in information through the communication channels of the NHS, as a way to support a suitable
destabilisation of the interaction among all the interested parties to stimulate self-organised improvement.
The third possibility, the one that is the paper’s focus is, the possible improvement in the organisation of
the mental health care system within the NHS. It is proposed therefore that the use of ‘information
overload’, a process to achieve participatory communication is necessary in order to increase the level of
interaction among all the interested parties and also to stimulate self-organisation of the system using the
dialogism approach. It is when the level of interaction in the decision making process is increased and
more attention given to the beneficiaries of the system through the supporting groups’ representatives
that the system may attain optimum performance and meet clients’ needs, expectations and in fact satisfy
the needs of all stakeholders, that is achieve ‘complete collective satisfaction’.
One theme that emerged from the interviews conducted was the organisational culture of the NHS, which
mainly is about professionalism of work, staff and the way task is undertaken or service is rendered. The
NHS: PCT and LPFT staffs have the idea that work should be based on specialisation of tasks leading to
the departmentalisation and training of staff accordingly.
To deal with the culture of professionalism and also to improve the services delivery, there is the need for
collaboration, because after medication and discharge from hospital, service users may need the social
support mainly provided by other actors including the Third Sector. It is a fact that the majority of mental
health patients preferred to work with and receive help from the non-professionals than from the mental
health professionals (Barker et al, 1990). Research has proven that, for mental health problems in
particular, the benefit of social support cannot be swept under the carpet especially at the time of
discharge from hospitals and that social networks has been very influential in the improvement of quality
of life of service users. (Green et al, 2002).
It is therefore important that collaboration is encouraged among all stakeholders to achieve complete
collective satisfaction. This is necessary because no single organisation can meet the needs and
expectations of mental health service users on its own, therefore a multi-agency model (actors-dialogismsystem)
should be explored via collaboration; training of self help groups, sharing information, collective
service evaluation and feedback to improve services. It is also important to incorporate other methods
used by the Third Sector staff to strengthen the collaboration between the third sector and the formal
sector (Simpson, 1996).
It is important to note that in order to evaluate or manage the performance of the service delivery in
mental health care and to improve the quality, one needs to go beyond the medical model, diagnosis of
symptoms, treatment and side effects of disease. This may involve input/output system performance
evaluation. This system of input/output evaluation is what the researcher calls the First Cybernetics (Boje,
2008). However, for total treatment of mental problems, the inclusion of social well being of patients
(service users) is necessary. This in a collective term is referred to as Health-Related Quality Of Life
(HRQOL). The HRQOL generally includes the domains of physical functioning, psychological, well being
(e.g. level of anxiety, depression, fear of recurrence, etc); and social functioning of the patients. The
process of evaluating the performance of the mental service delivery system goes beyond the medical
model, input/output approach, to include the system’s environment (open system approach).
Cybernetics at the level of input/output approach is about negative feedback within self-stabilising loops
that lead to a regulation of a system, in order to generate a state of equilibrium (Ashby 1957). When
Cybernetics is related to external and centralised control of black boxes and goal-oriented behaviours, in
order to sustain complex interactions with the environment over time (Beer, 1966 p.257), then, the
system turns to become ‘open system’ a Second Cybernetics system or approach (Boje, 2008).
Cybernetics might also manifest itself in connected networks of components in interaction. As a result of
such interconnectedness, multiple feedback loops may be formed within the networks, which allow for
self-regulation and the production of ‘global’ order. This implies that a system can also have distributed
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Kwesi Korsa Aggrey
control, which does not depend on an external centralised control unit (Ashby, 1957), this is termed the
First Cybernetics.
The concept of negative feedback is crucial for achieving stability band adaptation. Negative feedback is
a necessary corrective action, which when implemented produces a specific outcome by modifying a
course of action. The consequence of this arrangement is that, the input of the loop is affected by its own
output. Hence, a satisfactory outcome can be achieved following a negative feedback process, indicating
whether the system has achieved its goal or fallen short. It does this by providing backward information
on the resulting outputs, in order to be used for the manipulation of the inputs of the system (Ashby 1957
p.53-54). This is what is expected from a participatory communication process via dialogism of actors’
interaction if fully implemented.
The First Cybernetic approach as described above is not very suitable for a complex system like the
mental health care system. The reason being that as adaptation and stability is achieved; the system is
bound to dissipate (dysfunction) with time because of the continuous changes and constant increase of
the variety in its environment, which may exceed the capacity of the input/output cybernetics system. This
is in line with the reverse interpretation of the Ashby’s Law of requisite variety. Therefore one needed to
go beyond this level of abstraction to the Second Cybernetics system which is the open system thinking.
It is an open system because it receives its feedback not only from within the system but also from the
system’s environment. Again being an open system, it means the system does not only exchange energy
with its environment but also matter from the environment. However, in both the First and Second
Cybernetics approaches of improving performance or quality of service, there are elements of linearity
and hierarchical, which in themselves create problems
The mental health care system, as a human institution with different people with different needs and
preferences, it is expected that the capacity of its meta-system transition (co-ordinated process) will not
be able to cope with the variety of needs and preferences from both inside and outside the system and
therefore dissipation is bound still to happen. This is what has resulted in various forms of reforms all
aimed at resolving the problems associated with increase variety of needs and preferences by the
various actors. One cannot avoid the dissipation because all the actors have their own different goaloriented
values which are not static but grow together with a diversifying environment, which may be
different from government’s target. The only way to resolve the problem in order to achieve the desired
high quality of service delivery (complete collective satisfaction) is to move to a higher level of cooperation
among the actors where the relationship between them or the functional imperative is neither a
linear nor hierarchical but spiral relationship of polypi dialogism. This is an inter-co-ordinated system
function of various dialogisms, namely the polyphonic, stylistic, chronotonic and architectonic.
5. Dialogism
A polyphonic is a written, visualised or orally told stories by all the stakeholders of a system as opposed
to mono vocal narrative or written strategy by an expert or a dominant actor (Boje, 2008). It is a
construction by many embodied voices, logics and perceptions. It could be visual arts, photos, décors,
drama or oral storytelling that communicates through interaction. It involves getting stakeholders to
engage in storytelling through the sharing of ideas, experiences, knowledge, skills such that each and
every one’s voice and logic get enunciated and subjected to questioning until a form of understanding is
reached on the particular issue and how to deal with it.
However, the interaction or communication in the process of the sharing is not necessarily a function of
producing a consensus but usually results in open situation where the issue is being accepted or
rejected. The actors in the process therefore reach a point, which bifurcates into further alternatives. The
process of bifurcation itself is a process of reducing complexity of the issues that come to the ‘floor’ of the
dialogue into simple terms and meanings.
The Stylistic is a dialogue; it is an orchestration of image or dialogism among various means of dialogue
or communication namely oral telling of stories, print and video media, internet, gesture-theatrics, décor
and other architecture modes of image expressions. It is a juxtaposition of varied styles for interaction. It
can also be described as the interactivity of various modes of expressions of organisational image.
For Weick (1995), sense making could be a way of looking at stylistic on the basis of public sense making
control. Sense making is about the act of or the process of placement of items into frameworks,
comprehending, redressing and constructing meanings from the frame such that interacting with it
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Kwesi Korsa Aggrey
generate mutual understanding and patterns. This form of framing and reframing (producing and
reproducing) is a stylistic feature. It also determines the style of delivery of the services and where
necessary the revision of the style to meet certain moral obligations. The power of stylistics is in the way
that stylistics is able to connect or depend on the working interplay of the roles of all stakeholders in the
service delivery to achieve a common purpose.
Chronotonic is a relativity of time and space, in terms of functions; it is like Einstein’s theory of relativity,
with time being the fourth dimension of space. Chronotopic dialogism can also be described as a
holographic relation of centring (centripetal of chronotopes) and amplifying (centrifugal of chronotopes).
Holographic is storytelling that runs from one dimension (monogon) to multiple complexities. Storytelling
is holographic in the sense that it can interrelate to more than one complexity. Storytelling is infectious
and that can be tracked across space-time.
Architectonic is the orchestration of ethics in relation to aesthetic and cognitive storytelling. Architectonic
dialogism is mainly focus on the interaction of several societal discourses that affects organisation’s
performance. The three basic discourses are ethics, aesthetic and cognitive which are answerable to one
another. Kant (1993) and Bakhtin (1981) described architectonic as societal discourses. However, each
author has his own divergent views on this notion. Kant invented the ‘cognitive architectonic’. For him
architectonic is the art of constructing a system. He argues that reason cannot permit our knowledge to
remain in an unconnected and rhapsodistic state, but requires that the sum of one’s cognitions constitute
a system. Kant sees architectonic as cognitive notion deeply implicated in the construction of systemicity.
Bakhtin preferred the term ‘consummation’ to construction and was careful not to assume a monophonic
or mono logic or mono language system. He looked at a system as ‘systemicity’, that is unmergedness
and unfinalisability of a system. This is the way forward for the proposed mental health care system,
where there is no room for homeostasis state or dissipation because the process of ‘polypi’ is
‘unmergedness’ ‘and unfinalisation’. Bakhtin went further from Kant’s cognitive architectonic discourse to
add ethical and aesthetic discourses. He defined Ethics discourse as the notion of ‘answerability’ which is
a description of how one domain of discourse is answerable to another. The Aesthetic is about how and
for whom a given systemicity is constructed or designed.
Polypi is the inter-dialogism of polyphonic, stylistic, chronotopic and architectonic. It is a multi-dialogised
complexity where the four (4) notions collide. The polypi is therefore a coordination system of the
dialogism
6. Conclusion
The complexity of dialogism, the polypi, which explores multiple of dialogisms, is in line with Letiches’s
(2000) phenomenal complexity and also Stacey’s (2006) emergent complexity. The properties of the
complexity are cumulative rather than successive. In cumulative, all the lower orders of phenomenal
complexity (polyphonoic dialogism) intermingle with higher orders of dialogism (of fragmented antenarrative
and petrified narratives that follow Aristotelian structures of wholeness and coherence of
beginning middle and end in storytelling.
Weick (1995) looks at the complexity in retrospective sense making of experiences and narrative of
coherence and control by people whose current experiences fit into past meaning structures. This I think
offers a revolutionary breakthrough in complexity thinking or approach .This approach is not only
compatible with phenomenal complexity theory, but also provides a way to overcome a major crack or
gap in knowledge creation. The same argument applies to synchronous and diachronous approaches to
storytelling organisation. The synchronous approach (being the current experienced story) looks at
storytelling organisation at a particular point in time, rather than over time while the diachronous
approach (being narrative) looks at storytelling organisations in historical development. Therefore in order
to achieve the wholeness, one has to bring both approaches together through the phenomena, the
‘polypi’ which is the dialogism of history or background of current issue(s) plus current experiences of
users of the mental health care delivery system.
A typical and recent familiar example of narrative and emergent stories of dialogism is the death of
Michael Jackson, the pop star. A network of organisations constructed narratives along side stories of
Michael Jackson’s death; even now stories about his death continue to emerge. In the narrative and
emergent stories of his death, the polypi of dialogism is contentious: polyphonic logics struggle to
converge or agree; the multiple stylistics of verbal, written and posters or pictures contrast; the multiple
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Kwesi Korsa Aggrey
chronotopes of varying temporalities and partialities diverge, and the ethical discourse of architectonic
questions reverberates into many other discourses. It indicates therefore that the complexity of the
narratives and emergent stories of Michael Jackson’s death is unmerged and ‘unfinalised’ if one want to
get to the ‘bottom’of the story.
Dialogism is a complex notion, it is a weave of many storytellers and listeners who together co-construct
the meanings of a dynamic that reduce living story into complete collective meaning as a necessary
outcome as opposed to ante-narrative amplification (Boje, 2008).
The contribution of this paper to knowledge is the proposal that although linearity or hierarchical
approaches to knowledge creation is making impact in society, the impact will be great and more
beneficially however, if the interaction among the actors is on a spiral relationship, that is on a collective
level by way of collaboration to resolve the problems identified collectively in order to achieve ‘complete
collective satisfaction’ particularly in the service delivery system.
In the case of mental health care delivery system ‘Complete collective satisfaction’ is achievable only if
the mental health care system moves from the level of abstract categorisation such as planning or
reforms to the level of collaboration. This means that the way forward is therefore, the re-organisation of
the system which is exclusive to the NHS or government (target setting) to a level of multifunctional and
interdependent interaction where consideration is given the environment, other service providers, clients,
financiers, the public and in fact all stakeholders.
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8

The Acceptance and use of Educational Technology in
Kingdom of Bahrain
Jaflah Al-Ammary
University of Bahrain, Bahrain
Jaflah@itc.uob.bh
Abstract: In 2004, King Hamad Schools of Future Project (KHSFP) has been launched by the ministry of education
at Kingdom of Bahrain with a goal of establishing a fundamental change in the way teaching and learning take place.
The main objective of the project is to change the way in which students and teachers communicate, work and learn
by transfer the traditional classroom into an open, interactive environment based on adopting new and more advance
technologies. In fact at Kingdom of Bahrain, adopting technologies such as computers, smart board, or interactive
board will increase the pressure on the schools to accommodate to these new conditions. This is because there are
some schools in particular the elementary schools were only getting access to the technology and many teachers
lack the required IT skills and capabilities. As a result, many efforts have been initiated to enhance the necessary
skills and facilitate the functional development of the teachers. However, there is still a need to understand the
teachers and student’s acceptance of the new technology to cope with KHSFP. Thus, to achieve a technological
enhancement of the education system, students and teachers should accept the IT as an effective tool. The current
research aims at investigating the acceptance and use of the new educational technology such as computer,
interactive board and smart board, by teachers and students in the schools of future at Kingdom of Bahrain. Through
an extension of the Technology Acceptance Model (TAM), five factors that influence the behavioral intention to
accept and use education technology were examined. These factors include: subjective norms, motivation, computer
self efficacy, previous experiences, and computer anxiety. Moreover, previous experiences was investigated to has
an indirect effect on perceive ease of use through the computer anxiety. The results show that the computer self
efficacy, previous experience, and motivation are the most critical factor for accepting and use educational
technology at Kingdom of Bahrain. By considering these factors and investigating other factors, Ministry of Education
at Kingdom of Bahrain can enhance the acceptance and use of the new educational technology by both teachers and
students among the Kingdom schools.
Keywords: acceptance technology model, computer anxiety, educational technology and previous experience
1. Introduction
In order to get benefit from the opportunities offered by the digital revolution and the big technological
innovations in the field of education; the ministry of education at Kingdom of Bahrain decided to draw a
strategy to employ ICT in education (Shaker, 2008). This strategy aims at developing a new environment
for e-learning, not just providing computer laboratories with equipments and teaching computer as
subject matter (ICE47, 2001). Having such action, future generations will be prepared to establish
information society and be empowered with the basic skills necessary to transfer the kingdom into a
knowledge based economy (Shaker, 2008, ICE47, 2001). The ministry of education is making its efforts
to achieve its objective through the implementation of big projects that deal mainly with enhancing and
improving the quality of education at Kingdom of Bahrain (ICE47, 2001). One of these projects is KHSFP.
In 2004, King Hamad Schools of Future Project (KHSFP) has been launched by the ministry of education
at Kingdom of Bahrain with a goal of establishing a fundamental change in the way teaching and learning
take place. The main objective of the project is to change the way in which students and teachers
communicate, work and learn by transfer the traditional classroom into an open, interactive environment
based on adopting new and more advance technologies. (Al-Ammary et al. 2010a,b). Moreover, the
project will reform the education system in Kingdom of Bahrain to prepare the citizen to invest in the ICT’s
potentials to achieve the education quality and attain the curricula capabilities at all educational levels
(ICE47, 2001). KHSFP includes an integrated systems comprise of an educational portal to achieve the
qualitative turning point in the educational performance under a contemporary educational environment,
supported by a modern educational and information technology (ICE47, 2001). This project has been
implemented by first, establishing a website for the project, second, disseminating information about the
project in the target schools and third, establishing a scientific documentary library for the project
(ESCWA, 2005). The project will be executed by connecting the targeted schools (primary, elementary,
and secondary level), with a speedy communication network via the central educational portal (ESCWA,
2005).
In fact at Kingdom of Bahrain, adopting technologies such as computers, smart board, or interactive
board will increase the pressure on the schools to accommodate to these new conditions. This is
because there are some schools in particular the elementary schools were only getting access to the
9

Jaflah Al-Ammary
technology and many teachers lack the required IT skills and capabilities. As a result, many efforts have
been initiated to enhance the necessary skills and facilitate the functional development of the teachers.
However, there is still a need to understand the teachers and student’s acceptance of the new technology
to cope with KHSFP. Thus, to achieve a technological enhancement of the education system, students
and teachers should accept the IT as an effective tool. Therefore, the current research has conducted to
investigate the acceptance and use of the new educational technology such as computer, interactive
board and smart board, by teachers and students in the schools of future at Kingdom of Bahrain. Through
an extension of the Technology Acceptance Model (TAM), five factors which influence the behavioral
intention to accept and use education technology were examined. These factors include: subjective
norms, computer self efficacy, previous experiences, motivation and computer anxiety. Moreover,
previous experiences was investigated to has an indirect effect on perceive ease of use through the
computer anxiety.
This paper consists of nine sections; each section will touch a significant component of this research. The
following section spots the light on the literature review on the Technology Acceptance Model (TAM).
Section three explains the research model and hypotheses. The survey instruments of this study are
discussed in section four. Section five illustrates the research methodology for this study. Description of
data analysis is presented in section six. In section seven, profile of the study participants are discussed.
Finally, in the last two sections of this paper; 8 and 9, the findings of this study are discussed and a
conclusion is presented and made ready for the educational institutes that intend to adopt IT.
2. Research background
2.1 Technology Acceptance Model
There are many models have been developed to investigate and understand the factors affecting the
acceptance of computer technology in the organization. Among those are the Theory of Reasoned Action
(TRA) (Ajzen et al. 1980), Theory of Planned Behavior (TPB) (Ajzen, 1991), Technology Acceptance
Model (TAM) (Davis et al., 1989), and Unified Theory of Acceptance and Use of Technology (UTAUT)
(Venkatesh et al., 2003). However, it have been noticed that the most used model by Information System
academics and practitioners is the TAM designed by (Davis, 1998). TAM is an adaptation of the Theory
of Reasonal Action (TRA) to the field of IS. The objective of TAM is to provide an explanation of the
determinants of the adoption and use of information technology (Davis et al., 1989). Perceived
usefulness is the degree to which a person believes that using a particular system enhances his or her
job performance. Perceived ease of use is the degree to which a person believes that using a particular
system will be free of effort (Davis et al., 1989). Perceived ease of use and perceived usefulness are
common in technology-usage setting (Tylor et al., 1995 a, b) and have been applied widely to solve the
acceptance problem using different acceptance models (Wu et al., 2005).
TAM originally suggested that perceived usefulness and perceived ease of use are involved in explaining
the variance in user’s intention or behavior of intention (Davis et al., 1989). Perceived usefulness is also
seen as being directly impacted by perceived ease of use. However, behavior intention to use functioning
has hypothesized by TAM as a mediator of actual technology in use (Davis, 1998).
3. Research model and hypotheses
This research study has a main objective of investigating factors that influence the acceptance of
educational technology in the schools at Kingdom of Bahrain. The literature revealed for many factors
that may affect the acceptance and use of educational technology in any school. For the purpose of the
current research, five factors have been selected which include: subjective norms, previous experience,
computer anxiety, computer self efficacy, and motivation. The research model is developed as depicted
in Figure (1).
3.1 Theory factors: Perceived usefulness and perceive ease of use
Information system researchers have investigated TAM and agreed on its validity in predicting the
individual's acceptance of various systems (Chin and Todd, 1995; Doll et al, 1998; Segars and Grover,
1993; Venkatesh and Davis, 2000). Most of them revealed that perceived usefulness and perceived ease
of use have a positive effect on the behavioral intention to use system (Chin and Todd, 1995; Doll et al,
1998). Moreover, perceived ease of use was found to have a positive effect on the perceived usefulness
(Lee, 2006). The hypotheses relating to perceived ease of use and perceived usefulness have been
studied by a number of TAM researchers (Srite, 2006). Although some researchers reveled that attitude
10

Jaflah Al-Ammary
toward systems use is postulated to mediate the effect of perceived ease of use and perceived
usefulness on behavioral intention (Kim, el al, 2009), Davis, et al, (1989) suggest that perceived
usefulness may impact on behavioral intention to use technology irrespective of attitude toward this
system.
Computer
Self efficacy
Motivation
Previous
experiences
H12
Computer
Anxiety
H
H7
H9
H8
H6
H10
H1
H13
H14
H5
Subjective
Norms
Perceived
usefulness
experiences
H
Perceived
ease of use
H
H
H
Behavior
Intention
Figure 1: Research model
Hypothesis 1: Perceived usefulness has a positive effect on students and teacher’s behavioral intention
to use educational technology in school at Kingdom of Bahrain.
Hypothesis 2: Perceived ease of use has a positive effect on students and teacher’s behavioral intention
to use educational technology in school at Kingdom of Bahrain.
Hypothesis 3: Perceived ease of use has a positive effect on students and teacher’s perceived
usefulness of educational technology in school at Kingdom of Bahrain.
3.2 Hypotheses on factors affecting the perceived ease of use and perceived usefulness
3.3 Subjective norms
According to Fishbein and Ajzen (1975), subjective norms refer to “the person’s perception that the most
people who are important to him think he should or should not perform the behavior in question”. The
literature reported on much theoretical and empirical evidence regarding the importance of the role of
subjective norms on technology use directly, or indirectly through perceived usefulness in the workplace
(Lee, 2006; Tylor et al., 1995a). Subjective norms have been found to be more important prior to, or in
the early stages of innovation implementation when users have limited direct experience from which to
develop attitude (Havelka, 2003). Venkatesh and Davis (2000) found in their study that there is a direct
effect of subjective norms on the behavioral intention to use information systems. Lee [24] reported that
the effect of subjective norms has significantly influenced perceived usefulness. Accordingly, the
following hypothesis was developed accordingly:
Hypothesis 4: Subjective norms have a positive effect on students and teacher’s behavioral intention to
use educational technology in school at Kingdom of Bahrain.
Hypothesis 5: Subjective norms have a positive effect on students and teacher’s perceived usefulness of
educational technology in school at Kingdom of Bahrain.
11

3.3.1 Computer self efficacy
Jaflah Al-Ammary
Computer self efficacy is defined as individual’s self confidence in his or her ability to perform behavior
and use the computer in the context of information technology usage (Compeau et al., 1995; Compeau et
al., 1999). According to Hayashe, et al. (2003), the computer self-efficacy is not concerned with what one
has done in the past, but rather with judgments of what could be done in the future. The effect of
computer self-efficacy on the performance of the learning has been studied extensively in teachinglearning
settings (Hill et al. 1986; Compeau et al., 1999; Lee, 2006). Vijayasarathy (2004) found that the
computer self-efficacy have a positive effect on the behavioral intention to use systems as the more
experience one gain online; the more important are concerns of control over personal information.
Moreover, the individuals’ confidence in their computer-related knowledge and skills can influence
perception on the ease or difficulty of carrying out a specific task using a new technology, and how useful
that new technology will be (Vijayasarathy, 2004). Therefore, computer self-efficacy has been revealed
by the literature to have a critical role in terms of its effect on perceive usefulness and perceived ease of
use (Venkatesh et al., 1996; Hayashe, et al., 2003; Lee, 2006). Therefore the following hypothesis was
developed:
Hypothesis 6: Computer self efficacy has a positive effect on students and teacher’s perceived
usefulness of educational technology in school at Kingdom of Bahrain.
Hypothesis 7: Computer self efficacy has a positive effect on students and teacher’s perceived ease of
use of educational technology in school at Kingdom of Bahrain.
3.3.2 Motivation
Motivation to perform a behavior can be divided into two main types: intrinsic and extrinsic motivation
(Hennessy et al., 2005). Extrinsic motivation refers to drive of behaviors to achieve valued outcomes that
are distinct from the activity itself (Deci and Ryan, 1985; Hennessy et al., 2005). Intrinsic motivation is the
satisfaction gained from performing the behavior (Hennessy et al., 2005). According to Deci and Ryan
(1985) perceived ease of use is a form of intrinsic motivation. Within the TAM, extrinsic motivation is
capture by perceived usefulness, while intrinsic motivation related to the perceived ease of use.
Motivation in the current study is measured by both intrinsic and extrinsic motivation, and then it is
proposed to affect both perceived usefulness and perceived ease of use.
Hypothesis 8: Motivation has a negative effect on students and teacher’s perceived usefulness of
educational technology in school at Kingdom of Bahrain.
Hypothesis 9: Motivation has a negative effect on students and teacher’s perceived ease of use of
educational technology in school at Kingdom of Bahrain.
3.3.3 Previous experience
If a user has already using computer in prior job or education institutions, then it is believed that this
experience will affect his/her perception toward using computer or any technology (Chang, 2008). The
repetition of task improves task performance by reducing the effort required to perform the task (Alba,
1987) and provides the user with a greater opportunity to consider different aspects of performing the
behavior in a relatively objective manner (Kim, et al, 2009). Moreover, Dyck and Smither, (1996)
revealed that as gaining more experience in using computer, user will become more computer
confidence and will show a less negative attitude toward using computers (Trocchia and Janda, 2000;
Dyck and Smither,1996). Thus, the previous experiences have a relationship with the intentional behavior
toward using computer (Kim, et al, 2009) through the perceived usefulness and perceived ease of use.
Moreover, a previous experience is proposed to be as a factor influence the computer anxiety.
Hypothesis 10: Previous experience has a positive effect on students and teacher’s perceived usefulness
of educational technology in school at Kingdom of Bahrain.
Hypothesis 11: Previous experience has a positive effect on students and teacher’s perceived ease of
use of educational technology in school at Kingdom of Bahrain.
Hypothesis 12: Previous experience has a positive effect on student and teacher’s computer anxiety on
using educational technology in school at Kingdom of Bahrain.
12

3.3.4 Computer anxiety
Jaflah Al-Ammary
Computer anxiety is a specific anxiety because it is a feeling that associated with a person’s interaction
with computers (Saade and Kra, 2006). Computer anxiety is defined as a state of mind of being fearful or
nervous when using a computer. It includes factors such as who may have initiated the person to the
computer technology (Brosnan 1998), success or failure experiences with hardware or software (Saade
and Kira, 2006), and detract cognitive resources from task performance (Sam et al., 2005). Computer
anxiety has been revealed by many studies to be affected by previous computer experience and affect
ease of use of information technologies using the technology acceptance model (Bertrand and Bouchard,
2008; Saade and Kira, 2006).
Hypothesis 13: Computer anxiety has a negative effect on students and teacher’s perceived usefulness
of educational technology in school at Kingdom of Bahrain.
Hypothesis 14: Computer anxiety has a negative effect on students and teacher’s perceived ease of use
of educational technology in school at Kingdom of Bahrain.
4. Data collection and research variables
The study sample is comprised of teachers and students from twenty six public schools (male and female
schools) at Kingdom of Bahrain. These schools consist of primary, elementary, and secondary levels.
Two hundred and four surveys were distributed to the twenty six schools. The survey instruments for this
study were developed using validated items from the prior research as a means of assessing the
theoretical constructs of the extended TAM model for educational technology, using the TAM scales of
perceived usefulness, perceived ease of use, and behavioral intention from Davis et al. (1989) and Davis
(1998). A scale for measuring subjective norms was developed using the measurement of Venkatesh et
al. (2003), scales used for measuring computer anxiety and motivation were adopted from the
measurement proposed by Saade and Kira (2006), and scale for measuring computer self-efficacy was
developed using the measures of both Lee (2006) and Karsten et al. (1998). However, measurements of
previous experiences were developed by the author for the purpose of the current research.
5. Data analysis and results
A Partial Least Squares (PLS) was applied to test the current model using Smart-PLS 2.0. PLS is a
structured equation modeling method that analyzes how the items load on their constructs simultaneously
with estimating all the paths in the model (Chiu et al., 2005). Data analysis in the current research
possessed in two stages. In the first stage, the measurement model was evaluated to validate the
reliability and validity of the constructs. In the second stage, the structure model was estimated using
hypotheses testing to test the significance of the path coefficients.
6. Demographics
The survey instrument provides a response rate of 86% which can be considered as high rate bearing in
mind the difficulty in getting the permission from ministry of education at Kingdom of Bahrain to be able to
conduct the survey in the public schools. Demographic characteristics of the overall participants both
teachers and students are presented in Table (1). The results in the table revealed that most of the
participants either teachers or students are male (64.9%, 81% respectively) and are from secondary
schools (57% and 56.5% respectively). Moreover, the results show that most of the teachers have B.Sc.
and master degree (79.4% and 12.6%) and at least six years of experience in teaching (79.6%). Most
importantly, it has been revealed from the results that most of the participated teachers have ICDL or
other computer certificates (57.9%). In addition, the results show that most of the students have taken
class using educational technologies (62.4%) which include the computer (50%), interactive board (30%)
and smart board (20%).
Table 1: Selected characteristics of the sample
Teacher Percentage Students Percentage
Gender Gender
Male 64.9% Male 64.9%
Female 35.1% Female 35.1%
Level of School Level of School
Primary 71.42% Elementary 71.43%
Elementary 28.57% Secondary 28.57%
Secondary Age
13

Jaflah Al-Ammary
Teacher Percentage Students Percentage
Qualification 10-13 33.7%
B.Sc. 79.4% 14-17 45.5%
Post-diploma 9.0% >17 20.8%
Master 12.6%
PhD
ICDL or any certificate in
0.0% Take class using educational
technologies
Computer
Yes 62.4%
Yes 57.9% No 37.6%
No 42.1%
Take class using educational
technologies
Year of experience Computer 50%
1-5 20.4% Smart board 20%
6-10 43% Interactive board 30%
>10 36.6% others 5%
7. Assessing the measurement model
The strength of the measurement model is determined by its reliability and validity. Cronbach’ alpha was
used to assess the reliability value of each dimension as demonstrated in Table (2). All the reliability
values are higher than 0.7, except that of subjective norms (0.636). However, these values are accepted
because they are closed to 0.7. Convergent validity was assessed by the examination of composite
reliability and Average Variance Extracted (AVE) (Chin et al., 1995). The data indicates that the
measures are robust in term of their internal consistency reliability. The composite reliabilities of the
different measures ranged from 0.744 to 0.886 which exceed the recommended threshold value of 0.7 for
each construct. Moreover, results in Table (3) show that AVE values were all above the recommended
range (0.50) (Chin et al., 1995), with values ranging from 0.524 to 0.668, thereby establishing convergent
validity for each construct. Moreover, to assess the convergent validity confirmatory, factor analysis with
Varimax rotation was conducted to assess the underlying structure for the items of each research
construct. The loading of each factor should be greater than or equal to 0.5 which has been achieved
(results not shown in the current paper).
Table 2: Reliability, and convergent validity
Items Cronbachs Alpha Composite Reliability AVE
Behavioral Intention 0.819 0.882 0.653
Subjective Norms 0.636 0.744 0.524
Perceived Usefulness 0.775 0.859 0.671
Perceived Ease of use 0.761 0.857 0.668
Computer Anxiety 0.779 0.853 0.596
Previous Experience 0.774 0.842 0.579
Computer self efficacy 0.762 0.832 0.553
Motivation 0.838 0.882 0.653
8. Structural model
The causal relationships in the proposal research model were tested. Consistent with Chin et al., (1995)
bootstrapping was applied to produce standard error and t-statistics. This permits us to measure the
statistical significance of the path coefficients. The statistical objective of PLS is to show high R and
significant t-values, thus rejecting the null hypothesis of no effect. The t-values need to be significant to
support the hypothesized paths. R indicates the explanatory power of the latent endogenous variables.
Explanation of variance for each equation in the hypothesized model is presented in Table (3), while
properties of the causal paths, including standardized path coefficients and t-values are presented in
Table (4).
14

Table 3: Explanation of variance
Jaflah Al-Ammary
Factor R
BI 0.511
PEOU 0.447
PU 0.485
CA 0.210
As expected by the TAM literature, perceived usefulness, perceived ease of use and subjective norms
have a great impact on the behavioral intention to accept and use educational technology. Three of them
together accounted for a high variance of behavior intention to use educational technology (R=0.511).
Moreover, perceived ease of use affected perceived usefulness. Hence H1, H2, H3, and H4 which are
based on TAM (except hypothesis related to subjective norms) were all supported (0.200 (2.071), 0.455
(2.90), 0.18 (1.47) and 0.246 (2.903), respectively). On the other hand, perceived usefulness was directly
influenced by the computer self efficacy, motivation, and computer anxiety. Thus, H6, H8, and H13 are
supported. However, subjective norms and previous experience has no effect on the perceive usefulness.
Thus H5 and H10 are not supported. Furthermore, the results show that perceived ease of use was
directly influenced by computer self efficacy and previous experience, while motivation has no effect of
this factor. Therefore, H7, H11, and H13 were supported while H9 was rejected. Finally, the results show
that there is a negative impact for previous experience on computer anxiety.
Table 4: Model testing results
Hypothesis Path coefficient T-value
H1 Perceived usefulness - Behavior Intention 0.200 2.071
H2 Perceived ease of use - Perceived usefulness 0.455 5.05
H3 Perceived usefulness - Behavior Intention 0.184 1.472
H4 Subjective Norms - Behavior Intention 0.246 2.903
H5 Subjective Norms - Perceived usefulness 0.064 0.623
H6 Computer self efficacy Perceived usefulness 0.203 1.499
H7 Computer self efficacy Perceived ease of use 0.239 1.570
H8 Motivation Perceived usefulness 0.389 2.95
H9 Motivation Perceived ease of use 0.069 0.525
H10 Previous experience Perceived usefulness 0.091 0.681
H11 Previous experience Perceived ease of use 0.222 1.881
H12 Previous experience Computer anxiety -0.459 5.691
H13 Computer anxiety Perceived usefulness -0.203 1.499
H14 Computer anxiety Perceived ease of use -0.239 1.570
9. Discussion and conclusion
The main conclusion of the current research is that factors which were hypothesized to have an impact
on the acceptance and use of educational technology in schools are fallen within two categories:
behavioral and Information Technology factors. As such behavioral factors include: motivation, subjective
norms and computer anxiety while Information Technology factors include computer self efficacy, and
previous experience. In the first place, the results revealed that teachers and students behavioral
intention to accept and use educational technology is influenced indirectly by the proposed behavioral
and information technology factors via perceived usefulness and perceived ease of use. Moreover, the
results show that perceived usefulness and perceived ease of use have a great positive effect on both
teachers and student’s behavioral intention to accept and use the educational technology. In addition, it
has been revealed by the results that computer self efficacy and computer anxiety are the only factors
that have a positive indirect effect on the behavioral intention to accept educational technology through
15

Jaflah Al-Ammary
both perceived usefulness and perceived ease of use. Conversely, motivation has a positive indirect
effect on the behavioral intention through perceived usefulness only, while previous experience has
indirect effect on behavioral intention through perceived ease of use. Subjective norms, on the other
hand, have been identified by the research to be an important predictor for the behavioral intention to use
educational technology as it shown a great direct effect on the behavioral intention. However, most of the
literature and especially those that have been conducted in the context of Kingdom of Bahrain (Al-
Ammary 2008, 2010a, b) revealed that the subjective norms have an impact on the perceived usefulness
of IT, the findings of the current research does not support that. It has been revealed from the results that
teachers and students will not feel that the educational technology can simplify their work and make it
more effective if their peers or important people are using or think to use it. Finally, the results show that
even by having a good experience in using computer or any educational technology, teachers and
students will still express a fear of being under surveillance and believe that their wok conditions will
worsen with the introduction of such technologies.
Schools of Future project which aim at establishing a fundamental change in the way teaching and
learning takes place, and transferring the traditional classroom into an open, interactive environment
based on a wide-ranging use of technology, is the first step toward the educational reform at Kingdom of
Bahrain. Hence, the research results can present a good insight of the wider range of issues that
academic institutions would need to address when adopting educational technology in schools. Schools
and ministry of education leaders at Kingdom of Bahrain should invest in a strategic plan for the adoption
of educational technology which should be focused more on developing the human resources and
building IT skills and capabilities within the school. Actually the ministry of education has provided a great
effort to enhance the technical skills of the teachers in all schools and especially those that involved in
the KHSFP. For instant, ministry of education has integrated ICT in education program to be accessible
to the teachers and students to gain computer skills. Moreover, ICT training programs have been
developed with the aim to empower number of schools to move in pioneering on new ways of learning.
The programs include number of teacher training courses on digital literacy including the use of key tools
such as Microsoft office, visual basic and web-based applications. These programs will help teachers to
get a certified qualification and to use their ICT ability in their daily classroom life.
Acknowledgement
I would like to thank my senior students including: Bayan Abdulla, Mona Ali, and Nawal Isa for the effort
that they have provided in collecting the data used for the current research.
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17

Comparison of Feature Selection Techniques Using Fully-
Controlled Simulation-Based Datasets
Suzan Arslanturk 1 , Mohammad Siadat 1 , Theophilus Ogunyemi 1 , Ishwar Sethi 1 and
Ananias Diokno 2
1
Oakland University, USA
2
Beaumont Hospital, USA
sarslant@oakland.edu
siadat@oakland.edu
ogunyemi@oakland.edu
isethi@oakland.edu
adiokno@beaumont.edu
Abstract: Data mining is the discipline of systematically reviewing datasets to determine what patterns,
concurrences and/or rule sets can be discovered. In an effort to understand the effectiveness of a proposed mining
methodology a well defined dataset is required for model verification. To this end, a fully-controlled simulation was
created by which several different feature selection algorithms were evaluated. In this paper, we present a
comprehensive comparison between attribute selection methods when noise, missing values and multicollinearity are
in question. Our results show that "Relief" and "information gain" have outperformed other feature selection methods
available in Weka when considering both sensitivity and specificity measures. We have evaluated the following
features selection methods: J48, Relief, information gain, consistency based feature selection and correlation based
feature selection to see which one handles additive noise better. The sensitivity of consistency based feature
selection was 11% higher than the average sensitivity of other methods. However, it's specificity was 37% lower than
that of the average. It is important to note that sensitivity or specificity alone does not give enough support to a
method to say that it is the best way to handle the data. The best method, when both sensitivity and specificity are
considered, was information gain. This method outperformed the average of other methods by 1% and 20.5% when
we considered its sensitivity and specificity, respectively. Also in this regard, a goal of our study was to see which
feature selection method outperforms within the missing set of values. In this case, when looking again at sensitivity
and specificities, Relief and information gain proved to outperform the other methods of our study by 7.2% and
12.4%, respectively. Our studies also show that when multicollinearity is embedded into the fully controlled dataset
without any noise and missing values, the correlation based feature selection outperforms other methods. In
summary Relief and information gain performed the best in all three situations in terms of its sensitivity and
specificities.
Keywords: attribute selection, rule extraction, classification, comparison techniques, simulation
1. Introduction
Feature selection is a machine learning method that selects an optimal subset of features by eliminating
the ones which contain less predictive information. Reducing the dimensionality of a feature space
improves the performance by diminishing the curse of dimensionality effect. Feature selection also gains
advantage from efficiency in terms of storage and computational costs. Also, the execution time spent for
both training and testing phases will decrease.
The feature selection methods are categorized into three different forms: filter, wrapper or embedded
(Molina 2002). It is important to evaluate the existing methods and figure out which one performs better in
certain situations. Some algorithms perform well on correlated data while others can handle noise or
missing values depending on the nature of the data. In filtering methods, feature selection is a
preprocessing step independent of the induction algorithm. Information gain algorithm determines the
importance of each feature by evaluating the uncertainty reduction, while ReliefF is sampling an instance
and evaluating the difference between its nearest neighbors from both the same and the opposite class.
Relevance scores are assigned to each attribute. Correlation based attribute selection methods eliminate
one of the less important attribute that correlates with another attribute (Hall 1998). In embedded
methods, inducer has its own feature selection algorithm embedded such as J48, a widely used decision
tree algorithm. The occurrence of an attribute in a tree provides information about the importance of that
particular attribute. Information gain and entropy reduction methods can be applied to each candidate
feature of the decision tree node to evaluate the importance of each attribute (Sugumaran 2006). There
have been several studies on feature selection methods. Hall and Holmes (Hall 1998) use the UCI
dataset, a real world data set, that contains different data types such as categorical, continuous and
multivariate. Six attribute selection methods are compared in terms of classification accuracy, reduction
rate and speed. Molina et al., (Molina 2002) use a simulation based randomly created binary and nominal
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Suzan Arslanturk et al.
valued dataset. Different types of syntactic functions are applied to the dataset to generate the class
labels. Since it is a fully controlled scenario varying number of relevant, irrelevant and redundant features
are placed in the dataset. However, the simulated dataset doesn’t lend itself to real longitudinal dataset of
clinical trials and the functions used in this paper does not care about any particular attribute when
deciding about the resultant, which does not fit to what we usually see in real world biomedical datasets.
In this research, on the other hand, several feature selection algorithms are applied to a simulation based
dataset with longitudinal trials in order to compare the performances of the algorithms in terms of different
noise levels and different missing value levels and combination of both. Multicollinearity is added to the
dataset to evaluate the most robust algorithms when dependencies between attributes are in question.
Same attribute selection techniques are also applied to the combination of the longitudinal datasets. A
simulation dataset is chosen since full control over the dataset is achieved.
This paper is organized as follows. In Section 2 we explain different attribute selection techniques.
Section 3 outlines how the database is created and how the rules are embedded into the dataset. In
Section 4 the programming language used to embed the rules and the data mining tool to perform the
feature selection algorithms are explained. Section 6 and Section 7 present the results.
2. Attribute selection techniques
Attribute selection techniques can be categorized into three different categories: filter, wrapper and
embedded methods. In filtering methods, the feature selection method takes place before any learning
algorithm. The undesirable attributes are filtered out before the classification step. All the training data is
used in filtering methods (Hall 2003). In embedded methods, the learning algorithm has its own feature
selection algorithm embedded in it (Molina 2002). J48 decision tree classification algorithm is a common
example of an embedded method. In wrapper mode, on the other hand, the feature selection algorithm
uses the learning algorithm as a sub-routine (John 1994).
Five different attribute selection methods are applied to the dataset. Wrapper methods which are
correlation based feature selection and Relief, a filtering method, information gain and an embedded
method J48 decision tree based feature selection are applied to the dataset and the results are compared
in terms of sensitivity and specificities.
2.1 Correlation based feature selection
Correlation based feature selection evaluates the dependencies between attributes and eliminate the
ones which are correlated to each other. The irrelevant and redundant data has to be removed as much
as possible. After the feature selection, the remaining data has to be highly correlated with the class and
uncorrelated with each other.
As equation 1 (Ghiselli, 1964) formalizes :
Merits = (1)
The feature subset S contains k different features where rfc is the feature to class correlation and rff is the
feature to feature correlation. In order to have a good feature selection algorithm the merit has to be
maximized.
Symmetrical uncertainty can be evaluated as follows where H(X) and H(Y) are marginal entropies.
Symmetrical uncertainty = 2.0 x (2)
2.2 Consistency based feature selection
The consistency of the class is evaluated by first figuring out all different combinations of the attributes.
For each different combination the consistency is calculated by differentiating the number of occurrences
of a particular attribute from the cardinality of the majority class (Hall 1998).
19

2.3 Information gain
Suzan Arslanturk et al.
Information gain feature selection method the uncertainty of the class is evaluated with and without the
attribute observation (Hall 1998).
H(C) = - (3)
H(C|A) = - (4)
2.4 Relief
Relief algorithm assigns a relevancy score to all the attributes in descending order. The algorithm selects
an instance in each iteration and finds the nearest neighbor from the same and opposite class. The
results should differentiate if the neighbor and the instance selected are in opposite classes (Hall 1998).
The algorithm can handle noise if the neighbor number, k, is increased.
2.5 J48 decision tree based feature selection
J48 decision tree is a classification method that can also be used for feature selection. Each node of a
tree involves an attribute and the occurrence of each attribute provide information about the importance
of that particular attribute (Sugumaran 2006).
The importance of each attribute can be evaluated by applying the information gain formula to each node
of the tree.
3. Dataset
10 different simulation datasets are created each containing 20 attributes and 1500 subjects. In order to
gain full control over the dataset the values in the dataset are formed to create rules (Agraval 1994). The
last column of the datasets specify the resultants i.e. the class labels. Resultant is defined as the
continence, expressed as 0, or incontinence, expressed as 1, of the subject. Resultant values are stored
in the column space of the matrix.
Subjects are defined as an individual and are represented in the row space of the matrix. The number of
subjects is a function of the number of rules and the partition size for each rule. For example with ten
rules and two hundred subject partition size there would be two thousand subjects represented in the
matrix, with subjects one to two hundred being in the first partition, subjects two hundred and one to four
hundred in the second, etc.
Having defined the base dataset, it is now possible to manipulate the dataset for further methodology
testing. There are two types of modifications that can be performed to the data set for this testing. First is
the inclusion of noise to the data set. The second type of modification is to incorporate missing values,
which shall be defined as an attribute missing a value.
The expected results of the feature selection algorithms are the attributes that are the entities of the rules
embedded to the datasets.
A simulation dataset is used to allow maximum flexibility in creating and manipulating the data sets. The
simulation allows for one base data set to be processed with multiple noise levels, multiple missing value
levels and a mixture of both noise and missing values. The advantage of this methodology allows the
researcher to understand the impact of varying levels of these factors on feature selection or any other
metric of interest. Further, we can determine up to what missing value and noise levels a given data
mining tool would be reliable. This is extremely important when one needs to use the tool on a real
application. The current version of the matrix creation algorithm was intentionally restricted to binary data
only. This was chosen primarily to validate the feature selection methods that were the driving force
behind creating this simulated data. With the methodology described above modification to alternative
data types, such as categorical and/or continuous, will be possible.
4. Experimental methodology
Our experiment applied the five different feature selection algorithms to the simulation datasets that were
created using MATLAB. To apply the attribute selection methods Weka (Waikato Environment for
20

Suzan Arslanturk et al.
Knowledge Analysis) is used. Weka is an open source Java based data mining tool that performs pre
processing, classification, clustering and many other machine learning tools by using a graphical user
interface. First the dataset is uploaded to the Weka Explorer mode and the data is discretized. Then all
the attribute selection algorithms are performed. Sensitivity and specificity are used to evaluate the
performances in a statistical manner. Sensitivity i.e. true positive rate; measures the proportion of actual
positives which are correctly identified. While specificity (1 – false positive probability) measures the
proportion of negatives which are correctly identified. The algorithms with higher sensitivity and higher
specificity are the ones that performs significantly better than the others.
5. Results and discussions
Our experiment applied five different feature selection algorithms to the simulation dataset and the results
are compared when noise, missing values and multicollinearity are added to the data. The first set of
experiments was designed to evaluate the following feature selection methods to see which one handles
additive noise better: J48, Relief, information gain, consistency based feature selection and correlation
based feature selection.
In order to refer to a feature selection algorithm as robust, it has to both has a high sensitivity and a high
specificity. Fig. 1 shows that J48 algorithm performs well in terms of sensitivity but there is a huge
decrease in the specificity curve (Fig. 2) which makes the algorithm less desirable than the others.
Without any noise Information gain and ReliefF algorithms both perform well. Consistency based feature
evaluation has a low specificity and J48 decision tree classification algorithm has a low sensitivity. The
results do not change in Cfs, Information Gain and Relief algorithms when the noise level is 2%, 5%,
10%, 15%, ,respectively. In spite, in J48 decision tree the specificity decreases and the sensitivity
increases rapidly when the noise level increase. The sensitivity of consistency based feature selection
was 11% higher than the average sensitivity of other methods. However, its specificity was 37% lower
than that of the average. It is important to note that data method that maximizes both the sensitivity and
specificity is of interest. The best method, when both sensitivity and specificity are considered, was
information gain. This method outperformed the average performance of the other methods by 1% and
20.5% when we considered its sensitivity and specificity, respectively. Consistency based subset
evaluation and J48 algorithms can not handle noise. The next set of experiments was designed to
evaluate the feature selection methods to see which one handles missing values better. Fig. 3 and Fig. 4
show the results of different missing value levels. In
this case, when considering sensitivity and specificity, Relief and information gain were proved to perform
better compared to the other methods of our study by 7.2% and 12.4%, respectively. Despite, the
Consistency based feature selection and J48 algorithms can not handle missing values effectively. Our
studies also showed that when multicollinearity was embedded into the dataset without any noise and
missing values, the correlation based feature selection method outperformed other methods. In summary,
Relief and information gain were the best in all three situations (noise, missing value, multicollinearity)
when both sensitivity and specificity were considered.
Figure 1: Noise-sensitivity
21

Figure 2: Noise - specificity
Figure 3: Missing values-sensitivity
Figure 4: Missing values-specificity
Suzan Arslanturk et al.
22

6. Conclusions and future work
Suzan Arslanturk et al.
This paper presented a comparison between different attribute selection techniques by using a data
mining tool, Weka. The results show that using different attribute selection techniques help the system by
reducing the curse of dimensionality, time and storage. There is no single attribute selection technique
that gives the best results. The advantages of each technique differs in different situations. One might
give the most accurate results in a certain situation but the storage or time to run the algorithm might take
too long which will effect the efficiency of the algorithm. However, the results show that the Relief and
information gain algorithms give the most accurate results when missing values and noise are added.
This study shows that if in a given dataset noise level is beyond 15% or missing value is beyond 12% the
selected attributes are not reliable even when one uses Relief or information gain algorithms.
The simulation was developed to allow for a particular randomly created matrix to be manipulated with
differing noise, missing value, multicollinearity and combinations of both. Further development of this
simulation model building tool will need to include categorical and continuous data, to allow for more
realistic simulation models.
References
Agrawal, R., Srikant, R. (1994) Fast Algorithms for Mining Association Rules, Proceedings of the 20 th VLDB
Conference Santiago, Chile.
Ghiselli, E. E. (1964) Theory of Psychological Measurement.
Hall, M., Holmes, G. (1998) Benchmarking Attribute Selection Techniques For Discrete Class Data Mining,
Transaction on Knowledge and Data Engineering, Vol. 15, No. 3.
Hall, M., Smith, L.A. (2003) Feature Selection for Machine Learning: Comparing a Correlation Based Filter Approach
to the Wrapper, American Association of Artificial Intelligence.
John, G., Kohavi, R. and Pfleger, K. (1994) Irrelevant features and the subset selection problem, in Proceedings of
the International Conference on Machine Learning, San Francisco, CA.
Molina, L., Belanche L., Nebot A.(2002) Feature Selection Algorithms: A survey and Experimental Evaluation.
Second IEEE International Conference on Data Mining
Sugumaran, V., Muralidharan, V., Ramachandran, K. I.(2006) Feature Selection Using Decision Tree and
Classification through Proximal Support Vector Machine for fault Diagnostics of Roller Bearing, Mechanical
Systems and Signal Processing.
23

A Delphi-Multi-Criteria Decision Making Approach in the
Selection of an Enterprise-Wide Integration Strategy
Tridip Bardhan, James Ngeru, and Richard Pitts Jr
Morgan State University, Baltimore, USA
tridip.bardhan@morgan.edu
jmngeru@gmail.com
richard.pitts@morgan.edu
Abstract: Driven by the need to be competitively effective and agile, the last few decades have witnessed explosive
interest in the field of enterprise integration (EI). In spite of a great deal of research and advances in the EI discipline,
there still seems to lack a comprehensive decision making framework which can assist decision makers during the
crucial task of selecting an appropriate integration strategy that would optimally address most of the organization’s
business and technical integration needs. Consequently, this paper attempts to fill the research gap by formulating
and illustrating an application of such a framework through a case study. Since selection of an EI strategy can be
regarded as a complex multi-criteria decision making problem that involves multiple participants who must weigh in a
set of business and technical factors to evaluate different EI strategies, an integrated multi-criteria decision approach
which combines Delphi techniques and the Analytic Network Process (ANP) is adopted. The use of the ANP is
preferred over other multi-criteria decision analysis methods due to its ease of implementation and it provides a
structure that allows for an intensive analysis of the criteria which shows the effects of various criterions to be taken
into consideration. The Delphi technique on the other hand helps to ensure a consensus in the decision making
process by allowing active participation of various decisions makers and assimilation of their different schools of
thought. The formulated framework is then illustrated as a case study of a state government agency that is
embarking on enterprise-wide integration. The choice of the case study in the public sector setting was preferred
since these organizations are generally divided into several organizational functions; hence, such strategic decisions
usually involve different decision makers who represent their functional units. As a result, EI decisions which are
generally made at an enterprise-wide level are more challenging in public organizations. The results from the case
study indicate that there exists a conflict of interest among decision makers who participate in the EI strategy
evaluation and selection process. However, with the application of the proposed model, an effective decision making
process can be realized with significant consensus among decision makers. The use of the proposed model in this
context is a ground-breaking concept and represents a scientific and systematic approach to decision making that
could minimize risks and improve the benefits generally associated with the selection of an enterprise-wide
integration strategy.
Keywords: enterprise integration, multi-criteria analysis, delphi technique, analytic network process
1. Introduction
Today’s business environment is characterized with globalization, customization, digitalization,
virtualization and agility (Huang and Fan, 2007). Organizations are competing and creating new
opportunities in global markets with global partners and consumers. The competitive and dynamic nature
of the new business playground means new technologies methods and strategies are needed. To be
competitive, businesses in both private and public sector must have enough agility to respond to
business needs and with effective service delivery. This on the other hand is only possible with rapid
sharing of information among business processes both within and across organization. For the last few
decades, Enterprise Integration (EI) has emerged as a revolutionary concept and solution that promises
to assist organization with achieving this goal. EI aims to link separate business processes giving them
increased leverage (Lam and Shankararaman, 2004). Thus it is not surprising that for the past few years,
survey after survey of top CIO have ranked EI initiatives, such as Service Oriented Architecture (SOA)
adoption, Enterprise Resource Planning (ERP) adoption/upgrades, Data integration, in their list of top ten
priorities (Gartner-inc, 2009; Nascio, 2009). To many top executives, EI is now a business necessity.
However, implementation of an EI strategy is not an easy task. Past researchers have called for thorough
evaluation of organization’s requirements before undertaking EI implementation (Themistocleous, 2004).
Thus, this paper aims at presenting formulation and application of a systematic methodology for analysis
in the selection of an EI strategy. Selection of an EI strategy is a multifaceted problem involving more
than the choosing a vendor or integration software system. It is important to consider the organization’s
vision, requirements and constraints; the technical merits and limitations of the chosen strategy.
In spite of remarkable interest in overall EI concept, little has been done in development of a framework
for EI implementation, especially in EI strategy selection. Most of the EI research has been centered in
advancing the technology to enable integration. Janssen argues that organizational issues and
stakeholders interests should be addressed in the selection process (Janssen and Cresswell,
24

Tridip Bardhan et al.
2005).Thus, the need to develop a comprehensive framework incorporating a compendium of
organizational factors during the selection of an EI strategy is indispensable (Giachetiti, 2004).
The methodology discussed in this paper utilizes multi-criteria analysis principles, specifically integrating
ANP method with Delphi technique. Analytic Network Process (ANP) developed by Saaty (1980) was
chosen for its ability to incorporate multiple factors with different relative weights and with dependencies
characteristics. This gives the decision makers the ability to prioritize the importance of one factor over
another. ANP has been used in complex problems involving technology selection, and thus it is not a far
to see that it may be applicable in this situation. To further improve the results on using ANP within this
context, Delphi technique is applied. The Delphi technique improves the process by facilitating active
participation and consensus among evaluation process partakers representing different organization’s
functions.
The paper proceeds with an overview on EI, followed by methodology and a case study.
2. An overview of Enterprise Integration (EI)
Frye and Gulledge (2007) termed EI as “alignment of strategies, business processes, information
systems, technologies, and data across organizational boundaries to provide competitive advantage”.
Lack of this alignment is source of many organizational problems. The process of achieving integration
involves all managerial and technological factors that enable cross-functional process integration (Frye
and Gulledge, 2007). Integration is approached in various ways and at various levels, such as, physical,
application, business and can also be achieved through enterprise modeling approach or any
methodological approach facilitating consistent enterprise-wide decision making (Chen et al., 2008). EI is
also classified on whether it involves integrating processes and applications within or outside
organizational boundaries. Inter-organizational enterprise integration, attempts to integrate business
processes between enterprises (B2B), such as Supply Chain Management systems (SCMs), or electronic
purchasing processes (e-procurement). Intra-organizational integration is the integration of applications
within the organization, attempting to integrate custom applications and packaged systems (Silveira and
Pastor, 2006)
Lammer et al (2008) acknowledged existence of a number of integration approaches and concepts,
differentiated by integration’s level and architecture. However, Spackman et al (2004) and Chandra et al
(2009) argued that beyond the marketing hype; “there is a great deal of overlap between the integration
approaches”. Thus, at highest level of integration, while devising integration strategy for the enterprise,
there are limited numbers of overall approaches available (Spackman and Speaker, 2004). EI
approaches can therefore be broadly narrowed down into four basic categories, including (Spackman and
Speaker, 2004; Chandra and Juarez, 2009): (i) Point-to-point based integration; (ii) ERP integration; (iii)
Enterprise Application Integration (EAI) approach; (iv) and Service oriented integration approach.
In early stages of integration project, determination of strategic integration approach is among the most
important and challenging planning task. Decisions made during this process impacts negatively or
positively most of the subsequent development activities, and consequently overall success and quality of
the resulting system. This decision activity is usually complicated by the fact that it involves different
participants, contributing in decision making process and who have different goals, criteria and perception
about certain alternatives. The activity is further challenging as it comes in early stages of project
lifecycle, hence hard to reason about the consequences of the decision made (Al-Naeem et al., 2005).
2.1 Factors Influencing adoption of particular integration approach
EI projects are strategic investments, and should be closely linked to organization vision, goals and
strategies. These projects involve high expenditure, risk and with great impact in almost every
organization’s aspects. Various organizations develop and implement integration projects motivated by
completely different integration drivers. The initial rationale for EI adoption influences problem definition,
methods of achieving goals and other subsequent activities (Wei et al., 2005).
Lam et al (2007) categorized integration drivers into two categories namely; organizational drivers and
project drivers. Puschmann et al (2001) identified five integration drivers including; software, financial,
internal and external drivers. Themistocleous (2001) argued that many organizations are driven to
integration initiatives based on organizational, operational, technical and strategic perceived benefits.
These drivers and benefits should be taken into consideration when an enterprise is devising and
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Tridip Bardhan et al.
evaluating different integration strategies (Themistocleous and Irani, 2001; Janssen and Cresswell, 2005;
Themistocleous, 2004).
As EI involves an attempt to connect a number of different types of software products, the selection of
integration approach should not only be based on functional and business requirements, but should also
take into consideration non-functional and other technical requirements. Non-functional requirements
describe properties that a system should possess. They are defined by stakeholders and greatly
influence adoption of a particular integration approach. Non-functional requirements should not be
overlooked, since doing so could lead to a poor system quality, unsatisfied stakeholders and eventually
unsuccessful investment (Al-Naeem et al., 2005; Al-Naeem et al., 2004). Spackman et al (2004)
proposed a Software Quality Attribute Trading (SQUAT) technique, which takes into consideration known
software qualities attributes to evaluate integration approaches and technologies. Silveira et al (2006)
developed EAI evaluation tool by further characterizing and describing international software quality
evaluation standard (ISO-9126) for integration tools. Some of these quality attributes includes;
adaptability, platform Neutrality, scalability, security, reliability, modifiability, performance, interoperability,
maintainability, flexibility and testability
In general, selection and evaluation of integration approaches should take into consideration multiple
factors, which include business, organizational, project and technical related factors (Bardhan and Ngeru,
2009), as shown in Figure 1.
Figure 1: EI approach factors (Bardhan and Ngeru, 2009)
3. Methodology
Evaluation and selection of integration approach is a complex and challenging process. It involves
consideration of several organizational factors, from both technical and business perspective. Moreover,
the process consists of several contributors representing different levels of organizational functions and
with varying goals and preferences. Thus, the problem requires an elaborate and systematic approach
that would allow participants involved in the process to evaluate different alternatives by considering and
expressing their preferences on multiple factors. That been the case then, application of multi-criteria
decision analysis (MCDA) techniques is warranted.
A plethora of MCDA methods exists, where most common includes; Analytic Hierarchy Process (AHP),
Analytic Network Process (ANP), Simple Additive Weight (SAW), Simple Multi-Attribute Rating Technique
(SMART), Elimination and Choice Translating Reality (ELECTRE) and Technique for Order Preference
by Similarity to Ideal Solution (TOPSIS) (Triantaphyllou, 2000). Guitouni (2004) argued that the purpose
of every MCDA method is to assist in making a good recommendation. However, not all MCDA methods
produce a good recommendation for all situations; since every method’s theoretical and axiomatic
development is based on some assumptions and hypothesis. Given the nature of EI approach selection
problem, ANP is deemed as the most appropriate method to utilize during the evaluation process. ANP is
preferred for this case due to its ability to provide an elaborate structure that allows for an intensive
analysis on problem elements and the resolution of inter-dependency characteristics among the
elements. However, ANP framework does not fully support group decision making process. Since the EI
approach selection process involves a group of contributors with varying views and preferences, a sense
of consensus among the contributors is an important element in ensuring the process overall success. It
is therefore posited that incorporation of Delphi technique in ANP framework, illustrated in Figure 2, will
facilitate vigorous involvement of process contributors and bring forth a sense of unanimity among them.
26

Tridip Bardhan et al.
More discussion about ANP can be found in (Saaty, 1980; Saaty, 1996) and on Delphi technique in
(Brown, 1968; Hartman et al., 2007; Okoli and Pawlowski, 2004).
Figure 2: Delphi-ANP evaluation methodology
The Delphi-ANP methodology presented in this article consists of four Delphi rounds, which are blended
in with ANP procedure to yield the following eight steps; (i) Problem formulation and factor identification;
(ii) Forming evaluation panel; (iii) Defining evaluation Criteria; (iv) Structuring the problem network model;
(v) problem elements appraisal; (vi) judgment weights analysis; (vii) elements ranking approval; (viii) and
finally the best alternative selection (See Figure 2)
To illustrate the ANP-Delphi methodology, this paper will consider an actual case study in a state
government agency, referred hereinafter as TGA (real name withheld).
4. Application of Delphi-ANP methodology for EI approach selection
The Delphi-ANP methodology was applied and validated at TGA, a state government agency in eastcoast
of USA. TGA is composed of several organizational functions and manages several engineering
and transportation facilities across the state. However, many of these functions are supported by different
systems for their day-to-day operations. Unfortunately, most of these systems exist within technical and
functional walls of separation that creates barriers to integration and sharing of data; and thus inefficient
business processing. Accordingly, the agency has taken several measures to address its integration
challenges as an effort to achieve its strategic goals of effectiveness, efficiency and service improvement.
At the time of this study, TGA was embarked in efforts to integrate some of its backbone information
systems, such as those used in agency’s financial management, supply chain management and
maintenance operations. In other similar integration projects, TGA has successfully developed in-house
integration solutions by either establishing direct interfaces between applications, replicating data
between databases or simply databases-consolidation. However, for the particular initiative considered in
this study, any of these traditional approaches may not have been viable option for several reasons. First,
the systems intended to be integrated are the backbone of the agency’s operations; and must therefore
integrate with other systems in a different platform and located within and outside the agency’s boundary.
Secondly, these systems uses different data format, and thus the issue of data uniformity presented a
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Tridip Bardhan et al.
major integration challenge. Finally, these systems are in constant upgrade to the latest versions, which
also requires any direct interface existing between them to be upgraded or redeveloped, which is rather
laborious and expensive.
Consequently, the management was seeking for a forward-looking approach that will allow future
expansion of the integrated network system, and resonate with organization’s strategic goals. The
approach must also provide sound, cost effective and long-term solution that is efficient and meets all of
the stipulated needs of the agency. As a start, some high level integration approaches were suggested.
These suggested approaches consisted; (1) Implement a Service oriented based integration, (2) Adopt a
vendor-based EAI adapter, (3) Implement a single enterprise system such as ERP that would either
replace these systems or integrate them and (4) built in-house integration solution that establishes direct
interface links between the systems.
Deciding on the approach to commit the SGA presented a great challenge to the management, as these
approaches were perceived with varying strengths and weakness. The formulated Delphi-ANP
methodology was therefore used in assisting the TGA management to decide the appropriate EI
approach for their agency.
The Delphi-ANP methodology process involved the following steps;
Step 1: Problem formulation: The step comprised of preparatory and necessary tasks to help
understanding the problem domain and set forth the evaluation process. The initial task is to set the
objectives and goals of the evaluation process. Then, a review of literature, as well as interviews with
domain experts was conducted in order to broadly identify feasible integration approaches and a list of
criteria, which will possibly be used in gauging the identified alternatives.
Step 2: Evaluation panel establishment - This step involved setting up a team of participants to
contribute in the evaluation process. In a Delphi evaluation process, a group of five to twenty willing
experts (Rowe and Wright, 2001; Armstrong, 2001) is generally considered adequate. Thus, a panel of
six members consisting of two IT planning manager, two project managers and two IT analysts was
established. The members selected were believed to be knowledgeable about the integration subject and
organizational requirements.
Step 3: Selection of organization’s specific criteria factors: - In this step, also marked as Delphi first
round, the evaluation panel, formed in the previous step, was presented with an overview explaining the
problem at hand, the purpose of the evaluation task, the expectations and procedures of the entire
evaluation task process, and a list containing description of feasible alternatives and possible evaluation
criteria. The panel was requested to select and justify factors that they would consider important in
evaluating the presented alternatives. They were also requested for additional factors that may have
been excluded from the list. From this round, the group identified a list of eighteen factors, categorized as
strategic related, cost related, technical related and other organizational factors. The final list of the
approved criteria is presented in Table 1.
Step 4: Structuring problem into an ANP network model: In this step, the problem was configured to
form initial ANP network structure, which consists of all the problem elements (i.e. the goal, criteria and
alternatives) and also indicating any relationship existing between the elements.
This step also entailed Delphi second round, where the evaluation panel was presented with proposed
ANP network structure as well as Delphi first round results, which contained other members’ opinions
(anonymous feedback) and any of their discrepancies. The members were given an opportunity to
reconsider their judgments’. The results from this round were similar to the result from round one, and
thus, consensus on evaluation criteria, presented in
Table 1 and final problem structure formed, shown in Figure 3.
Step 5: Appraisal of problem’s model elements: - First, a questionnaire was developed to assess the
relationships between the elements of the network structure, through pair-wise comparison. The
questionnaire was instituted in MS-excel application so as to facilitate analysis, like checking consistency
on the fly (see Figure 4).
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Table 1: Evaluation criteria for EI approaches
Tridip Bardhan et al.
Step five was also marked as Delphi round three, where the participants were presented with instructions
on how to use excel-ANP template and the final problem network structure developed in the previous
step. Using Saaty’s 1-9 scale (Saaty, 1980), the participants were requested to gauge (i) relative
importance of criterions with respect to goal; (ii) relative preference of alternatives with respect to each
criterion and; (iii) any relative influences existing between criterions within and outside the cluster.
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Tridip Bardhan et al.
Figure 3: Integration approach selection problem network system
Figure 4: Pair-wise questionnaire built in MS Excel
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Tridip Bardhan et al.
Step 6: Gathered judgment weights analysis: - The pairwise comparison was done using MS-excel
template, with in-built capability to calculate elements local priorities and pairwise-matrix consistency.
Thus, the first task of the analysis step involved obtaining and organizing each panel member’s pairwise
comparison matrices, and their respective element priority vectors. The pairwise matrices were also
assessed for the completeness and consistency (see Figure 5).
Figure 5: Pair-wise comparison matrix as built in Microsoft Excel ®
The element priorities were calculated using Saaty’s (1980) additive normalization algorithm, which
consists of the following three steps:
For each pairwise comparison matrix :
Where is pairwise matrix from panel member , for cluster and containing relative measures,
assigned to element when compared to element (Note that and )
Sum the values of each column in comparison matrix i.e.
Divide each element in matrix with respective column sum i.e.
pairwise comparison matrix.
to obtain normalized
Sum each row’s element and divide row’s sum by elements in the row, to
obtain vector (Eigen vector) containing estimates of relative priorities of the elements in the
cluster i.e.
Where: is the local priority for element of cluster , for panel member
The consistency of each pairwise comparison matrix was checked using Saaty’s (1980) consistency
index (CI) calculated as:
31

Where
Tridip Bardhan et al.
RI = consistency random index of randomly generated reciprocal matrix form scale 1-9, (see table 2), and
Where,
And
Aggregating members’ priorities: - Since the local element priorities varied from one panel member to
another, there was a need to aggregate the results for all the participants. Saaty (1980) argued that
geometric mean can be used to correctly represent a group of experts’ consensus. Thus, geometric
mean, calculated using below equation, was used to aggregate participants’ element priority into a group
element priority.
Where: = the group priority of element in cluster
Building super-matrix – To resolve interdependencies characteristics existing between the elements of
the problem network system and eventual derivation of final elements’ priorities, ‘supermatrix’ concept
proposed by Saaty (1996) is applied. A supermatrix is partitioned matrix, where each supermatrix’s block
is composed of a set of relationships between elements as represented by the problem model. The
elements’ relative weights obtained in the preceding steps, which indicates relative importance and
influence of elements with each other, are entered in their respective block of the supermatrix, to form unweighted
supermatrix, shown in Figure 7. The un-weighted supermatrix’s columns are not stochastic i.e.
each column of supermatrix does not add to one. Thus, to obtain stochastic supermatrix (shown in Figure
8), each block of un-weighted supermatrix is multiplied by corresponding cluster priority (for this study
case, all the clusters had relative-equal weights). To obtain long-term stable set of weights, the stochastic
supermatrix is successively raised with large powers, usually 2k+1 (where k is a large arbitrarily number),
until the process converges to a limit supermatrix. The final priority weights of the elements are obtained
by normalizing the limit supermatrix, shown in Figure 9.
Table 2: Average random consistency (Saaty, 1980)
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Tridip Bardhan et al.
Figure 6: Combining of individual element priority using geometric mean
Figure 7: Un-weighted super-matrix
Step 7: Element Ranking Approval – In this step, marked as fourth and last Delphi round, a report
describing the analysis results was prepared and sent to the evaluation participants for their review. The
report contained all the elements ranking based on the final priority weights obtained from normalized
limit supermatrix. The report underscored the elements’ ranking, by indicating each alternative
performance with respect to the criterions and each criterion relative importance with respect to the goal.
Any major discrepancies between members’ weights was highlighted, and members were given a last
opportunity to revise and justify their pairwise relative judgments’, especially where notable discrepancy
exists. In this last Delphi round, two members revised some of their pairwise comparison, arguing that,
while undergoing through the evaluation process, they have become more acquainted on EI related
issues, and therefore felt the need to make adjustment to reflect their true judgments. The final element
rankings are presented in Table 3, Figure 10, Figure 11 and Figure 12.
33

Figure 8: Stochastic (weighted) super-matrix
Tridip Bardhan et al.
Figure 9: Normalized limit super-matrix
Step 8: Selection of best alternative – This step marked the end of the evaluation process. The final
report, which included members’ comments and changes requested from the previous step, was
produced. The final report emphasized on the alternative ranking, see Figure 10, and more in particular to
the first ranked alternative, which is actually the selected alternative.
5. Results and discussion
The use of Delphi-AHP evaluation approach provided a systematic framework in selection and evaluation
of integration approaches. From the case study, EAI was ranked as the most appropriate approach to
commit TGA (See Figure 10). The Delphi-ANP analysis presented members with comprehensive
breakdown on how they reached to the final decision, by prioritizing factors with respect to goal, in Figure
34

Tridip Bardhan et al.
11, and by how each alternative relatively support different factors, as shown by the radar chart in Figure
12.
Table 3: Alternative performance with respect to criteria elements
Figure 10: Alternative final score and ranking
The case study results also showed that implementation cost was the major factor influencing the final
decision, scoring 12.8%, followed by implementation time with 12%. Scalability and security were
considered as the major technical factors with each scoring 7.8% and 7.6% respectively. In strategic
perspective, business agility, EI approach overall alignment with organization strategy and cooperation
with other business partners are leading factors, each scoring 6.8%, 5.3%and 5.3%, respectively.
Overall, factors deemed to enhance organization interoperability were well favored; although ranked
behind the factors related to approach implementation and security. These results are presented in Table
3, Figure 10 and Figure 11.
EAI approach scored average in almost every criterion considered. SOA approach was viewed as the
most outstanding approach as far as organization’s strategy is concerned, but performed relatively poor
in terms of cost related factors. ERP scored relatively well in technical related factors, especially on
issues related to security, maintainability and complexity. However, it was viewed as an expensive
approach. Finally, in-house application integration was favored in terms of cost related factors, although
viewed as an expensive approach to maintain. In addition, in-house application integration ranked quite
high in terms of organizational related factors such as acceptability and technical support/expertise
availability.
35

Tridip Bardhan et al.
Figure 11: Criteria ranked by their percentage contribution to overall decision
Figure 12: Radar chart showing alternatives performance with respect to criteria
6. Conclusion and future work
Decisions related to EI implementation and technologies are unstructured and complex, due to
consideration of wide range factors, and involvement of different stakeholders. This paper demonstrated
a Delphi-ANP evaluation approach, which systematically considers multiple factors and improves the
ANP decision process by incorporating Delphi technique. The Delphi technique improved the process by
first, allowing selection of requirements considered by the participants. Many factors included in the
problem network mean more pair-wise comparison, and this may affect the process ability. The Delphi
feedback also helped in improving consensus in the decision making process.
The use of the Delphi-ANP approach allows EI selection to be logically and systematically structured
within the context of the organization’s strategic vision. It enables decision makers to comprehensively
consider the strengths and weakness of each EI strategy against various criteria and sub criteria.
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Tridip Bardhan et al.
Although the process is quite demanding, its adoption allows productive and informative participation of
different stakeholders with varying perspective to arrive at a consensus with proper documentation for
such a complex decision.
Additional testing of this model is encouraged in different environments. Additionally, sensitivity analysis
to determine robustness of the decision should be performed.
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37

Selection, Implementation and Post Production of an ERP
System
Imran Batada 1 and Asmita Rahman 2
1
Institute of Business Administration, Karachi, Pakistan
2
University of Georgia, Georgia, USA
Imran.batada@khi.iba.edu.pk
Asmitab@uga.edu
Abstract: Enterprise Resource Planning (ERP) is an enterprise level system that integrates all the business
processes of an organization into a single database. ERP System enables all the departments of an organization to
share and manipulate the data. ERP system has a centralized structure consisting of one single central database
which can be accessed by all the department(s). This centralized structure is one of the major reasons of current
ERP system‘s popularity. Selection of an ERP system plays a vital role in the implementation of ERP system. We
used AHP method for the selection. Once proper selection has been made, the implementation process begins. This
process entails; accurate requirement gathering, user training, technical training, testing, data migration etc. Our
research will give an in-depth analysis and recommended approaches for the preparation of RFP document,
selection of ERP system, selection of vendor, requirement gathering, system design, testing and final roll-out. The
objective of our research is to ensure successful implementation of ERP system. Our research also proposes a
potential model for implementing an ERP System. Our model proposes the organization to have two (2) major
committees: (1) ERP Implementation Committee (2) ERP Steering Committee. ERP Implementation Committee will
drive the complete implementation process. It must include members of all the department of the organization. Since,
the system is for the functional users, it is essential that all the stakeholders are part of this committee as well. In
addition, the ICT (Information & Communication Technology) department should also be a part of this committee.
The other committee is the Steering Committee; this committee should consist of members of top management of the
organization. All business process reengineering should be directed to the ERP Steering Committee. Steering
committee is also responsible for supervising the overall progress of the implementation. They will also decide the
level of customization necessary for the ERP System.
Keywords: ERP Implementation process, selection of an ERP System, RFP development of an ERP system,
proposed implementation model of an ERP system
1. Introduction
Enterprise Resource Planning System (ERP) is a centrally integrated system within all the departments of
an organization. With the rapid evolution of web 2.0 and web 3.0, ERP has now become a necessity of
today’s world. Due to its centralized nature and numerous benefits, more and more companies have
adapted the ERP Systems. Implementation of an ERP system is a very significant and crucial process. It
requires involvement of not only the implementation team, but also all the stake holders (including users
etc). In this paper we will discuss the implementation process of an ERP System in detail and review the
process with the help of a case study. We will also look at some of the common issues faced during the
implementation with proposed solutions.
2. Development of strategic and implementation committee
Creation of a strategic and implementation committee plays a critical role in successful implementation of
an ERP system. It is recommended to involve all the stake holders in the implementation process, as it
not only gives them a better understanding of the system, but will also help modify the system throughout
the process to meet the needs of the organization. It will also play a vital role during the post-production
implementation process.
3. Buy vs build
While deciding on the type of the ERP system, there are two major options. An organization can either
buy an existing ERP solution or they can build their own custom ERP system based on their
requirements. This is one of the major decisions to be made by the organization based on their needs
and available resources. (Kim J., 2009: 10) If an organization chooses to use an existing available
solution, they must be a little flexible on the desired functionality. Even though, customization is an option
while using an existing solution, too much customization is not recommended. (Zhao Y, and Fan S.,
2007: 13). Surplus amount of customization may result in making the system unreliable. In addition,
applying new patch and release may become a laborious and expensive operation.
38

Imran Batada and Asmita Rahman
On the hand if the organization chooses to build their own custom solution, they can be more obstinate
about their requirements; however, building a new solution will take more time and such a system will
also need time to mature. In addition, it usually costs more than using an existing available solution.
Regardless, of whichever choice an organization makes, the decision should be made by the entire
steering committee of the organization
4. Development of Request for Proposal (RFP) document
Development of the RFP document is important as this document states the basic requirements of the
system. If the requirements are stated clearly and precisely, the implementation process will become
easier. Therefore, it is important to spend considerable amount of time and effort for the development of a
clear RFP document. A sample RFP document may look like the Figure 1.
Figure 1: Popular RFP templates, 2010: 2
The first column indicates the hierarchy of the desired modules. The second column indicates the
criterion of the desired module. The third column indicates the priority of the desired module in the
system (may range from 1-10, with 10 as the most important). The fourth column indicates if the given
module is mandatory or optional. Mandatory implies that the organization must have the functionality in
order to be able to proceed. These four (4) columns should be filled by the organization. The remaining
six (6) columns should be filled by the vendor (in case of using an existing solution) or the developmental
committee (in case of building a custom solution). Out of the box means that the functionality is already
built-in into the System. Modification via supported means the functionality can be made available with
minor configuration changes. Supported via third party solution means the functionality is not available in
the system but it can be integrated with 3 rd party solution. Minor Customization means it can be achieved
with minor changes in the coding. Major customization means it can be achieved with the major changes
in the source code. FUT means the functionality is not available right now in the system but it will be
available in the future release or future patch. NS means not supported in the system and it is also not
recommended to do the changes in the source code for such functionality. It is basically core business
processing changes.
5. Selection of an ERP system
The RFP document developed in the previous stage gives a clear picture of the desired features with
their respective priorities. Once the requirements have been clearly stated, the implementation committee
will need to select the ERP System. We can use methods like AHP method for selection of an ERP
System (Kunz J., 2010: 7). Implementation committee must review each and every requirement stated in
the RFP document and carefully propose to choose the vendor that satisfies most or all the desired
39

Imran Batada and Asmita Rahman
requirements (Lall and Teyarachakul, 2006: 1). While planning the level of customization, one must not
plan the desired customization more than 10% (percent). Final decision about the selection should be
made by steering committee based on the facts and the recommendations of the ERP implementation
committee.
5.1 Practical example
The proposed method was successfully implemented in a higher education institute in Karachi, Pakistan.
The university core business was Campus Solution System which they used to connect faculty and
students. However, the existing system was not integrated and had multiple databases in it. In addition,
proper reporting system was also lacking and duplicate efforts had to be made due to multiple databases.
In order to resolve this issue, university decided to go for an ERP System. Management was also flexible
to re-engineer their process and was willing to adopt best practices in the organization. (Quiscenti M,
Bruccoleri M , La Commare U, Noto La Diega S, and Perrone G., 2006: 14).
5.2 Selection Method for ERP system
Steering committee created a team that included business users, functional owner and the IS team for
selecting the system. Series of ERP System workshops were arranged for evaluation process. We
selected core business functionality to evaluate the mandatory needs of the system for the organization.
We selected AHP Method for selection an ERP System and incorporated the evaluation data in it. We
identified nine major criteria and under each criterion relevant sub criteria that covered the complete
expectation of the users (Shapira A, and Simcha M., 2009: 6). Figure 2 shows the results of three major
systems that were considered.
Figure 2: Results of three major systems
40

Imran Batada and Asmita Rahman
Figure 3 shows the priority values of each aspect. For example, functionality was assigned maximum
weight-age as compared to other aspects. Questionnaires were prepared with a list of mandatory
functionalities (Wei C, Chein C, and Wang M., 2005: 5).
Figure 3: Priority values of each aspect
The following figure (Figure 4) shows the final results based on the individual values from Figure 2 and
Figure 3.
Figure 4: Final results
6. Selection of vendors
While selecting the vendors based on the requirements, we may end up with more than one vendor who
is providing a potentially suitable solution (Grossman T, and Walsh J. 2004:3). The following are the four
major criteria to be considered while making the final decision:
1. Must have similar business experience
2. Must have recommendations by clients in the same geographical region
3. Must have success stories of implementing same or similar solutions.
4. Must have proven experience in providing ERP support service
7. Recommended organogram for the organization
Figure 5 shows the recommended organogram for the organization. Project director would be the core
responsible person of the project; however ERP project manager will play a vital role both technically and
functionally. He would also be responsible to conduct functional training session(s) for all the users.
Figure 5: Recommended organogram
41

8. ERP implementation process
Imran Batada and Asmita Rahman
A proposed ERP implementation process comprises of the following phases:
8.1. Requirements Gathering Phase
8.1.1 Requirements Workshop(s)
8.1.2 Requirements Documentation
8.1.3 Requirements Review and Signoff
8.2. Technical Training Phase
8.3. System Design Phase
8.3.1 Solution Design Workshop
8.3.2 Solution Design Documentation
8.3.3 Solution Design Review and Signoff
8.4. Testing Phase
8.4.1 Training for the users
8.4.2 Functional Training & Testing Phases
8.4.3 Signoff of Testing Phase
8.5. Data Migration
Signoff from all the stake holders must be obtained before proceeding from one phase to the other.
8.1 Requirement gathering phase
8.1.1 Requirement workshops
This phase involves requirement gathering. (Parr A, and Shanks G., 2000: 9) This is one the very
important phases of ERP implementation process. All the functional head(s) should be a part of this
phase. Inputs from all the stake holders must be taken. GAP Analysis will be identified during this phase
as well. Organization should be flexible enough to change the business process in order to avoid too
much customization in the system as excessive customization makes the system unreliable. Also, adding
of new patches or updates may result in creating problem(s) for the organization. Roles and rights of the
user(s) should also be decided during this phase.
8.1.2 Requirement documentation
In this phase all the requirements based on requirement workshop should be documented so that it can
ensure that all the stake holders are on the same page. Since the GAP Analysis is also performed based
on the requirement, stakeholders will clearly understand what they will get in the new system.
8.1.3 Requirement review and signoff
All the stake holders will review the document and signoff. It is very important to involve all the functional
users to be part of this process, so that they can have a feeling of ownership of the system.
8.2 Technical training
This phase is very critical and it has to be performed for the ICT (Information and Communication
Technology) Department. This phase will provide technical training to them which will enable them to give
42

Imran Batada and Asmita Rahman
their maximum input during the design and testing phases. The lower the dependency on the vendor, the
more successful the system would be.
8.3 System design phase
8.3.1 Solution design workshop
Screen shots or prototypes of the system should be created and showed to the functional users based on
requirement documentation. The prototype would help the non-technical functional users to understand
the functioning of the system as the snapshots would give a preview of the actual system to be
implemented. It will also help them understand their input parameters for all the forms and reports. They
will also see the validation of the forms. During this phase all the changes as per the design can be
accommodated.
8.3.2 Solution design documentation
Based on the design workshop, a detailed documentation should be made for the system design
workshop. All the changes should be accommodated as per the requirement of the functional owners.
8.3.3 Solution design review and signoff
Once all the changes in the document have been incorporated, all the functional heads should sign the
document.
8.4 Testing phase
8.4.1 Training for the users
Proper training sessions should be arranged in this phase so that the users can obtain a better
understanding of the system. This will aid the testing of the system.
8.4.2 Functional training and testing phase
Testing phase is entirely dependent on the training of the system. If proper training sessions have been
conducted not only for functional heads but also for functional user(s), they will be able to properly test
the system based on the requirements and design phase. Users can test the system with test data during
this phase. Proper test cases should be developed to thoroughly check the system during this phase. ICT
Department should be capable to thoroughly check the system along with all the users.
8.4.3 Signoff of testing phase
Once the system has been thoroughly tested, all the functional users need to signoff.
8.5 Data migration
After successfully completing the testing phase, it is time to migrate data from the legacy system to the
new System. Deadlines (Cut-off times) should be established. All the data should be validated before it is
made live. It is recommended to run the legacy system in parallel for one financial year. This helps verify
proper functioning of the new system.
9. Final rollout
In this phase the newly developed system is made live and all the users in the organization are directed
to start using the new system. Again, it is recommended to keep the previous traditional system running
in parallel for some time to ensure proper functioning. It can also serve as a back-up.
10. Training
Training phase is a continuous phase for all the organization’s users. (Scott J., 2006:11). The more
involved users are in this phase, the more comfortable they will feel in using the new system. Resistance
of the staff will gradually decrease as they learn to understand and use the new system.
43

11. Post production of an ERP system
Imran Batada and Asmita Rahman
This is the crucial phase. It is important to have vendor’s technical support during this phase. A vendor
resource available at the premises is a good, however, costly solution. Ideally, the in-house team should
be able to handle the issues, in case vendor’s support is limited or not available. One must identify the
post production cost before making the final decision as it may get very expensive. (Wei C, 2008:12). It is
recommended to have at least one (1) year post production support in order to fully use the system to its
fullest capabilities.
12. Conclusion
Selection of ERP is the major decision for the organization. It is a proven fact that a wrong decision in
selection will adversely effect in the overall performance of the organization. Involvement of the
stakeholders for selecting the product and using the right method for evaluating is the correct path for
successful implementation of the ERP System. AHP Methodology is a recommended technique for
complex decision making. AHP Methodology permits evaluator to evaluate priorities of alternative on the
basis of performance of each condition (Teltumbdey A., 2000: 4).
Selection of the right ERP System using the right methodology makes the whole implementation process
easier. Implementation of ERP System in the university or in any organization who are in the business for
more than 50 years is itself a tough task. It is recommended to re-engineer the process instead of doing
major customization in the system.
In this study nine major criteria and the sub criteria have been identified for evaluating the ERP System.
University used AHP Model. First they developed the weight for the criteria, then they developed the
rating for each decision alternative for each criteria and finally they have calculated the weighted average
rating for each decision alternative (Laia V, Truebloodb R, and Wong B. , 1999: 8).
Implementation of ERP not only involves money, but also requires time, effort and dedication from all the
stake holders. If the stakeholders are not part of the decision making process then they will not feel the
ownership of the new system. Therefore, it is highly recommended to involve them from the beginning.
Training of ICT department is also very necessary, they should be technically sound as eventually they
will be responsible to train the non-technical user(s).
References
Grossman T, and Walsh J. (2004) ‘Avoiding the pitgalls of ERP system implementation’, Information Systems
Management
Kim J. (2009) ‘Activity-based framework for cost savings through the implementation of an ERP system’, International
Journal of Production Research
Kunz J. (2010) 'The Analytic Hierarchy Process (AHP)', Eagle City Hall Location Options Task
Laia V, Truebloodb R, and Wong B. (1999) 'Case Study: Software selection: a case study of the application of the
analytical hierarchical process to the selection of a multimedia authoring system', Information & Management
Lall V, and Teyarachakul, S. (2006) ‘Enterprise Resource Planning (ERP) System selection: A data envelopment
analysis (DEA) Approach’, Journal of Computer Information Systems.
Parr A, and Shanks G. (2000) ‘A model of ERP project implementation’, Journal of Information Technology
Popular RFP Templates (2010), Discrete Enterprise Resource Planning (Discrete ERP) RFP Template, [Online]
Available: http://rfp.technologyevaluation.com/store.asp [November 10, 2010]
Quiscenti M, Bruccoleri M , La Commare U, Noto La Diega S, and Perrone G. (2006) ‘Business process-oriented
design of Enterprise Resource Planning (ERP) systems for small and medium enterprises’, International Journal
of Production Research
Shapira A, and Simcha M. (2009) 'AHP-Based Weighting of Factors Affecting Safety on Construction Sites with
Tower Cranes', Journal of Construction Engineering and Management
Teltumbdey A.(2000) 'A framework for evaluating ERP projects', Int. J. Prod. Res.
Wei C, Chein C, and Wang M. (2005) 'An AHP-based approach to ERP system selection', International Journal of
Production Economics
Scott J. (2006) ‘Post- Implementation Usability of ERP Training manuals: The user’s perspective’, Information
Systems Management
Wei C, (2008) ‘Evaluating the performance of an ERP system based on the knowledge of ERP implementation
objectives’, Int J Adv Manuf Technology
Zhao Y, and Fan S. (2007) ‘Implementation approach of ERP with mass customization’, International Journal of
Computer Integrated Manufacturing
44

Evolution of eProcurement Model in the Italian Public Sector:
From Government Centralisation to Regional Delocalisation
Clara Benevolo and Renata Paola Dameri
University of Genoa, Italy
benevolo@economia.unige.it
dameri@economia.unige.it
Abstract: In this work the authors present the results of a survey regarding public eProcurement in Italy. The Italian
Government has been starting to drive the introduction of eProcurement practices in the public sector since the end
of the twentieth century. Its aim was especially to rationalise the public spending by the benefits offered by
eProcurement, that is: more competition between the suppliers, more transparency in carrying on the tenders and
auctions, lower prices thanks to higher volumes, speeding up of purchasing process. To quickly reach these goals,
the Government opted for a centralised solutions. At that time, it was the best one to support the implementation of a
new technology and to reach synergies and scale economies. In a second and more mature phase, the Government
decided to encourage a delocalisation of public eProcurement, especially involving the twenty Italian Regions to
implement their own eProcurement platform. The aim was to pursue not only quantitative benefits, but also
qualitative ones, especially regarding a better alignment between the amount and nature of public spending and the
real needs of citizens. The second phase is in progress yet, but surveying the actual implementation of
eProcurement all over the twenty Italian Regions some results are already evident. The authors use their research on
the Italian case to explore potentials and benefits, barriers and difficulties of public eProcurement implementation in
complex administrative organisations, such as the Italian State, with very high level of public spending. Empirical
evidences and lessons learned are explored, to define a comprehensive interpretative model of eProcurement in the
public sector.
Keywords: eProcurement, public administration, decentralisation, business case study
1. Introduction
During the latest ten years, the diffusion of eProcurement has been increasing both in private and in
public sector. Governments and local public agencies consider eProcurement as a powerful instrument,
especially to control the public spending, to gain efficiency and save money. However, even if
eProcurement is based on a quite simple technology, it is not so easy to implement, because it affects
several aspects, such as: IT infrastructure, software implementation, business transactions design,
process reengineering, people behaviours and the relationship between costs and benefits. Moreover,
several public agencies implemented eProcurement without any methodological approach, without
applying nor theoretical models nor best practices. For these reasons, both successes and failures can
be obtained, but it is not clear which critical factors influence the reached results.
In Italy, public eProcurement implementation can be divided in two phases.
In the first one, the Government implemented eProcurement solutions, especially aiming to reduce public
expenses and looking at granting affordable and secure transactions. EProcurement was a centralised
practice, supported by the strong commitment by the State able to develop this innovative instrument. But
the centralised practice forced local public agencies to apply the same model, not ever suitable with their
specificity.
In the second phase, eProcurement was shifted from central to local level, involving Regional and other
local public agencies to implement their own eProcurement applications, choosing both technical
instruments and organisational solutions. The main aim was to gain efficiency and in the meantime to
create a better fit between eProcurement applications, organizational solutions and local needs.
The Italian case is interesting for several aspects: first, because in Italy the public expense is very high
and it is crucial to improve the control on public spending and the quality of purchasing; second, because
the territorial organisation of public bodies in Italy is complex and structured on different levels; third,
owing to the evolution of the general framework of eProcurement implementation.
In this paper, we examine the evolution of the Italian public eProcurement model, from the central to the
regional one, and the key lessons learned in both the implemented experiences. We identify both
reached goals and implementation problems, both critical success factors and winning choices, in order
to design an implementation framework able to be applied to similar public agencies in other Countries.
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2. Literature review
Clara Benevolo and Renata Paola Dameri
EProcurement is an important topic, emerging in the latest ten years, both in companies and in the public
sector. It regards the use of Internet potential to redesign business process and to improve operations
quality. The focus of eProcurement has ever been double:
On one side, eProcurement is seen like an instrument to control purchases, to reduce cost, to save
money;
On the other side, eProcurement is seen like a driver for business change, process quality
improvement and more effective management (Ash and Burn 2003; Dooley and Purchase 2006).
Also in the public sector, eProcurement is considered an important weapon to reach several goals
(Croom and Brandon-Jones 2005):
A better control on public purchases and spending, cost reduction and more effective use of public
resources;
The improvement of public administrative processes, to reduce bureaucracy and to increase
transparency in the management of public agencies;
The increasing of the public programs effectiveness, better focusing choices and expenses on the
more important needs for citizens.
However, the eProcurement implementation in the public sector should face several obstacles:
organizational and cultural barriers, such as difficulties in evaluating the eProcurement benefits.
On the organizational aspect, to implement eProcurement practices requires not only to create
effective and appropriate web sites (Bruno et al. 2005) nor to implement a technological platform to
manage tenders, agreements and eMarketplace, but it requires to rethink the administrative activity in
public administration, that is to redesign all the activities included in public procurement and
introducing eProcurement solutions in a redefined process. Without the organizational redesign,
eProcurement perhaps can produce economic benefits, but it is not possible to reach the other (and
perhaps more important) goals: administrative process quality, transparency, suppliers competition,
public choices effectiveness (Reddick 2004).
On the cultural aspect, eProcurement needs not only ICT competences, both regarding the use of
web sites and in data processing, but also to change the administrative practices and to accept to
modify their own habits. On the contrary, suspicion and resistance on implementation are the
stronger barriers to successful and profitable eProcurement implementation in the public sector
(Vaidya, Sajeev and Calender 2006; Wirtz, Sebastian and Schierz 2010).
On the evaluation aspect, eProcurement benefits are relatively easy to evaluate, if limited to cost
savings, but more difficult to measure if regarding process quality, transparency, effectiveness of
public actions (Singer et al. 2009). The lack of a well conceived framework to evaluate also the
intangible and qualitative benefits of eProcurement not only prevents to understand the real impact of
this business practice on the efficiency and effectiveness of public purchases and spending, but also
delays the improvement of administrative processes to integrate eProcurement (Rendon 2008).
Despite barriers and difficulties, eProcurement is spread in several public administrations, all over the
world (Moon 2005). Also in Italy, eProcurement practices and solutions have been adopted since the end
of XX century. During the latest ten years, eProcurement was driven along with two paths:
To enlarge its adoption, increasing both the number of public agencies using eProcurement and the
amount of transactions using this channel;
To improve the quality of eProcurement, by better ICT solutions, people training, implementation
frameworks able to integrate eProcurement in more effective administrative processes and
operations (Polimi 2009).
Also in Italy, eProcurement faced the same difficulties and barriers noted in the international environment
(Carpineti, Piga and Zanza 2006; Somasundaram 2004). Better implementation frameworks and
knowledge sharing on best practices in eProcurement implementation in the public sector could help to
assess the present and potential benefits of this technology. Governments and local administrative
agencies could improve gains deriving from their eProcurement solutions, realising better returns on
these technological and organisational investments.
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Clara Benevolo and Renata Paola Dameri
3. eProcurement in the Italian public sector: The Government centralisation
Starting from the end of Nineties, the Italian Government has been starting an innovation process, aiming
to introduce eProcurement in the public sector. The main goals of this innovation were to reduce
expenses, to increase transparency of purchasing and to improve efficiency of administrative processes
in the Public Administration. In this first phase of eProcurement implementation in the public sector, the
role of the central Government was crucial: indeed, only the State was able to support this innovative
practice, helping all the public agencies to introduce this new technology into their administrative
activities.
Moreover, the Italian Government grounded its own implementation strategy on centralisation, to reach
both the best efficiency and the best effectiveness of the innovation process, minimising in the meantime
the cost of the organizational and technological solutions. The Central Public Administration defined all
the phases of purchasing process and the operations to be automated, and also the software applications
to be used for this aim.
During the first phase of its implementation, three aspects are important to understand the evolution of
eProcurement in the Italian public sector:
The need of laws and rules to govern this practice;
The public body that drove the implementation activity;
The methods and instruments used to implement eProcurement.
EProcurement implementation in the pubic sector needed for the first to define laws and rules to be
applied to public contracts, especially regarding:
The award of contracts concluded on behalf of the State, regional or local authorities and other
bodies governed by public law entities;
The opening-up of public procurement to competition;
The verification of the suitability of tenderers, in open procedures, and of candidates, in restricted and
negotiated procedures;
The electronic signature.
The successfully implementation of eProcurement in public sector depends not only on electronic
solutions, but also on the affordability and compliance of contracting procedures. In the first phase of
public eProcurement implementation, the central Government played the crucial role of regulator, both
issuing its own laws and implementing European Directives. At present, all the rules regarding electronic
activities of Italian Public Administration are collected in the “Codice dell’Amministrazione Digitale (CAD)”,
Digital Administration Code. It is a set of rules governing the use of Information Technology in all the
relations between the Italian Public Administration and the citizens (D.Lgs. 07.03.2005, n° 82). In Europe,
eProcurement is ruled by Directive 2004/18/EC of the European Parliament and of the Council of 31
March 2004 on the coordination of procedures for the award of public works contracts, public supply
contracts and public service contracts.
By these means, the Italian State defined its own eProcurement reference model (Alsac 2007), including
rules regarding: the administrative process to be applied to award a public contract by electronic
technologies, the affordability of economic operators, the public contracts transparency and the digital
signature (Figure 1).
The reference model includes all the steps and activities needed to drive to the final signed contract. That
is:
1. The assessment of economic operators to be admitted to electronic tenders, auctions and markets,
by checking their affordability and compliance to the law regarding commercial relations with public
agencies;
2. The general framework of laws and rules to be applied to carry out all the procurement phases,
complying with all the qualifications of a public tender such as transparency, accountability and so on;
3. The procedure to be followed for a regular award of a valid public contract;
4. The digital signature, for validating the contract.
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Clara Benevolo and Renata Paola Dameri
Figure 1: The Italian public eProcurement reference model
To better support the launch of eProcurement and its first implementation, the Italian Government choose
a centralised model and set up a public agency, called Consip, to concentrate all the activities regarding
public eProcurement. Consip SpA is a company belonging to the Italian Finance Office; its mission is to
support e-Government initiatives with particular reference to eProcurement, with the aim to rationalise
public purchasing and improve contracts transparency. Consip has in charge the design and
development of new e-government processes and the related ICT solutions. Its main work consists in
planning the best ideas to implement the strategic directives of Italian Finance Office, acquiring on the
market the best technical solutions and competences to traduce these ideas in ICT applications. This
innovative model permits to obtain two best results: to plan organisational processes for the public sector
well aligned with the Government strategic aims, and to translate projects into practice applying the best
technical solutions on the market.
To implement public eProcurement, Consip uses three main instruments:
Framework agreements;
Electronic auctions and tenders;
eMarketplace.
By framework agreements, Consip awards tenders regarding the purchase of large amount of a well
defined good or service by all the public bodies, with the same prices and conditions drew up in the
contract. Consip is therefore responsible for awarding public contracts or framework agreements for all
the public bodies. In view of the large volumes purchased, this technique helps to increase competition
and streamlines public purchasing. Benefits are important especially for small public agencies, that
purchase small volumes and could access only to local markets with a lower degree of competition.
Moreover, all the public bodies using framework agreements could save the cost to carry out the
agreement by themselves.
By electronic auctions and tenders, a public agency could award a public contract using the technical
platform provided by Consip. This platform complies with the rules drawn up by the Italian laws and
European directives about equal treatment and transparency in public purchasing. Therefore the use of
this platform grants the affordability of the technological instruments and prevents public bodies to
develop their own ICT solutions, saving time and money.
The eMarketplace realised by Consip is called MEPA (Mercato Elettronico della Pubblica
Amministrazione/Public Administration Electronic Market). MEPA is a comprehensive and integrate
platform able to manage all the stages of the public procurement: the tenderers selection and ranking, the
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Clara Benevolo and Renata Paola Dameri
management of tenderers electronic catalogues, the request of quotation or request for order, the final
contract award. On this eMarketplace, public bodies could meet several suppliers and tenderers
previously qualified and therefore compliant with the rules about public purchasing; they can:
Access at a large market and save money thanks to the higher competition between suppliers and
tenderers,
Streamline their procurement activities
Save time thanks to the electronic platform.
By means of the centralisation of public eProcurement by Consip, the Italian Government reached good
goals in a short time. The technological platform for eProcurement is available for all the Italian public
bodies, both small and big ones. This platform permitted to spread the eProcurement practices among all
the public bodies unifying methods and procedures, sparing them the efforts and the expenses related to
the implementation of their own eProcurement application and granting them the affordability and
compliance of the Consip solution. During the period 2004-2010, eProcurement in the Italian public sector
have been increasing from 76 million € to 6000 million €. Among these, about 2286 million € derive from
transactions by Consip (Figure 2).
Figure 2: The Italian public eProcurement volumes (source: Polimi 2010)
Also qualitative benefits have been obtained. The most important benefits regard the process efficiency,
that is, process streamlining, price savings and procurement time reduction. Also the quality of
purchasing has been increasing, especially thanks to the larger number of tenderers and therefore the
higher competition in the market of public procurement (Polimi 2010). Other obtained benefits regard
documents dematerialisation and savings in human resources.
However, the centralised model could not be the best solution for the Italian public eProcurement
practice. Indeed, Italian public bodies and agencies are very heterogeneous and spread throughout the
country. The centralised solution showed several difficulties in involving the smaller bodies and local
administrations. The centralised platform is too generic to respond to the needs of a so large set of
entities, and it is not suitable to meet the expectations and schedule of all the different public bodies, with
their own characteristics and specific needs. Moreover, a centralised solution tends to incorporate best
practices and to maintain them along the time, slowing down the innovation and the research of a better
quality of eProcurement to positively impact on the effectiveness of public services to the citizens. Consip
eProcurement centralised solution was certainly the best answer for the first time adoption, but it is too
much focused on efficiency and it doesn’t take into consideration other aspects.
For all these reasons, a second phase was started, to delocalise eProcurement at regional level and to
drive public agencies to develop their own eProcurement solutions, in order to better reach specific goals
related to their own needs.
4. eProcurement in the Italian public sector: The regional delocalisation
In 2007, the Italian Government issued a law (L. 27 December 2006, n. 296) to rule the adoption of
electronic procurement solutions at the regional level. The Italian State is organised in twenty Regions;
they have administrative autonomy and manage the Regional health system. The aim of this second
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Clara Benevolo and Renata Paola Dameri
phase of public eProcurement was mainly to overcome the scarce involvement of small and local public
agencies registered in the first phase.
All the Regions, like Consip, have the role of contracting authorities, that is, they can select and authorise
suppliers and award public contracts and framework agreements for all the public bodies and agencies in
their own territory, included the health institutions, compelled to join the agreements.
During the period 2007-2008, the regional contracting authorities carried out 2852 tenders for a total
amount of about 9,7 billions €. 87% of tenders regard goods and services purchasing in the health sector,
mainly in the north and center Italian Regions.
This new phase is today in progress yet. However, it is possible to start to assess this delocalised model
to understand if it is really better than the centralised one. Several aspects should be taken into
consideration:
The aims of this second phase of public eProcurement;
The role of the Regions;
The role played by the State or by another central agency, to govern and coordinate the
delocalisation process.
Unfortunately, the aims and goals of this second phase of eProcurement are not so different respect to
the first phase, and it prevents the qualitative elevation of eProcurement projects. More efficiency of
purchasing, more effectiveness of procurement process, streamlining of administrative activities and
transparency are the main goals, also in this second step. Only two aspects are especially linked with the
delocalisation: the larger participation of both small public bodies and local suppliers. That is, the
enlargement of eProcurement volumes and of the relating benefits. The main goal to reach is ever to
reduce the public spending, and eProcurement is certainly one winning instrument to be applied.
However, the delocalisation has not be used to improve also the quality of public purchasing and the
appropriateness of procurement practices. Also regional eProcurement is too much focused on cost
reduction and administrative streamlining and the importance of the quality of purchasing for the quality of
public services to the citizens is not taken into account.
The role of Regions is the fulcrum of this second phase of public eProcurement. They could play a central
role, especially in:
Spreading the culture of eProcurement on their territory, involving also the smaller public bodies;
Supporting small bodies in implementing eProcurement practices;
Developing specific solutions to support particular needs in their environment;
Studying the impact of eProcurement on the quality of public services delivered to the citizens,
considering also the specific needs of their own area.
At this moment, no surveys have been made, to assess the commitment of Regions and to verify if some
of the roles listed above have been really performed. However, Regions are very different each others
and the implementation of regional eProcurement platforms has been very heterogeneous. In Figure 3
we can see that:
Some Regions implemented eProcurement solutions able to support procurement for all the public
bodies in their own area (the black ones);
Some Regions implemented eProcurement solutions only to support purchasing in the health sector
(the grey ones);
Some Regions are developing during this period eProcurement solutions or have no projects in mind
(the white ones).
It means that each Region started its own eProcurement process, generally without working in
cooperation with other Regions and choosing different ways to implement eProcurement (Avcp 2010).
The further analysis of each regional solution shows that they are very different on behalf on: type of
agency playing the role of contracting agency, type of implemented instruments, degree of participation of
both public bodies and suppliers or tenderers, savings or other benefits obtained by regional
eProcurement. The lack of an evaluation framework to be applied to public eProcurement, based on both
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Clara Benevolo and Renata Paola Dameri
quantitative and qualitative parameters, prevent to better understand the effectiveness of different
solutions.
realised
work in progress
only for health
Figure 3: The implementation of regional eProcurement
Certainly, the delocalisation phase has partially reached its own goals and it helps to control and to
reduce the public spending, especially in the health sector. More bodies, suppliers and tenderers have
been involved and the competitiveness has increased. Also the administrative processes have been
simplified and sped up.
However, the second phase could be better based on the successes and failures of the first one, to
overcome some problems and especially to aim at more important and large goals, considering also the
quality of public purchasing and not only on the quantity of saved money. The delocalisation is the best
weapon to reach a better alignment between local needs of the citizens, adequate public services and
related purchasing. But to reach these goals two thinks are necessary: the clear definition of objectives to
reach and an evaluation framework to assess if and in which measure the goals have really be reached.
Moreover, in the second phase a central direction is lacked, to coordinate regional initiatives but
especially to share knowledge, competences, best practices and lessons learned. For this reason the
Italian State created a network between Consip and the regional purchasing authorities, aiming to
rationalise the public spending and to create positive synergies in the implementation and use of ICT for
public eProcurement.
Perhaps a knowledge base on public eProcurement could help to better implement effective solutions,
avoiding to repeat errors made by others. The comprehensive analysis of all the regional solutions, of
their characteristics and of their specific goals is useful also to evaluate the trade off between
centralisation and delocalisation. Indeed, to organise eProcurement at the regional level on one side
improves the appropriateness of solutions and the involvement of local bodies; on the other side, it
reduces the volumes of purchasing and therefore the economy of scale deriving from the centralised
procurement. Only having well clear the desired results and behaviours it is possible to choice between
the higher efficiency of the centralised model and the better specificity and adequacy of the delocalised
one.
5. Conclusions
In Italy, public bodies are about 11.000. Among them, about 50% use eProcurement, but only a few
hundreds are mature and intensive users (Polimi 2010). The more used instruments are eMarketplaces
and online stores, auctions and framework agreements are less used. The savings are estimated
between 10 and 50% of the electronic spending.
Therefore, eProcurement in Italy could be considered a successful initiative, especially regarding the
amount and volume of public purchasing, but it is not enough spread. The main role is played by Consip,
that carries out 50% of purchasing; the prevalent model is hence the centralised one. The delocalised
model have been starting, but with very heterogeneous results. Several regional purchasing authorities
51

Clara Benevolo and Renata Paola Dameri
are developing and implementing eProcurement solutions, but only nine regional eProcurement platforms
are really working and only four Regions appear mature in the use of eProcurement. Moreover,
procurement processes have not been redesigned and benefits are gained only on efficiency and
spending; no evidences are available, regarding the actual impact of eProcurement on the quality of
public services for the citizens.
Examining the Regional implementation of eProcurement, some evidences are useful, to plan
improvements to be spread all over the State.
Only 4% of purchasing is carried out on the electronic channel; this number could be increased,
especially regarding electronic auctions and framework agreements.
The commitment of local authorities is crucial for the success of eProcurement initiatives, such as the
role of central and regional purchasing authorities in supporting and promoting the use of
eProcurement by smaller public bodies.
To improve the efficiency of e-purchasing, a more effective requirements planning is necessary; it
could permit to optimise quantity and quality of purchasing. No evidences are available, of
requirements planning practices and instruments to support eProcurement.
No evaluation frameworks are available, to quantify savings in money and time and to award the best
public bodies and managers in eProcurement implementation. Moreover, it is necessary to involve
the public opinion in the assessment of eProcurement and its actual or potential impact on public
services. EProcurement results should be measured, evaluated respect to politic and administrative
goals of each public body and disclosed to citizens and communities using the most adequate media
and instruments.
The topic of public eProcurement is therefore actual and it promises future interesting returns, if
adequately studied in depth. Further researches could be useful, especially regarding the following
aspects.
To analyse some best cases, regarding public eProcurement in the Italian Regions. We discovered
two or three successful platforms supported by best practices in process redesign, requirements
planning and involvement of smaller public bodies. The case studies could be the basis for defining a
general framework for public eProcurement implementation in local purchasing authorities.
To better analyse the actual impact of public eProcurement on the efficiency of purchasing activities
and practices, and on savings deriving from lower prices and higher competition among suppliers and
tenderers. Till now, such surveys have been conducted only using panels and interviews and
qualitative indicators. No affordable quantitative metrics are available. Moreover, the survey could
better detailed the research, distinguishing between different techniques used for eProcurement
(auctions, tenders, marketplaces, e-stores) to find relations between techniques and benefits, to
answer to different purchasing requirements.
To design a comprehensive evaluation method, able to assess not only the savings in time, money
and human resources deriving from the process streamlining, but also to evaluate the impact of best
eProcurement practices on the quality of public services for citizens; such an evaluation framework
should include also a disclosure framework to involve communities in the assessment of
eProcurement initiatives and their impact on the amount and quality of public spending.
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53

ICTs as Weapons of Mass Interaction - Motivations and
Implications of Mediated Control
Kofi Agyenim Boateng
British Institue of Technology & E-commerce, London, UK
boateng@bite.ac.uk
fiboat@yahoo.com
Abstract: Interaction has long been an integral aspect of organisation’s life. Hence, in recent times interactions
driven by Information Communications Technologies (ICT) have gained significant acceptance and momentum in
contemporary organisational settings. This is demonstrated by their enormous adoption and wide-ranging
employment across the various levels of an organisation’s hierarchy. Consequently, businesses have started to
expand their investment in, and broaden the frontiers of, technology-mediated interaction. This has meant the
involvement of such communication devices as mobile phones, personal digital assistants (PDA), BlackBerries,
laptops, as well as other forms of portable and immovable computing technologies to provide enduring support for
both enterprise-wide and external interactions. This study adds to the existing conceptualisations of technology
mediated communication by delving into the fundamental rationalities, manifestations and implications of mediated
control. To this end, an exploratory study is conducted in a moderately large UK food company that distributes semiprepared
food to small restaurants, and examines the applications of both mobile and stationary technology tools for
undertaking different enterprise-wide communication endeavours under dynamic work strategising commitments.
The study reveals that first, the application of multiplicity of ICT-driven interaction tools generate diverse social
implications, both pleasant and unpleasant to the business organisation. Second, multiple actors have different
motivations for the application of varied technology tools in the accomplishment of a given organisational tasks,
however similar such tasks may be. Finally, study as a result provides significant managerial and theoretical insights
and implications for organisational interaction and the distribution and service delivery businesses in the briskly
growing digital market.
Keywords: ICT-driven interaction, social presence theory, media richness theory, emotion
1. Prolegomenon
The application of Information Communication Technologies (ICTs) in the many facets of organisational
interaction is quite a recent phenomenon in spite of the fact interaction has always been an instrumental
element of the life organisations. Business enterprises continue to expand their outlay in ICTs to reap the
benefits afforded by technology mediated interaction in its varied breeds, such as web-driven media,
mobile, fixed telephones, and short message service (SMS), among others (Bernett et al., 2002). An
appealing aspect of technology mediated interaction is the flexibility and the vitality particularly associated
with the many modes of its expression (Olson and Olson, 2000 p.141). A significant aspect of technology
mediated interaction is the dynamism chiefly connected with the many avenues of its expression. Part of
their flexible nature is demonstrated by their capacity of establishing interaction and exchange relations
with others not collocated; what can conveniently be described as ‘virtual collaboration’(Olson and Olson,
2000 p.141).
Previous studies on technology mediated interactions have attended to the material features of the
applied media (Daft and Lengel, 1986a), social considerations (Yoo and Alavi, 2001) reconstruction of
interaction (Ngwenyama and Lee, 1997) and aspects of textual configurations (Orlikowski and Schultze,
2004). While admitting that these studies made monumental impact on the mainstream discussion on
ICT-driven interaction, they often overlook the emotional repercussions and the underlying psychological
rationalities that come to the fore in such interactions. Still, the studies that intimately address the social
elements of ICT interaction (Suchman, 1987) to tease out the emotional consequences that the
interlocutors of ICT interaction experience. This paper wishes to broaden these investigations by having
recourse to the theories of social presence and media richness and thereby advance the idea of how
making sense of these ICT tools can diverge even across the people doing similar job within the same
organisation.
In particular, the paper advances the idea that ICT interaction can equally generate ‘e-ritual’ chains that
are fundamental in getting agents undertake most social activities just as face to face interaction. We
explore this concept by bringing into close scrutiny the limited perspective of Collins’ (2004) interaction
ritual chains. This objective is achieved by embarking on a longitudinal study in a medium-size private
company that specializes in supplying semi-prepared food to fast-food shops in and around London. The
study seeks to address the following research queries:
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Kofi Agyenim Boateng
To what extent can we better understand the rationalities and motivations that drive technology
mediated interaction in collaborative environment?
How does the use of ICT interaction tools affect the emotional make up of people?
This paper resumes with a cursory look on the mainstream views on interaction with a touch on both
media richness theory and social presence theory. The methodological approach to the study follows and
the results from the field of investigation are immediately provided in that order. Eventually, the paper
analyses the implications for both theoretical and practical standpoints and conclude by suggesting
prospects for future areas of research.
1.1 Interaction –contemporary considerations
Interaction has witnessed many path-breaking studies and the masterpiece by Gofmann (1967) provides
the foundation for many branches on the subject matter. Interaction has been conceptualised
fundamentally in its mutual sense and therefore seeks to establish ‘reciprocal events that require at least
two objects and two actions. Interaction occurs when these objects and events mutually influence one
another’(Wagner, 1994 p. 8). The mutual aspect of interaction can take many possible forms such as
collaboration, co-operation and coordination, all within the realm of communication. Interaction then,
enables the establishment of networks for reaching out to contacts without necessarily their body
presence (Peters, 1999) by means of the mediating capabilities of ICTs.
ICT-driven interaction generates social relationships that form the basis of community integration
(Calhoun, 1992) as various degrees of social relationships are likely to emerge from the ongoing
exchanges. As such, human behaviour has impacted and informed the design, architecture and
functionalities of these technologies. This mutual shaping between technology and human agency is
observed elsewhere with the claim that ‘whatever effect technology may have on social forms is heavily
shaped by the social, cultural and institutional relations in which the technology is embedded’ (Kallinikos,
2007 pp. 278 - 279).
The application and use of mediation tools in getting in touch with one’s interaction partner broadens the
meaning and scope of interaction as the mediating capabilities of the technology. A capability that allows
for ‘mutual tuning-in relationship’ (Schutz, 1971) based on mediated interaction, because it is predicated
on shared dependency, common identity, mutual experience and joint context that is captured in a
collective purpose directed toward common objectives (Schmidt and Bannon, 1992). This view suggests
that interaction leads people to initiate strategic moves, develop routines, cultivate practices and
procedures that give birth to organisations and provide the means for their vital sustenance (Hughes,
1971). Within the spirit of symbolic interactionist (Blumer, 1969), the enduring nature of interaction does
not only subsist in a context but it also constructs the context.
It therefore comes as with a little surprise that Kakihara and Sørensen (2002) mainly link the building
process of the phenomenon of knowledge (including an appreciation of the social backgrounds of the
interactants) with the idea of interaction. The reason for this, the pair claim, is that the emergence of
knowledge traces its sources from interaction. And this interaction forms the very rationale of complex
exchanges inherently meshed in human society.
Mediated or ICT-driven interaction recognises the use of technical elements to function as the platform on
which interaction can be consummated. Thompson (1995 p. 83) recollects that technical medium like
“paper, electrical wires, electromagnetic waves, etc.” facilitates the transmission of symbolic and
information contents to parties who are either disconnected by time or space or occasionally both. The
application of technical objects capable of setting two parties to engage in meaningful interaction
underlies the concept of both media richness and social presence theories, the two of which produce
different interaction effects for the interacting people. Nonetheless, mediated interaction affords the
interactants very limited symbolic tokens for the reduction of uncertainty.
1.2 Media richness and social presence theories – a case of mediated interaction
Social presence holds the notion that mediated interaction has the potential to stimulate the features and
benefits of face-to-face interaction Short, Williams et al (1976) and emphasises the extent to which one
senses the immediate presence and significance of his or her interaction partner (Kayany et al., 1996).
Social presence is crucial for building our knowledge and perception of other people’s behaviour and
attitudes. Social presence is usually judged by the differences in meaning that borders on emotions or the
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Kofi Agyenim Boateng
suitability of different media for a variety of similar organisational communication tasks (Argyle, 1969,
Birdwhistle, 1970).
The source of the media richness is directly connected to Daft and associates (1986b, 1987) when they
made investigations into managers’ inclination to apply oral type of communication even when its
mediated form is reasonable. The media richness theory suggests the ability of communicated
information via a medium to limit the extent of equivocality on four counts, namely, the ‘speed of
feedback, cue multiplicity, language variety, and personal focus’ (George and Carlson, 1999 p. 3). Key to
media richness is the hypothesis that there is a disparity between jobs and specific characteristics;
various media differ in the degree to which they can dispatch the kinds of information needed and the
heterogeneous task characteristics.
Consistent with the research questions outlined above, we conducted a field study to investigate how
emotions and different psychological rationalities become evident in individuals making use of ICT
interaction tools.
2. Method
The section addresses the ways and means of the whole research effort. The procedural method is
fundamental for outlining the scheme for grounding the various parts and procedures of the entire study
(Grunow, 1995). In short, the methodology goes to a greater length at laying down a sturdy and robust
validity of the outcome of the research undertaking (Yin, 2003).
The path to this methodological examination is followed with the aid of the three primary mechanics of
human perception, namely, rationalism, empiricism and faith (Thieme, 2003). Rationalism identifies reality
by means of reason. Empiricism does so through a support on the senses of sight, touch, taste, smell
and sound. And faith defines reality via the confidence in the authority of another entity. Using all three
systems of perception in the data-collection process would be beneficial in the sense that ‘rational proof
and instruction do not fully exhaust the sphere of knowledge’ (Gadamer, 2004 p. 21). Therefore
appropriating all three systems in a methodological process would ensure a demonstration of consistent
and logical thinking thereby effectively limiting the researcher from going arbitrary with his judgements; so
that the conclusions would not be treated ‘as a figment of my imagination’(Thieme, 2003 p. 2).
To this end, the following data collection techniques were adopted for this study. The aim is to better
appreciate phenomena-in-context inquiries against the background of certain professionals’ in their
natural, operationally distinct but electronically connected environment and their cross-subjective
predilections, this work mainly used qualitative data.
2.1 Direct observation and interview
The use of direct observation method allows the researcher to focus on the aspects of the research that
are of particular interest to him without the possibility of being biased or influenced by ‘second-hand’
information from the participants of the study. This necessarily occasioned long hours of sitting beside
telesales reps, customer service reps, delivery drivers and team leaders as they handle both incoming
and outgoing calls. There other situations where I was privileged enough to have been given the
opportunity by a telesales rep to listen in to incoming telephone conversations from customers. I should
admit that this ‘privilege’ was not officially permitted by top management; it was nonetheless made
possible as a result of tactful arrangement I struck with a particular telesales rep. I also had the chance to
travel to most delivery areas in the South-East of London with some of the delivery drivers.
Most of these interviews lasted about 50minutes and some crossed the hour mark due to telephone
interruptions from customers and work colleagues. Details from these interviews were electronically
recorded and some notes also taken to fill data gaps during the transcription. Notes were read to the
interviewees after every interview to allow confirmation and corrections to guarantee validity.
2.2 Miscellaneous evidence
Other forms of documentation such as quarterly progress meeting reports, company brochures,
promotion leaflets, and many others were used to understand and make sense of the data that emerged
from the interviews. The pieces of information gleaned from these materials proved quite helpful in later
analysis and discussion of the data.
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Kofi Agyenim Boateng
3. Findings –interaction activities at Adom Food Services Ltd
Adom Food Services Ltd., henceforth designated as AFSL, trades in semi-prepared food and other food
related products to small and medium-size restaurants in and around London. It is appropriate to point
out at this stage that Adom is a fictitious nomenclature intended to protect the real identity of organisation
where this study was carried out. AFSL has lately, through the use of technology, automated greater
parts of the processes involved in commercial exchanges with its customers from order processing to
delivery. Two unique services are provided: order processing by telesales representatives and order
delivery by delivery drivers. The telesales reps are made up of about 12 different teams of roughly 5
members, headed by a team leader each, while delivery is undertaken by a fleet of approximately 200
vehicles.
The study is contextualised around order processing and delivery activities which conspicuously feature
telesales reps and delivery drivers in their use of portable, mobile and stationary ICTs in performing their
assigned duties. The decision to use telesales reps and delivery drivers as the unit of analysis of this
thesis is due to their particular use, and heavy reliance on ICTs to drive interaction in all its stripes in the
enterprise-wide endeavours at AFSL. Secondly, the resolve to concentrate on ICT-driven interaction
takes into due consideration the issues emotional repercussions that are significant in demarcating the
context of this study.
AFSL serves an extensive mix of customers including wholesalers and retailers. These include cafés,
restaurants, burger bars, football clubs, ‘chicken and chips’ shops among others. The commercial
activities at AFSL go almost seamlessly on a 24-hour basis from Monday to Friday and, up to noon on
Saturdays and, sometimes Sundays. Supplying semi-packaged foods and drinks to small restaurants and
shops requires registered customers and potential customers to telephone an all-purpose telephone
number anytime between 9am and 5pm from Monday to Friday and, occasionally on Saturdays to make
their orders. The details of the orders are then stored on a central database of the company until after
5:30 p.m., when they have been matched against their respective contact details of the customers who
ordered them.
Building shipment resumes after all route planning activities have been done. Night loading is performed
soon afterwards. Loading is done all night until about 6 a.m., by which time the individual drivers of the
various trucks have arrived at the company’s premises.
Having prefaced the diverse operational manifestations at AFSL, it is appropriate to bring out some of the
details of the telephone conversations that emerged from the study. The thoughts from the interviewees
(telesales reps, delivery drivers, telesales team leaders) reflect different philosophical orientations on the
use of ICTs in mediated interactions. These orientations inform two broad thematic pathways, namely,
emotional and psychological consequences on one hand and the motivational rationalities underlying the
application of ICT-driven interactions. It must be said that all the names mentioned do not reflect the true
identity of the people interviewed.
One telesales rep expressed her frustration in promoting and selling on the phone to customers thus:
‘When you’ve got like 20 calls holding and you know you gonna take the next call the
customer is gonna be angry because they’ve been waiting, you know, and they don’t wanna
hear you trying to sell them something; it’s hard’ – Theresa
Another made the following remark.
‘They [team leaders] are always on your back, I can’t force 11 people to get new lines’ –
Georgina.
‘Personally I don’t think I really like my job [a reference to the telesales work] anymore, I
have got commitments so I have to come and get paid’ – Florence.
‘I spoke to a customer who asked me to marry him over the phone … he went like ‘alright
darling’, ‘okay sweetheart’ all this sort of talk’ – Louisa.
‘You can sell a new line (in other words a new product) easier to a man than to sell to a
woman… women, you know, just get on a bit but men oh!...they hear a woman’s voice and
they know she is young and they go like: What’s your name, darling? Where’re you from? ...
and stuff like this’ – Frances.
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Kofi Agyenim Boateng
From the viewpoint of the delivery drivers, the following thoughts came to the fore during the interviews.
A delivery driver’s reason for maintaining close relationship with a customer of the company is captured
in the following way.
‘My friend, the office people don’t know that this customer has my mobile number. I talk to
her everyday and she knows when I am going to make deliveries. Sometimes she calls to
find out when I am going to drop her order. And I say 10 minutes, half hour or even one
hour, you understand? Me and this customer we are very good friends for a long time now’ –
Gordon.
In connection with the rationalities and motivational factors underpinning the application and preference
of one technology tool to another the following matters surfaced during the interviews.
‘Personally the email is a second option. I prefer the use of the telephone because that gives
me a more appropriate description to the problems the staff may have. I don’t get immediate
response to emails and I can’t put them any questions for instant response. That means I
can’t really fish out what the problem is when I use the email’ – Thomas.
‘Using emails wastes a lot of time, as talking on the phone gives me the opportunity to get
instant feedback for my queries’ – Rosina.
‘Talking over the telephone, you never know if the other person is listening to you so when
you have the eye contact it makes a huge difference’ – Daniels.
‘I send an email to the field sales reps and all of them get the same message
simultaneously, it is not misinterpreted, and it is accurate, but if it is a telephone (mobile or
landline), I have to send it one after the other. However, if you speak to someone, two or
three different people asking the same question, you’d get two or three different
interpretations…so that [an allusion to email] works very well for me’ – Robinson.
One team leader expressed an innovative application of the email in enriching mediated interaction.
According to him, he could use colour codes to highlight certain aspects of communicated messages.
The research had the opportunity to witness an instance of colour-enriched mails.
‘The beauty of email is you can prioritise your work, set reminders, colour code in terms of
priority, arrange and delegate to other people’ – Katlin.
The next section presents an analysis of the paper to flesh out the two principle themes of emotional
consequences of mediated interaction and motivational factors triggering certain aspects of technology
mediated interaction.
3.1 ICT interaction and emotional dynamics
ICT-driven interaction can result in certain psychological and emotional challenges that may impact
negatively or positively on the performance of the individual concerned, especially if such emotional
surges are not well handled by the people involved. It is obvious from the study that interactions
empowered by ICTs have assumed nearly the same mechanical dimension as face-to-face interactions.
The affordance by these technology objects makes it possible for what Collins (2004) refers to as
‘emotional energy’ to be charged, the effect of which can match up to many close, proximal
communication. Thus ICTs permit the essential logistical support for the breeding of networks, described
as ‘networked individualism’ (Castells, 2001 p 130) as a central mechanism for flourished communication
relationships. It can be stressed – without equivocation – the point that ICTs appear to have assumed a
dominant role in configuring complex network of social organisation. These networks offer a gateway for
individuals to share communication principles both ‘on-line and off-line, on the basis of their interests,
values, affinities, and projects’ (Castells, 2001 p. 131).
Proponents of the doctrine of social presence claim that face-to-face interaction can hardly be argued to
have a perfect substitute (Culnan and Markus, 1987, Walther, 1992). However, it is evident from the
study how repeated mediated interactions breed familiarity. This is found in the remarkable revelation of
how ICT-driven interaction inspires, strengthens and sometimes affects the configuration of social
relationships. The interview discovered breaches of strict organisational codes of practice as a result of
familiarity between telesales reps, delivery drivers and customers occasioned by repeated and intensive
mediated patterns of interaction.
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Kofi Agyenim Boateng
The study for instance learned informally, if confidential, how a telesales rep developed amorous
relationship with a customer of the organisation. He was promptly sacked when this ‘unofficial rapport’
became known to the organisation. Therefore the material properties afforded by the technology enables
what can take place face-to-face to equally prevail in a communication at a distance. This could be as a
result of the observation elsewhere that in mediated interaction
“there have to be signs, objects of some sort that are about some thing, objects whose
function is reference rather than presence” (Borgmann, 1999 p.17).
Hence mediated interaction makes it possible for initial encounters at the point of service delivery to
develop into relationships paved by a bond of trust that follows dynamic interactions between the social
agents. Some of the experiences of the telesales reps adequately capture this viewpoint. The discussion
on this segment cannot be complete without recollecting certain responses from two telesales reps about
product promotion on the phone which was laden with worry, frustration and intimidation. Indeed, one
telesales rep could hardly suppressed her feelings when she declared in an interview that she feels quite
apprehensive going to work at the thought of the challenge in meeting the daily sales target via the
telephone. This worryingly frustrating experience connects well with an observation elsewhere that ‘the
increasing competiveness of the modern economy has rendered people slaves to their workplaces’
(Bolchover, 2005 p. 2). Also, Bunting’s (2005) ‘Willing Slaves…’ similarly has a remarkable resemblance
with a workplace characterised by a stressed and overworked staff.
3.2 Manifest rationalities in ICT-driven interaction
Varying degrees of answers are understood to have motivated the application of various forms of
communication tools for interaction predominantly, among the telesales reps. These declarations imply
that user appropriation of ICTs depends on different situational factors connected with multiple rational
explanations (Franz and Robey, 1994).The attribution of personal factors by the category of people
identified in the study reflects sense-making posture in technology use that dwells largely on personal
experience rather than any other social consideration. Different telesales reps assign different reasons for
the use of the same technology device for almost the same job.
It can also be conveniently argued that with respect to the manifest rationalities in ICT interaction, the
technology opens up opportunities for manoeuvrability aimed at the achievement of other personal goals.
For instance, colour coding email message to make it meaningfully rich and real, setting priorities of
communicative trends with colleagues and the ability to transmit across spatial context makes email an
appealing choice for engaging in certain aspects of mediated interaction.
4. Concluding remarks
Specific portions of the findings of this paper are unsympathetic to, and occasionally undermine, the
fundamental postulates of the social presence theory. For instance, some interviewees showed they pay
least regard to matters of social presence when instantiating interaction with their working colleagues.
They have a firm indifference to the use of ICTs with specific reference to telephone and email for
mediating their interaction. Their position seems to depend not essentially on the device being adopted
but on the content of the message being broadcast via the device. This reflection was echoed by a
couple of telesales reps’ opinions for which the following statement is illustrative.
‘Just the same thing that I would say to the other person on the line is what I put down on the
email; if I want to say something I would say the same on the email as I would via the phone’
Collins (2004) largely sees emotions as a two-edged piece for erecting and changing social structures on
the one hand, and a potential source of societal disagreements on the other, through the use of what he
refers to as ‘emotional energy’. Mediated ICTs can build emotional energy through what I call ‘electronic
ritual chains’ from the concept of Collins understanding of the ‘ritual’ in face-to-face encounters. This
electronic means of building emotions by mediated technology needs to be taken further in all forms of
communication at a distance. The emotional conditions necessitated by those communication activities
are worthy of reflective consideration. For instance, evidence of emotional spillover in ICT-driven
interaction arose from two divergent sources; one within the company (internal) and the other from
outside the organisation (external).
As emotions assumes the better part of a person, they are likely to become subjective to the degree that
they tend, even if briefly, overlook their immediate allegiance to the cause of the organisation as a group
committed to a common cause. A near quarreling remark by a telesales rep summarises the collective
59

Kofi Agyenim Boateng
effect of employee disenchantment when emotions surge to an intolerable level as a result of mediated
interaction. This is because when pleasure, excitement and even enjoyment gain prominence in everyday
interactions rising from intense communication, the possibility of getting involved personally, and with
one’s emotions, can be unexpectedly sharp.
Therefore our study of ICT-driven interactions should not limit our horizon to the artefacts and possibly
the social implications of their implication into everyday life. Studies are encouraged to look intimately at
how the behaviour of people changes overtime and the consequences and dynamics of such
transformation. Again, this study opens the floodgate for future research to go beyond logistics to say
emergency services, e.g. ambulance, the police or the fire service as a means for informing both theory
and practice in ICT-driven interactions.
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61

Investigating the Factors Inhibiting SMEs from Recognizing
and Measuring Losses From Cyber Crime in South Africa
Gino Bougaardt and Michael Kyobe
University of Cape Town, Cape Town, South Africa
michael.kyobe@uct.ac.za
Abstract: The level of cyber attacks on organisations has increased tremendously in recent years. When such
attacks occur, organisations need to assess the damage and loss from this crime. While large organisations have the
mechanisms to determine such losses, SMEs lack such capability and often ignore the need to implement effective
information security measures (Kyobe, 2008; Altbeker, 2000; Upfold and Sewry, 2005). Consequently, their risk
exposure to cyber threats and the losses they incur from these attacks are often high (Ngo, Zhou, Chonka and Singh,
2009). However, the current legislative requirements, costly legal liabilities for non-compliance, and increasing
pressure by stakeholders (e.g., lenders, business partners) on SMEs to comply with good practices suggest that
SMEs cannot ignore security any longer. In order to ensure accountability and compliance with security
requirements, it is imperative for SMEs to identify, account and report cyber incidents and losses resulting from cyber
attacks. This study investigated the factors that inhibit SMEs from recognizing and measuring losses from cyber
attacks in South Africa. A survey involving twenty organisations from different business sectors was conducted and
the results indicate that victimisation, resulting from a lack of awareness of cyber-crime has the greatest influence on
SMEs’ ability to recognise and prepare losses from cyber attacks.
Keywords: cybercrime, recognition and measuring losses, SMEs, victimisation
1. Introduction
Despite the availability of numerous methods and publications on how organisations can manage
information security risks, SMEs still face serious challenges in managing cybercrime and resulting
losses. Cybercrime are criminal activities involving the use of electronic devices and may lead to
incidents such as theft of information; Sabotage of data of networks; loss of information due to
eavesdropping ; financial fraud; denied access to information; and damage due to virus attacks (Kshetri,
2009). These incidents result in financial and other losses to the organisations.
Many SMEs fail to identify or recognise and account for these losses. They fail to manage these risks and
continue to ignore the implementation of effective information security measures (Kyobe, 2008; Altbeker,
2000; Upfold and Sewry, 2005). Consequently, their risk exposure to cyber attacks and the resulting
losses continue to rise (Ngo, Zhou, Chonka and Singh, 2009). The current legislative environment,
pressures from stakeholders (e.g., lenders, business partners) and liabilities in the event of violation of
legal requirements make it imperative for SMEs to assess or estimate security risks and account for
potential losses resulting from cyber attacks. Risk assessment is the process by which systems risks are
identified and assessed in order to justify safeguards and protect systems from attacks (Carroll, 1996).
Accounting for losses involves the evaluation and reporting of the damages when they occur. While
studies on information security in SMEs are increasing, limited attention has been paid to SME inability to
recognise and account for losses from cyber-crime.
The objective of this study is to identify the factors that inhibit SMEs from identifying/recognizing and
measuring losses from cyber attacks. In addition, we also determine the degree of influence each of the
identified factors has on SME ability to recognise and prepare losses. In the following sections, the
authors review literature on factors inhibiting recognition and measurement of losses. A conceptual model
representing the relationship between these factors is presented. The results of an empirical test of this
model are then presented. This is followed by conclusions and recommendations for future research.
2. Literature review
The process of identifying, recognising and reporting losses from cyber crime has not been easy for
many organisations. Numerous challenges have been identified. For instance, difficulties in
understanding what cyber crime represents, difficulties relating to risk identification and analysis,
weaknesses in data recording and interpretation, poor design of security systems, risk management and
human behaviour (Canhoto, 2010). Some of these challenges are examined in more detail below:
62

Gino Bougaardt and Michael Kyobe
2.1 Lack of awareness of cybercrime and lack of knowledge of being a cybercrime
victim
In his position paper to the Oxford Internet Institute, Baker (2010) argues that the process of collection
and analysis of cybercrime data is often affected by a lack of understanding of what cybercrime means or
represents. This lack of understanding of cybercrime, which is also evidenced by various ambiguous and
conflicting interpretations of the term, impedes its recognition and measurement. Many organisations
continue to be victimised because they are not aware of the nature or characteristics of this crime.
Theories of victimisation explain the persistent victimisation of individuals and organisations by cyber
criminals. Gottfredson and Hirsch (1990) in their General theory of crime, and Shreck et al (2003), in their
work on victimisation show that victimisation results from low levels of self-control. A lack of self-control
(defined here as the inability to control oneself or one’s emotions), is reflected in behaviours like shortsightedness,
being insensitive or being impatient. SME managers are reported to be insensitive to
cybercrime (Jacque, 2003; Zorz, 2003). Individuals with low self-control are believed to make decisions
exclusive of those situations that increase their vulnerability and fail to change or mitigate their risk
factors after the first victimisation (Forde and Kennedy (1997). This also renders several victimisation
surveys inaccurate as they often underestimate incidence and prevalence rates (Fafinski, 2010).
Solms and Solms (2004) assert that the lack of awareness sin is still committed by many companies.
There are no proper awareness training programs and consequently, users are unaware of the risks of
using their IT infrastructure and the potential damage they can cause to it.
2.2 Lack of risk management skills
The goal of risk management is to identify, measure, control and minimize losses associated with
uncertain events (Patel and Zaveri, 2010). SMEs fail to recognise and measure losses because they do
not engage in record keeping and IT risk assessment and management (Dimopoulos, Furnell and Barlow,
2003). Dimopoulous et al. (2003) attributes this to the lack of funds, expertise and awareness of security
risks. Risk analysis is perceived by SMEs as being complex, requiring specialist expertise and therefore
something to be outsourced (Dimopouloulous et al (2003). It is also thought to disrupt management and
employee activities throughout its duration. Furthermore, existing models (e.g. CRAMM) for evaluating
the benefits of reducing the risks versus the investment in security technology are difficult to understand
or use by SMEs (Dimopoulous et al., 2003). There are also challenges involved in comprehending the
results and reports generated by these tools. The identification of risks is made harder for smaller
organisations due to changes in technology and modes of vulnerabilities (Srinivasan and Abi-raad, 2003).
2.3 Information system security design/infrastructure
The design of the security system may also impact on the recognition and estimation of losses. Modern
business environment comprises of many different applications and systems and each of these has its
own threat profile (Conklin and Dietrich,2008). Such environment creates challenges for security
practitioners responsible for developing security solutions. Consequently, these developers are forced to
come up with piecemeal security designs, often disjointed, patched and can not monitor and
comprehensively report on the security environment in the organisations (Conklin and Dietrich, 2008).
Acccording to Canhoto (2010:1), the technical characteristics of the environment also influence how data
on losses is derived and expressed e.g., data format, content and threshold, and which alerts and reports
are produced. He states further that “formal aspects of the environment such as policies or regulations
provide general definition of cybercrime, and may specify signs of alarm and the expected behaviour from
analysts that detect such signs”. SMEs usually do not possess security and compliance policies (Kyobe,
2008), and as indicated above, many do not engage in formal planning. Therefore such signs of alarm
are often not identified before hand.
2.4 Management attitude to security
Individual cognitive processes, e.g., expectations, stereotypes and prior experiences, may influence
attitude to security and the nature of data identified (Canhoto, 2010). Researchers argue that the failure
by entrepreneurs and small business managers to proactively implement measures to handle risks has
more to do with their personal characteristics (Ndubusi et al., 2005; Sjöberg et al., 2004; Nattaradol,
2002; Orford et al., 2004). Proactive-risk handling is defined as the process in which potential risks to a
business are identified in advance, analyzed, mitigated and prevented, and the cost of protection
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Gino Bougaardt and Michael Kyobe
balanced with the cost of exposure to the risk. This does not appear to be done by small business
managers or entrepreneurs. For instance, many entrepreneurs in South Africa are reported to have
started businesses without giving proper consideration to economic, environmental, and cognitive
limitations (Orford et al., 2004; Ladzani and Netswera, 2003). In his report on ICT adoption by rural SMEs
in Thailand, Nattaradol (2002) also shows that lack of proactiveness and proper evaluation of ICT
projects resulted in misjudgment or under-estimation of potential business and security risks. He
identified several practices in ICT adoption which are indicative of irrational planning or behaviors (e.g.,
failure to estimate project costs, use of unskilled or untrained staff to manage ICT installations, use of
obsolete hardware and software and ignoring potential impact of hackers and sneakers).
In addition, small business managers tend to have a strong desire for autonomy and control which could
easily hamper the success of the organization (Kyobe, 2006). They tend to be rigid, traditional and
usually do not draw up definitive duties or responsibilities for their subordinates. The high degree of
generality resulting from undertaking heterogeneous work prevent employees from developing expertise
in dealing with IT security issues (Kyobe, 2006).
It is also widely reported that because of their false sense of security, small business managers are
complacent about cyber-attacks and often shun good security systems and practices ( Zorz,
2003;Jacque, 2003). Jensen (2004) found that security only became of much greater concern for the
entrepreneurs once they had adopted e-commerce and experienced the reality of risks. Freeman (1999)
explains this behaviour using Kübler-Ross’ (1969) loss model. He argues that organisations response to
major environmental change is similar to individual response to loss. According to Kübler-Ross’ (1969)
stage theory of loss, many who suffer loss proceed through these five stages – denial, anger, bargaining,
depression, and acceptance. At the first stage, the person denies that the loss is inevitable. Freeman
argues that this happens to organisations as well. Citing the work of Starbuck, Greve & Hedburg (1978),
Freeman shows that managers would deny the extent of organisational crises to avoid blame.
Another problem related to this is the unwillingness by managers to report cyber attack incidents. In many
cases the victims withhold reporting (Lee, 1997). The importance of reporting incidents has been
emphasised in many studies on information security and safety. Today, organisations are required to
implement information security reporting schemes based on standards like BS-7799/ISO-17799 (ISO-
IEC 27002 (ISO, 2007) (Calder and Watkins, 2005). Gonzalez (2005) maintains that information security
reporting is a quality improvement process that is essential to reduce incidents and Sveen et al (2007)
state that to learn from an incident and avoid it in the future the incident’s causes must be investigated by
competent people. They caution however that the quality of an investigation is a function of the resources
available and the workload. If for instance, resources are fewer than the allocated workload, this quality
may be compromised. Phimister et al (2003) add that sporadic emphasis and management fear of liability
may also hinder success in an incident reporting system. Eurim (2003) outlines several barriers to
reporting including concern about confidentiality, disruption to business and loss of reputation. A culture
of reporting does not exist in many SMEs due similar reasons outlined above (Kyobe, 2004;2006).
2.5 Lack of knowledge of, and compliance with security regulations
Cybercrime regulations require that organisations and individual recognise and account for damages
resulting from cybercrime. Therefore a lack of knowledge of these security regulations and compliance
with their requirements suggest inability to recognise and report on cyber-crime risks and losses. In South
Africa cybercrime is regulated by the cyber crime section in Chapter XIII of the ECT Act, 2002
(Michalson, 2005). This chapter introduces statutory criminal offenses relating to unauthorized access to
data (e.g., through hacking), interception of data (e.g., tapping into data flows or denial of service
attacks), interference with data (e.g., viruses) and computer related extortions, fraud and forgery. They
also state that a person aiding those involved in these crimes will be guilty as an accessory. A person
convicted of an offence related to the above is liable to a fine or imprisonment for a period not exceeding
five years.
Kyobe (2008) found that majority of the SMEs surveyed were not proactive in their approaches to
compliance with such regulations. Few firms planned their security systems, allocated sufficient
resources for compliance, trained their staff regularly and developed policies. Economical factors such as
indirect compliance costs were found to be the main barriers to SME compliance in this study. Kyobe
(2008) found that of the 30 South African Websites investigated, 40 percent had not implemented
necessary legal requirements. 54% of all respondents never reported their effort towards compliance to
64

Gino Bougaardt and Michael Kyobe
auditors and 32 percent of the respondents were not aware of the requirements and liabilities of the ECT
Act.
2.6 Summary
The key relationships as described in the previous sections are presented in the conceptual model in
Figure 1 below. This model was then validated empirically in a study involving 20 SMEs as indicated in
the following sections.
Quality of Information system
security design/ infrastructure
Expertise in Info. Security & risk
management
Management attitude to security
Awareness of cyber-crime and of
being a victim of such crime
Awareness of (and compliance with)
security Regulations
Figure 1: Conceptual model
3. Methodology
Recognition of Cyber crime
and preparation of losses from
this crime
The sample consisted of SMEs in South Africa engaged in e-commerce activity since these are expected
to experience greater risk exposed to e-crimes. SMEs across South Africa from various provinces and
industries were targeted in order to generalise the findings (Saunders, et al., 2009, p. 217). The
participants included senior management and employees responsible for IT infrastructure. These were
specifically selected because they would be involved in making decisions relating to IT and its
implementation. It would also enable us to collect and compare the views of different categories of
respondents. An up-to-date database from the South African SME Toolkit web site
(http://southafrica.smetoolkit.org) was used to identify the SMEs. The content administrator of this web
site confirmed to us that the majority of the businesses registered on the web site are SMEs and that their
details are updated annually. In order to increase the sample size, more SMEs were obtained from other
sources, e.g., Waverly Business Park, Business Broadcaster, Facebook and postgraduate students.
Twenty two responses were unfortunately received in total. This is however a typical problem in many
SME surveys where responses rates are known to be very low (Kyobe, 2008).
4. Data collection
A questionnaire was used to collect the data since many of the organisations involved are located in
different areas. The questionnaire was piloted with academics in the department. After making necessary
65

Gino Bougaardt and Michael Kyobe
adjustments, this was then emailed to the respondents together with a cover letter explaining the purpose
of the study. The constructs and their measures were mainly adapted from previous research papers
(Kyobe,2008; Upfold and Sewry, 2005; and Herath and Rao, 2009).
Table 1: Constructs and measures
Construct Measure Questions
Adapted from
Quality of Information Security
Design/Infrastructure
Lack of expertise in (Information
security & risk management)
-Our information security solution protects the entire
business system
-Use up-to-date software and Hardware
-Use anti-virus software
-Use a firewall and data encryption
-Availability of IS/IT expertise in security
-Seek expert assistance from external sources
-Techniques employed are useful in determining
cyber losses
-experience difficulties using estimation techniques
Management attitude to security -Mitigate threats or risks to business/IT systems
-Discipline employees who violate security
regulations
- Train staff on IS risks
- false sense of security
Lack of awareness of cyber-crime
and of being a victim of such
attacks
Awareness and compliance with
regulations
Recognise computer crime and
prepare losses
- readness/willingness to report incidents
-Our system is often unavailable due to cyber attacks
-Have suffered financial loss due to cyber attacks
-
- have documented a Security policy
-Comply with the ECT Act
-employees are aware of the ECT Act requirements
and penalties
- Perform record keeping
-availability of expertise in preparing loss estimates
- prepare financial loss estimates due to computer
attacks
-possess expertise in preparing financial losses
we document information security activities
- we conduct information security audits
Kyobe (2008)
Upfold and Sewry
(2005)
Kyobe(2006,
2008)
Kyobe(2008)
Kyobe(2008)
Upfold and Sewry,
2005; and Herath
and Rao, 2009
The first part of the questionnaire obtained general information about the respondents. Subsequent
sections measured the different aspects of the research model (i.e., quality of the security infrastructure,
expertise in information security management, the attitudes of management towards information security,
awareness of cyber-crime and acknowledgement of being a victim of such crime, knowledge of the
security regulation and the extent to which SMEs recognise cyber crime and prepare losses..The
demographic information of the SMEs is presented in Table 2 below.
Table 2 indicates that 9 of the organisations are from the ICT business sectors. There are 11
organisations based in the Western Cape and 6 organisations based in Gauteng. Further analysis
revealed that 8 of the respondents were IT/IS staff while the rest were business owners/managers).
Furthermore, business managers had on average internet trading experience of 5 years and computer
experience of 15 years while IS/IT staff had 4 years and 11 years respectively.
5. Reliability assessment
The reliability test was conducted using the Cronbach’s alpha (Saunders, et al., 2009, p. 374). The
Cronbach alpha coefficient above the recommended 0.70 would confirm the reliability of the questions
66

Gino Bougaardt and Michael Kyobe
used (Nunnally, 1978). Table 3 shows the reliability test results for the constructs in the conceptual
model.
Table 2: SME demographics
1 4
No. of
Employee
s Business Sector Location
2 30
Yrs
trading
on
Internet
Respondent
Position
Respondent
yrs of
computer
experience
Engineering
Consulting
Information
Western Cape Owner
Technology Western Cape Consultant (IT) 15
3 12 NGO
Broadband
National 0 Software Developer 10
4 150 provider-ICT
Procurement to
Western Cape 11 BP Manager- 9
5 9 Mining & Industry
Information
Gauteng 4 Manager 10
6 1 Technology Western Cape 1 Owner 20
7 6 Telecoms North West 10 Sales Director 18
8 2 Accounting Western Cape
Limpopo/KZN/M
4 Director 11
9 24 Construction pumalanga Director 10
10 2 IT GT 5 Director 15
11 15 IT Consulting Gauteng 3 CEO
CEO/Project
17
12 1 ICT Gauteng 1
Manager 4
13 5
Management
Consulting Gauteng 2 Managing Director 10
14 1 Consultancy
Information
Western Cape 2 Owner 27
15 7 Technology KZN 2 MD 20
16 8
Financial
Services Western Cape 11 Director 20
17 46 Building Western Cape 6 CEO 12
18 (1)
Financial
Services Western Cape
Western
10
19 80 Market Research Province 0
Senior Architect/
Strategist 16
IT Development
Team Leader 10
20 80 Online Gaming Western Cape 5 Architect 5
21 47 Construction Western Cape 9 Marketing Director 11
22 20 Insurance Gauteng 3 Director 25
The Cronbach alpha coefficients (in Table 3) are above the recommended 0.70 (Numally, 1978), thereby
confirming reliability or internal consistency of the variables used in the present study. Most variables as
stated above were adapted from prior studies. This also assisted in ensuring construct and content
validity.
67

Table 3: Assessment of reliability
6. Analysis
Gino Bougaardt and Michael Kyobe
Constructs No.of
Items
Cronbach
Alpha
Quality of IS Security Design 3 0.70
Lack of Expertise: Info. Security 4 0.82
Management attitude to security 4 0.73
Awareness of cybercrime (victimisation) 4 0.88
Awareness of (and compliance with)security regulations 3 0.75
Recognise computer crime & prepare losses from cyber crime 5 0.82
Table 4: Mean responses
No. of All respondents Business IT/IS staff
Items
Managers
Constructs Mean Std Mean Std Mean Std
Quality of IS Security Design 3 3.41 1.13 2.99 0.65 3.77 0.77
Lack of Expertise: Info. Security 4 2.99 0.99 3.50 1.00 3.50 0.99
Management attitude to security 4 2.49 0.91 2.19 0.65 3.90 0.97
Awareness of cybercrime (victimisation) 4 3.01 1.16 2.27 0.88 3.98 0.88
Awareness/compliance with security
regulations
3 2.45 0.73 2.59. 0.66 3.31 1.12
Recognise & prepare losses from cyber crime 5 2.47 0.37 2.84 0.60 3.67 0.76
6.1 Correlation analysis
Correlation analysis was conducted to determine the association between variables.
Table 5: Correlation analysis
1 2 3 4 5 6
1. Quality of IS security design 1
2. Lack of expertise in IS 0.21 1
3. Management attitude to security 0.39 0.44 1
4. Awareness of cyber crime attacks (victimisation) 0.11 0.22 0.35 1
5. Awareness/compliance with regulations 0.31 0.33 0.07 0.48 1
6. Recognise & prepare losses from cyber crime 0.18 0.28 0.21 0.37 0.19 1
* (correlations significant at .05 or less are shown in bold)
6.2 Regression analysis
Results of the regression analysis (Table 6) suggest that in the South African SMEs, lack of awareness or
victimisation has the most influence on SMEs’ ability to recognise and measure losses from cyber crime
than lack of expertise in information security management and management attitude to security. It is
68

Gino Bougaardt and Michael Kyobe
surprising to find in this study that quality of IS design and awareness and compliance with regulations
did not have significant influence on recognition and measuring losses.
Table 6: Regression summary for dependent variable: Recognising & measuring losses from cyber crime
R = 0.8209 ; R Sq = 0.6739; Adjusted R Sq = 0.5720; F(5,16) =6.6132; p < 0.00162; Std.Error of estimate:
0.68841
Beta Std Err of
Beta
B Std Err of B T(16) P=level
Intercept 2.5642 1.8677 1.8436 0.01887
Quality of IS design -0.1238 0.1611 -0.2151 0.2798 -0.7678 0.45232
Lack of expertise 0.3394 0.1895 0.35110 0.1959 1.7914 0.04932
Management attitude
to security
0.4621 0.2177 0.1299 0.0612 1.1234 0.04365
Lack of awareness
(victimisation)
0.8119 0.2034 1.11080 0.2783 3.990 0.00105
Awareness &
compliance with
regulations
0.5262 0.2431 1.0391 0.4800 2.1648 0.4589
7. Discussion of findings
Table 4 shows that most respondents did not consider the quality of IS security design to be good. The
mean score on this item was 3.41 (uncertain). Respondents were not certain whether the security of the
system (e.g., Firewall, software) really protected their businesses. Almost similar responses were
obtained for the level of security expertise (2.99). Table 2 indicates that ½ of the respondents had more
than 10 years of IS/IT experience. This suggests that possession of IT skills does not necessarily
translate into proper management of IS security risks. There was a positive and significant association
between information security design/infrastructure and the dependent variable (see Table 5, item 6 -
recognise and prepare losses from cyber crime).Table 5 shows a positive and significant association
between quality of information security design and the dependent variable. This suggests therefore that
the former does influence the latter. Insufficient awareness of IT risks and computing limitations are major
factors inhibiting small organizations from engaging in effective planning and monitoring of business
operations (Kyobe, 2004).
Table 4 also shows that overall most respondents seem to ignore information security requirements. The
mean score was 2.49 indicating rather a negative attitude or lack of attention to security requirements.
Management attitude to security was measured by asking respondents to indicate whether they mitigated
risks, disciplined employees who violated security requirements, trained staff on IS risks and reported
security violations. Further analysis of the responses of business managers and those in IT/IS staff
confirms that information security is not a major concern for business managers (mean score for
business managers was 2.19 compared to 3.90 by IT/IS staff). It is not surprising therefore that Table 5
reveals a significant correlation between Management attitude to security and (quality of IS security
design and lack of expertise in IS security). These influence SME ability to recognise losses as confirmed
by the positive and significant relationship revealed in Table 5.
In the case of awareness of cybercrime (and victimisation), the overall mean response was 3.01 (see
Table 4), which suggests the respondents were uncertain. However, a breakdown of the responses
indicates that only those with technical skills appear to be aware that their systems were unavailable due
to cyber attacks and that they do suffer losses due to cyber attacks (mean score was 3.98). Business
managers were mainly uncertain of the potential for victimisation.
Compliance with security regulations remains a major problem in these organisations. The mean score
was 2.45 (disagree). This may not be surprising given the fact that most business managers were also
found to be least concerned about information security risks and also did not know they were potential
victims of cyber attacks. A further analysis show that even IT/IS staff were not certain whether they
complied with security regulations (mean score was 3.31). This confirms Jacque’s (2003) observation
that SME managers were insensitive to cybercrime. Such level of insensitivity translates into lack of self
control which results into re-victimisation (Shreck, 2003). The fact that this construct was found to be
associated with recognition and reporting of losses from cyber-attacks confirms that lack of compliance
influence SME ability to prepare losses.
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Gino Bougaardt and Michael Kyobe
Most respondents did not agree that they do recognise and prepare losses from cyber attacks (Mean
score 2.47). However, some IT/IS staff seemed to agree that they do to some extent (3.67). Recognition
and preparation of losses from cyber attacks was measured by asking respondents to indicate if they
kept records, possessed expertise in preparing losses, document information security incidents and
conduct security audits (see Table 1). Table 5 shows that all other constructs were significantly correlated
with this construct.
However, when these relationships are analysed in a regression analysis, it is surprising to find that the
quality of IS design, and awareness and compliance with regulations have no significant influence on
recognition and measuring losses. This could perhaps be explained by the small sample size used in the
present study
Results of the regression analysis (Table 6) suggest that in these South African SMEs, lack of awareness
of cyber crime (or victimisation) has the most influence on SMEs’ ability to recognise and measure losses
from cyber crime than lack of expertise in information security management and management attitude to
security. It is surprising to find in this study that quality of IS design and awareness and compliance with
regulations did not have significant influence on recognition and measuring losses. This could also be
attributed to the small sample size and the number of items used to measure these constructs. It is
however interesting to find that our suspicion regarding three of the constructs (i.e., lack of awareness of
cyber-crime (victimisation); management attitude to security; and lack of expertise in risk management)
were found to be correct in this analysis.
8. Conclusion
This study shed more light on those factors influencing preparation of losses from cyber attacks in SMEs.
Lack of awareness of cyber-crime appears to be a serious challenge for many SMEs and it is not
surprising that these organisations continue to be victimised. Because SMEs managers do not
understand what cyber-crime is, they simply may not take it seriously and may not find it necessary to
engage in risk management initiatives. Risk management systems are vital to the evolution of SMEs
(Sanchez, Ruiz, Fernandez-Medina, and Piattini, 2010). Management need to engage in risk
management practices but this requires a change in attitude or in the way information security is
perceived. Upfold and Sewry (2005) reported that SME management view information security policies as
hard and expensive. SMEs managers can not continue rejecting good security practices due to their false
sense of security (Kyobe, 2008).
The findings presented in the present paper are however based on evidence gathered from only twenty
two SMEs. Therefore precautions need to be taken when generalizing these findings. This study should
be repeated with a much larger sample and the relationships between the constructs tested again in a
regression analysis. Given the limited sample size, we could not compare the responses of business
managers and IT/IS staff. This could reveal more details about the potential causes of different behaviors
of managers towards security. Future studies should investigate these relationships and their impact on
the dependent variable.
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71

Sharing knowledge – The CoP way
Sheryl Buckley and Apostolos Giannakopoulos
University of Johannesburg, South Africa
sbuckley@uj.ac.za
paulg@uj.ac.za
Abstract: Managing academics’ knowledge to the benefit of all is a challenge to any institution. One way to share
knowledge is through a community of practice. However, knowledge sharing within communities is complex.
Challenges such as a lack of trust, a lack of incentives and a poor culture of learning in an institution have an effect
on effective knowledge sharing. A questionnaire consisting of open- and closed-ended questions was administered
to academics. This article reports on academics’ awareness and views of a community of practice at a higher
education institution in South Africa. Empirical evidence shows that academics would be willing to share knowledge.
However, time constraints, an unwillingness among academics to share knowledge, and a lack of support or
participation from management could become obstacles to knowledge sharing.
Keywords: knowledge sharing, communities of practice, higher education, trust, learning culture, knowledge
1. Introduction
Knowledge is the driving force of a knowledge economy. Therefore, the way knowledge is shared and
created and the way these actions are managed could lead to either a competitive advantage for an
organisation or it could lead to its demise. The same rationale applies to an academic institution. The
knowledge that academics possess, forms the largest percentage of such an institution’s market value.
Since knowledge (both tacit and explicit) resides in the minds of the people and some of it can be
subsequently codified and become ‘common to all knowledge’ (Smith and McKeen 2004, 398), managing
academics’ knowledge becomes a challenge to the institution.
One way to share knowledge is through a community of practice (CoP) (Wenger 2004). A CoP consists
of groups of people who come together voluntarily, both face-to-face and virtually, to share and to learn
from one another. For a CoP to exist there must be people, shared interest, shared competencies and
shared activities performed on a regular basis that advance learning and knowledge (Wenger, 2006).
Knowledge sharing within communities is complex due to the lack of shared consensual knowledge or
shared sense of identity (Barab and Duffy 1998; Thorpe 2003). Firstly, the development of trust is seen to
be a key foundation which requires to be developed before effective knowledge sharing can occur. To
facilitate effective community knowledge sharing, effort needs to be invested in developing the social
relationship (and hence trust) (Muller 2006) between members of the communities. Secondly, appraisal
systems need to be coupled to a proper system of rewards for those staff that enhance the institution’s
stock of knowledge and use it to creative ends (Sallis and Jones 2002, 43). Lastly, a learning culture is a
key component for ensuring that an institution can benefit from the knowledge at its disposal (Sallis and
Jones 2002, 78). It can be argued that academics looking for knowledge connect with those who possess
it and in this way they are able to improve their practice and create a competitive sustainable advantage
for themselves and the institution. If the above issues are not addressed, knowledge sharing will be
compromised.
This article reports on participants’ awareness and views of communities of practice at a HE institution
and proposes a framework for a CoP in an academic environment.
2. Impact of knowledge and information sharing in higher education
A university creates, investigates, evaluates and conveys culture through its scientific research and
teaching activity (Brzezinski 1997, 202). Research universities are crucial factors in the development of
new knowledge. Jarvis (2007, 90) writes: the university as whole, not just individual faculty members
within the institution needs to be measured on the extent to which it serves the knowledge needs of
society as a whole, as well as how it serves basic teaching and research.
University expansion at the end of the 20 th century has led to a burgeoning of new programmes, modules
and courses (Lea 2005, 180-181). The need for creating learning or knowledge communities rather than
teaching factories is greater than ever before, if universities are to transform to modern universities (Msila
2006, 90). As a university’s core business is teaching and learning, knowledge plays the central role in
both (Jacob 2000, 141-142). The impact of failure to transmit knowledge successfully has a detrimental
effect on the institution as well as the learner. Wick (2000, 519) contends that knowledge itself has limited
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Sheryl Buckley and Apostolos Giannakopoulos
value because it becomes obsolete very quickly; and unless the institution ensures that its academics
keep updating their knowledge, stagnation will prevail. However, it is not knowledge itself that is so
valuable; rather it is the ability of an organisation’s members to generate knowledge and innovate, using
that knowledge (Wick 2000, 520).
For Duderstadt (2005, 81-82) “Knowledge can be created, absorbed and applied only by the educated
mind, and … universities in particular, will play increasingly important roles as our societies enter this new
age.” In a sense, knowledge is the medium of the university.
There is widespread belief that information sharing is beneficial because it fosters collaboration, enables
coordination, enhances capabilities and facilitates growth. According to (Lamberton, 2005, 155)
information and communication technologies (ICT) can be used effectively as part of a toolbox for
addressing global problems. Technology is a critical enabler and can be separated into two categories:
infrastructure and collaborative applications (2004, 71). Infrastructure is the hardware and software that
allow anyone to communicate with anyone else from any place at any time. Once the infrastructure is in
place, collaborative technology (or groupware) applications can be effectively implemented to address
communication across time and space.
In discussing excellence in university teaching, Sherman, Armistead, Fowler, Barksdale and Reif (1987,
72) consider excellence as developmental and such development as ‘a function of an interaction between
individuals and their environments in an appropriate and facilitative learning atmosphere and not merely a
function of the passage of time’. Such individuals are known to operate collaboratively with other
colleagues as they see themselves as lifelong apprentices, always willing to improve their teaching
practices. By implication, if a university aims for excellence, it is not sufficient to have highly qualified and
knowledgeable academics, but such academics should interact with others to improve their practices. In
an indirect way, they form unofficial CoPs, with excellence as one of their main objectives.
Innovation is vital for any university wishing to be proactive in the marketplace and have the competitive
edge (Du Toit 2000, 188; Skyrme 2003). Du Toit (2000, 188) argues that nowadays competitiveness in
the marketplace is essential for the survival of South African universities and that the ability to sustain
innovation is recognised as a strategic advantage; it has become evident that knowledge must be
generated and integrated within the university at an accelerated pace. Such knowledge is essential for
innovation or knowledge creation within a university. As academics are surrounded by other academics
with the same purpose, it stands to reason that there should be close cooperation between them. Wenger
(2004) argues that the social aspect then plays a central role in achieving their purpose.
3. Challenges for institutions in implementing a community of practice
Witt, McDermott, Peters and Stone (2007) believe that the education sector is now exploring the
usefulness of building CoPs and connecting individuals with a common interest where knowledge is
created, sustained and transformed. Already familiar to many academics is the idea of working in groups
such as project teams, programme teams, special interest groups and forums to discuss, share and
develop practice. According to Wenger (2004) the salient features of a CoP are the domain, the
community and the practice. The domain is the area of interest, the community is formed by the
relationships (conversations and discussions) between members and the practice is what community
members do with learning derived from their interaction.
3.1 Building trust
Without trust and norms of openness, employees are likely to be concerned about the repercussions
caused by expressing their views openly. When there are few norms of sharing and reciprocity,
employees see little need and value in sharing knowledge with others. Employees who do not identify
with the institution are unlikely to be willing to put effort into participating in knowledge-sharing activities
(Pee and Kankanhalli 2007, 134). Trust is a crucial knowledge issue and it is a pivotal and essential
element in long-term social relationships. However, building it is difficult and challenging at HE
institutions. One of the best ways for HE leaders to engender trust is to be trustworthy themselves, and to
act with integrity. Trust grows out of acts of trustworthiness (Sallis and Jones 2002, 35; Hislop 2004, 41).
An HEI’s trust-building process has a number of linked stages. The first stage of building collaboration
has its basis in the need to develop rapport. Groups, meetings and processes need to be established so
that each employee can learn from the skills and expertise of others. It is a process of bottom-down
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Sheryl Buckley and Apostolos Giannakopoulos
sharing, with management encouraging and establishing the space for teamworking to develop (Sallis
and Jones 2002, 36).
During the second stage the members of groups become more focused and active. This is when the
prevailing corporate culture can encourage group activities by rewarding innovative thoughts and action
(Chetley and Vincent 2003). At this time management needs to encourage people to look outwards
towards their colleagues, rather than inwards. Network leaders need to break down old habits and ensure
that the trust required for collaboration can thrive (Sallis and Jones 2002, 36). Techniques such as
storytelling and learning conversations play a vital role in this process and should encourage employers
to shift from hoarding to sharing knowledge. Technological infrastructures can also be useful for
encouraging active collaboration (Hayes and Walsham 2000, 61; Sallis and Jones 2002, 36).
To reach the third stage in the trust-building exercise, academics need to have easy access to
information, ideas and solutions and need to know where old ideas can be unearthed and used again.
Chat rooms, online communities and other inventive ways can be instrumental in supporting the sharing
activities that build trust, and move the culture to one of knowledge sharing. As more and more people go
online, informal communities spring up. Such communities allow important learning to take place; they
know that learning works best where there is trust (Sallis and Jones 2002, 37).
The final stage is rewarding the contribution of great teamwork. People are inclined to want some sort of
scorecard that acknowledges their knowledge-sharing activity. The rewards should be personal (Sallis
and Jones 2002, 37).
3.2 Rewarding knowledge creation
HE institutions need to recognise the value of their intellectual capital and the importance of the
knowledge that their staff have. Appraisal and other feedback systems need to provide clarity about what
is expected of staff, and to concentrate on staff contributions to knowledge creation. Davidson and Voss
(2002, 99) emphasise that ‘[a] KM initiative will not get very far if – however actively you champion
knowledge sharing – the existing remuneration system rewards knowledge hoarding’. Galunic and Weeks
(1999, 189) suggest a variety of recognition and financial awards for knowledge sharing to the practice as
a whole, including promoting developing intellectual capital as one of the four criteria used when
determining promotion and bonuses. Liebowitz and Chen (2003, 431) feel that knowledge sharing is its
own reward and that introducing formal incentive schemes might have the opposite of their intended
effect. Among the incentives named by Liebowitz and Chen (2003, 432) are recognition; duty or need; a
good frame of reference; a sense of give and take (quid pro quo); feedback mechanisms for letting
knowledge sharers know their knowledge is being put to use; and the pleasure of helping someone attain
their goals.
HE institutions need to show their appreciation of staff contributions to the institution’s intellectual capital.
Measurement could include skills acquisition as well as a willingness to undertake additional training and
research output (Sallis and Jones 2002, 43).
3.3 Culture of learning
HE institutions need to build a culture of learning that allows for continuous knowledge creation and
transformation (Sallis and Jones 2002, 77). Argyris (1994, 82) argues that institutions fail when their
culture inhibits learning. A learning organisation encourages its staff to learn by giving them the
mechanisms to share experience and best practice, and to improve their skills and capabilities. Leonard
(1995, 63) identified a number of important implications for educational institutions. First, the importance
of what she calls ‘firm specific skills’ or tacit knowledge indicates why it is difficult to replicate the
performance of a successful institution. She argues that innovations cannot simply be imported from one
institution to another. Educational institutions need to focus on developing the organisational-specific
knowledge of its members; talent needs to be home-grown.
Learning organisations have a knowledge-sharing culture, with knowledge as the ‘cement’ holding them
together. The development of informal knowledge communities alongside more formal structures
empowers staff to learn as they work, and builds a common language and context in which tacit
knowledge can be shared effectively. This allows the institution to build its knowledge and share best
practices (Sallis and Jones 2002, 78). CoPs can also be established by management (Thorpe 2003, 9)
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Sheryl Buckley and Apostolos Giannakopoulos
rather than form naturally. While management cannot command CoPs to form, they can facilitate their
growth (Thorpe 2003, 9).
The perpetuation of a learning culture depends on the institution’s ability to develop practices, procedures
and customs that draw new people into a CoP and compensate for membership losses (Buysse,
Sparkman and Wesley 2003, 267).
White and Weathersby’s (2005, 294) view is that the traditional culture of educational institutions often
runs counter to the values of the learning organisation. Academics value academic freedom, intellectual
development, exploration and examination, peer review, acquisition of knowledge for its intrinsic worth,
and collegiality. Academics are also members of a loosely-coupled community, working as experts in
their self-defined domain of a larger field, collaborating when necessary, and governed increasingly by
professional academic administrators.
White and Weathersby (2005, 295) contend that educators have the opportunity of choosing to become
members of multiple CoPs within their own organisation and larger profession. Creating learning-oriented
CoPs among faculty in even small, incremental ways is a challenge that may involve risk taking.
4. Research methodology
The research on which this article is based aimed at investigating CoP awareness and views of
academics at a higher education institution in SA. A mixed method approach was used. Qualitative data
was aimed at gaining a better understanding of the awareness and views of academics using a CoP. The
sample consisted of 784 academics. A questionnaire consisting of four parts (section A, B, C and D)
including open- and closed-ended questions was administered. Section A contained background
information and for the purpose of this article, this data will not be discussed. Section B consisted of five
closed-ended questions and aimed to determine whether academics were prepared to share their
knowledge and experience with others in the same field; whether the character of the other members
would play a role; whether they preferred to work alone or were team players, and which form of
communication they preferred. Section C consisted of 16 closed-ended questions informing participants
about CoPs and establishing their willingness to take part in a CoP. Section D (open-ended) was an
opportunity for participants to highlight any other factors not mentioned about CoPs in section B and C.
The questionnaire was administered (by an independent agency) online with a weekly email reminder to
the participants for the duration of three weeks. Only 180 participants completed the questionnaire and
this could be a limitation. A reason could be that academics were busy with assessments and preparation
of mid-year examinations during that period. The sample may therefore be considered too small to
generalise but trends can be noted.
Content analysis and open coding was used to analyse the qualitative data. The reliability of the
quantitative section of the questionnaire was determined by using Cronbach’s Alpha test to determine
whether the measuring instrument was homogeneous.
5. Results and discussion
The questionnaire was completed by 22.9% (180) of the respondents.
Section B produced the following results: All respondents indicated that they would be prepared to share
knowledge and experience with others in the same field. This is a positive sign when formulating a
strategy for the implementation of CoPs. The character of the other members would play a role for 77.8%
(140) while sharing knowledge. This could be indicative of trust or social issues experienced by some
respondents. Muller (2006) argues that effective knowledge sharing requires investing in social
relationships. While 88.3% (159) of the respondents were of the opinion that they were team players,
43.3% (78) of the respondents preferred to work alone. This was surprising, as 88.3% (159) of the
respondents had indicated previously that they felt they were team players. Face-to-face communication
was preferred by 85.5% (154) of respondents and 72.7% (131) preferred online communication. This is
yet another positive sign for implementing a CoP, because as stated earlier, a CoP is a group of people
who come together to learn from one another, both face-to-face and virtually (Wenger 2004).
Correspondence was also indicated as an option.
Section C aimed at informing participants about a CoP and at determining whether they would be willing
to participate (see Table 1).
75

Table 1: Informing participants about a CoP
*Legend for
theme
categories
Sheryl Buckley and Apostolos Giannakopoulos
Question Disagree Agree Strongly
agree
KS I benefit from knowledge sharing 3 107 70
PD I will learn more from a colleague 57 93 24
KS We all possess tacit knowledge 6 107 64
KS I would like to discuss my teaching with others 90 57 9
KS I would like to share my teaching methods 37 121 17
BR Sharing my personal knowledge builds trust 11 108 61
ATT Sharing my knowledge increases my status 21 108 50
PD By sharing knowledge, knowledge base will increase 1 70 109
MP Sharing knowledge will influence decisions 34 113 27
ATT I have knowledge for my peers 16 135 28
KS Sharing knowledge is not detrimental to performance 17 124 37
PR CoPs are created out of passion and ‘die’ from lack of
it
23 116 35
PI Same identity creates a strong bond 22 124 29
VP Since voluntary, I can opt out anytime 26 116 33
VP, BR Friendships can develop based on trust 6 118 56
MP My employer benefits from knowledge sharing 1 110 65
* See Table 2 for explanation of legend.
Comments given by respondents in Section D were the following: ‘Employers that are senior should
encourage knowledge sharing and reward us for sharing good ideas, they should not use it as their own
platform of success’ and ‘I was not sure what you meant with CoP but having considered your definition
and survey, I conclude that CoP principles were instrumental in advancing my research abilities and
industry reputation.’ Other factors noted were excessive administrative requirements, fear of the
unknown, time limitations, ignorance, lack of knowledge about CoPs, heavy workload, no promotion, nonexistence
of a CoP, not being established in the institution, organisational culture and personal reasons.
Section B, C and D were grouped and categorised into themes using content analysis and open coding
(see Table 1 and Table 2) and are discussed below.
Knowledge sharing: The desire to share knowledge was supported by the majority of respondents i.e.
98.3% (177), who felt that they would benefit. Sharing knowledge was not seen as being detrimental to
performance 91% (163) and 95% (171) agreed that we all possess tacit knowledge. This supports
Wenger’s (2004) and Wick’s (2000, 520) findings. There were 76.6% (138) of the respondents who were
willing to share their unique and effective teaching methods with others.
Build relationships: Here again the majority of the respondents felt that they were team players. Muller
(2006) contends that it takes time to invest in social relations. A small minority, namely 3.3% (6),
disagreed that by associating voluntarily with others to share knowledge, friendships can develop, based
on trust. Most respondents, namely 93.9% (169), agreed that sharing helps build trust among peers.
Communication: Most respondents, namely 85.5% (154), also indicated that they would use face-to-face
communication but 72.7% (131) indicated that they would prefer to communicate online. Communication
was not a detrimental factor for the respondents.
Personal development: The majority, namely 99.5% (179), agreed that by sharing knowledge, their
knowledge base would increase. This view is supported by Leonard (1995, 63),Sallis and Jones (2002,
78) and Wick (2000, 519). The results show that respondents are willing to socialise and in the end their
knowledge base increases.
Attitudes: Only a small percentage of the respondents, namely 11.7%, (21), disagreed that sharing
personal knowledge and experiences would maintain or increase their status amongst their peers.
Findings by Smith and McKeen (2004, 399) concur with these findings. There was a desire by 90.5%
(163) to share knowledge with their peers. The results show that the respondents were willing to share.
76

Sheryl Buckley and Apostolos Giannakopoulos
Management participation: The majority of respondents, namely 97.2% (175), agreed that the
organisation also benefits from the sharing of knowledge among the employees. This is supported by
Sallis and Jones (2002, 36-37, 43) and Du Toit (2000, 188). Furthermore, 77.7% (140) agreed that
sharing personal knowledge and experiences would increase their power to influence decisions. As is the
case in any institution, management approval in an HEI needs to be granted before a CoP may be
started especially if it will be institutionalised. Therefore management involvement and encouragement
may be crucial.
Voluntary participation: Almost full consensus was obtained among the respondents that by associating
voluntarily with others to share knowledge, friendships can develop, based on trust. White and
Weathersby (2005, 295) support this standpoint. However, 14.4% (26) felt that they could not opt out at
any time. Perhaps they felt they would be obligated to stay in such a community once they were
members. Since a CoP primarily implies voluntary participation, members may leave whenever they wish
to do so.
Practice: Most of the respondents, namely 83.8% (151), agreed that CoPs are created out of passion for
one’s work. This is one of the characteristics of a successful CoP (Wenger 2004; Buysse et al. 2003, 267;
Sherman et al. 1987, 72). The practice is the end goal of what has been derived from the learning
between the interactions with others. We all possess tacit knowledge and through our interactions, our
knowledge base is increased.
Professional identity: Most of the respondents, namely 85% (153), agreed that sharing the same identity
creates a strong bond among the members of a CoP. This is supported by previous research (Pee and
Kankanhalli 2007, 134; Thorpe 2003; Barab and Duffy 1998). Wenger (2004) claims that the strong
feeling of identity of members belonging to a CoP is mostly regarded as a positive aspect. Perhaps
respondents in the same field feel comfortable to share with others in a similar field.
Advertise: A respondent commented that participants could be informed about CoPs by advertising the
existence of the CoP. It is important to promote CoPs continually to engage new members, re-engage
existing members and sustain the community over its lifespan.
These themes (see Table 2) were further grouped into three main themes (see Table 3): domain,
community and practice, which form the elements of a CoP.
Table 2: Initial categories of themes
1 Management participation MP 8 Knowledge sharing KS
2 Practice PR 9 Voluntary participation VP
3 Communication COMM 10 Professional identity PI
4 Building relationships BR 11 Advertise AD
5 Attitudes ATT 12 Trust TR
6 Personal development PD 13 Time TI
7 Infrastructure INF
Table 3: Final themes
Domain 8
Practice 1, 2, 6, 9, 10, 11, 13
Community 3, 4, 5, 12
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Sheryl Buckley and Apostolos Giannakopoulos
Factor analysis was carried out on the data of the survey to confirm the validity and reliability of the
findings. The purpose of the factor analysis was to determine whether the 16 items could be organised or
grouped into a smaller set of underlying factors. Four factors were generated from the 16 items and are
presented in Table 4. For this article, 0.700 was used as the benchmark against which to measure the
Cronbach’s Alpha values. The four factors that were generated were personal development (factor 1),
mutual beneficiation (factor 2), self-esteem (factor 3) and self-recognition (factor 4).
There was no noteworthy difference between the gender of the respondents for the four factors used. It is
also possible that the respondents who participated in the survey met some of the criteria of a CoP.
There was also no noteworthy difference between the ages, current positions or number of years
employed of the respondents for the same factors used.
Table 4: Factor analysis
Factors generated Cronbach’s Alpha
Personal development .740
Mutual beneficiation .729
Self-esteem .704
Self-recognition .652
It was concluded that the prerequisite conditions for CoP were present, so a framework for CoP was
developed to help start and maintain CoPs. CoPs are formed by people who engage in a process of
collective learning in a shared domain. The findings of this research confirm most of the findings of the
literature that the three key elements that are critical for a CoP should be taken into consideration when
creating a CoP, namely: domain, community and practice.
Figure 1 presents a framework based on the themes specified in Table 2. These themes were grouped
into the three key elements of a CoP: domain, community and practice. This framework could be used to
assist in the creation of new CoPs and to improve existing CoPs where a society of CoPs can ultimately
develop. The findings positively suggest that a CoP might increase knowledge sharing in a university.
Domain has been linked to management, as management is perceived to have the resources to create
awareness among the academic community, to educate, encourage use, provide support (financial and
technical) and reward sharing. Without the support and approval of management, no CoP can be
created. Community and practice have been linked to academics. Academics could develop, use,
support, mentor and evaluate CoPs. Finally, CoPs are integrated to form global societies of CoPs in
which academics participate.
6. Conclusion
The main elements of a CoP either featured, or were accepted by most of the respondents. One factor
that appears to inhibit either the flourishing of an existing CoP or the formation of a new one is too little
time. Most of the respondents accepted the other elements. This is very encouraging, since if the
necessary elements to establish a CoP are available, then half of the objective has already been
achieved. The two factors that appear from the findings to play an important role in the effectiveness of
knowledge sharing are the attitudes of the academics and participation by management. Management
has the ability to create an atmosphere that can be conducive to the sharing and creating of knowledge
among academics by focusing on the domain, community and practice.
It is the combination of a domain, community and practice that constitute a community of practice. And it
is by developing these three elements in parallel that such a community is cultivated. In a higher
education institution, where knowledge is created, disseminated and transmitted, management perhaps
needs to play an even more active role in developing communities of practice if such communities are to
be successful.
78

If existing
CoP
Management
Academics
Create
awareness
(advertise
existing and
new CoPs)
Use CoP
Sheryl Buckley and Apostolos Giannakopoulos
Support CoP
Educate &
encourage
(workshops)
Mentor CoP
Academics
develop or
build new
CoPs
Willingness to
participate in a
CoP
Figure 1: Framework for the creation of a CoP (adapted from Buckley 2009, 178)
Evaluate CoP
Use CoPs
Themes identified
from questionnaire
survey
79
Support CoP
Academics
Integrate CoPs
Knowledge sharing
Mentor CoP
Domain
Attitudes
Build relationships
Community
Evaluate CoP
Create global and
societies of CoPs
Practice
Integrate CoPs
Advertise
Communication
Management participation
Personal development
Practice
Professional identity
Voluntary participation
Time

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81

An Empirical Framework of key Success Factors for
Software Process Improvement
Nuntarat Bunditwongrat, Mathupayas Thongmak and Atcharawan Ngarmyarn
Thammasat University, Bangkok, Thailand
nuntarat.b@gmail.com
mathupayas@gmail.com
a_ngarmyarn@yahoo.com
Abstract: During the last decade, software industry has concerned more about the quality of software process, as
indicated by an increasing number of proposed software process improvement (SPI) standards and models.
However, the adoption rate of these standards and models in software development is still low and the failure rate of
SPI implementations is very high. For these reasons, this paper is aimed at investigating the key success factors for
SPI implementation to answer two research questions. The first question is, what factors do respondents think that
they have an impact on SPI implementation success?; and the second question is, does the organizational size have
moderating effect on the relationship between human factors / organizational factors and SPI implementation
success? The conceptual model and hypotheses of this study are proposed by extending and integrating conceptual
models from prior research, collecting the human, organizational, and implementation factors associated with SPI
implementation in industry. Furthermore, the contextual factor that is organizational size was added to the model to
test the sensitivity of the variation in software organizations. Then, a quantitative questionnaire survey was gathered
from 23 software organizations in Thailand which apply CMMI (Capability Maturity Model Integration) as their SPI
guidelines in order to test the conceptual model and hypotheses of the study. The results indicate that SPI
implementation success depends on six factors, i.e. management commitment, staff involvement, allocated
resources, pilot projects, setting SPI goals, and defined process model, while organizational size has no moderating
effect on SPI implementation success. Finally, the main contribution of this paper is the guidance for SPI practitioners
on key factors that practitioners need to focus during an SPI implementation. Moreover, this guidance will be useful
in the processes of allocating resources and prioritizing tasks to effectively implement SPI in the organization.
Keywords: software process improvement, SPI, CMMI, key success factors
1. Introduction
Software plays an increasing role in today’s society. Modern software organizations operate in a highly
dynamic market, under time and cost constraints (Abrahamsson 2001). Software quality has received
attention from both academic and software industry (Niazi, Wilson, and Zowghi 2003a, 2003b).
Organizations have started to apply SPI initiatives to increase the maturity and quality of their software
processes (Abrahamsson 2001).
During the last decade, the software industry has concerned more about software process improvement
as indicated by an increasing number of proposed standards and models. All of these standards are
claimed to increase the likelihood of SPI success (Dyba ํ 2001, 2005). Investment in process improvement
has significant benefits such as improving productivity and product quality, reducing cost and time to
market, increasing organizational flexibility and customer satisfaction, and enabling opportunities to enter
the international market (Abrahamsson 2001; Brietzke and Rabelo 2006; Jalote 2002; Niazi, Wilson, and
Zowghi 2003b).
The number of proposed SPI standards and models has been increased; however, there has been
limited success for many SPI efforts. Several companies have been carrying out SPI projects but some of
them give up before realizing its benefits and others take much longer than expected to get it
accomplished. The current problem with SPI is a lack of an effective strategy to successfully implement
those standards or models (Abrahamsson and Iivari 2002; Babar and Niazi 2008; Brietzke and Rabelo
2006; Hardgrave and Armstrong 2005; Niazi, Wilson, and Zowghi 2003b, 2005).
CMMI is currently the most widely used framework for SPI. The recent report from SEI indicated that
there was an increasing in CMMI appraisal from software companies around the world up to 15% during
the last six months of 2008 (ThailandSPIN 2009). Thailand is the second highest number of appraised
companies in Southeast Asia; however, the number is still low compared with all software companies in
Thailand (Poopaka 2009; Siamturakij Media 2009). So, it is interesting to investigate the key success
factors for SPI to assist software companies in effectively planning SPI implementation strategies. In this
paper we focus on two research questions:
82

Nuntarat Bunditwongrat et al.
RQ1: What factors do respondents think that they have an impact on SPI implementation success?
RQ2: Does the organizational size have moderating effect on the relationship between human
factors/organizational factors and SPI implementation success?
2. Background
2.1 SPI concept
During the last decade, SPI has become a popular approach to deliver improvements in software
products. Many companies have either a formal or informal SPI program based on SPI model, such as
CMM, CMMI, and ISO/IEC 15504 (SPICE). These models are SPI frameworks for defining and
measuring processes and practices that can be used by software companies (Babar and Niazi, 2008;
Hall, Rainer, and Baddoo 2002; Niazi, Wilson, and Zowghi 2003b). The report from Data & Analysis
Center for Software (DACS) support that successful SPI programs reduce number of defects by 95%,
reduce software development schedules by 71%, and increase productivity in terms of lines-of-code or
function points per day by 222%. Additionally, Software Engineering Institute (SEI) reported the ratio of
average return of 5:1 for investments in successful SPI programs (Abrahamsson 2001).
2.2 CMMI
CMMI is a model used to develop and refine software development processes which measures both
capabilities and maturity levels. The model was developed by SEI, University of Carnegie Mellon, USA.
CMMI is the successor of the CMM which integrate and standardize the separate models of CMM, and to
eliminate other drawbacks of CMM. It is accepted and widely used in software development over the
world (Malaiwong 2004, 2008a).
CMMI identified processes to efficiently improve software quality starting from design, delivery, and
maintenance. The CMMI version 1.2 have five maturity levels consisting of 25 process areas which is the
group of best practices needed to comply to achieve those task objectives. Higher maturity levels require
more set of process areas to be complemented (Phillips 2005; National Electronics and Computer
Technology Center 2009).
The result from survey indicates that software organizations which apply CMMI as their SPI guideline can
work more systematic and easier to track with the flexible standard practices. By using these standard
practices, managers need to seek an adaptive strategy to deal with any changes that may occur all the
times. As a result, managers can see working situation more clearly in order to solve problems efficiently
and well prepare to solve unexpected problems that may occur (Malaiwong 2008b).
3. Conceptual model and hypotheses
The conceptual model and hypotheses of the study are proposed by extending and integrating
conceptual models from prior research. We focus on the human, organizational, and implementation
aspects. Also, the contextual factor was added to the model to test the sensitivity of the variation in
organizational size. Figure 1 shows the research model.
3.1 Human factors
3.1.1 Management commitment
Commitment concerns with the extent to which resources are made available for SPI and management's
interest in SPI (EI-Emam, Goldenson, McCurley, and Herbsleb 2001). Without commitment from all
organizational levels, the initiative will likely fail or the results are not reached. The concept of
commitment has been brought up as one of the most important human factors determining whether a
well-planned process improvement program will succeed or not (Abrahamsson 2001).
SPI initiatives involve a large number of people. Overall, SPI initiative does not get support unless
management shows strong commitment to provide both people and financial resources for the initiative,
and to spend their own time in participating, monitoring, and resolving issues. Active involvement of
management provides strong motivation to the people participating in the initiative (Jalote 2002). In
addition, Steltzer and Mellis (1999) ranked management commitment as number one of the ten factors
83

Nuntarat Bunditwongrat et al.
for SPI success. Management should also show that they believe in the initiative. Thus, we hypothesize
that
H1: SPI success is positively associated with management commitment
3.1.2 Staff involvement
Staff involvement is essential because if staff do not buy into the proposed changes, the improvement
initiative is useless. Furthermore, they have detailed knowledge of the current processes. Steltzer and
Mellis (1999) also ranked staff involvement as number two of important success factors with two reasons.
First, their first hand experience of the processes is valuable. Second, participation from staff reduces the
resistance to the developed processes.
While Dyba ํ (2003, 2005) defines staff involvement as the extent to which employees use their
knowledge and experience to decide, act, and take responsibility for SPI. Staff participation should be
offered and managed to allow them improving their work and feeling a sense of contribution. Thus, we
hypothesize that
H2: SPI success is positively associated with staff involvement
Human Factors:
Management Commitment
Staff Involvement
Organizational Factors:
Allocated Resources
Pilot Projects
Implementation Factors:
Setting SPI goals
Defined Process Model
Figure 1: Conceptual research model
3.2 Organizational factors
3.2.1 Allocated resources
Moderating Factor:
- Organizational Size
H7A H7B H7C H7D
H5
H6
H1
H2
H3
H4
SPI Success
Allocated resources are defined as the amount of staff time and resources dedicated to SPI (Goldenson,
and Herbsleb 1995). SPI requires planning, dedicated people, management time, tools, and capital
84

Nuntarat Bunditwongrat et al.
investment. Organizations must commit their resources and constantly motivate people to contribute
(Borjesson and Mathiassen 2004). SPI can’t be sustained without dedicated resources. Shen and Ruan
(2008) recommend that at least one full time person for the SPI project.
Training may be considered as a tool for implementing a successful SPI program and it requires allocated
resources as well (Niazi, Wilson, and Zowghi 2003a, 2005). Training involves transferring important
information and communicating process innovations to all relevant members. Providing enhanced
understanding is mentioned in 72% of the ISO cases and in 87% of the CMMI cases (Stelzer and Mellis
1999). It is important for capturing and disseminating experiences to less experienced staff (Rainer and
Hall 2002). Thus, we hypothesize that
H3: SPI success is positively associated with allocated resources
3.2.2 Pilot projects
After the process model was approved, the newly revised processes went through a testing phase (Shen
and Ruan 2008). A careful planning to pilot new processes is critical because only some projects will be
selected for pilot implementation. Good pilot planning is essential to maintain on-time SPI initiatives
(Serrano, Montes, and Cedillo 2003).
Practitioners are advised to implement SPI program within a particular department first. After proper
planning and using pilot implementation experience, results of pilot implementation should be illustrated
to other departments to get support and confidence (Niazi, Wilson, and Zowghi 2003b, 2005). Thus, we
hypothesize that
H4: SPI success is positively associated with pilot projects
3.3 Implementation factors
3.3.1 Setting SPI goals
Stelzer and Mellis (1999) defined SPI goals as the degree to which everyone can make the translation
from top management goals to the goals that each person is being asked to achieve. The goals must be
decomposed to specific measures that everyone can see how their efforts relate to organization's
success. Setting relevant goals means that the improvement efforts attempt to contribute to the success.
While setting realistic goals means that the goals may be achieved in the foreseeable future with a
reasonable amount of resources. This helps to direct the efforts towards common goals and to motivate
people.
The role of process improvement has been recognized as essential factor to achieve business objectives.
So, clearly defined SPI program driven by business needs, have been suggested as a key success factor
for SPI (Dyba ํ 2005). Thus, we hypothesize that
H5: SPI success is positively associated with setting SPI goals
3.3.2 Defined process model
The major activities of defining process model involve in some definition of new processes and refine of
existing processes. Frequently, process definition is the main challenge in an SPI initiative. Besides, it is
imperative to have deployment mechanisms in place for deploying the processes to make the task of
changing processes easier (Jalote 2002; Niazi, Wilson, and Zowghi 2003a; Shen and Ruan 2008).
Creating process action team is also considered as a mechanism to effectively change or deploy new
processes in the organizations. It is recommended to have a core group of full-time people that may
include external agents (Hall, Rainer, and Baddoo 2002; Jalote 2002). The rest of the team should be
users in processes, e.g. project managers, developers, testers, etc, to minimize the risk of resistance
(Shen and Ruan 2008). Thus, we hypothesize that
H6: SPI success is positively associated with defined process model
85

3.4 Organizational size
Nuntarat Bunditwongrat et al.
Existing software engineering and organization development literature acknowledges that there are
fundamental operational differences between small and large organizations. Small organizations seem
more concerned about practice, while large organizations seem more concerned about formal process
(Dyba ํ 2003). Despite this recognition, there has been no systematic attempt to verify whether small and
large software organizations implement SPI programs differently. So, it is interesting to verify the
importance of organizational size on SPI success in this study. Thus, we hypothesize that
H7A: Organizational size moderates the effect of management commitment on SPI success.
Management commitment influences the SPI success for large organization to a greater extent than that
of small organization.
H7B: Organizational size moderates the effect of staff involvement on SPI success. Staff involvement
influences the SPI success for large organization to a greater extent than that of small organization.
H7C: Organizational size moderates the effect of allocated resources on SPI success. Allocated
resources influence the SPI success for large organization to a greater extent than that of small
organization.
H7D: Organizational size moderates the effect of pilot projects on SPI success. Pilot projects influence
the SPI success for large organization to a greater extent than that of small organization.
3.5 SPI success
Dyba ํ (2003, 2005) measured SPI success based on the performance of the organization for the past
three years with respect to cost reduction, cycle time reduction, and customer satisfaction. While
Goldenson, Gibson, & Ferguson (2004) identified seven categories of performance measures: process
adherence, cost, schedule, productivity, quality, customer satisfaction, and return on investment.
Goldenson and Herbsleb (1995) asked the survey respondents how they would describe their
organizations with respect to six performance characteristics: ability to meet schedule and budget
commitments, address process predictability, product quality, staff productivity, staff morale / job
satisfaction, and customer satisfaction. The overall patterns are quite clear that higher process maturity
does appear to pay off in better organizational performance.
4. Research design
The data was collected between March and April 2010 from target sample of 293 employees who involve
in SPI program of 23 software companies listed by Software Park, an agency supporting software
companies in Thailand, using purposive sampling method. The questionnaires were distributed through
both online and offline channels.
The appraised companies comprise with the group of companies in maturity level 2, level 3, and level 5.
There is no company in Thailand which achieved at level 4. According to statistics during the last two
years, the appraised companies in Thailand has been increased up to 4 times, total of 30 companies
divided into 9, 20, and 1 companies which achieve CMMI maturity level 2, level 3 and level 5 respectively.
Notwithstanding, after contacting to the company which is mentioned to level 5 according to the list, we
found that this company has not achieved at level 5, they are still at level 3. Hence, the sample of this
research will cover only those companies achieved at level 2 and 3.
5. Data analysis and result
Our measurement model includes 40 items describing six latent constructs. The reliability of the multipleitem
measurement scales were evaluated using Cronbach’s alpha coefficient. All constructs have a
higher composite reliability than the benchmark of 0.7 recommended by Nunally (1978) as shown in
Table 1.
The unidimensionality of the six measurement scales was evaluated by performing an exploratory factor
analysis using principal components analysis with varimax rotation. The six components were extracted
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Nuntarat Bunditwongrat et al.
with eigenvalues greater than 1. The rotate matrix component is shown in Table 2. All item loadings for
each component were greater than 0.5, which achieved an acceptable degree of unidimensionality.
Table 1: Reliability analysis
Independent Variables Number of Items α
Management Commitment 6 0.847
Staff Involvement 5 0.866
Allocated Resources 10 0.939
Pilot Projects 5 0.867
Setting SPI Goals 6 0.893
Defined Process Model 8 0.933
Table 2: Rotated component matrixa
Measurement Items
1
Component
* 2 * 3 * 4 * 5 * 6 *
A process has been established to distribute lessons
learned to all relevant staff
.734
SPI implementation plan has been established .729
The processes for improvement are clearly defined .721
Mechanism has been established to manage changes .719
Mechanism has been established to collect and analyze
feedback data and to extract lessons learned
.716
Processes are adequately defined at an appropriate level
of detail
.714
Continuously improve a SPI implementation methodology .664
Mechanism has been established to monitor the progress
of each process action team
.576
Sufficient budget for staff to participate in SPI training .722
SPI training is provided for all related staff .698
Sufficient time for staff to participate in SPI training .681
Required tools have been provided for SPI implementation
properly
.673
Required people have been provided for SPI
implementation properly
.663
Sufficient staff time is allocated to SPI efforts .649
SPI training helps developing skills and knowledge needed
to perform SPI implementation
.608
Sufficient budget has been allocated to SPI implementation
properly
.571
Training programs are reviewed on a periodic basis .537
All future group or individual trainings of SPI are planned .520
Staff members actively involve in defining their operational
processes
.780
Staff members actively involve in setting goals for SPI
activities
.780
Staff members have responsibility to involve in SPI
activities
.683
Staff members interest and commit in SPI effort .675
Opportunity for staff to exchange their ideas related to SPI
implementation
.549
Management provides strong commitment for SPI .760
Management actively participates in SPI activities .742
Management actively supports SPI activities .679
Management commits to provide resources for SPI .675
Management establishes standard practices for SPI .638
Management actively monitors the progress of SPI .578
The results of pilot implementation are used for planning
SPI implementation across the organization
.664
Careful planning of the piloting new processes .649
Staff members satisfy with the performance of
methodology in the pilot projects
.646
SPI implementation methodology has been tried and tested
in pilot projects
.567
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Nuntarat Bunditwongrat et al.
Measurement Items
1
Component
* 2 * 3 * 4 * 5 * 6 *
The results of pilot implementation are communicated .540
SPI goals are measurable .660
SPI goals are aligned with organization’s business goals .607
SPI goals are realistic .589
SPI goals are well understood within the organization .589
Fine balance between short-term and long-term SPI goals .544
SPI goals are clearly stated .524
Cronbach’s Alpha .847 .866 .939 .867 .893 .933
a. Rotation converged in 7 iterations.
*1 - Defined Process Model *2 - Allocated Resources *3 - Staff Involvement
*4 - Management Commitment *5 - Pilot Projects *6 - Setting SPI Goals
For respondent demographics, the ratio of female (51.54%) is slightly more than male (48.46%). The
majority of the respondents’ age ranged between 25-35 years. Most of them have been working in the
jobs related to software development process for 1-2 years. Most of the respondents’ company have staff
dedicated to SPI in the range of 50-200 people with CMMI maturity level 3 and has started SPI
implementation for 1-2 years.
Multiple regression analysis was used to test the hypotheses. The regression model was run without
constant because we used factor score to run in the model. Hence, the unstandardized and standardized
coefficients were equal. Hypotheses 1 through 6 consider the individual relationships between SPI
success and each of the six independent variables to answer our first research question. Table 3
summarizes the results of our analysis for these hypotheses. The results show that hypotheses 1 through
6 were significant. So, all six independent variables investigated have an impact on SPI implementation
success.
The contextual factor was added to the model to test the sensitivity of the variation in organizational size
which is in accordance to our second research question. However, the estimated coefficients of the
independent variables of the original model were not significantly changed by the introduction of the
organization size. Thus, our analysis rejects Hypotheses 7A through 7D.
Table 3: Regression analysis for hypotheses H1 – H6
Model Standardized Coefficients (Beta) t
Management Commitment .141 2.233*
Staff Involvement .265 .757***
Allocated Resources .218 2.514*
Pilot Projects .229 .715**
Setting SPI Goals .177 1.977*
Defined Process Model .197 2.281*
Dependent Variable: SPI Success
R = .514 R2 = .265 SE = 0.865 (F = 17.202***)
*p < .05 **p < .01 ***p < 0.005
6. Discussion
The results show that SPI success depends on six factors. Staff involvement seems to be associated with
the highest explanatory power since it achieved the highest standardized regression coefficient ( =
0.265). Next come to pilot projects ( = 0.229), followed by allocated resources ( = 0.218), defined process
model ( = 0.197), setting SPI goals ( = 0.177), and finally, management commitment ( = 0.141). A
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Nuntarat Bunditwongrat et al.
surprising result was the lowest explanatory power of management commitment in predicting SPI
success. All the main studies on which this investigation is based share a strong belief in the importance
of management commitment for the successful implementation of any type of change initiatives.
However, the result is in agreement with Abrahamsson (2000)’s findings that many SPI initiatives do not
require management commitment beyond obtaining the resources needed. It can be stated that if a
committed manager should bring energy, passion, and excitement to improvement initiative, then
management commitment is not a necessity. On the other hand, if management commitment is viewed
as someone who provides resources that enables the process improvement to grow, then the
management commitment is a necessity. Furthermore, the success in some cases as presented in
Abrahamsson’s study could be the concept of champion, who makes a decisive contribution to the
innovation by actively and enthusiastically making the improvement happen with having little support from
management. There could be several explanations for this seemingly surprising result.
With respect to the contextual factor, we found that organizational size did not have moderating effect on
the relationship between human factors / organizational factors and SPI implementation success.
However, the result is in agreement with Dyba ํ (2005)’s findings that the results hold for small, as well as
large, software organizations, and for organizations operating in stable as well as in turbulent
environments. Similarly, Goldenson and Herbsleb (1995) found that organizational size alone is unrelated
to overall SPI success. Respondents who represent larger organizations are no more, or less, likely to
claim such success than are those who come from smaller organizations. This means that the size of the
organization does not limit its potential for SPI success. We believe that the success factors discussed
here give many interesting insights that will be relevant and applicable to organizational change in most
software organizations. If the success factors are implemented, they facilitate the success of
improvement initiatives. If they are not implemented or not implemented correctly, this makes process
improvement difficult to achieve, or may even cause failure of the initiative.
7. Limitations
Our participants belonged to only one standard, CMMI, and only one country, Thailand, which is a
limitation of this study as the findings cannot be widely generalized to practitioners using other standards
or models, and for other countries that have different environment and culture. As mentioned earlier, the
sample of this research covers only those companies achieved at level 2 and 3. Nevertheless, software
companies in Thailand are very productive and it would be another interesting case to investigate since
they are well supported by many government agencies as witnessed in the statistics that the appraised
companies in Thailand have been increased up to 4 times during the last two years (Malaiwong 2004).
Another issue is that the questionnaire-based studies are usually based on self-reported data that may
reflect what people think they should say, not necessarily what they actually observe or perceive. Our
results are limited to the respondents’ knowledge and beliefs about the reasons, potential benefits and
barriers that can undermine SPI initiatives. This situation can cause problems when practitioners’
perceptions may be inaccurate. However, like many other studies based on opinion data, we have
collected data from practitioners working in quite diverse roles and directly involved in SPI activities within
their organizations to ensure that they could be representatives for our target population.
8. Conclusion and future research
The study focused on identifying the key factors for success in SPI by a quantitative survey. The results
indicate that SPI implementation success depends on six factors, i.e. management commitment, staff
involvement, allocated resources, pilot projects, setting SPI goals, and defined process model. While
organizational size has no moderating effect on SPI implementation success. From a theoretical
perspective, these findings add an important new dimension to empirical software engineering research
to verify the importance of organizational size for SPI success. From a practical perspective, the main
contribution of this paper is an actionable guidance for SPI practitioners on key factors that practitioners
need to manage during an SPI effort. This guidance will be useful in processes of planning and
prioritizing the implications, so that software organizations can evaluate their readiness and current
practices to effectively implement SPI. Future research is needed to investigate such variable in other
countries against the results of this study to see whether the different cultures and/or environments have
any effect to the results. Furthermore, in case that the sample can be separated into more variety group
of maturity levels, it is interesting to investigate the relationship between the success factors and maturity
levels. Consequently, we would know that do the respondents from lower and higher maturity companies
think that the same factors impact the implementation of SPI. Likewise, we can compare the factors
recognized by companies with successful and non-successful SPI programs, as well as comparing CMMI
to other standards/models, e.g. ISO/IEC 15504 (SPICE) or ITIL. In addition, qualitative research by in-
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Nuntarat Bunditwongrat et al.
depth interview or case study should be done to gather insight into the SPI implementation success on
how to efficiently establish SPI implementation strategies.
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90

Assessing Information Management Competencies in
Organisations
Andy Bytheway
Cape Peninsula University of Technology, Cape Town, South Africa
bythewaya@cput.ac.za
Abstract: The history of the management of information systems includes many ideas that were intended to simplify
the complexities of the management task, but there is still a great deal of wasted investment that produces no
significant benefits. Much of the thinking has been rational and structured, but it can be argued that structured
thinking will not solve the problems presented by the ever-increasing scope and depth of information systems, the
need for improved responsiveness and agility, and the need to deal with a range of requirements that are sometimes
behavioural and sometimes legislative. Three of the more frequently cited frameworks for information management
(Zachman, Henderson & Venkatraman, Ward), are briefly reviewed and found to have common characteristics. They
are combined into a new, simple arrangement of the central (and critically important) ideas. This new framework has
been used as the basis of a survey instrument that is introduced and explained; it works at two levels - the "micro"
and "macro" levels. It assesses perceptions of organisational capability to manage information well, as seen by
respondents who are normally employees working in different roles with varying responsibilities. The survey
instrument comes with an analysis and reporting package that is found to be suitable for the needs of busy
managers, and the way in which micro and macro data is presently analysed and presented is demonstrated using
data from a reference dataset, a CIO workshop, an investigation within a real estate agency and a large financial
services organisation. The contribution of this work to the research programme from which it emanated is
summarised and future directions briefly explained.
Keywords: Information management; perceptions; IS/IT strategy; alignment; assessment
1. Background
There is a history of difficulty in delivering benefits from information technology investments, and for the
last 40 years experts have worked to ease the problems.
During the 1990s business managers and academics strove to find answers to critical questions. An
early, extensive, review of literature concerning information systems "success" (DeLone & McLean, 1992)
was well received and has since been updated; specific research has looked at process-based
collaboration across corporate boundaries (Bytheway & Braganza, 1997); academic attention focused on
strategic alignment (Kearns & Lederer, 2000; Chan & Reich, 2007); concerns about "agility", ethics and
alignment have emerged (Tallon et al., 2000; Sambamurthy et al., 2003; Symons, 2005).
More recently, there has been increasing attention to the management of benefits (Chatterji, 2007; Ward
& Daniel, 2005) but business newspapers still report problems (Anon, 2008) and there is still difficulty
with enterprise-wide systems (Seddon et al., 2010). It is reported that information systems strategy is still
not properly understood (Chen et al., 2010), and ethics (Mingers & Walsham, 2010) and behavioural
issues (Beaudry & Pinsonneault, 2010) are of concern. There are staggering losses involved in
information technology investments in the public sector (Anon, 2010).
In the face of all this, how can the complexities of managing information technology and systems be dealt
with? When costs of technology are spiralling, how can they be justified to senior business managers in
the board room? Concepts of information technology strategy might mirror business strategy, but exactly
what do the "alignment" of these IT and business strategies really mean?
This paper briefly reviews some ideas from this history and derives a new framework that proves to be
comprehensible and workable. The framework leads to a survey instrument that assesses organisational
capability to manage information well.
2. Some important ideas
2.1 Zachman reveals complexity
The complexities of information technology management were first revealed in the 1980s in a framework
for information systems architecture (Zachman, 1987); Zachman took a broad view of the issues but his
ideas were necessarily detailed, and his frequently cited six-by-six matrix, with layers of technology
management down one side and different perspectives of the business across the top, was beyond many
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Andy Bytheway
managers' willingness to work with. 36 different points of concern (the intersection of the six rows and six
columns of the matrix) were just too many to handle. Although there has been subsequent reference to
the Zachman framework (Frankel et al., 2003) it has failed to gain currency in the general context.
2.2 Henderson and Venkatraman seek simplicity
Others have sought simpler views of the problem, and one frequently cited example is the Henderson
and Venkatraman framework. It relates business and IT issues at the internal and external levels using a
two-by-two matrix. It shows that there is a need for "functional integration" between the business and IT
domains, and that there is a need for "strategic fit" between the internal and external worlds. Each of the
four quadrants embodied in the framework are detailed in turn: scope, competencies and governance in
the external portion and processes, skills and infrastructure or architecture in the internal portion.
Internal External
Strategic fit
Distinctive
competencies
Business strategy IT strategy
Business
scope
Administrative
infrastructure
Business
Governance
Processes
Skills
Organisational infrastructure and processes
Automation Linkage
Functional integration
Systemic
competencies
Technology
Scope
Achitectures
IT Governance
Processes
Skills
IS Infrastructure and processes
Business Information technology
Figure 1: The Henderson and Venkatraman framework, linking business and IT from the internal and
external viewpoints (Henderson & Venkatraman, 1993)
Questions arise from a close examination of this model. It is interesting to see that competencies and
skills are included, but why are they in different parts of the framework? A skill can be seen as a low level
thing ("I can work this computer") but a competency is something else ("I can use this computer to
produce a useful econometric model"). The implication of "processes" being in both the internal business
and internal IT quadrants is that business processes and IT processes must be functionally integrated,
but how is that possible? A single IT process might contribute to a wide range of business processes;
conversely a typical business process might depend on many information systems. Why do we have
"administrative infrastructure" on the left, and "architectures" on the right?
The Henderson and Venkatraman model is simple at first sight, but it leads to a range of questions and
lacks the sort of elegance and symmetry that makes these things memorable. It implies dependencies
and relationships between its conceptual components, but these are not immediately evident on a first
reading.
92

2.3 The issue of alignment
Andy Bytheway
Efforts to improve the return on information technology investments have focused on the ways in which
business and technology strategies can be more effectively aligned. However, this high-level approach to
the management of IT and IS related investments has found only limited success.
It has been argued (Yayla & Hu, 2009) that alignment is achieved by means of simple steps: strategising
processes, increasing the level of communication, formalising policies, and so on. Easy to say, but is this
taking us forwards? Where is the detail that tells us how to realise these worthy and somewhat obvious
steps to success?
"Alignment" is an appealing word but it has to be judged by the benefits that are delivered. The
management of benefits has been an issue from the very early days (Baets, 1992) right through to recent
times; it is now dealt with in standard texts (Ward & Peppard, 2002; Ward & Daniel, 2005).
2.4 The concept of value from IT investments
"Alignment" is appealing, but "value" is more so, especially when talking to senior management.
Venkatraman introduced the idea of "eras" (Venkatraman, 1994), his observations concerned the
increasing scope and reach of information systems, the increasing degree of business change that was
required to benefit from them, and the increasing value to be gained thereby.
Inevitably, practice takes time to adopt and adapt to new ideas and practical concerns continued to be
reported at about that time (Uchitelle, 1996). But what Venkatraman had given us was a clear message
that we are concerned with the management of systems and the information that comprises the essence
of those systems, not just the technology.
Progressive organisations worked along these lines, and references to "IT management" were
supplanted by references to "IS management", and then to "Information management", as in the case of
BP Chemicals (Cross, 1995). There was academic attention to these ideas based on workshops with
working managers (Bytheway, 1996), and one feature of the work at BP chemicals led ultimately to the
framework that is presented here. John Cross dunned his idea "Jacob's ladder" - a management stairway
to a strategic heaven?
2.5 Jacobs' ladder
The arrangement of the four steps in BP Chemical's "Jacob's ladder" is shown in the figure below: At the
bottom is the technology that comprise infrastructure for systems and business activity, and at the top the
business processes that serve the business strategy (Cross & Earl, 1997).
Value
creation
Value
realisation
Business processes
Information
Applications
Infrastructure
In-house
expertise
Outsourced
expertise
Figure 2: Jacob's ladder as promoted in BP Chemicals
It is interesting that the creation of value is seen at the top, with in-house expertise; the realisation of
value is seen at the bottom, based on the use of outsourced expertise (outsourcing was one of the
principal outcomes for BP Chemicals at this time).
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Andy Bytheway
However, this notion of value generation is seen in other work. Zachman had already articulated six
"levels", from the representation of technology infrastructure (program code and data definitions), through
technology, systems, enterprise and context of the enterprise (Zachman, 1987); Venkatraman was
promoting the idea that data, information, knowledge, action and result were all related in a similar
progressive way (Venkatraman, 1996), and Ward has promoted the idea that benefits from IT
investments are achieved at different levels (Ward & Daniel, 2005).
These ideas are summarised in the table below, and related to the five levels of the Information
Management Body of Knowledge (IMBOK) that are discussed in the next section.
Table 1: Linking information technology to business strategy
Zachman Venkatraman Ward IMBOK
Highest Context Result Strategic
objective
Business strategy
Enterprise model Action Functional benefit Business benefit
Lowest Representation of
system
Knowledge Business change Business process
System model Information Enabling change Information
system
Technology Data Technology Information
technology
Zachman's "representation of system" is really only of interest to technology management, but his other
five levels show strong empathy with the other viewpoints. One can argue that there are actually five
levels at which management must operate (from the lowest to the highest):
Information technology must be acquired, configured, and used to provide the requisite infrastructure
so that a business can store its data and operate its …
Information systems, some of which will necessitate changes to the way that the business operates
its …
Business processes, wherein knowledge is deployed in order to initiate the actions that are expected
to deliver the desired …
Business benefits, that will in turn realise the organisation's …
Business strategy.
This arrangement of ideas strongly reflects the historical thinking that is available, and it has been
adopted as the foundation of the Information Management Body of Knowledge, which currently
comprises a knowledge base, a handbook, a developing survey instrument, and a supporting community
web site (http://www.imbok.org).
3. The Information Management Body of Knowledge
As can be seen from the table above, at the heart of the IMBOK is the idea of the business process,
incorporated by Zachman (with other ideas) in his enterprise model, seen by Venkatraman as the layer
within which knowledge is deployed (in the taking of informed decisions), and by Ward as the level where
business change is to be found. Zachmans system model is echoed strongly in the IMBOK, where
Venkatraman and Ward choose slightly different ideas concerning information (Venkatraman) and
enabling change (Ward). Whilst a detailed evaluation of the ideas would take more space than is
available here, perusal of the table is revealing in that all perspectives align well, even though they see
things from different perspectives. The merit of the IMBOK is that it is strongly aligned to the generation
of value from an investment in information technology, and it is entirely aimed at fulfillment of the
business strategy as the ultimate objective.
Other threads of research have informed the development of the IMBOK. In its embryonic stages there
was a very extensive review of the literature that established the validity of many of the ideas that have
been used (Lambert & Peppard, 1993); the process value adding viewpoint was developed and published
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Andy Bytheway
(Edwards & Peppard, 1997) and ideas about skills, competencies and capabilities were developed in
conjunction with working business managers (Bytheway & Lambert, 1998). The concept of value came
strongly into focus (Peppard et al., 2001) and is evident in standard works dealing with IS/IT strategy
(Ward & Peppard, 2002).
In South Africa, these ideas were incorporated into a research project that provided new learning material
and new learning opportunities appropriate to the South African context (HICTE, 2003), and the IMBOK
handbook was the result (Bytheway, 2004). It has since been adopted as a standard course text in South
Africa, Europe and North America.
3.1 The IMBOK framework
Pictorially, the IMBOK identifies five domains of management, and four two-way interfaces between
them.
Information
technology
System
projects
System
requirements
Information
system
Business
change
Business
needs
Business
process
Business
operations
Business
capability
Business
benefit
Business
results
Goals and
objectives
Business
strategy
Figure 3: The Information Management Body of Knowledge
It is clear that one of the principal difficulties faced by management is the preservation of the quality and
detail of thinking that passes between the five management domains, and that there is not just one point
of alignment (as is so often argued) but four. If information systems projects do not deliver systems that
are well supported by the technology, if systems do not support business processes, if business
processes do not deliver the performance improvements that are expected, and if those improvements
are not what strategy demanded, then all will be in vain. Hence, the interfaces between the management
domains take on special significance.
The IMBOK framework is useful, because it allows assessment and analysis of the competencies that are
needed to manage the successful delivery of benefits from information technology investments. From the
preceding work, and in particular the review of a very wide range of literature (Lambert & Peppard, 1993),
a set of 144 competencies have been identified that can be organized into nine groups that correspond to
the five management domains in the IMBOK and the four gaps between them. These competencies are
the substance of the survey instruments deployed in this work, and taken together they represent the
capability of the organisation to achieve effective information management.
3.2 The survey instruments
The two survey instruments work at different levels:
The first, with 144 statements each representing one of the 144 competencies; this is referred to as
the "micro" level of working,
The second, with a simplified form using just nine statements to represent each of the nine groups of
competencies; this is referred to as the "macro" level of working.
They are based on Likert-scale worksheets with statements, each representing one competency;
respondents are asked to agree/disagree with the statements in order to indicate their perceptions of the
competency of the organization to do things well. All statements are phrased in a positive sense, so that
"agreement" is good news and "disagreement" is bad news. The focus on perceptions, as opposed to
any absolute measure (such as might be found in using COBIT or ITIL) helps to take more careful
account of people's feelings and emotions. Most previous thinking has revolved around structured,
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Andy Bytheway
rational, right-brained thinking, but management is as much concerned with perceptions as with
absolutes.
3.3 The micro level
Working at the micro level is of course potentially difficult: no respondent can be expected to respond to
144 individual statements in what is hoped to be a quick but effective survey. Because a large number of
respondents were expected to be involved, worksheets were prepared using randomly selected
statements from the total set of 144, 20 statements at a time - enough worksheets would ensure that
adequate coverage of the nine macro domains would be achieved.
A fragment of such a worksheet is shown below:
Figure 4: A sample worksheet from the survey instrument
The statements are in no particular order and the significance of each statement (in terms of its position
in the framework) is not revealed, so that they appear completely random to the respondent.
Experience at the micro level soon indicated that at the start of an assessment there was a need for a
short, simple but compatible approach. This was undertaken at the macro level.
3.4 The macro level
The simplified macro-level worksheet has just nine statements, one for each of the five domains and one
for each of the four interfaces. Two additions were made: an additional statement concerning culture for
change was included, and a rating of importance of each of the statements (high to low) was included so
as to gather data about the relative importance of the different domains.
Figure 5: The short survey instrument used at the macro level
This short questionnaire proved to be an effective way of dealing with the hundreds of respondents
involved with the financial services company.
3.5 Four cases assessed
The survey has been deployed in four cases, resulting (at the time of writing) in a total of almost 600
responses and some thousands of individual opinions:
A random sample of different businesses (and other organizations) in Cape Town, undertaken at the
micro level.
A purposeful sample of South African Chief Information Officers, also at the micro level.
A purposeful sample of staff in all departments of a real estate agent, also at the micro level.
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Andy Bytheway
A representative sample of staff working in a large financial services company, this time at the macro
level.
The results provide an interesting insight into the perceptions of different stakeholder groups: IT
specialists, business specialists, administrative staff, management and others. For example, it is found
that IT specialists often under-estimate their capability and fail to realise that their work is actually highly
valued by others. In other cases senior management have a poor view of organisational ability to manage
IT-specific issues such as technology acquisition, IT projects, and business change management.
The paragraphs that follow present selected findings to illustrate these observations, and to show how
the data is collated and presented back to the respondents using an analysis package that has itself
developed over the period of the work.
4. Results
The opinions were analysed using simple, descriptive statistical methods, directed at the production of
"radar charts". It has been found that radar charts are an effective way of presenting complex data to
managers, and because the arrangement of summary measures around the circle is fixed, the audience
for the results becomes used to the shapes that arise, indicating problems and opportunities.
An analysis package has been developed, first to work with data at the micro level and later eanced to
work at the macro level. It allows the selection of different datasets, sectors (of business), organizations
within sector, and so on right down to the gender and education of the individual respondent, as will
become evident. It automatically produces the radar charts (see below) that have ten spokes, or axes, as
follows:
IT The information technology management domain
IT-IS The implementation of information systems
IS The information systems management domain
IS-BP The implementation of business change arising from new systems
BP The business process management domain
BP-BB The delivery of business benefits from improved business processes
BB The business benefit management domain
BB-BS The fulfillment of business strategy through performance
BS The business strategy management domain
(The five principal domains of the IMBOK are written in bold text, the four interfaces in italics).
The tenth vertical "null" axis is reserved for "culture" measures - there was no data for that measure at
this stage in the work.
4.1 The reference sample
The results for all received opinions (1391 in total) is shown in red (and bold); the results for the reference
dataset (1076) are shown in blue (and feint); the standard deviation is shown in the centre in pale green.
The nine measures (from IT through to BS, clockwise) all result in an average assessment of a little less
than "3". This indicates a tendency on the part of respondents to respond to the statements using the
third box from the right (they were coded "7" to "1", left to right):
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Figure 6: The results for the reference dataset
Andy Bytheway
Because the overall result is based on 1391 opinions, it might be expected that the results would "level
out" (if perceptions of capability are indeed measured in an equitable way by the survey) - it is therefore
pleasing that there is no excessive variation around the nine axes. Also, it can be seen that the standard
deviation of data (on all axes) is in the range 1.3 to 1.5, which suggests that there are no areas of strong
disagreement. It follows that deviations from these broadly-based figures will probably be significant.
The figure below shows two selections that illustrate what is found in the detail:
Figure 7: Results for "education" and "government" sectors selected from the reference dataset
There are significant differences between these results: education is strong on strategy, but government
is very weak; government considers its IT management to be strong but education does not. The
perceived benefits to education are extremely poor, perhaps because of the strength of the strategic
vision and the weakness of the management of the technology that should assist in its realization; the
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Andy Bytheway
ability of government to see benefits coming out of routine business activity (in the business processes) is
extremely poor.
4.2 Chief Information Officers
At a workshop in Cape Town, about 20 CIOs were asked to assist by completing worksheets at the micro
level.
Figure 8: Results for Chief Information Officers
The results show a distinct optimism, especially when compared with some of the data from senior
managers in the financial sector (see below). Perhaps this is not surprising, a CIO should feel optimistic
about the merits of his work (but it would be a shock if this optimism was in distinct disagreement with the
opinions of others in their organizations).
4.3 Real estate agent
The first in-company assessment concerned about 80 employees in a real estate agency, where the
different views of the different groups proved to be interesting.
Figure 9: Results from a real estate business
Perhaps this is a typical result for a typical organisation, where overall there is a positive and optimistic
view of information management (compared with the reference dataset). After all, this is an information
intensive industry and it is critical to manage information well. This data was gathered at a time when
there was a major upgrade taking place on the company web site, and therefore it is interesting to see
more optimism in the IT department than in the Marketing department. When this analysis was made
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Andy Bytheway
available to the management, it was possible to work to restore the balance. This is a marketing-led
business, where it is essential that marketing staff share the general confidence in getting the technology
to work well and deliver the benefits.
4.4 Financial services company
Because of the large number of potential respondents in this large financial services company, and
because of the need to undertake the analysis quickly, this was the first application of the "simple"
version of the survey instrument (the macro level). The analysis package being used was further
developed, and so this data was more exhaustively analysed than before. The enhanced analyser allows
for the selection of different departments and job levels, and it presents averages and standard
deviations in detail for both capability and importance.
Just two analyses are presented below: in the main image are the results of the whole set of 224
responses (1906 opinions); overlaid at left-centre are the results for one senior manager who has quite
different views than the overall average.
The overall results show that there is broad concern about the level of capability to deal with IT, systems,
and systems development. The results are less levelled than in the reference dataset. Given the large
number of responses, this is a result that needs further examination. The senior manager has deep
concerns about technology and systems capabilities (this is typical of other senior managers in this
survey) and it is probably time to make sure that something is done to redress this concern.
Having said all that, it is interesting that when compared with the reference dataset, the general results
for this financial services business are good, averaging something between 4 and 5 (compared with less
than 3 in the reference dataset). When presented with this data, the CIO of the financial services
business was pleased, and indicated that more detailed results would be needed in order to guide
management actions intended to improve information management capability. Work on this case
continues.
Figure 10: Analysis of macro data from a financial services business (overall result, with senior manager
for comparison)
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5. Conclusions
Andy Bytheway
This paper has presented a review of the history of management thinking about information management
issues, it has presented a framework that synthesizes the more interesting ideas, and has shown how
this can be formalized as a new body of knowledge, a framework for thinking, and a capability
assessment instrument.
At the start of the paper, questions were asked that provide a basis for our conclusions:
How can the unavoidable complexities be dealt with?
How can costs be justified in the board room?
Exactly what does the "alignment" of IT and business strategies mean?
First, it is contended that the IMBOK deals with the complexities of information management in an
effective and comprehensible way. It shows that there is no such thing as "alignment of IT and business
strategies", it is necessary to align at four critical interfaces between five domains of management.
Second, the IMBOK provides a means to communicate effectively with senior management. There are no
technical terms, just a clear indication of the dependencies that justify the cost drivers (principally the
acquisition of information technology and services) in light of the systems needed, the improvements to
business processes, and the fulfillment of organizational strategy through appropriate benefits.
Third, it is found that alignment needs a capability to effectively undertake all that is needed within the
five domains of management, and at their interfaces. Space has precluded a detailed discussion of the
144 competencies, but herein lies the secret to success: if any one of these many things is not done well,
then the whole investment - value chain is at risk. No wonder that managing information well is difficult,
and risky.
It is still early days, but this research will continue. There must be more validation of the ideas and careful
consideration of the merits of this kind of perceptions-based survey work. The analysis that is undertaken
here is merely descriptive, and the potential for full inferential analysis of the data (statistically) remains to
be examined.
Acknowledgements
This work would not have been possible without the enthusiastic involvement of staff and students at the
University of the Western Cape and the Cape Technikon (now "CPUT"). Particular acknowledgement is
due to the "ICT in Higher Education" research team led by Derek Keats, and to the Carnegie Corporation
of New York that provided funding on that occasion.
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102

A Semiotic Approach to Analyse the Influencing Factors in
Knowledge Transfer
Supaporn Chai-Arayalert 1 and Keiichi Nakata 2
Henley Business School, University of Reading, UK
s.chai-arayalert@pgr.reading.ac.uk
k.nakata@henley.reading.ac.uk
Abstract: With the rapid growth of information and technology, knowledge is a valuable asset in organisation which
has become significant as a strategic resource. Many studies have focused on managing knowledge in
organisations. In particular, knowledge transfer has become a significant issue concerned with the movement of
knowledge across organisational boundaries. It enables the exploitation and application of existing knowledge for
other organisations, reducing the time of creating knowledge, and minimising the cost of organisational learning. In
order to achieve their goals and objectives, organisations need to combine knowledge and performance
measurement tools such as Key Performance Indicators (KPIs) which are powerful agents of organisational change
that help organisations to measure their progress towards achieving their goals. In this paper, we discuss how
organisations can transfer knowledge through KPIs effectively by identifying the relationship between knowledge
transfer and KPIs. In addition, we analyse localisation factors of knowledge transfer based on a semiotic approach:
the organisational containment analysis to scope the influencing localisation factors, and the semiotic framework to
analyse the socio-technical aspects of these factors.
Keywords: knowledge management, knowledge transfer, key performance indicator, semiotics
1. Introduction
Knowledge is a valuable asset in organisations and it has become significant as a strategic resource.
Many studies have focused on managing knowledge in organisations with various processes and
methods (Alavi and Leidner 2001). Knowledge transfer has recently become a significant issue in
knowledge management concerned with the movement of knowledge across the boundaries (Von Krogh
and Roos 1996, Cummings 2003). In addition, it enables the exploitation and application of existing
knowledge for an organisation’s purposes. In order to achieve its goals and objectives, the organisation
needs to combine knowledge and performance measurement tool such as Key Performance Indicators
(KPIs). These are powerful agents of organisational change that help organisations to measure their
progress towards achieving their goals. One of the most important reasons for measuring performance is
to assess the success rate of the business as well as its current performance. KPIs are often used to
help an organisation to achieve its long term organisational goals. Therefore, it is useful to analyse how
performance indicators represent knowledge which in turn could be used for knowledge transfer. In this
paper, we discuss how organisations can transfer KPIs as knowledge effectively by identifying the
relationship between knowledge transfer and KPIs. In addition, we analyse localisation factors in
knowledge transfer based on the semiotic approach. This paper is organised as follows. First, the
concept of knowledge management and knowledge transfer is discussed, followed by a review of the
concepts of KPIs and organisational semiotics. Then, methods to analyse the localisation factors of
knowledge transfer based on semiotics are proposed and followed by the conclusion.
2. Background
In this section, we review knowledge management and its activities and the notion of knowledge transfer,
followed by an overview of key performance indicators and their relation to knowledge.
2.1 Knowledge management
In recent years, there has been a transformation from the resource based view of an organisation into the
knowledge based view (Alavi and Leidner 2001). As a result, more organisations are treating knowledge
as a vital organisational resource alongside other assets, which has led the organisations to recognise
the importance of knowledge management.
In the organisational context, there are many definitions of knowledge which reflects the multiple ways in
which knowledge is considered to be used within organisations. Nonaka and Takeuchi (1995) define
knowledge as a dynamic human process of justifying personal belief toward the truth. Prusak and
Davenport (1998) define knowledge to include experiences, beliefs, values, how we feel, motivation and
information. Additionally, they focuses on the function or purpose of knowledge which is a framework that
people use for evaluating and incorporating new experiences and information through embedded
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Supaporn Chai-Arayalert and Keiichi Nakata
routines, processes, practices, and norms. Arthur Anderson and APQC (1996) define knowledge as the
relationship between knowledge and organisation as well as information that has value and the collective
experience of the organisation. In the same vein, Demarest (1997) defines knowledge as the actionable
information embodied in work practices, theories-in-action, skills, equipment, processes and heuristics of
firm's employees.
Knowledge management (KM) is to identify and leverage the collective knowledge in an organisation to
help the organisation to be competitive (Von Krogh and Roos 1996). Activities in KM consist of four basic
processes of creating, storing or retrieving, transferring, and applying knowledge (Von Krogh and Roos
1996). Knowledge creation means developing new contents or replacing existing knowledge within
organisational knowledge. Knowledge storage or retrieval refers to organisational memory involving
documentation, database, and codified human knowledge stored in expert systems, etc. Moreover, an
important process in KM is knowledge transfer. Knowledge transfer is the re-creation of a source’s
knowledge-related elements in the recipient (Cummings 2003). Knowledge application is a vital aspect of
knowledge-based theory of the firm, which is the source of competitive advantage. This process is
considered as an activity to apply knowledge to different places and learning from it (Bouthillier and
Shearer 2002).
2.2 Knowledge transfer
Knowledge transfer has become one of the significant KM processes concerned with the movement of
knowledge across the boundaries created by specialised knowledge domains (Carlile 2002, Carlile and
Rebentisch 2003). It is the movement of knowledge from one place, person or ownership to another.
Furthermore, knowledge transfer enables the exploitation and application of existing knowledge for the
organisation’s purposes.
The concept of knowledge transfer based on the communication theory is defined as “a process of
exchange of explicit or tacit knowledge between two agents, during which one agent purposefully
receives and uses the knowledge perceived by another” (Kumar and Ganesh 2009 p.163). Moreover, the
knowledge transfer is “identifying (accessible) knowledge that already exists, acquiring it and
subsequently applying this knowledge to develop new ideas or enhance the existing ideas to make a
process/action faster, better or safer than they would have otherwise been” (Liyanage et al. 2009, p.122).
This suggests that in knowledge transfer, consideration should also be given to the acquisition of
knowledge as well as how it can be exploited to improve organisational activities.
Successful knowledge transfer can be explained as the results of transfer in the receiving end
accumulating or assimilating new knowledge. In other words, success of knowledge transfer can be
assessed by how the underlying knowledge elements have been re-created in the recipient to conform to
those of the source (Cummings 2003). While the barriers of knowledge transfer from source,
communication channel and recipient have been studied (Khamseh and Jolly 2008, McLaughlin 2007,
Jensen and Szulanski 2004), previous studies have not analysed both human and technical aspects
together.
2.3 Key performance indicators and their relation to knowledge
Key performance indicators (KPIs) measure organisation’s overall health and well being (AusIndustry
1995). Importantly, it focuses on the areas of organisation’s performance which are critical for ongoing
and future success. KPIs are driver tools to change an organisation and its culture; at the same time,
organisations can apply KPIs as an improvement strategy where they will need to change (Swan and
Kyng 2004). KPIs are commonly used to help an organisation define and evaluate its success, in terms of
making progress in long term organisational goals and toward knowledge-based goals which are difficult
to quantify. The differences in KPIs depend on the nature and characteristics of the organisation including
its strategies and goals. This section examines the concept of KPIs and the relationship between KPIs
and organisational knowledge.
2.3.1 The concept of key performance indicators
KPIs are often defined as the quantifiable metric which reflects the organisational performance in
achieving its goals and objectives, which in turn it reflects strategic drivers and critical success factors of
organisational activities and processes (Parmenter 2007, Thanyaphut 2006). Furthermore, KPIs are
indicators at the operational and tactical level obtained by breaking down strategic objective decision
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Supaporn Chai-Arayalert and Keiichi Nakata
making and act as pointers for monitoring the effect of implementation of macro strategic decision (Zhou
et al. 2006). KPIs can align to units, departments and individuals of an organisation. An organisation can
have one or more KPIs to measure its outcomes. KPIs have to be created based on the organisational
vision, mission, and strategy. Therefore, KPIs usually differ in each organisation due to the different goals
and strategies. Organisations can utilise KPIs to monitor progress, communicate performance results,
and determine priorities (Promput et al. 2006). Organisations can be monitored by setting KPIs, and KPIs
are also created to identify the organisational position compared to its competitors and to communicate
performance results within the organisations. KPIs show goal achievement results based on facts, not on
emotion or supposition so that employees will accept and understand the results. To determine work
priorities, KPIs show the target employees need to achieve and helps them set the priorities of their work.
2.3.2 Organisational knowledge and key performance indicators
As described earlier, knowledge management (KM) is recognised as a part of strategy to improve
business performance. KPIs complement performance measurement and they are a part of
organisational knowledge which is most vital in improving performance. Therefore, it has been suggested
that managing knowledge could be incorporated into KPIs, and other performance measurement
approaches (Okkonen 2004). KM consists of activities and tools which are used to improve core
competencies and to make the use of information more efficiently in organisational context (Okkonen
2004). A relationship between KM and performance measurement has also been identified (Okkonen et
al. 2002), i.e., performance measures provide the information needs in KM activities. In addition, the
process of formulating and implementing measures or indicators may be through gathering and
implementing organisational knowledge. As KPIs depend on objectives or goals of organisational
overview and break down strategic knowledge into lower levels or operational knowledge in organisation,
they can be considered as explicit knowledge due to the fact that they are captured as written
documents, forms, tables etc. (Promput et al. 2006).
There are a number of limitations of developing and using KPIs. Firstly, the development KPIs is specific
to an organisation and uses information from different sources. The relevant KPIs can be found in internal
or external documents within the organisation, e.g., policies, mission statements, business plan, job
descriptions, and laws. Therefore, acquisition of knowledge of KPIs development may be incomplete and
vague (Popova and Sharpanskykh, 2010). Secondly, KPIs can be developed by using organisational
knowledge, time, and needs experts to facilitate the KPI development process. However, some
organisations are not conveniently set up to capture knowledge, find it time consuming, and sometimes
lack expertise (Popova and Sharpanskykh, 2010). Thirdly, although KPIs are useful in performance
measurement due to the fact that the organisation’s objectives are broken down into KPIs that are
applied to measure some aspects against targets in order to improve the problems areas, the KPI
implementation can also suffer from the same reasons performance measurement initiatives fail, as
argued by Neely and Bourne (2000) and Masayna et al (2007). They state that these initiatives fail
because they do not reflect the strategies and help people to understand what the organisation’s priorities
are. Another reason is the lack of infrastructure which is focused on the management of data in
developing and using KPIs (Neely and Bourne, 2000). This problem of data management in the
organisation is that they are often unrelated, unlinked, and inconsistent (Masayna et al., 2007).
3. Analysing localisation factors of knowledge transfer
This section discusses the relationship between KPIs and organisational knowledge, the concept of
knowledge transfer through KPIs, and factors that influence this form of knowledge transfer. It begins by
describing organisational semiotics which is applied for problem analysis, especially the semiosis model,
the organisational containment analysis, and the semiotic framework. This is followed by an exploration
of localisation factors based on the semiosis model. Finally, we analyse these localisation factors in
knowledge transfer using organisational containment analysis and semiotic framework.
3.1 Organisational semiotics
Semiotics presents signs as things in a world of objects, actions and relationships. As a branch of
semiotics, organisational semiotics (OS) is a discipline which aims to study the nature, functions,
characteristics and effects of information and communication within organisational contexts (Liu 2000).
OS helps us understand the cooperative workings and interactions among individuals, and between
human beings and technology. It defines organisations as systems where signs are created and used for
communication and business purposes (Liu et al. 1999). It deals with the use of signs and the
construction of shared meanings within and among organisations (Liu 2000).
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3.2 Peirce’s triadic model of semiosis
Supaporn Chai-Arayalert and Keiichi Nakata
Semiosis, introduced by Charles Sanders Peirce (1839–1914), is the process of constructing meaning
from represented signs. The process is shown by Peirce’s Triadic Model of semiosis. Semiosis contains
sign, object and interpretant (Liu 2000). Sign is the signification without reference to anything other than
itself. The object is the signification in relation to something else. The interpretant is shown as to meditate
the relationship and helps establish the mapping between the sign and the object (presented by the
dotted line in figure 1). The sign is related to its referent or the object with the assistance of the
interpretant which is the interpretation process (from sign to object). The sign can be understood or
misunderstood in different ways depending on the interpretant. The semiosis model can assist the
analysis of knowledge transfer, as the interactions between the sign, object and interpretant.
Figure 1: Peirce’s triadic model of semiosis (Liu 2000)
Based on this view, we can analyse semiosis gaps in knowledge transfer processes. There are two
possible gaps: representation gaps and interpretation gaps (Tan et al. 2003). ‘Representation’ is to
describe something or illustration of a sign. A representation gap occurs when the two corresponding
signs referring to the same object are not aligned. Secondly, an interpretation gap is the displacement of
objects or description leading to a mismatch of inference. This gap happens when understanding of
object differs and results in a distorted understanding of intended meaning. Employing the semiosis
model can explain gaps that might occur in knowledge transfer.
The figure 2 illustrates the notion of semiosis gaps.
Figure 2: The semiosis gaps
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Supaporn Chai-Arayalert and Keiichi Nakata
The semiosis model presents two significant gaps occurring in the sign (S) and the interpretant (I). The
sign represents KPIs which an organisation intends to use as a vehicle to transfer knowledge to another
organisation. In this model, S1 represents developed KPIs from source’s organisation and S2 occurs when
S1 is adapted through adaptation procedures that are concerned with localisation barriers of transferring
KPIs. The object (O) is knowledge. In the interpretant (I) is the process of relating KPIs to organisational
knowledge. We adopt the view that knowledge transfer can be carried out through adapting KPIs of one
organisation to another, the transfer of knowledge to external organisation and different countries can be
influenced by factors which affect the success of transfer. These factors are represented by gaps
between the interpretant (I1) and interpretant (I2). In the next section, we use the semiotic framework to
identify the vital localisation factors.
3.3 Analysis of influencing localisation factors based on semiotic approach
This analysis of localisation factors that influence knowledge transfer begins with collecting data from
literature, after which the data is scoped by organisation containment analysis and analysed by the
semiotic framework.
3.3.1 Scoping the influencing localisation factors based on organisational containment analysis
The organisational containment analysis (figure 3) presents a model of organisation as a system in terms
of informal, formal and technical layers (Liu 2000). The informal layer covers the whole business
organisation and it interacts directly with the external environment and context. It focuses on subcultures,
behaviours, beliefs and practices. The activities of this layer can be formalised in the formal
layer or as business rules. The formal layer consists of forms, rules, and procedures. These formalisms
are developed to clarify and replace meanings, intentions, commitments, and responsibilities of the
informal layer. In the technical layer, technical systems are designed to automate parts of formalised
aspects, which in turn rely on the informal aspect.
Figure 3: An organisational containment analysis for scoping localisation factors
Here we attempt to identify the localisation factors that influence knowledge transfer. The informal layer
includes the national culture and norms (Liyanage et al. 2009, Kluge et al., 200, Barson et al. 2000); the
experience of source and recipient organisation (Liyanage et al. 2009, Khamseh and Jolly 2008, Jensen
and Szulanski 2004); the ability to identify, assimilate, transform and apply external knowledge or
absorptive capacity (Khamseh and Jolly 2008); and language barriers (Cranefield and Yoong 2007,
Jensen and Szulanski 2004). In the formal layer, the factors related to the characteristics of target
organisations including strategy and objectives (AusIndustry 1995), organisational structure (Cranefield
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Supaporn Chai-Arayalert and Keiichi Nakata
and Yoong 2007, McLaughlin 2007, Barson et al. 2000, AusIndustry 1995), technical terms (Cranefield
and Yoong 2007, McLaughlin 2007), regulations and rules (McLaughlin 2007), standards (McLaughlin
2007), policies (AusIndustry 1995). As described above, the technical layer refers to specific factors of
information technology involving hardware, software and communication channels (Barson et al. 2000,
Wathne et al. 1996, Khamseh and Jolly 2008, Cranefield and Yoong 2007).
3.3.2 Analysing the influencing localisation factors based on the semiotic framework
Based on the scoping of localisation factors above, we apply the semiotic framework to analyse the
localisation factors which influence the transfer of knowledge through KPIs. The semiotic framework was
developed in order to understand different dimensions of signs (Stamper 1996). This framework is
divided as human and technical aspects. The technical aspects are the physical world, the empiric layer
and the syntactic layer. The upper three layers address the human aspects in terms of the semantic
layer, the pragmatic layer and the social world (table 1).
Table 1: The semiotic framework for analysing localisation factors of knowledge transfer
The physical world is concerned with the physical aspects of signs at the level of signals and marks (Liu
2000). The localisation factors in this layer focus on channel infrastructures, technologies and resources.
The channel infrastructures can facilitate the knowledge transfer process (Wathne et al. 1996). However,
there are barriers to transfer in terms of digital divide in some countries. Therefore, some countries
cannot conveniently transfer and adapt knowledge from another organisation. In addition, the barriers of
inter-and-intra knowledge transfer are technologies in term of existing resource, available technology and
legacy systems (Barson et al., 2000).
The empiric layer is statistical properties of signs when different physical media and devices are used
(Liu 2000). This layer is concerned with the statistical behaviour of signs and it can be matched to the
statistical characteristic of the media. In empirics view, information is viewed as a stream of signals which
is transmitted from sender to receiver. Therefore, the analysis of localisation factors is related to video-
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conference, telephone, internet, documents, and face-to-face meetings(Cranefield and Yoong 2007)
which have an effect on transferring knowledge.
The syntactic layer is concerned with the complex structure of a language (Liu 2000). Study of this layer
will answer question as to how signs are structured and used in language. We identify the localisation
factors by looking at the characteristics of knowledge, i.e., metrics, variables, and formula (McLaughlin
2007, Khamseh and Jolly 2008, Zhihong 2008). In addition, the procedure and/or process, software and
database technology are considered as localisation factors which affect both the source and the recipient
(Khamseh and Jolly 2008).
The semantic layer is considered with the relationship between a sign and what it refers to (Liu 2000).
The transfer and adaptation of knowledge through KPIs between organisations of different backgrounds
need to share the same understanding and meaning of knowledge. The knowledge transfer from the
source to the recipient cannot take place, if they do not understand and share the meanings when
adopting and adapting KPIs. The localisation factors in this layer are technical terms, specific definitions,
standards and language (Cranefield and Yoong 2007).
The pragmatic layer focuses on the relationships between signs and behaviours of agents (Liu 2000).
This layer considers signs that can be used for certain purposes or objectives. In the case of transferring
knowledge through KPIs to difference countries, although organisations may have a similar domain, they
may differ in their context. Therefore, not all indicators can be transferred and applied as objectives and
strategies in another organisation. It depends on the organisational context such as types of organisation,
organisational structure, strategies, and objectives which directly influence the behaviours of adapting
indicators (AusIndustry 1995, Cranefield and Yoong 2007, McLaughlin 2007, Jensen and Szulanski
2004). The difference in organisational context can make it difficult to transfer knowledge between
organisations.
The social world is the effect of the use of signs in social and human affairs (Liu 2000). In particular, it
implicates social norms, beliefs, expectations, commitments, functions, contracts, law, and culture (Filipe
and Liu 2000). KPIs can be used to measure performance in organisations to achieve objectives and
goals. They are applied to measure the performance against targets which are intended to solve or
improve areas of weakness. Knowledge can be embedded in KPIs which can be considered as
representation of knowledge which is generated from several sources. Formalising KPIs requires tangible
and intangible resources. Tangible resource includes reports, manuals, stories, and records etc. and
intangible resource are culture, experience, norms, and commitments. The knowledge transfer through
KPIs occurs in the social world layer; however, this is not a trivial process for the limitation of KPIs
development mentioned above (Alwaer and Clements-Croome 2010). The localisation factors can be
captured as the interpretant gap in the semiosis model, and includes national culture, laws and
regulations, experiences, and absorptive capacity. National culture constrains knowledge adaptation as
well as governs the process of transfer (Davenport and Prusak 1998). As such, national culture is clearly
a significant and complex issue in knowledge transfer. Others suggest that knowledge transfer process
cannot succeed if the source and recipient are unwilling to share knowledge because of cultural
difficulties (Liyanage et al. 2009). Experience is found as one of the important factors. A number of
studies analysed experience as a key factor impacting on knowledge transfer. Cranefield and Yoong
(2007) identified the key factors that impacted on knowledge transfer and the result showed the prior
experience had an impact on knowledge transfer during the first stage of transfer. Absorptive capacity is
the ability to identify, assimilate, transform, and apply valuable external knowledge (Cohen and Levinthal
1990). Therefore, the recipient may be unable to utilise external sources of knowledge because they may
lack absorptive capacity which affects their ability to value, assimilate and apply new knowledge
(Szulanski 1996).
4. Conclusion
An effective acquisition and management of knowledge has become a competitive advantage in the use
of organisational resources. The organisational knowledge can be captured through learning, which
includes the transfer of knowledge among organisations. However, the transfer of knowledge is not
straightforward as it depends not just on the nature of knowledge itself but also on the process of
acquiring and assimilating it. This study explored methods of analysis and identification of localisation
factors. It aimed to identify the relationships between knowledge transfer and its vehicles such as KPIs
through the use of semiotic approach. The localisation factors are also identified using the semiotic
approach. The outcomes of this paper are as follows. Firstly, we used organisational containment
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analysis, which analyses an organisation as a system made up of informal, formal and technical layers, to
scope the influencing localisation factors when knowledge transfer is carried out through KPIs. As a
result, the localisation factors with the informal layer have been identified as the culture and norms; the
experiences of source and recipient organisation; the ability to identify, assimilate, transform and apply
external knowledge or absorptive capacity; and language barriers. In the formal layer, the factors are
related to the characteristics of target organisations including strategy, objectives, organisational
structure, technical terms, definitions, language, rules, standards, policies, and laws. The technical layer
refers to specific factors of information technology involving hardware, software and communication
infrastructure. Secondly, the influencing localisation factors were divided into human and technical
aspects based on the semiotic framework. In the future work, we plan extend to this research by
developing a conceptual framework of knowledge transfer based on the result of this analysis, and
validate it through case studies in the inter-organisational and inter-cultural knowledge transfer.
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111

Exploring the Emotional Exhaustion of Healthcare Providers
Using an In-Hospital Employee Communication Network
Cheng-Yi Chiang 1 , Ya-Ying Kuo 1 , Ying-Hui Hou 2 , and I-Chiu Chang 1
1
Institute of Healthcare Information Management, National Chung Cheng
University, Chiayi, Taiwan
2
Kai Nan University, Taoyuan, Taiwan
g98556002@mis.ccu.edu.tw
yaying.kuo@gmail.com
yhhou@mail.knu.edu.tw
misicc.pig@gmail.com
Abstract: Competition between hospitals in Taiwan is often fierce. Information transparency has replaced the former
information asymmetry situation. Healthcare service providers will have to attract patients in new ways. Healthcare
service providers need to have a positive attitude. The problems of emotional labor and emotional exhaustion of the
front line healthcare givers cannot be over emphasized. It’s important for them to have an emotional support system.
Lifestyles have changed with the development of the Internet and Information Technology. Establishment of an
employee communication network (ECN) in hospitals is essential. Due to the increasing emotional exhaustion of
healthcare providers, this study focuses on one hospital with in-hospital ECN to investigate the extent of healthcare
givers’ emotional exhaustion. This study will further discuss the usage and perceived usefulness of healthcare givers
who have used the ECN. We also hope to ease healthcare givers’ occupational burnout.
Keywords: healthcare providers, nurse, in-hospital employee communication network, emotional exhaustion,
perceived usefulness
1. Introduction
In the 43 major events of Social Readjustment Rating Scale (SRRS) edited by Homels and Ruhe in 1967,
three major events within the top five events are hospital-related ones. The first one is “Death of a
Spouse” with a score of 86. The second one is “Death of Close Family Member” with a score of 77. The
fifth one is “Personal Injury or Illness” with a score of 61. The three events are sources of daily life stress
that will not only influence individuals and families, but also trigger more demands and direct emotional
reactions. Front line healthcare givers who need to face patients or patients’ family members usually bear
considerable blame or negative emotional burdens.
Bolton (2000) mentioned that nurses' 'emotional labor” is hard and productive work and should be valued
in the same way as physical or technical labor. The foundation for organization to benefit comes from
healthcare givers’ emotional labor supply to customers. Organizations are trying to modify and control
staff to show emotions that deliver the expectation of the organization to patients in order to improve
patient satisfaction (Hochschild, 1983).
While healthcare providers face high frequency IT contact and upsurging emotional labors to deal with
daily works, they can employ the virtual in-hospital ECN to: (1) communicate or vent their emotions
through ECN to express negative feelings at the moment and transform emotions. (2) Such
communication methods can temporarily release healthcare givers’ highly emotional labors, so that
negative emotions and effects of healthcare givers can be solved. The stress of healthcare givers can be
reduced to avoid emotional exhaustion. The two points mentioned above are critical keys of this study. If
these two points can be achieved, this can be viewed as a tremendous contribution. For medical
institution executives, they should consider the necessity of building ECN to eliminate job-quitting
problems caused by emotional exhaustion.
2. Literature review
2.1 Emotional labor
Hochschild (1983) first defined “emotional labor” as “the management of feeling to create a publicly
observable facial and bodily display; emotional labor is sold for a wage and therefore has exchange
value.”
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Emotional labor must correspond to the following three characteristics: First, workers must create a
publicly observable face-to-face interaction. Second, workers must have an emotional status to effect
others. Third, emotional labors shown by workers are restrained by employees (Wharton, 1993). For
service workers, emotional work has become part of the service (Wichoroski, 1994). Emotional work can
be mostly seen in front-line workers (Ashforth and Humphrey, 1993).
Hochschild (1983) categorized American occupations into high emotion labor occupation and low
emotional labor. Nurses are regarded as professional, technical workers.
2.2 Emotional exhaustion
The definition of Emotional Exhaustion is: a certain reaction which is pressure-related. It is an
overextended emotional phenomenon while interacting with customers or clients. Emotional exhaustion is
often considered as a key element of job stress (Saxton, Phillips and Blakeney, 1991). Jackson, Schwab
and Schuler (1986) believed that workers are involved too much in their jobs. They cited Maslach’s study
and pointed that those work roles involved too much on jobs would have a higher degree in emotional
exhaustion. Such as: workers need to have face-to-face interaction with customers, high emotional
intensity workers or long-term interaction with customers will have a higher degree in emotional
exhaustion. Morris and Feldman (1996) proposed several issues: “frequency of emotional display has
positive correlation on emotional exhaustion”, “attentiveness to emotional display rules has positive
correlation on emotional exhaustion” and “variety of emotions has positive correlation on emotional
exhaustion.”
According to Wharton’s (1993) study focused on bank tellers and hospital workers, it was indicated that
for those who engaged in emotional works have potentially negative consequences of emotional
exhaustion. It depends on authority of job, job involvement and self-control. For high emotional labor
workers with higher authority and self-control are less likely to have emotional exhaustion. Workers with
higher working hours and seniority are likely to have emotional exhaustion. For low emotional labor
workers with higher job involvement, they are less likely to have emotional exhaustion.
The influence of emotional exhaustion is tremendous. Many scholars hope to find out the extraneous
variables of emotional exhaustion to provide a better suggestion and to ease emotional exhaustion
occurrence. Research shows that social supervisory support moderated emotional exhaustion and had a
negative correlation to emotional exhaustion (Dignam et al, 1986; Kirmeyer and Dougherty, 1988).
2.3 Technology Acceptance Model
Technology Acceptance Model (TAM) is designed to understand new information system acceptance
behaviors of IT users. Davis et al. (1989) utilized the “Theory of Reasoned Action” (TRA) as a foundation
and applied information system usage to propose the “TAM.” TAM is mainly to explore the relationship of
the “Perceived Usefulness”, “Perceived Ease of Use”, “Intention to Use” and “Actual System Use” of
information users’ opinions toward certain information systems. TAM claims that “Actual System Use” is
directly determined by “Behavior Intention to Use”; “Behavior Intention to Use” is determined by “Attitude
toward Using” and “Perceived Usefulness”. External variables include: system usage, training, user
intervention of system design process, nature of system design. These variables will effect users’
behavior intentions to use and actual system use indirectly. TRA and TAM both consider that belief will
influence the attitudes of individuals; attitude will influence their willingness and further influence the
behavior performance of individuals.
2.3.1 Hypotheses of TAM
Hypotheses of TAM are as follows (Davis, 1989; Agarwal and Prasad, 1999):
1. Technology usage behavior of humans can be predicted through user willingness of technology
usage. Individual behavior intentions on new technology will be influenced by attitude toward using
new technology.
2. Two determinants of influencing the attitude toward using new technology are “Perceived
Usefulness” and “Perceived Ease of Use.” “Perceived Usefulness” is the key factor for individuals to
accept new technology. “Perceived Ease of Use” is the secondary influencing factor for individuals to
accept new technology.
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3. “Perceived Usefulness” influences not only “Attitude toward Using” but also “Intention to Use.”
4. “Perceived Ease of Use” will effect individuals’ perception on “Perceived Usefulness.” The higher
degree of “Perceived Ease of Use” is, the higher individuals’ perception on “Perceived Usefulness”
toward new technology will be.
5.”External Variables” means external factors that will potentially influence users “Perceived
Usefulness” and “Perceived Ease of Use.” Such as individual differences, system character and
environments. These external variables will influence user perceptions on “Perceived Usefulness”
and “Perceived Ease of Use.” (Venkatesh and Davis, 1996; Szajna, 1996).
2.3.2 Revised Technology Acceptance Model
Not many concrete studies were done in understanding the relationship among “Perceived Usefulness”,
“Attitude toward Using”, “Intention to Use”, and “System use”, which resulted in debates of many
scholars. Scholars like Adams et al, (1992) and Straub et al, (1996) have proposed the revised model of
TAM. Their findings suggest that the “Behavior Intention to Use” of TAM should be removed. Igbaria
(1997) further applied the revised TAM on the issue of technology acceptance in small enterprises. The
IT discussed in this study (in-hospital ECN) is a website which is built by the hospital itself. It is not
complicated as other information systems and healthcare givers are capable of operating Internet.
Hence, this study only takes “Perceived Usefulness” as its research variable.
3. Research method
3.1 Objectives and sampling method
The research method of this study is a multi-case study. Questionnaires were dispatched to one juridical
person medical center and healthcare givers of regional hospitals. Healthcare givers include all-levels of
staffs and executives. The sampling method of this study is a stratified random sampling. Distribution of
questionnaires is calculated by the ratio of healthcare givers in the three medical institutions. 80, 850, and
70 questionnaires were given to the three medical institutions, respectively. Method of questionnaire
distribution: A workshop for this questionnaire will be held in one week before the collection date.
Questionnaires will be given to all divisions by this study’s researcher to ask for lower nursing managers’
assistance in the questionnaire distribution. When questionnaires are completed, they will be sent back
by lower nursing managers or be collected by researcher of this study.
3.2 Research framework and hypotheses
This study hopes to find out the relativity of emotional exhaustion through perceived usefulness, usage
pattern and motivation of using the in-hospital ECN. The structure of this study is shown as Figure 1.
H1 H2
Figure 1: Structure of this study
H1: In-hospital healthcare givers’ perceived usefulness toward ECN has significant correlation with using
experience.
H2: The experience of using this ECN has significant correlation with emotional exhaustion.
3.3 Questionnaire design
This questionnaire in this study is a structure questionnaire. Variables include: the degree of emotional
exhaustion of healthcare givers, personal information, experiences of using in-hospital ECN, perceived
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usefulness of using this website, perceived usefulness, character of in-hospital ECN and one
open-ended question which is suggestions to this website. The extent of emotional exhaustion and
perceived usefulness are continuous variables. Points are measured by the use of the Likert 7-point
scale.
3.3.1 Validity analysis
A structured questionnaire is being used in this study. Some questions in Maslach and Johnson (1981)
and Davis’ studies (1989) have been used in this questionnaire. Seven general experts with experience
in the field (3 of them are Information Management experts and the others are psychiatric experts) will be
invited to check and review the 21 continuous variables for its adequateness and necessity. A five-point
scale is being used as its rating scale. Questions higher than 4 points will be adopted and validity
measurement of experts have an average score of 4.5 points.
3.3.2 Reliability analysis
This study employs Cronbach’s α value to measure the consistency of every question,Non-research
samples will be chosen for testing when questionnaires are examined for content validity. Modification will
be done based on respondents’ opinions when questionnaires are being collected. The value of
Cronbach’s α is more than 0.8 which stands for a high validity. The whole scale was 0.917 for emotional
exhaustion and the Cronbach’s α of perceived usefulness of ECN was 0.971. Both of them reached
significant validity.
3.4 Data analysis method
3.4.1 Descriptive statistics
Descriptive statistics is used to analyze the perceived usefulness, using experience, motivation,
emotional exhaustion awareness, and characteristics of the ECN. Normal distribution and usage
distribution will also be included in the statistics process and multiple choice questions will be utilized to
analyze the motivation and characteristics of in-hospital ECN.
3.4.2 One-Way MANOVA
One-Way MANOVA is mainly used to explore the correlation of the using experiences and emotional
exhaustion of in-hospital ECN and the correlation of variables of using experience and perceived
usefulness.
3.4.3 Independent t-test
Independent t-test is used to analyze the correlation of emotional exhaustion and perceived usefulness of
in-hospital ECN.
3.4.4 Pearson correlation
Pearson correlation is employed to examine the correlation of healthcare givers’ experiences of
in-hospital ECN with the perceived usefulness and emotional exhaustion awareness.
4. Results and discussion
1000 questionnaires were dispatched and were numbered from 1 to 1000. Questionnaires will be
collected two weeks after distribution. Of the 1000 dispatched questionnaires, 918 were returned for a
91.8% return rate. Effective respondent rate is 91.1%.
4.1 Descriptive statistics
4.1.1 Using experience
The analysis of using experience: (1) Continuous users take the majority for 73.47%. 3/4 of the
healthcare givers still keep using this website. (2) Users with five years or above using experiences have
rate of 35.6% and users with 2-3 years of using experience have a rate of 13.7%. (3) Frequency of using
ECN is mostly about 1 to 3 times. (4) Time of use is predominantly within 5 minutes (63.9%) and if those
using time within 5 to 15 minutes are included in the calculation; the rate of time of use within 5 to 15
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minutes will be 93.6%. (5) The main reason for never using this website is lack of interest (57%) and
other reasons of never using this website has a rate of 21.9%.Non-continuous users have a rate of 64.5%
and the main reason is lack of time. Void of content comes to the next which has a rate of 14.0%. Other
reasons of using this website are ordered from: “lack of time”, “worried of being interviewed by
supervisors and privacy of information exchanging is not secured.”
4.1.2 Motivation
Multiple choice percentages of motivation analysis is as follows: (1) Entertainment (19.6%) (2)
Information sharing (18.5%) (3) Emotional relief (17.2%) (4) Learning (15.7%) (5) Emotional support
(13.0%). The main reason for using this website us for entertainment and reason related to emotional
relief and emotional support has a rate of 30.2%. 10.9 of the respondents use this website to monitor the
condition of hospital.
4.1.3 Characteristics of In-hospital ECN
Characteristics of In-hospital ECN are ordered from: (1) Variety of topics (31.2%) (2) Enthusiastic
interaction among members (23.6%) (3) Privacy of information (18.1%) Almost one-third of the
respondents will like to have various topics for information exchanging and one-seventh (15.1) of the
respondents will like to receive feedback for hospitals.
”Other factors” in Analysis Chart of Characteristics of In-hospital ECN has a rate of 2.4%. Most opinions
in the open-ended question are “hoping questions raised can be responded positively by hospitals”,
“worried of being interviewed by supervisors, lack of privacy, hoping information could be secured.”
4.2 Perceived usefulness and emotional exhaustion distribution
4.2.1 Perceived usefulness of Healthcare Givers toward In-hospital ECN
Perceived Usefulness and Emotional Exhaustion Distribution of Healthcare Givers toward In-hospital
ECN are ordered from: (1) Beneficial to solve daily problems and with a score of 4.19. (2) Useful in daily
jobs and with a score of 4.18. (3) Ease patients’ unpleasant emotion. (4) Less stressed in work emotion
and with a score of 4.11. (5) Expressing ideas or suggestions to hospitals and with a score of 4.09.
Average perceived usefulness score toward in-hospital ECN is 4.0 and only 25% of the respondents have
an average score less than 4.0. Mode of the respondents is 5.0.
4.2.2 Emotional exhaustion of Healthcare Givers
The distribution of respondents’ emotional exhaustion is ordered from: (1) “Exhausted after duty” has the
highest average score of 5.69. (2) “Emotional exhaustion of daily work” comes the next and with an
average score of 5.20. (3) “Seems to have occupational burnout” ranked the third and with an average
score of 5.02. (4) “Feel stressed when contact with customers” ranked the lowest score of 3.99.
The average score of respondents’ emotional exhaustion is 4.80 and only 25% of the respondents have
an average score less than 4.0. Mode of the respondents is 5.0. This phenomenon reveals that the e
degree of emotional exhaustion of healthcare givers is relatively high.
4.3 Related analysis
4.3.1 Correlation between whether healthcare givers use the In-hospital ECN and emotional exhaustion
awareness
Whether healthcare givers use the in-hospital ECN or not has significant correlation with emotional
exhaustion awareness. It conceals that there will be a significant difference in emotional exhaustion when
healthcare givers do not use the website. Healthcare givers who employ the in-hospital ECN have lower
emotional exhaustion awareness. Hence, H2 above of this study is supported; see Table 1.
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Table 1: Independent sample t-test analysis of whether healthcare givers use in-hospital ECN and
emotional exhaustion
Item Use ECN Number Mean SD Standard error of mean
Sum
No 189 45.132 10.4402 .7594
emotional
exhaustion Yes 614 42.800 10.9403 .4415
Levene equal
variance test
T test of equal mean
F test Significant t df Significant Standard
error
Sum emotional exhaustion Assuming
equal
variance
2.123 .146 2.590 801 .010 .9005
Not
assuming
equal
variance
2.655 325.178 .008 .8784
4.3.2 Correlation between Healthcare givers’ perceived usefulness and using experience toward
in-hospital ECN
This study is shown as Table 2:
1. The perceived usefulness has a significant correlation with frequency of using the website. This
means that the perceived usefulness of In-hospital ECN for healthcare givers is different in statistics,
so is its frequency. Hence, the above H1 of this study is supported.
2. The perceived usefulness has significant correlation with time of use. This shows that when the
perceived usefulness is different in statistics and there will be great difference on time of use. The
above H1 is supported.
Table 2: Perceived usefulness and using experience and Pearson correlation analysis chart
Usefulness
Use frequency
Use time
5. Conclusions and suggestions
Usefulness Use frequency Use time
Pearson correlation 1 .331(**) .388(**)
Significant .000 .000
Number 804 804 801
Pearson correlation .331(**) 1 .663(**)
Significant .000 .000
Number 804 835 832
Pearson correlation .388(**) .663(**) 1
Significant .000 .000
Number 801 832 832
1. The degree of emotional exhaustion and the mode of occupational burnout are greater than
average value. It appears that healthcare givers are stressful at work and supervisors should take
such problems seriously to avoid follow up questions.
2. Reasons for those who do not use this website are: “lack of time “is the main reason; “worried of
being interviewed and information is not secured “ranked the second reason. Healthcare givers are
lack of time to use in-hospital ECN instead of lack of willingness. Some consider that the website is
void of content and time-wasting. Moreover, it can be verified by the value of frequency and time of
use. (Frequency and time of use are of low value)
3. The main motivation of using this website is for entertainment; however, 30% of the respondents
use this website to seek for emotion expression and emotional support. It is clear that healthcare
givers still need a way to vent their feelings. 30% of the respondents use this website for
information sharing and learning. Healthcare givers have the motivation of learning new knowledge. If
this virtual space is being utilized properly by supervisors, healthcare givers can have their
information exchanged and reached the goal of learning new knowledge and information sharing. For
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the motivation of “monitoring the whole hospital”, healthcare givers expect to realize the policy and
decision of hospitals and obtain related answers.
4. Average score of perceived usefulness is 4.0. “Daily work assistance” scores higher among all the
items within the questionnaire of in-hospital ECN. It reveals that healthcare givers can solve daily
problems by the use of information sharing and correspond to the “information sharing” of motivation.
Perceived usefulness of “less stressed at work”, ”releasing unpleasant emotion while taking care of
patients” and “less frustration at work ”corresponds with “emotional expression and emotional
support” of motivation in this study. Perceived usefulness of “feel stressed while interacting with
patients”, “emotional exhaustion” and “exhausted” can still not be improved by the use of in-hospital
ECN. Perceived usefulness of” same as solving working problems” can be traced back to the
biggest demands of healthcare givers. Unpleasant emotion or energy of healthcare givers need to be
released timely. It will be effective even if healthcare givers merely use this website to express their
feeling after work. Hence, in-hospital ECN is relatively critical.
5. Healthcare givers are expecting the in-hospital ECN to have characteristics as follows: “varied
topics”(31.2%), “enthusiastic interaction”(23.6%), “information to be secured”(18.1%), “feedback from
hospitals”(15.1%) and “stability of this website”(9.7%) The great concern of healthcare givers is the
diversification of in-hospital ECN; not only merely emotion expression. This finding conforms to
references and this study. Healthcare givers hope to build a multi-functional virtual space and this
opinion has been mentioned in the open-ended question. In the aspect of “feedback from hospitals”,
questions raised by healthcare givers did not receive adequate responses; it ended up with opinions
of “worried of being interviewed by supervisors”, ”information is not being secured” and “lack of
privacy.” Supervisory agencies only scold healthcare givers instead of understanding their thoughts
and feelings. If questions raised by healthcare givers could be bulletined in public, healthcare givers
and hospital executives can understand the other party’s needs and expectations. Hence, the
establishment of this website will be meaningful. Executive should be more tolerating to avoid
positive suggestions being neglected. Hospital should create a virtual space for healthcare givers to
express their thoughts and ideas. In other words, healthcare givers will no longer use the in-hospital
ECN to express their genuine feelings.
The average score of emotional exhaustion is 5.0. However, objectives of this study are first line
healthcare givers and executives. Their sources of pressure are different than those of high-level
executives. The degrees of emotional exhaustion may also differ in the source of pressure. Emotional
exhaustion of high-level executives should be explored further to serve as a reference of emotional
expression.
This study only discusses the using experience and perceived usefulness of in-hospital ECN. Content of
information exchanging is not being explored in this study. Follow-up researchers can probe further the
content of information exchanging of in-hospital ECN for further application to practical field and
academia. (Ex: turnover prediction, work-related stress, work satisfaction, burnout prediction and
e-counseling service etc.)
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119

The Implementation of RSS-Based Clinical Reminder
Wen-Chou Chi 1 , Chia-Hsien Wen 2 , Sek-Kwong Poon 3 and Shih-Che Huang 3
1 National Chung Cheng University, Chiayi, Taiwan
2 Providence University, Taichung, Taiwan
3 Taichung Veterans General Hospital, Taichung, Taiwan
y6312002@gmail.com
chwen@pu.edu.tw
Abstract: Computer base reminder system can help physicians to get right information and make right decision in
daily clinical work. This study presents a RSS-based Clinical Reminding System (RCRS) that was designed and
implemented for reminding clinicians to deal with their varied unfinished clinical works. RCRS provides XML-formatted
RSS clinical messages through automatically collecting clinical information for every clinician from the hospital
information system (HIS). There are two types of system structure in our design, one is stand along module which is
working in specific PC, and the other is web-based module, integrated with the CPOE system. According to this
design, clinicians will receive and read these messages whenever he/she logs on the HIS. A hyperlink, which
connects to appropriate applications and let the clinician easily make some response, was provided by each RSS
message. The system can help clinicians focus on patient care without keeping track of clinical chores. Information
“Content” of this system was suggested to modify by system reviewers, but information “Accuracy”, “Formats”, “Ease
of use” and “Timeless” of this system is appropriate for system design purposes.
Keywords: RSS, CPR, XML, clinical reminder
1. Introduction
Information system has been applied in medical service for a while, there are two important contributions
of these computer-based service systems: reduce medical error and increase service efficiency (Aspden,
et al., 2006). Because the huge database conduct by imputed clinical orders and Electronic Medical
Record (EMR), there are a lot useful information in the system and these information will help us to do
appropriate decision in clinical service through Clinical Decision Support System (CDSS). According the
request proposed by clinical staff, CDSS use the data base form EMR and the algorithms that made by
evident to provide some recommendation to these staff.
The computer reminder is one of the CDSS used in hospital whose role is more and more important in
medical service. Physicians can get important information from the computer reminder and use these
information to do decision. But most reminder system are individual system, it can only provide one single
event alert (Hunt, Haynes, Hanna and Smith, 1998). Recently, some reminder systems start to use in
disease management or prevent disease, which means this system start to provide “a series of alert”, but
still a single system (Garg, et al., 2005). In the clinical daily work, the physicians need a lot of information
from many subsystem of Hospital Information System (HIS), every subsystem have its own alert, if we can
collect all these information, not just one event or one disease, and provide physicians an “to do list”, it
would be helpful in prevent error and increase service quality.
The effeteness of computer reminders is debatable, some studies conclude that computer reminders
produced much smaller improvements than those generally expected from the implementation of
computerized order entry and electronic medical record systems (Shojania, et al., 2010); the others
conclude in opposite way (Hunt, Haynes, Hanna and Smith, 1998; Garg, et al., 2005). Infect, the useful
reminder has few characteristics (Lobach, 2005): automatically prompted to use the system; integration
with charting or order entry system and response required. RSS, which stands for Really Simple
Syndication, Rich Site Summary or Resource Description Framework (RDF) Site Summary, is a data
exchange protocol for sharing web contents, may fit the requires of clinical reminder system. It may
simplify and speed the users’ access to the latest updated information which is published by a web site.
The publisher web site creates an RSS file, also known as RSS feed or RSS channel, in which the content
to be published is transformed into an XML-based format. Any user can read the RSS feed at different
sites at the same time by way of an RSS aggregator (RSS reader).
An RSS aggregator is an application providing the means to read the content of RSS file before it can be
displayed (Cadenhead, Curry and Zellers, 2005a; Bray, et al., 2004; Ola and Niclas, 2005). In general,
there are three common types of RSS aggregators. The first type RSS aggregator, Desktop RSS
aggregator, is the standalone program. Users download this program to their computers from Internet and
use it to collect the feeds and refresh items when a feed is updated. Web-based aggregator, the second
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type, is a kind of online web service. Users can use it to collect the feeds and browse messages in
Internet. The final type is Plug-in aggregator which allows users to view RSS feeds with an existing
program such as Microsoft Outlook (Ola and Niclas, 2005). RSS is generally used in real-time news
reading and publication information management (Hu, Lim and Rizos, 2005; Klein, Mika and Serban;
Çelikbaş). There are some RSS-based applications used in health care territory, but no one is applied in
hospital based medical care (Phillippi and Buxton, 2010; Ku and Huang, 2010).
The proposed RSS-based clinical information reminder is implemented under the support of a medical
center in Taiwan. The reminder is coupled with the HIS. It will periodically collect clinical information
required by clinicians from HIS and transform them into RSS messages automatically. A clinician will
receive these RSS clinical messages sent to him/her whenever he/she logs on HIS. The reminder is also
associated with the LDAP server of HIS for user authentication to protect patient privacy.
RSS is an effective tool to spread internal information. One of the functional components of a CPR system
is integrated communication support. A patient-oriented medical record will be the communication tool for
team members who take care of a patient. Traditional computer-based patient-record (CPR) systems
generally provide passive pull-type communication because each team member has to scan through the
record to find other’s opinion. By including RSS mechanism in a CPR system, each team member’s
opinion will automatically push to other members.
2. System design
We have built the RSS-based clinical information reminder. In order to help user operation be more
effective and efficient, we designed and built two modes for user operation in our system: one is the
standalone system which installs the PCs in the clinic and station; the other is the web-based module
which integrates with the CPOE system. The system architecture has shown schematically in figure 1,
uses the following components and sources of clinical information.
Figure 1: The system architecture and its operation flow of RSS-based clinical information reminder
2.1 Standalone mode
In standalone mode, PCs and Workstations installed in the standalone system for front-end of reminder
and used by healthcare workers to login in the reminder through the intranet. LDAP Server receives the
user’s login request and identifies the user’s identity and authority. In RSS reminder, the patient’s
information only allows the related healthcare workers to access. HIS which stores the clinical information
and translated information to XML-formatted files. RSS Server includes the RSS aggregator and the
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database server of the reminder. The reminder works by the way of coupling itself with the HIS of a
hospital. The RSS server periodically collects XML-formatted clinical information from HIS and saves them
into the RSS database as RSS clinical messages. The RSS feed is created concurrently.
2.2 Web-based mode
In our case, the web-based mode is similar to the standalone mode, but there are some differences in
them. In this mode, we develop a RSS web service module and integrate with the CPOE system because
the clinicians are familiar with CPOE in the hospital. When clinician uses the RSS service in the CPOE,
the RSS web service will send the clinician id and patient’s id to the RSS server through the delivered web
address. RSS server receives the address and interprets it, then returns the patient’s clinical information
to the RSS web service. The example of web address has shown as
http://xxx.xxx.xxx./?doctor_id=Y123009 &patient_id=A123008772.
2.3 Data structure of the reminder
Figure 2 shows an example of RSS clinical messages stored in the clinical information reminder. The data
structure of the reminder consists of an index-file and many data-files.
Figure 2: An example of clinical messages stored in the clinical information reminder
The index-file is the RSS feed that lists some important attributes, such as patient id, data-file name, and
physician id of all data-files. A data-file records detailed data of a clinical information. Both of the index-file
and data-files are in XML format conformed to RSS 2.0. A element of the RSS feed represents
a class of RSS clinical messages. There will be n elements in a channel, if there are n RSS clinical
messages in the class. The patient id, data-file name, and physician id of a RSS clinical message are
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correspondingly stated in element, element, and element of an item. Since a
physician will not always use a specific client, the RSS aggregator of the reminder is designed as a
web-based, the second type, aggregator. The RSS server performs event-driven RSS syndication,
because only those messages with matched doctor’s id will be retrieved and displayed to the user (Ola
and Niclas, 2005; Coile, 2002). Whenever a physician logs in HIS, the LDAP server will pass the address
of the RSS aggregator and ciphered user data to the RSS server to initiate the reminder after
authentication. The aggregator will get the RSS feed and pick up those items whose doctor’s id in
element match with the one obtained from the LDAP server. A matched item represents a
sound message. Then the aggregator passes the list of sound messages to the RSS server and requests
it to retrieve sound messages from RSS database. All sound messages are displayed for advanced
process by the clinician.
3. System implementation
The reminder is developed using the VB.net and ASP.net programming language and Microsoft SQL
Server 2000. In our system, there are four classes of RSS clinical messages currently processed in the
reminder: Abnormal laboratory results notification, abnormal examination results notification, discharge
note notification, and consultation notice notification. Other kinds of clinical information will be joined to the
reminder gradually.
An abnormal laboratory results notification messages is sent to notify a physician that the result of a
laboratory test he/she ordered is abnormal and critical. If a test result is verified to be abnormal and out of
the acceptable range set in advance, relative information about the abnormal laboratory result, such as
patient’s name, the laboratory result, and the order date-time will be immediately sent to the physician who
ordered this test. Figure 3 shows an example screen about abnormal laboratory results notification in the
standalone mode.
Figure 3: An example screen about abnormal laboratory results notification
The left part of the screen is a class list of RSS clinical messages. Archived messages will be shown
Archived messages will be shown while “archived messages” item in the class list was clicked. The upper
right part of the screen lists laboratory results notification messages that the clinician was received. If one
of the messages in the list is clicked, detail information of the message will be shown on the lower right
part of the screen. The physician may enter into laboratory information system by clicking the asterisk in
the “link” field of the message.
Figure 4 shows an example screen about the abnormal examination results notification. Similar to the
appeal of abnormal laboratory results notification, it is used to notify a physician that the result of an
imaging examination or a pathology examination he/she ordered is abnormal.
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Figure 4: An example of transforming an abnormal examination results notification message into an
archived one
Discharge note notification is used to notify a clinician that one of his/her patient is discharged and he/she
has to accomplish the discharge note before deadline. Figure 5 shows the RSS clinical messages about a
clinician’s discharge note notification.
Figure 5: An example of deleting a discharge note notification message
A consultation notice notification message notifies a clinician that there is a consultation he/she has to
hold. An example screen about consultation notice notification is shown in figure 6.
4. Evaluation
The case hospital is a medical center in central Taiwan. At present, the case hospital has more than 500
physicians and 1,500 beds. The project team members come from the information department and clinical
informatics research & development center (CIRD). Two project leaders are director from the CIRD.
During the reminder design stage, they were responsible for discussing the reminder functions in the
physicians group meeting. After reminder was implemented, they were responsible to train and collect
feedback from the physicians. So, we chose the two project leaders as our interviewee to give a
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preliminary evaluation of the system. The interview results were recorded using the taxonomy developed
by Doll and TorKzadeh (1998) in The Measure of End-User Computing Satisfaction.
Figure 6: An example screen about consultation notice notification
The interviewees summarized that most users suggested that the “content” of the system needs to be
screened in order to avoid information overload. Because the information provided by the system is not
“created” from the system, but “collected” from other system, both evaluators believed the information
provided by the system is “Accurate”. Regarding to the “Ease of use” and “Timeless” of the system, the
evaluators scored “satisfied” with two recommendations. Firstly, they suggested that the end users need
more authorizations to manipulate the information they want, because some events may be meaningful for
some users but not others. Secondly, use the remote technology to deliver message to end user may
increase the accessibility of the system.
5. Discussion
Providing too many information will cause the physician “information overlord” (Rebitzer, Rege and
Shepard, 2008), so do this system. In the future, if this system can screen information and verify which
information are important and which are not, it would be helpful. Unfortunately, it need time to build up this
screen system.
Because of the information which physicians need were come from different sub system in hospital
information system, all the reminding system need is collect information from different subsystem. RSS
has these features, the user don’t have to pick up information around hospital, the information we need will
active “feed ” the RSS reminding system. There are two advantage of this system, more accuracy of these
information and more easy to get information.
The amount of control for the system is considered difficult to determine. Too much control by users
makes it difficult to follow, and too little control limits the control by users (Sprague, 1980). In order to
prevent the loss of essential information, RSS does not allow users to determine the type of information
provided by the program. Multi-disciplinary care is usually involved in patient care. Before the consensus
was made, RSS provided standardized information for all professionals involved in the patient care.
In order to reduce the amount of errors in patient care, getting correct information on time is important.
Although RSS is able to provide information on time, the medical professionals need to be using the
specific computers to access the information. The medical professionals rarely stay in front of a computer
during work. Therefore, it is important to develop a system that is capable of sending real-time information
to the medical professionals via wireless devices such as mobile phones.
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6. Conclusion
Wen-Chou Chi et al.
RSS provides a mean to acquire up-to-date information quickly from Internet. According to the evaluation
by project leaders, this RSS-base reminder system is useful and effective and suggested to the
superintendent not only to expand the RCRS to include all kinds of messages needed by the physicians
but also put this idea into the design of the next generation Hospital Information System. They also point
out that physicians may be overburdened if provided too much information may not be relevant. If this
system can screen information and verify important information would be helpful and increase the users’
acceptance of this system. This paper presents the design and implementation of an RSS-based clinical
information reminder. A clinician may use the reminder to receive all kinds of clinical messages and
arrange them as a to-do list. Although the pioneer system only includes four classes of clinical messages,
it proves that the reminder will help clinicians in managing clinical chores.
Acknowledgments
This paper is based upon work supported by National Science Council (NSC), Taiwan under grants
no. NSC96-2221-E-126-006, NSC96-2221-E-126-004-MY3 and NSC95-2218-E-007-025. Any opinions,
findings, and conclusions or recommendations expressed in this material are those of the authors and do
not necessarily reflect the views of the NSC.
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126

Factors Determining the Adoption of ICTs in Healthcare
Service Delivery: A Developing Country Context
Taurai Chikotie, Jonathan Oni and Vesper Owei
Cape Peninsula University of Technology, Cape Town, South Africa
chikotiet@cput.ac.za
jo45ng@yahoo.com
OweiV@cput.ac.za
Abstract: The proliferation of Information and Communication Technologies (ICTs) in healthcare service delivery has
brought with it great advancements in this sector. This has created the concept of eHealth which is a relatively new
concept in health care service delivery in most developing countries. According to previous research studies, ICT
solutions are rapidly changing the way health organizations and stakeholders communicate with each other (Ouma
and Herselman, 2008). Many people are using such communication technologies to communicate with others to
gather information, with healthcare being one of the most important areas of such applications. It is therefore
understandable that the value and importance of ICTs in health has increasingly been recognized world wide. The
literature in innovation adoption notes that there are still inadequacies in identifying the factors that are crucial in
promoting eHealth adoption in developing countries (Drury, 2005). Although, in Africa, the advent of eHealth has
brought exciting opportunities to reduce or control the growing healthcare inequities, a lot still needs to be done in the
adoption of these technologies (UNESCAP, 2007). In a developing country like South Africa, the disparity in the
access to ICTs in healthcare service delivery is wide due to the dichotomous demography of first and second
economies existing in this country. This has had a negative impact on the adoption eHealth technologies thus,
suggesting that even though there has been an appreciation in ICTs in healthcare, very little has been done to
ensure the adoption of such technologies. This paper, however attempts to ascertain such factors that determine
adoption of ICTs in healthcare service delivery from both the management and patients’ perspectives. Drawing from
the theories of innovation adoption in healthcare service delivery, the paper argues for the need to examine eHealth
service adoption factors in developing countries and provides recommendations on how to tackle the challenges to
adoption. The paper will conclude by recommending further research on issues in a number of key areas that need to
be resolved to improve upon the efficient use and adoption of ICTs in healthcare service delivery amongst
developing countries. South Africa is used as a case in this paper.
Keywords: eHealth, challenges, theoretical models of adoption, ICTs in healthcare, developing countries
1. Introduction
The widespread use of new ICTs into almost every aspect of our professional and social lives is already
gripping most developing countries (NTIA, 2007). Many people are using ICTs to communicate with
others to gather information, with healthcare being one of the most important areas of such applications.
It is therefore understandable that the value and importance of ICTs in health is increasingly being
applauded world wide (Marconi, 2002). ICT adoption by various players in the health sector has been
accelerating as well as spreading geographically in the recent years and this has led to the coinage of the
new term ‘eHealth’ (UNESCAP, 2007).
EHealth has several connotations, though all of them hover around the use of ICTs in healthcare service
delivery. EHealth is defined as an emerging field in the intersection of medical informatics, public health,
and business. It refers to health services and information delivered or enhanced through the Internet and
related technologies (JMIR, 2008). Although in Africa the advent of eHealth has offered an exciting
opportunity to reduce or control the growing healthcare inequity, a lot still needs to be done in the
adoption of these technologies. In South Africa the gap in the use of ICTs to effective healthcare service
delivery between the private and the public sector is still wide and this has had a negative impact on the
adoption and use of ICTs in the healthcare sector (Bassett, 2000). This suggests that even though there
has been an appreciation in ICTs in healthcare, very little has been done to ensure the diffusion and
adoption of such technologies in this country.
In developing countries, ICTs have been crucial to the development of effective health information
sharing and dissemination systems, with users’ adoption of ICTs being one of the most important
success factors of eHealth projects (Pannarunothai and Speedie, 2001). Many eHealth studies have
been carried in Africa we however note that most of it has been focusing on particular technologies and
only a few on the socio-technical and economic factors affecting the pace of adoption of such
technologies in the healthcare sector. In modern trends of Information and Communication Technology, it
is difficult for a project to be implemented without the consideration of personal, institutional and national
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factors especially in the adoption of new technologies (Ankem, 2004). This paper therefore outlines the
research question as: What factors determine the adoption of ICTs in the healthcare service delivery
sector in South Africa? The main purpose of this paper is to identify those factors that are crucial to the
adoption of ICT in the healthcare delivery sector in South Africa.
The rest of the paper is structured as follows: The next section is a literature review of healthcare and ICT
development. This is followed by theoretical models of adoption and healthcare service delivery in section
3. Section 4 discusses our research methods. An analysis of our findings is presented in section 5. Also
in this section, the findings are discussed. The paper concludes in section 6 with a summary and a
discussion of eHealth service delivery in developing countries.
2. Healthcare and ICT development
2.1 Global ICT developments in healthcare service delivery
In recent years, the rates of adoption and diffusion of ICTs have become important indicators of
development. Developing countries have put technological innovation on top of their national
development agenda and invested heavily in ICTs (Detmer, 2000). For example, in the healthcare sector,
the adoption of ICTs is perceived as the main driving force in the unfolding healthcare reforms in many
developed and developing countries (Gladwin, Dixon, and Wilson, 2003). The influx of ICT in healthcare
has increasingly been recognized by government agencies, health practitioners, private sector, academia
and NGOs across the world as a milestone in quality health delivery. The United Nations Economic and
Social Commission for Asia and the Pacific (UNESCAP) report on ICT for development (2007) stated
that, judging from current news, research and reports, ICTs adoption by various players in the health
sector has been accelerating as well as spreading geographically in the recent years and this is
confirmed by the number of eHealth initiatives that have sprung up spreading from metropolitan areas to
remote rural areas, increasingly, in both developed and developing countries. Wallace (1997:88) notes
that in today’s information society, health professionals need to maximize the potential benefits offered by
ICT as a means to improving public access to health care and information. Globally the convergence of
ICTs has changed the way in which the health sector and society at large are organised and managed.
From the foregoing it is seen that, it is important for every part of the health sector to adapt to these
changes as ICTs can enhance the delivery of health services in various ways.
2.2 ICT development in healthcare service delivery: South Africa
Citizens in most of the emerging economies are beginning to taste the positives of communication
technologies especially in the way they have improved the quality of their health lifestyle (United Nations,
2008). In an era in which the state of health for developing countries, communities, and people in the
world is at best stagnant and is probably in deterioration, the potential value of new information
technologies for more effective health and development action can appear to be manna from heaven
(Feek and Long, 2003:2). Emerging and existing health and ICTs initiatives have been put in place for the
benefit of communities and also exposing key issues that need addressing in future projects.
Most governments in developing countries are appreciating the critical role of ICTs to change their
countries and have started to adopt these ICTs for national development. A lot of transformations in the
way governments operate have been brought about by the advent of ICTs (Scott et al, 2005:97). Enakrire
and Onyenania (2007:15) allude that most African countries have acknowledged the information
revolution, although the adoption of communication technologies differs from country to country.
The South African government has emphasized the development of an ICT sector through the formation
of a national ICT strategy that addresses ICTs penetration and adoption particularly in underserved
communities.
According to the Department of Industry and Trade (2007), there has been the formulation of the South
African Information Technology Industry Strategy (SAITIS) which is a bilateral project between the South
African government and the Canadian government. This initiative seeks to contribute to sustainable
economic growth, social upliftment and empowerment. Apart from SAITIS and Info 2025 Vision that have
been assigned responsibility of building ICTs infrastructure, three taskforces were put in place to address
to address ICTs deployment as a socio-economic development enabler and these are:
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The Presidential International Taskforce on information Society, which targets mainly the global ICTs
market;
The National Information Technology Taskforce, which deals with local ICTs initiatives and;
The IT Council, responsible for local and provisional government information technology functions
(Digital Opportunity Initiative, 2001: 13).
There have also been a number of ICT initiatives in South Africa focusing on equitable information
access and dissemination in the healthcare service delivery sector. Such initiatives include the Project
Masiluleke (BBC, 2008); the telemedicine project done by the Medical Research Council and the
Department of Health (DoH, 2007); the LoveLife Project (Chetty, 2007) and the Closed Health Broadcast
Channel (Feek and Long, 2003). The main objective of such initiatives was to tap the power of ICTs as a
high impact, low cost and efficient tools to deliver healthcare services at a distance to South African
communities. They also seek to provide underserved communities with access to quality health
information through the use of information communication technologies. However, research studies
suggest that South Africa is poorly utilising Information and Communication Technologies (ICTs) in
healthcare in disadvantaged communities although it is the very country that is leading in ICT
development in the African Continent (Research ICT Africa, 2008; Gillward et al, 2005).
3. Theoretical models of adoption and healthcare service delivery
Several theoretical models were discussed to gather information on factors that foster the adoption of
innovation from all perspectives, that is, social, technical and institutional or managerial. Such factors are
deemed crucial in the adoption of ICTs within the healthcare sector from both the patient and the
management or institution’s point of view. The most widely used of these theoretical models are the
Diffusion of Innovation (DOI) which seeks to identify how an innovation is communicated through certain
channels over time among the members of a social system (Rogers,1995); the Social Learning Theory
which considers that people learn from one another, including such concepts as observational learning,
imitation, and modeling (Bandura,1977); the technology acceptance model (TAM) which uses
perceptions to predict attitude towards using or rejecting a technology or innovation (Davis, 1989); and
the Fit between Individuals, Task and Technology (FITT) which seek to use the interaction of users, task
and technology as the basis to better understanding IT adoptions in healthcare environments
(Ammenwerth, Iller and Cornelia ,2006). All of the above mentioned theories seek to argue the adoption
of innovations from the technology’s point of view and not much from the institutional or management’s
perspective though they do address some of the social concerns. The identification of various factors on
the management and patient view in South Africa is examined and proposed in the development of a
pragmatic framework. Figure 1 depicts the proposed framework that will further be used in the findings
from survey questions and interview.
4. Experiment
4.1 Research methods
Document analysis: Extensive academic literatures on eHealth development and community informatics
(Mbarika, 2007; Eysenbach, 2008; Samake and Mbarika, 2004; and Gurstein, 1999), ICT policies in
healthcare (Rodrigues, 2008 and World Health Organisation, 2008), challenges to the adoption of ICT in
healthcare (Kiplang’at & Ocholla, 2005; Migiro, 2006) were reviewed; including journals on previous
related research innovations adoption in healthcare (Bates, Manuel and Oppenheim, 2007) and
(Borgatti,2005), as well as white papers. These articles were analyzed and the gaps in ICTs adoption in
healthcare were identified. The objective was to ascertain the factors critical in the assimilation of ICTs in
the healthcare sector in a developing country scenario.
For the research survey and interviews, patients and healthcare personnel from two healthcare centres
(both public and private) in the City of Cape Town participated.
Questionnaires: Survey questionnaires were issued to 20 patients in which they had to respond to
questions on their use of ICTs of any type in health information communication, their frequency of use of
such ICTs, the benefits they have gained and the challenges the are facing.
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Figure 1: Proposed framework for eHealth service delivery
Interviews: Face to face interviews were conducted with 5 senior healthcare personnel with an
understanding of ICTs within their organizations. These were used as the key informants to complement
most of the data from questionnaires.
The consultants were asked about their specific experiences working with ICTs and what they found
when working with such technologies. Most of the responses focused on their brief, internal and external
healthcare projects (i.e. benefits, challenges, strategies or policies etc).
5. Analysis of findings
Our findings identified several critical factors that are instrumental in the adoption of ICTs in healthcare
service delivery most notably within a developing country context. The responses of the interviews and
questionnaires are presented and discussed from both the management and patient’s perspectives. Most
of these responses are closely linked to the understanding of ICTs usages and the challenges being
faced in using these technologies. Important to note is the fact that while there has been several ICTs
and healthcare related projects in developing countries, such projects have not been able to sustain
national needs with some failing to meet their objectives as their models or frameworks are based on
alien foundations different from what developing countries need.
Several factors were identified from the interviews with senior healthcare personnel and these
include:
Knowledge: Most of the senior healthcare personnel concurred to having serious challenges on issue
such as lack of end-user training on the systems they use, lack of online health resources awareness and
poor research skills in finding authoritative information online. This was confirmed by another interviewee
who noted that their academic background is to blame for the slackness in ICT skills.
Organizational: some respondents brought issues such as the need to satisfy diverse stakeholders, the
need for timely response to service requests, resistance to change, and the need to integrate services
with the workflow of medical, technical and administrative staff.
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Regulatory and policy: these include the lack of concrete security standards for medical records, Issues
of interstate licensure, credentialing of health care professionals and liability for malpractice, and lack of
suitable payment mechanisms. The healthcare sector is a very sensitive field which needs stern
measures in the case of information sharing and dissemination. Just like in developed countries, the
issue of ethics and regulations play a crucial role in the use of ICTs in healthcare service delivery.
Economic: includes the lack of sustainable funding models, and pace with the ever-changing technology
while controlling costs. In South Africa the healthcare sector is always operating at shortfall due to low
funds being allocated to the department. This leaves most of the management to weigh priorities for
healthcare service delivery, that is, it is either drugs or technology of which the latter always play second
fiddle.
From the patient’s perspective the following factors were identified:
Poor user awareness on new technologies: in spite of the support for the exciting benefits of eHealth, a
number of obstacles continue to stand in the way of its widespread adoption by health organizations and
consumers. Most consumers are still not aware that they may access specialist knowledge online (Kedar
et al, 2003). Most patients link this to poor awareness on the abilities of ICTs especially in health
information sharing and dissemination.
ICT Infrastructures: South Africa, like any other developing country, still faces a lot of challenges in ICT
infrastructural development. This contributes significantly to the poor adoption of eHealth in South Africa.
Many African countries with South Africa included have witnessed considerable local and foreign
investments in ICT infrastructures development, primarily in the telecommunications sector and it is up to
the policy makers to take this as an opportunity to enhance the use of ICTs in the health sector.
Education: most responses also implied that both well educated health staffs and patients have positive
impacts on the development, implementation, adoption, and diffusion of various eHealth initiatives.
Tornatzky and Klein (1982) write that, an effective education facilitates and increases the expression and
identification of patients’ needs, the communication between providers and patients, and the patients’
awareness and appreciation of the benefits of the eHealth project. Incorporating ICTs into medical
educational interventions is a challenge. It is therefore vital that staff is trained on ICTs use to ensure
maximum effectiveness and efficiency for support in the process of rendering health services to patients
(Sargeant, 2007).
Content divide: information provided on most ICTs is in English, which is also a hindrance to non-English
speaking people who might need to understand the whole concept coming with these health
technologies, and South Africa is not an exception (Mbarika and Kifle, 2006). This is a concern to most
patients especially those who use mobile phones and have a poor English background.
6. Discussion and conclusion
6.1 Summary
From the findings presented in this paper, it is evident that adoption of ICTs in healthcare service delivery
from both the management and patients’ perspectives comes with various challenges. Drawing from the
theories of innovation adoption in healthcare service delivery, the paper argues for the need to examine
eHealth service adoption factors in developing countries. On the patience perspective several issues like
poor user awareness on new technologies, education, content divide, etc. has been identified. These
factors will go a long way in assisting policy makers to evaluate the need and effectiveness of healthcare
service delivery especially in a developing country context. However, senior management in healthcare
will especially play an important role in sharing and dissemination of eHealth policies to patients. Just like
in developed countries, the issue of ethics and regulations play a crucial role in the use of ICTs in
healthcare service delivery.
6.2 Government policies
The lack of clear government policies and strategies in the promotion of eHealth in most developing
countries has led to the slow uptake of the technologies. Where initiatives have been implemented, there
has not been adequate monitoring and evaluation as to how these initiatives are performing (Ouma, and
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Herselman, 2008). It is important that government policies support most of the initiatives to promote
eHealth.
Consequently, some of these factors may differ from one community to another and may not directly
reflect a particular eHealth environment. But it is hoped that this study would be applied to various
organizations, governments, and eHealth policy practitioners in planning eHealth adoption. This paper
will also be of practical relevance in the decision making process of senior management and consultants
of ICTs in service delivery. The various factors identified as well as findings from interviews in a
developing world context will address and further highlight the need to promote eHealth especially in the
developing countries.
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133

Evaluation of Application Embedded Knowledge Migration
Issues
Mitchell Cochran
Claremont Graduate University, Claremont, USA
mcochran@ci.monrovia.ca.us
Abstract: As computing has matured, more organizations are purchasing best of breed applications as opposed to
developing them in-house. From a Knowledge Management point of view, the organizations are renting the use of
knowledge that is embedded in the applications. The organizations may own the data but the host application
company owns the intellectual capital that creates the knowledge. For any of a number of reasons organizations will
have to move to new applications and in turn new knowledge. It is assumed that the organization will be able to
migrate current data and print reports but it does not own the original base knowledge. The issue is to understand
what knowledge is imbedded in the old application and how can it be integrated into the new system. As the
knowledge is inventoried, the new vendor can then determine if the knowledge will be available in the system. After
that determination, the user might have to decide if the information is obsolete or possibly lost data. The migration
issue also can put the onus of development on the end user. Consider the conversation of the developer and the end
user where the end user asks for a feature that the developer has not seen. The end user is looking for features in
the old system and the developer is going to say that it is up to the end user to tell them what they want. The issue is
that the end user may now know what they want. The knowledge embedded in the code of the old application
provided the information. The information basis is the intellectual property of the outgoing vendor and they may not
have any reason to work with the incoming vendor. The paper will evaluate migration issues based on a case study
of the migration of a financial application for a small city. The paper will also discuss some of the assumptions of
knowledge management and a knowledge inventory to help an organization prepare to move applications to a new
vendor.
Keywords: knowledge management, application, migration
1. Introduction
An organization is responsible to understand all of the knowledge which is necessary to run its business.
The knowledge is the intellectual capital of the organization. Rastogi defines intellectual capital as the
“holistic meta-level capability of an organization to generate creative and effective responses to extant
and emerging, present and potential challenges facing it, in an ongoing manner”. (Rastogi, 2000)
The firm may or may not have developed explicit practices to maintain the knowledge base. Instead, it
may be dependent on informal practices. Nelson and Winter comment that much of an organization’s
knowledge is tacit because the crucial know-how resides in the minds of the organization’s members.
(Nelson and Winter, 1980) Badaracco comments that embedded knowledge tends to be non-migratory
where it “resides primarily in specialized relationships among individuals and groups and in the particular
norms, attitudes, information flows and ways of making decisions that shape their dealings with each
other.” (Badaracco, 1991) The organization needs to develop a knowledge inventory to develop an
understanding of the critical process or application knowledge. Without a formal procedure to identify the
knowledge inventory the company may not be able to fully document, develop or migrate knowledge to
new applications.
Many authors have identified the importance of documenting knowledge. Bots and deBruin created a
knowledge value chain which includes a ‘Make Inventory Determine Knowledge Needed’. (Bots and
deBruin 2002). Sage and Rouse identified issues that also relate to knowledge identification and
migration: (Sage and Rouse 1999)
Modeling processes to identify knowledge needs and sources
KMS strategy for the identification of knowledge to capture and use and who will use it
An understood enterprise knowledge structure
Buhler states that only developing learning organizations that use knowledge that they acquire can
continue to adapt and respond to their changing environment (Buhler 2002). McManus et al summarize
the challenge to managers: ‘Managers must adequately plan for and implement KM practices that will
allow them to effectively operate despite the multifarious influences that threaten the knowledge bases of
their business.’ (McManus et al, 2003) The KM practice that this paper focuses on is developing an
inventory of knowledge.
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The importance is not which tool is used to define the knowledge but that the organization defines and
follows a plan to document the knowledge. There any number of tools that could be used. Grossman et al
list four different KM models: the Balanced Scorecard, The Intangible Assets Monitor, the Skandia
Navigator, and the Intellectual Capital Index. (Grossman et al, 2006). If the organization is not using a
tool, they may not have a KM strategy in place for either the functional business area or the overall
organization. In 2010, an informal survey of municipal information system directors for the State of
California asked how many agencies had complete documentation of all of their systems. Approximately
10% of the 300 cities or special districts responded that they had completely documented their systems.
The survey was only intended to get an initial impression of the issue’s scope. The entities had detailed
documentation on which applications were in use and some went so far as to have documented the
system settings. Most have only created electronic backups without a way to recreate the application
settings should it need to be reinstalled from the vendor supplied media. The backups can be applied to
new equipment but the organizational knowledge within may not be understood. The systems have been
documented but not the embedded knowledge.
If there is a plan or procedure, an implied part of the plan is to be able to identify all of the knowledge
used by the firm. The original sources of knowledge may be internally or externally developed such as
outsourcing. In either case, the components of the organization’s functional knowledge may readily
available. Externally provided knowledge may be obtained by purchasing applications, outsourcing
services, or using consultants. However, the knowledge may be tacit in nature so that it can not be easily
recreated or available in a raw form. The knowledge may be available from the consultants or have to be
purchased for a second time. Internal knowledge may have been developed by sources that are no
longer with the firm which can be the case for retiring employees. The foundations and assumptions that
created the legacy knowledge may not be documented.
One of the critical areas would be for the firm to understand what processes are known and what are
unknown. The knowledge inventory would help to identify what knowledge points are known and which
attributes need to be discovered. Without a process to indentify what the organization knows, it cannot
identify what points are missing or unidentified.
Without a detailed understanding of the knowledge base the firm may not be able to recreate it in other
forms. The issue is that the firm may not understand how to move the company’s knowledge base to new
applications or processes. From a disaster recovery context, many organizations may not understand the
knowledge inventory which is required to operate an organization without any automated processes.
Many organizations do not map all of the information that is used by the organization. They may map
what they consider as the critical missions. One of the concerns is that not all of the knowledge is
identified. The critical base of knowledge may be dependent on processes that are not documented. The
organization needs to identify and understand all of the processes whether the processes are internal or
external, and or known or unknown.
As part of a knowledge inventory the organization needs to understand which knowledge it controls and
knowledge that is controlled by an outside entity. Some of that knowledge is obtained from consultants
and available to be inventoried. The consultant will typically deliver a product or report that documents
the results of the services provided. Some of the knowledge base will not be available since it was
purchased as an application. The application takes inputs, applies an embedded knowledge and then
develops an output. The process knowledge may not be known. The software will probably include a use
license as opposed to an ownership agreement which might infer a right to re-engineer the application.
Many applications with embedded knowledge can not be re-engineered due to those legal or contractual
agreements.
Should a firm use outsourcing services, the firm may not own the knowledge of the application, just the
data used to create it. The organization will need to understand the process if the organization plans on
providing the capability internally in the future. This situation can be found in hosted applications or many
cloud computing environments. A simple example would be a outsource firm that provides payroll
processing. The firm provides the knowledge of current personnel benefit, tax and withholding issues.
An organization needs to have a method to document the organization’s knowledge. A framework or
process needs to identify what knowledge is required and or which knowledge is readily available. If the
data or knowledge is not available then there will be a cost for its recreation. One example is to identify
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the level of knowledge that the organization requires about human resource practices. The organization
can easily outsource HR practices to industry leading firms. The knowledge that is easily found in the
industry can be easily migrated. The more specialized the information is the more difficult it will be to find
outside vendors to provide it. The organization needs to understand if that knowledge is strategic to the
key practices of the organization. The organization’s knowledge base will include organizational memory
theory to develop the existing structure of retained knowledge.
Many forms of knowledge will have a shelf life. The organization will have to determine what the cost
would be to recreate any data that is not maintained. One example is the data on an organization’s
infrastructure. If the information updates are not applied to the knowledge base then the knowledge is
lost. All that will be available will be the obsolete data. Consider what it would take to recreate the US
space program so that a person could be landed on the Moon in the near future. The technology has
advanced over 30 years but the operational knowledge of the engineers was lost due to personnel
retirements. That operational knowledge would have to be recreated. (Leonard, Kiron, 2002)
Another concern is to understand if a process is outsourced, what would be the cost to bring it back into
the organization. Some operations may be outsourced due to cost savings. If the outsourcing is not as
effective as desired or if the outsourced operation has become more integrated into the critical mission it
may need to be brought back into the organization. The initial operational knowledge may have to be
recreated or purchased.
Unidentified or missing knowledge will also be an issue. Over time, the data origins or the knowledge
itself may be unavailable. Tacit knowledge may leave as employees leave. Legacy applications may
contain knowledge but not the foundations that created that knowledge. An organization may understand
the processes or rules from legacy applications but they need to understand the assumptions and
theories needed to create those processes. The organization needs to answer the question of why it did
what it did. As the environment changes, the organization will have to adapt the rules. If it does not
understand the knowledge behind the rules or logic then it will be costly to alter the logic. If it is not
documented, the knowledge will only be retained by the memory of the staff. The issue of knowledge
retention is especially important with the retirement of the experienced baby boomer workers. A simple
example can be considered when deciding if an accounting operation is taxable. There are rules that
govern the process but how the organization handles an exception will require documentation of the
assumptions or circumstances. The rules try to create black and white situations but there will always be
a grey area. The answers to how and why the organization achieved the result are just as important as
the result. Without the assumptions or background information the operation results may not be
repeatable.
For disaster recovery purposes, company needs to be run an operation without its primary tools. Should
the organization not have access to its applications, it would have to recreate its processes using other
procedures or manual tools.
Many knowledge concepts are embedded in applications. The knowledge is made tacit by the
programmer in the application. The issue is that the knowledge is implicit to the application and may not
be available to the user. The user can own the data and use the application to generate results but he or
she may not understand the knowledge area. One simple example would a tax application. The rules are
documented and available but the user does not want to spend the resources to understand the
application area. The user would rather purchase the application where the domain knowledge is then
made accessible. An interesting example would be how the user would respond to a tax audit based on
the results of the application. The user can only attest to the data that was input in the application. The
user cannot attest to the appropriateness of the results, only a review of the application logic can provide
that support.
The organization’s application base provides knowledge of the firm’s operations. The organization will
optimize procedures based on the applications. Over time, those applications will change due to vendor
requirements, hardware obsolescence, or new customer requirements. If the current application process
and procedures are not understood then it will be difficult to migrate to a new application. The current
vendor owns the application and has no incentive to help an organization move to a new application. The
user has ownership of the data but not the knowledge. Consider the following conversation between a
customer and vendor:
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Customer: Please provide a similar function that we had in the old system.
Vendor: How did the function work?
Customer: We don’t know, the program provided the information.
Vendor: As a vendor we can’t re-engineer the old code so we don’t know what it did or how it did
it. You will have to tell us what you want and how to do it.
Customer: But we don’t know how it works.
The current vendor may not be able to provide technical assistance or a description of the knowledge that
the application contains. The new vendor asks the customer what they would like. The customer
responds that they want the application to perform like the last one. The new vendor may not have an
understanding of the old application. The onus will be on the customer to develop a knowledge base of
what the old application did and what the new application should do. If the customer does not understand
the knowledge base they will have to incur the cost to recreate the knowledge.
2. Case study
The City of Monrovia, California was required to upgrade its Cayenta financial application during 2007.
The vendor was no longer going to support the installed version. The City would have been content to
continue with installed version but the change was required by the vendor’s decision to terminate support.
The new version included significant new features and would cost $500,000 for both the software license
fee and migration efforts. Due to the large dollar amount, the City was required to investigate alternatives.
The Request for Proposal or RFP process had eight proposals which ranged in cost from $300,000 to
$1,000,000. The City chose a new vendor, Munis, which bid approximately $350,000 for the software
license fees and migration costs. The evaluation did not show enough value in the $500,000 Cayenta
proposal to justify the additional $150,000 expense to stay with the original vendor. The new vendor only
had one similar financial system installed in California. There are special reporting mechanisms for the
California State Public Employee Retirement System or PERS. Each vendor needs to develop the
custom reports. The new vendor promised to develop the required reporting code in a timely manner.
MUNIS had similar reporting requirements for other states so they assumed that the level of effort would
be comparable. The California cities of Lakewood, Palmdale, Redondo Beach and Chino also purchased
the financial system approximately at the same time. The cities joined together into a local users group.
All of the cities had the same retirement system reporting requirements.
The previous vendor had a working retirement reporting system. The new vendor had yet to develop its
system. The new vendor required the users group to determine the needs for the new system. The users
group acted as the development team. The new system vendor would develop prototypes and the users
group was required to troubleshoot each version. The MUNIS developers underestimated the level of
effort required. The development project took over two years. Some of the Cities had working systems,
others where not completed as of this point. One of the development difficulties is that each city had
different requirements. Fire and police departments have unique retirement reporting requirements.
Some cities did not have public safety components which simplified their reporting efforts. The cities
without either fire or police departments where able to implement a correctly working reporting system.
The issue is that the vendor would commit the resources to develop the system but the responsibility for
a correct submission lies with the City. If the system is delayed, which might be expected on a new
system, the City has to find a work around or a manual method. The City of Monrovia was forced to take
output from the new financial system and enter the batch totals into the old system to get the correct
submission information. In addition to any normal or expected migration efforts, the PERS system
announced that it was going to change the reporting requirements and structure. The new system was
then put on hold pending the State implementation of the new requirements. The project was further
complicated by delays in the State implementation of the new standards.
The ultimate responsibility for submission of correct data is that of the end customer which in this case is
the City. The vendor committed to develop the system but it would need specific requirements. The
contractual liability of the vendor is typically limited to the amount of the fees paid by the client. The City
has been forced to maintain the old system to act as a migration tool for creating the correct reports.
Even with known requirements from the retirement authority, the vendor was not able to develop the
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reporting system in a timely manner. They could develop a system that works for some entities but not all
of the California clients. The issue is the complexity of integrating the new reporting requirements into the
existing system. There are two parts of knowledge that need to be considered. The first is the
requirements that can be developed or presented by the customer. The second part is how to integrate
the new requirements into the existing system. The structure of the existing program may not be capable
of handling new information. The application may not have internal structures that can support the new
requirements. Knowledge management theory which discusses lost or missing data can add some insight
into the migration issue.
The knowledge migration requirements have not been met in trying to implement the new system.
3. Knowledge inventory
Most organizations collect their knowledge in a written form. The policies and procedures can be clearly
documented. One of the main issues would be how current the information is. The line staff would have
the most current information. As an example, emergency management guidelines recommend that the
facilities managers be the first people contacted in a facilities disaster. They will have the most up to date
information about the contents of the buildings and staffing. The emergency operations documentation
may not be kept current.
From a KM point of view, training manuals are documentation of the organization’s knowledge. Many
agency training manuals take a manufacturer’s and then customize them for the local environment. The
customization is one piece of the knowledge inventory. Training videos can be a tool to capture
knowledge via storytelling. NASA partnered with the NASA Engineering and Safety Center (NESC) to
extract knowledge from NESC experts and incorporate it into targeted training courses. (KMEdge, 2010)
It is also important for the organization to understand how to create the information. Meta-data or data
about the creation or use of the data is also important. Data turns into knowledge with a context. The
meta-data can provide the assumptions and background to describe the context. In a Geographical
Systems (GIS) Environment, the meta-data describes the mathematical model or projection that is used
to describe the spatial data. If an analyst does not know or validate the projection that information cannot
be combined with other spatial data. Knowledge can also be context sensitive. The basis of that
knowledge is based on information and assumptions. Should the knowledge’s base information change,
the current knowledge would have to be verified against the current assumptions or environment.
The organization may choose to outsource some of the procedures that it does not understand, is not a
cost effective user, or decides that it is not part of the core operations. For the procedures that are
purchased, the knowledge may not be owned or understood. From a programmer’s viewpoint, the
knowledge is embedded in the application but it is explicit since the programmer can determine the
relationships and procedures. From the user’s viewpoint, the knowledge is tacit within the application.
Fuller in his book, Knowledge Management Foundations, points out that programmers are converting
tacit, human knowledge into explicit, transferable intellectual property. (Fuller, 2002) The knowledge is
the intellectual property of the developer. The user or owner of the data may or may not have the legal
ability to see the code. Many license agreements have limitations on the deconstructing or reverse
engineering the application code.
To develop a knowledge inventory the organization needs to address some of the following points:
The necessary steps that the organization uses to identify what kept knowledge is important.
The organization needs to understand the key information points that make the organization run.
The organization may be a straight forward processor of information such as an accounting
department which has industry standards that dictate the majority of the knowledge processes.
However, the organization needs to understand what makes up the culture of the organization.
The organization needs to identify what are the items or knowledge points that make the organization
unique. It needs to create a process or method to understand the information customizations or
specialties.
The organization should document the use of standard KM practices such as lists, rules, expert
systems, or story-telling?
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Many organizations cannot run without a central control system. The organization needs to develop
procedures to be able to operate in a limited form if the technology is not available. The understanding or
knowledge of the processes will be critical for maintaining a manual methodology. An organization should
always be able to issue payments with paper checks for a short duration. A longer duration might create
problems for tracking expenses, sales, deliveries or other business tracking methodologies.
4. Strategic knowledge
The organization needs to be able to identify the various units of knowledge as part of the inventory. The
knowledge or business processes need to be broken down into logical groups. The groups can be as
large as business units or as small as any functional concern that cannot be recovered if lost. The key
issue is the organization needs to identify what knowledge can be recreated and the cost to recover it.
The concept is to identify the knowledge that is global in nature or easily available outside the
organization. From a black box type of operation which consists of an input, process and output, the
process is not necessarily known. The issue is for the organization to be able to determine when the
process is known or unknown and its importance.
It is just as important to identify the knowledge that is unimportant to the organization. Many business
functions could be outsourced such as human resources, payroll, billing, or accounting. Many small
businesses use a PC based accounting package such as QuickBooks for those tasks. The knowledge
needs to be identified but it can easily be recreated if necessary. It is important to realize what knowledge
can be recreated or does not need to be maintained. A messenger process may require a vehicle but the
type of vehicle may be immaterial.
The knowledge inventory is going to require that the organization determine which units are proprietary
and how they are maintained. The resources need to be identified that are necessary to maintain that
knowledge. Some knowledge units will be obtained from outside of the organization. The sources,
processes, assumptions, and necessary resources need to be identified.
5. Migration issues
As the organization documents and understands its knowledge base, it will be better prepared for
maintaining or migrating that knowledge to new applications. The organization will have created
documentation that describes the inputs, processes, and desired outputs of each knowledge unit. It will
understand the data relationships or models that have been used in the applications. An organization
should consider the following activities to aid in migration of knowledge:
Develop and maintain a complete data dictionary. The data dictionary needs to include knowledge
that is created or maintained both internal and external to the organization.
Use application tools which allow for the methodology to be visible. Application toolsets or power
tools can provide power users with the capability to modify the code. Since the application logic is
visible, it can be understood and migrated.
The organization needs to document and understand the meta-data or assumptions that validate the
knowledge.
Have the outside vendor contractually obligated to create reports which can be used to export data to
new applications.
Have a vendor document what information will be lost in moving to a new application. Reports can be
generated prior to migration to allow for the capturing of information that may be lost.
A common migration issue is moving information from one system into another where the fields do not
have the same configuration. There is the potential for information to be lost if the description of the new
data element is smaller than the existing one. Consider a case where the last name of an individual is
moved from a description of 25 alpha numeric characters to a field that is limited to 20 characters. There
is the potential that a last name will be incorrect due to truncation of the data element after the migration
process.
The migration effect needs to evaluate if there are any non-standard implementations. In the case of the
City of Monrovia, certain unused data fields were ‘borrowed’ to define custom City information. The
custom information helps to create a unique service or resource for the organization that creates it.
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However, as the application is updated or migrated the vendor will not be aware of how non-standard
implementations might impact new levels of code.
6. Conclusion
Many organizations follow standardized business processes. In general, they understand how their
business works and what their industry expertise is. The issue is if the organization documents or
understands what makes the business unique. Many organizations don’t have a detailed inventory of the
knowledge that is used by the operations of the business. Many authors have discussed the issues of
tacit knowledge within the workforce. The issue described in this paper is determining what knowledge is
tacit within the applications. Much of that tacit knowledge may not be available during disaster recovery
or during a migration to a new application. The new vendor may or may not have the same knowledge
base. The onus is on the customer to determine what knowledge will be lost and what will need to be
migrated or created; caveat emptor or buyer beware.
The organization needs to develop a knowledge inventory of the processes it uses. The knowledge base
needs to be broken down into units that can be treated as business functions. The knowledge is identified
as coming from either internal or external sources. The importance of the knowledge units also needs to
be identified.
The detailed knowledge inventory can be used as a base to understand what migration efforts will be
needed when moving to new applications.
References
Badaracco, J.(1991) The knowledge link, Harvard Business School Press, p. 79.
Bots, P.W.G. and H. de Bruiin, (2002) “Effective Knowledge Management in Professional Organizations: Going by
the rules,” 35th Hawaii International Conference on System Sciences, IEEE Computer Society Press.
Buhler, Patricia, (2002) “Building the Learning Organization for the 21st Century: A Necessary Challenge.
SuperVision Vol. 63. Iss.12 pp. 20.
Fuller, S. (2002) Knowledge management Foundations, Butterworth and Heinemann, Boston.
Grossman, Martin, (2006) “An Overview of Knowledge Management Assessment Approaches”, The Journal of
American Academy of Business, Vol. 8, Num. 2, March.
KMEdge.org, (2010) APQC, “Overcoming Knowledge Loss: Key Knowledge Retention and Transfer Approaches”,
Kmedge.org/wp/overcomingknowledge3.html.
Leonard, Dorothy and Kiron, David, (2002) “Managing Knowledge and Learning at NASA and the Jet Propulsion
Laboratory (JPL)”, Harvard Business Review, Sept 27.
McManus, Denise J., Synder, Charles A., and Wilson, Larry T. (2003) “The Knowledge Management Imperative,”
DSS 2004 Conference Proceedings,
http://www.knowledgeharvesting.com/documents/KnowledgeManagementImperative.pdf,.
Nelson, Richard R., Winter, Sidney G. (1982),An Evolutionary theory of Economic Change, Cambridge, MA: Belknap.
Rastogi, P.N., (2000)” Knowledge management and intellectual capital – the new virtuous reality of competitiveness”,
Human Systems Management, Vol, 19 No. 1. pp39-48, January 01.
Sage, A.P. and W.B. Rouse, (1999) “Information Systems Frontiers in Knowledge Management,” Information
Systems Frontiers, Volume 1, Number 3, pp. 205-219.
140

Motivations for IT Outsourcing in Public Sector Local
Government
Michael Cox, Martyn Roberts and John Walton
University of Portsmouth Business School, UK
Michael.Cox@port.ac.uk
Martyn.Roberts@port.ac.uk
John.Walton@port.ac.uk
Abstract: This paper examines the approach taken to Information Technology (IT) outsourcing in four local
government councils in the UK. This is important because, whilst outsourcing has become a significant issue in the
restructuring of organisations and is increasingly used within both the private and public sectors, there has been a
lack of research into IT outsourcing in the public sector and particularly within local government. This paper provides
an in-depth study into how outsourcing is managed in local councils and how successful it has been; especially
considering its sometimes controversial nature and the mixed press results it receives. To complete this study,
interviews, containing both qualitative and quantitative questions, were conducted with key people at the four
councils. These interviews examined the rationale for IT outsourcing. The findings from the interviews were then
compared to the current literature on IT outsourcing to identify best practice. This research shows that, whilst cost
savings remain important, councils focus on achieving best value when outsourcing IT rather than simply lowest cost.
Indeed, it shows that whilst outsourcing can result in improved efficiency, councils that focus primarily on cost
savings are often less successful. However, whilst the results revealed that IT outsourcing was more successful at
councils who focused on long-term strategic goals, the interviewees considered the strategic benefits of outsourcing
less important than improving the service. The structured selection process that is imposed by legislation allows
council managers to gain a better understanding of the outsourcing requirements and make informed decisions to
achieve best value, however the need for cost efficiency can result in a more short-term focus. The cost of the
process and its inflexibility makes it more difficult for councils to focus on long-term goals. The study concludes that,
whilst councils recognise that both the contract and trust are important to ensure that outsourcing is successful, the
culture of risk aversion in the public sector tends to lead to a ‘play it safe’ mentality resulting in an overemphasis on
the contract. This can lead to a short-term focus that could make it difficult for the council and the provider to work
together to meet long-term goals. The councils were generally skeptical of developing partnerships; however, the
research reveals that councils who focused predominantly on the contract were less successful than those who
developed partnerships with their providers. The authors therefore recommend that, in order to achieve greater
success, councils should develop partnerships and focus on best value and long-term strategic goals when
outsourcing IT.
Keywords: Information Technology (IT); Information Systems (IS); outsourcing; public sector; local government.
1. Introduction
The use of outsourcing, although not a new phenomenon, has increased in recent years as firms seek to
lower costs and increase efficiency in response to higher levels of global competition. Child (2005, p.179)
describes outsourcing as “the contracting out of activities that need to be undertaken on a regular basis,
which otherwise would be conducted within an organisation”. Kern and Willcocks (2000, p.322) define IT
outsourcing as “a decision taken by an organization to contract out or sell the organizations IT assets,
people and/or activities to a 3 rd party supplier, who in exchange provides and manages assets and
services for monetary returns over an agreed time period”. Outsourcing has become a significant issue in
the restructuring of organisations and many commentators agree that it is currently “one of the fastestgrowing”
and most important activities in business (Burnes & Anastasiadis, 2003, p.355; Weinert &
Meyer, 2005, p.1).
Outsourcing offers numerous advantages; however there is also evidence that outsourcing often fails.
The potential benefits include cost savings, efficiency gains, improved flexibility, access to world-class
expertise and focus on core competencies. However, outsourcing also poses numerous risks that must
be managed in order for outsourcing to be successful (Kremic, 2006, p.467).
Outsourcing is identified in two categories; outsourcing of core value-chain operations and outsourcing of
support activities. The core value-chain operation is the outsourcing of supply chain activities such as
distribution, whereas outsourcing of support activities includes HRM and facilities management (Child,
2005, p.181). Outsourcing initially involved the outsourcing of non-core activities to reduce costs and
improve efficiency and had a relatively short-term focus. However, more recently outsourcing has been
used more strategically as firms increasingly seek to become more efficient by focusing on areas where
they can achieve competitive advantage (DiRomualdo & Gurbaxani, 1998, p.1). However, some theorists
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suggest that you should not outsource your core competency, whilst others argue that it can be difficult to
define what is core and non-core. Alexander and Young (1996), cited by Que’lin and Duhamel (2003,
p.648), distinguish between activities that “are critical to performance” but only support the core and
those that actually provide competitive advantage.
This is a notable problem when outsourcing IT because, whilst some consider it a non-core activity, IT is
becoming critical to service delivery. The fact that IT is complex and affects all activities within an
organisation make it one of the most important activities outsourced (Weinert & Meyer, 2005, p.1). Lacity
and Willcocks (1995, p.226) note that IT changes rapidly and switching costs to new technologies or
suppliers can be high because IT demands high investment costs. They suggest this makes IT
outsourcing unique compared to the outsourcing of other activities. This will have implications for how IT
outsourcing is conducted and managed.
1.1 Outsourcing in the public sector
The public sector has followed the trend set by the private sector and IT outsourcing is now one of the
most important outsourced activities that by “1996 had led to contracts worth £2 billion” (Lacity &
Willcocks, 1997, p.85).
In the 1980’s the government introduced Compulsory Competitive Tendering (CCT), this “involves
government or firms using a competitive bidding process to help decide who should have the right to
produce or deliver goods or services” within the public sector (Rimmer, 1994, p.79). This process was
driven by “marketing and political trends” with the aim of making the public sector more competitive
(Marco-Simó, et al, 2007, p.51). It was assumed that market-based competition would be able to provide
improved efficiency and lower cost whereas public monopolies provided no incentives to improve
performance (Besley & Ghatak, 2003). However, traditional outsourcing contracts in the public sector
were often granted to the lowest priced bidder, which can lead to lower quality provision. Thus, the
government updated CCT in 1998 to focus on best value rather than simply lowest cost, whether
internally or externally (Butler, 2003).
However, whilst outsourcing has become one of the most important tools in public sector management,
failures tend to attract greater publicity, due to political accountability, whereas successes often go
unnoticed (Maughan, 2003). These failures have led to an increasing interest in how outsourcing is
managed in local councils and to what extent it has been successful.
2. Literature review
Much of the literature available deals with IT outsourcing in general without specifically addressing cases
within the public sector or local councils. Indeed, Vilvovsky (2008, p.337) notes that the available
research is “limited and fragmented”. De Looff (1996) finds this interesting since he shows that in the
Netherlands 30% of IT outsourcing is accounted for by the public sector, a figure not too dissimilar to the
UK. However, despite this, Marco-Simó et al (2007, p.52) note that outsourcing in the public sector “has
not produced a level of research interest proportional to its economic importance”. This has led to an
increased interest in how outsourcing is managed within the public sector; especially considering the
increasing use of IT outsourcing within the public sector the mixed press results it receives.
The lack of research in this area can be problematic for making comparisons. However, it does provide
an opportunity to explore a gap in the literature and to discover if anything can be learnt from how
outsourcing is managed in local councils. This is important because whilst the private and public sectors
share some similarities they also have some notable differences. Vilvovsky (2008, p.338) notes that the
public and private sectors are divided both “ideologically and operationally”. Both have similar values in
terms of “responsiveness, honesty and accountability” but the public sector is not motivated primarily by
financial performance. Thus, public sector managers may adopt a different mindset to outsourcing, based
on goals and values other than cost efficiency, whilst being further constrained by political accountability.
This could result in a more cautious approach to outsourcing based on minimising risk. Burnes and
Anastasiadis (2003, p.365), in their comparison of a police force and an insurance company, further
highlight differences in supplier selection, contractual arrangements and in the management of the
relationship between the public and private sectors. One major difference is that public agencies are
legally required to outsource any activity that can be done cheaper by outside contractors, as long as
they meet the minimum specifications (Burnes & Anastasiadis, 2003, p.359). The private sector, in
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contrast, has more choice over whether they outsource and to whom and can therefore do so more
strategically and approach the best suppliers directly (Lin, et al, 2007, p.164).
Currie (1996, p.226), in a comparison of the experiences of IT outsourcing in the UK’s private and public
sectors, shows that IT outsourcing poses significant challenges to both and should not simply be seen as
a “quick-fix” solution. Lacity and Willcocks (1997, p.106) investigated two case studies in the US public
service. They have previously suggested that the UK has had “long standing problems” with outsourcing
and that the results have often fallen short of expectations. In this article, they suggest that politicians
often believe that outsourcing will automatically save money whereas in reality outsourcing either has
failed or has yet to show any real benefits.
Frederick (1994), however, contends that CCT has been successful and has produced both cost savings
and increased efficiency. Indeed, Maughan (2003) suggests that the public sector is better at managing
outsourcing relationships than the private sector because they devote staff exclusively to managing the
relationship whilst the private sector generally does not which can create a lack of focus and clarity. He
also states that the public sector benefit from having clear guidelines and a lengthy procurement process,
which allows for multiple tenders, imposed upon them by legislation. Vilvovsky (2008, p.342) contends
that public sector managers often find legislation and guidelines “a legal constraint rather than an aid”
which may create inflexibility and lead to contracts being awarded to the lowest cost bidder rather than
the best quality. Despite this, Burnes and Anastasiadis (2003, p.365) argue that the private sector could
learn from the public sector’s structured approach. They suggest that government guidelines can create a
greater understanding of outsourcing requirements and may produce more stable relationships. This
research explores these issues further.
3. Methodology
This research takes the form of a multiple case study. Creswell defines a case study as “a single,
bounded entity, studied in detail, with a variety of methods, over an extended period” (Maylor &
Blackmon, 2005, p.243). Marco-Simó et al (2007, p.59) have argued that we need more “real cases”
before “we can generalise the findings”. A case study approach was chosen because this type of
research is useful when ‘how’ or ‘why’ questions are being asked (Saunders et al, 2007, p.139).
The case study allows an in-depth examination to develop an enhanced understanding of the subject
area and develops areas for further research (Flyvbjerg, 2004, p.420). Commentators agree that this
method allows for a greater understanding of complex issues and is more comprehensive than surveys,
due to its ability to “come closer….to the complexity of real organisation setting” (Maylor & Blackmon,
2005, p.242).
Yin (1984), cited by Gable (1994, p.113-115), believes that a single case study is useful in areas that are
under-researched and require exploration, whereas multiple case studies are used to test for patterns
and draw comparisons.
The purpose of this research was to explore a complex issue in-depth and to identify some common
trends rather than to present a generalised industry view. Indeed, Flyvbjerg (2004, p.420) argues that the
case study is a reliable method in itself due to its ability to incorporate multiple data collection methods.
3.1 Case studies
The case studies are based on four local government councils in the south of the UK.
Table 1: Description of the cases
Council Description
A Council A is a district council that serves a population of around 110,000 people. IT supports
the council’s everyday operations and is critical to business performance and service delivery.
IT is one of the most important activities outsourced at this council. A budget report meeting in
2008 revealed that the contract for IT services is the second most expensive contract at the
council, at over £700,000 per year. The ICT strategy at the council is not only to improve the
efficiency and effectiveness of the service but also to increase its accessibility to all.
The Council signed a 5-year contract with their service provider in 2005, worth £2.5 million.
This contract was to provide the council with a full IT managed service that included desktops,
servers, infrastructure and applications support.
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Council Description
B Council B is a unitary authority that serves a population of around 200,000 people. Council B
chose to outsource to one supplier in a 10-year contract. This contract included not only the
provision of IT but also related services such as HR, payroll, Customer Service, local taxation
and benefits, procurement and property services. The council sought one strategic partner to
ensure greater integration between the councils services but also because greater cost
reductions could be achieved by outsourcing many services to the same provider. The main
reason that the council opted for a long-term agreement was because of the high investment
needed at the start of the agreement. This meant that the council needed to allow sufficient
time for the provider to recoup their investment costs.
C Council C is a unitary authority that serves a population of 150,000. This council outsourced for
seven years. The council outsourced its entire IT department. Services provided include
procurement, technology refresh, network development and support, offsite server hosting
support and offsite mainframe services, as well as application support and management, 24x7
services monitoring and helpdesk.
D Council D is a district council that serves a population of 110,000. Council D do not outsource
IT.
3.2 Data collection methods
To answer the research questions semi-structured interviews were conducted at four local councils. The
interviews were held with the heads of IT at the councils. The interviews were the primary data collection
method and allowed the authors to explore the interviewees’ experience and attitudes towards IT
outsourcing. This paper presents a summary of the data collected.
4. Analysis of results
4.1 Motivations
Table 2 summarizes the main issues as described by the four interviewees at the four councils.
Table 2: Summary of responses
Council A In 1998 Recruitment issues were the main reason to outsource because the council had difficulty
attracting and retaining staff. However, this became less important after the 2005 outsourcing
agreement began. Cost savings and improved quality were rated as the second and third most
important reasons to outsource. However, outsourcing was also designed to set the strategic
direction and improve the council’s responsiveness to the public.
Council B The council primarily outsourced to improve quality and to gain much needed investment. Cost
savings, however, were considered the second most important reason because the service had
become costly to maintain. The council also outsourced to focus on strategy but this was
considered the sixth most important reason.
Council C Recruitment issues were the most important motivation to outsource IT, with improving quality and
gaining access to expertise second and third. Cost savings were unimportant because the council
had to initially pay more for the outsourced service to improve quality. The council also wanted
outsourcing to support strategy, which is one reason they opted for a partnership agreement.
Council D This council does not outsource IT. However, cost savings are considered the most important
reason that councils outsource, but, in order of importance, cost savings, access to expertise,
focus on core and improving quality are other important reasons. Also that councils outsource to
pass on the responsibility and risk of managing the IT service.
The interviewees from the four councils were asked to asked to rank the seven motivational criteria (7
being the most important, 1 the least). Table 3 and Figure 1 illustrate the responses.
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Michael Cox et al.
Table 3: Interviewees ranking of main motivations
Interviewee A Interviewee B Interviewee C Interviewee D
Aggregate
Score
External expertise 2 4 5 6 27
Improved Service Quality 5 7 6 4 22
Cost savings 6 6 2 7 21
Cost Restructure 1 5 1 3 10
Focus on core 4 2 4 5 15
Increased flexibility 3 3 3 1 10
Recruitment issues 7 1 7 2 17
25
20
15
10
5
0
External
Expertise
The motivations for IT outsourcing
Improved
service
quality
Aggregate ranking
Cost
savings
cost
restructur
e
Focus on
Core
Flexibility Recruitme
nt issues
Aggregate ranking 17 2 2 2 1 10 15 10 17
Figure 1: Summary of individual rankings
In Table 4 and Figure 2 the interviewees from the four councils were asked to state whether the
motivations were: Very Important, Important, Unimportant or Irrelevant to their decision to outsource.
Table 4: Interviewees categorization of motivations
Interviewee A Interviewee B Interviewee C Interviewee D
External expertise Unimportant Important Important Important
Improved Service
Quality
Important Very important Important Important
Cost savings Important Very important Unimportant Very important
Cost Restructure Irrelevant Important Irrelevant Unimportant
Focus on core
competencies
Important Important Important Important
Increased flexibility Important Important Unimportant Unimportant
Recruitment issues Very important Unimportant Very important Unimportant
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Recruitment Issues
Flexibility
Focus on Core
Cost Restructure
Cost Savings
Improved Service Quality
External Expertise
Michael Cox et al.
The importance of the main motivational factors
0% 50% 100%
Figure 2: Importance of motivational factors
4.2 Discussion
4.2.1 Improved quality and cost reduction
Very Important
Important
Unimportant
Irrelevant
Don’t Know
This research shows that quality improvement and cost savings were the most important reasons to
outsource IT at local councils (see Figure 1). Although cost savings were a major reason for outsourcing
IT, improvements in quality of service often took priority meaning that cost savings could not always be
achieved immediately.
Several of the councils believed that they could have improved quality and reduced costs in-house given
time, but that results can be achieved far quicker through outsourcing.
Councils that focused excessively on price can result in the provider cutting back in other areas such as
innovation and supporting the council strategically and have a negative long-term impact.
Several councils sought to achieve best value. However, these cases showed that a focus on long-term
goals and building a working relationship can lead to better results.
Thus, whilst cost savings are important, councils should adopt a balanced approach to outsourcing to
achieve best value rather than simply lowest cost. Indeed, this research shows that the results of
outsourcing are not instantaneous and supports Daly’s conclusion (2001, p.13) that those that primarily
focus on cost savings are often less successful than those who target “more value adding activities”.
4.2.2 Access to expertise
Access to external expertise was considered an important reason to outsource IT by three Interviewees
and was overall considered the third most important reason. This is because IT now requires a range of
different skills, not all of which councils can provide internally, and is constantly changing. In contrast,
service providers specialise in IT and can therefore call upon a larger pool of skilled workers (Vilvovsky,
2008, p.338).
A number of interviewees commented that whilst gaining access to expertise is important, councils need
to retain key skills in-house.
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4.2.3 Recruitment issues
Michael Cox et al.
Recruitment issues were the most important motivation for outsourcing in local government 10 years ago.
This is evident at Council A and Council C, who both outsourced initially around 2000, who found that the
inability to attract skilled staff, due to higher pay in the private sector, was the main reason to outsource.
This was partly because the millennium bug had created a shortage in the supply of skilled IT staff and
pushed wages up.
Recruitment issues now appear to be less important. This could be because councils are beginning to
recognise the importance of IT and the need to offer higher wages to attract skilled staff and have
become more commercially orientated.
4.2.4 Focus on core competence
The councils also outsourced IT to transfer the responsibility and risk of managing routine activities so
that the in-house team could spend more time and energy focusing on strategy. This allows councils to
transfer responsibility for service failures, ongoing costs, and staffing whilst the council only have to
manage the contract. All Interviewees considered this an important reason to outsource, although as
Figure 2 shows none considered it the most important reason. This illustrates that improving the service
by reducing costs and improving quality takes priority over strategic considerations at local councils.
Indeed, both Interviewee A and B support Lacity and Hirschheim’s (1993, p.260) conclusion that IT is
more complicated than other support functions that are traditionally outsourced, and therefore it takes
longer than anticipated managing the contract and dealing with problems, thus resulting in less time to
focus on strategy.
The councils, however, are becoming increasingly reliant on IT and see IT as the key to transforming
service delivery. Indeed, whilst some private companies may consider IT a support function, IT at local
councils is critical to service delivery. The councils, thus, expected outsourcing to support strategy.
Council B, for instance, signed a long-term Strategic Services Partnership (SSP) with their provider,
which was designed to create greater integration between departments and to transform service delivery
(Whitfield, 2008, p.3). Council C, similarly, wanted their provider to support them strategically. The
councils that opted for long-term contracts concentrated more on improving quality and transforming the
service. However, even Council A, who outsourced primarily to reduce costs, expected outsourcing to
support strategy. Indeed, Interviewee A noted that the lack of strategic support was one of the main
reasons outsourcing did not meet expectations.
The use of outsourcing to support strategy could explain the recent increase in SSPs, signed between
councils and service providers (Whitfield, 2008, p.4), and the increasing focus on shared services. This is
where councils come together to pool resources, such as combined data centres, to achieve higher levels
of efficiency in-house. This, combined with the recruitment of private sector managers with commercial
experience, can give councils greater leverage when outsourcing and allow them to focus more on
strategy.
4.2.5 Flexibility and restructured costs
The interviewees found that it was difficult to write flexible contracts and changes were subsequently
difficult and costly to negotiate unless they were in the provider’s interest. One council reported improved
flexibility. However, they only achieved flexibility after putting the contract aside and developing a
partnership. This suggests that partnerships based on mutual benefit will make the provider more open to
changes.
Furthermore, whilst Gartner (2008) suggest that “changing the cost structure of IT” will allow firms to
respond more quickly to changing needs, the councils did not consider cost restructuring an important
reason to outsource IT. The interviewees acknowledged the benefits of paying only a monthly service
charge. However, only one council outsourced to gain investment because they had suffered from
numerous years of under-investment and needed investment to transform the service. This allowed the
council to gain immediate investment but pay it off over the length of the agreement. This gives the
provider greater incentive to improve the service although the council had to sign a long-term contract to
enable the provider to recoup their investment costs.
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5. Conclusion
Michael Cox et al.
The literature review suggested that private companies are focusing less on cost reductions when
outsourcing (DiRomualdo & Gurbaxani, 1998, p.3), whereas with local government cost savings remain
very important to councils due to budget constraints. However, whilst Child (2005, p.187) argues that
outsourcing offers “significant, often immediate cost savings”, this was not the case at two of the three
councils that outsourced. This is because, as Daly (2001, p.12) notes, councils are now focusing on
achieving best value and recognise that improving the quality of the service has an impact on price. This
research supports Daly (2001, p.13) and Vilvovsky’s (2008, p.342) conclusion that those that focus
primarily on cost savings are less successful than those who target more value adding activities.
Although Hart et al (1997, p.1128) argue that cost reductions often take priority because quality is difficult
to specify within contracts, two of the three councils that outsourced achieved greater success by
balancing cost savings with improving quality to achieve best value (Daly, 2001, p.12).
Indeed, whilst Lacity and Willcocks (1997, p.106) argue that outsourcing has often fallen short of
expectations in the public sector, the three councils that outsourced all noted that outsourcing had
improved quality and produced cost savings. This supports Frederick’s (1994) conclusion that CCT has
been successful and has produced both cost savings and increased efficiency. However, whilst
DiRomualdo and Gurbaxani (1998, p.3) argue that private sector organisations are focusing more on the
strategic benefits of outsourcing, this research shows that improving quality and reducing costs are the
most important reasons to outsource IT at local councils.
The councils, did however, outsource to gain access to external expertise because, as Vilvovsky (2008,
p.338) observes, IT has become increasingly complicated and councils do not have all the necessary
skills in-house. The providers, in contrast, specialise in IT and can call upon a larger pool of skilled
workers. However, the councils retained small in-house IT teams with key skills to allow them to develop
new ideas and support strategy to reduce their dependence on their provider. Furthermore, recruitment
issues are no longer the most important issues at local councils. Although Vilvovsky (2008, p.338) argues
that the public sector pays lower wages, this research shows that councils are beginning to recognise the
importance of IT and are becoming more commercially orientated and therefore willing to offer higher
wages to attract the best workers.
Finally, the research shows that significant time and effort needs to be taken to manage the service after
outsourcing, and that outsourcing is seen very much as a way of making organizations responsive to
business change.
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Documenting Innovation: A Methodological Proposal and
Application
Stefano De Falco
University of Naples, Federico II, Italy
sdefalco@unina.it
Abstract: Nowadays the business is driven by a constant and ever-changing demand for innovation. In order to
remain competitive the companies must know how to present new products, processes and services to respond
more quickly and effectively to the needs of consumers. Today as never before, companies have faced a similar
challenge, to hone the best of his ability to innovate. In this highly competitive business environment, only those with
managers and employees highly motivated and prepared, and can count on a creative process properly, it can be
said to be ready to conquer success. However, if this is the scenario in which to move in order to achieve the
objectives of efficaciousness, managers also need to consider efficiency aspects. Often the actions and the projects
designed to introduce elements of innovation within companies require a lot of energy. We just refer to this term
borrowed from physics that makes the concept of power’s absorption for a certain time corresponding to the different
phases of the innovation process with regard to human resources, construction, infrastructure, equipment and
financial requirements involved in the innovation process. But this power’s consumption can be optimized and thus
reduced, with the same results (or to remain in physical jargon) of charge to be met, through a system of
documentation of the actions of innovation introduced over time by the company. In this paper a methodology for
documenting innovation, as a strategic key factor for firms, is developed and practical application is provided through
the contribution of a young company working on information systems, the “Solvendo Company”(www.solvendo.net)
for the construction of an information system finalized to innovation’s documentation. It is also offered an application
based on RFID, radio frequency devices, for the process of data acquisition instrumentation, machinery, plant, in
order to have a quick reference tool for operating on a single component that aggregates the “query- innovation
processes “ activity over time.
Keywords: innovation, tracking, tracciability, rintracciability, Rfid
1. Documenting Innovation: A technology overview
The analysis of the competitive landscape in which companies move, has highlighted the increasingly
urgent need, in this global economy, to trace the development of innovative activities from within the
company to the end customer, helping to control the production and quality , attesting the originality of the
product and its features, certifying that the product / service has been built following the existing rules on
employment protection and health, and enabling real-time communication between businesses and
business customers in partnership. This need can be answered only using the technology infrastructure
in terms of all modern tracking and communications devices. (Top Management Forum on Strategic
Management of Technology and Innovation 2010).
This approach allows managers to start always from a step higher each time there is a new innovation
process, avoiding to start from scratch with no memory of previous interventions.
To frame the issue in the context of this analysis, in the following a summary of the opportunities that
ICTs offer for SMEs to innovate their processes, is reported.
The evolution and integration among the various ICT (Web, Mobile & Wireless, RFID, etc.) always has an
impact more significant and pervasive within all main processes of the enterprise value chain, including
the most complex and cross (Supply Chain Management, Customer Relationship Management,
Knowledge Management, etc..) and provides new channels of communication with customers of the
company as the possibility of communication via the Web, online marketing tools, the Mobile CRM
services, etc.. that are profoundly changing the relationships between the company and its customers.
But these benefits are exploited only if you have a system to document over time the improvements
offered by the technology that determines them.
The development of applications mentioned above, however, is conditioned by the necessity of
adjustment of basic infrastructure:
Infrastructure hardware
This infrastructure consists of:
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Stefano De Falco
Systems used to collect and manage information, access to applications and personal productivity,
such as servers, clients, mobile devices, etc.
The basic software and environments found in server systems, such as operating systems, software
for database management (DBMS) and application server environments
(For example, the Web server enables you to publish web applications);
Peripheral devices (printers, scanners, plotters, etc. RFID transponders and readers.)
Systems designed to ensure reliability of services and data management, enable the automatic
replication of critical data on both the server and / or client (backup) or storage and sharing through
the use of large volumes of network data.
Security systems
Even the SMEs in their computerization process, can not neglect the security aspect both provided by the
instruments "centralized" (for the protection of servers and shared computing resources) and both for the
protection of the resources used by individual users.
Communications infrastructure
Systems Voice over IP (VoIP) have become increasingly important due to a number of the benefits these
systems can offer, in terms of reducing the costs of new advanced services enabled. The types of VoIP
systems used by the company are essentially three types:
VoIP on PC is the use of communications software (eg Skype, MS Messenger, etc..) Installed on
each PC connected to the Internet. The installation is free and simple to use;
Systems-based adapters, adapters are used, connected to the line data and analog phones to the
company, making the conversion from analog to digital. The approach turns out to be so cheap for
the company, which can preserve their traditional phones, but sometimes with poor quality
communication;
PBX systems based on IP-PBX, PBXs same mode allowing connectivity to mobile VoIP over the
traditional to the new digital phones. This solution enables you to preserve the investments already
incurred and to migrate in a flexible and gradual to VoIP technology.
The benefits from the introduction of VoIP systems consist in the reduction of costs:
Communication costs, because calls between IP-connected sites are free, while calls to the outside
world does not have significant additional costs compared to the use of data network and there is
also the possibility of using GSM dual mode mobile / Wi -fi within the walls of company headquarters,
with a further reduction of the cost of mobile telephony;
Infrastructure-management costs, thanks to a general simplification of systems and services and the
use of a single infrastructure for voice and data and the ability to use advanced services such as:
Video conferencing costs (at significantly lower costs than traditional systems);
Messaging costs (the ability to manage e-mail address in an integrated service with voice mail) and
the ability to share files and documents while communicating.
Business applications can be distinguished:
Management systems;
Business intelligence applications;
Management systems
a) simple software package.
Functionality is relatively limited and generalized (administration, warehouse, manufacturing). These
packages can be integrated with significant customization is needed to extend the functional coverage in
some areas of the company or to accompany the growth in size and complexity of the undertaking.
b) vertical systems and / or developed ad hoc.
Are software applications developed for the specific needs of the enterprise.
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Stefano De Falco
These applications are usually run on proprietary architectures. The development is generally performed
by software houses side by side, in the case of more structured companies, by the internal IT function.
These systems offer a good level of support built in, but having been developed over time, are often
based on outdated technology. Some software companies linked to specific industrial and regional
contexts have also developed packages "vertical" that, based on a solid knowledge sector, it reduces the
risk of adoption, in terms of time and budget, from customers.
c) Systems with a high level of functional integration.
They are made by software houses national (or domestic), which deal directly with end customers install
or use a limited number of partners. Distinguishing factor of these applications and adherence to the
specific regulatory, operational and business of the Italian context.
At the most complete enterprise integration are the ERP systems offered by IT companies that typically
operate on international markets (eg SAP) ERP systems that are capable of supporting the whole key
business processes in an integrated manner.
The introduction of an integrated management system pushes the company to analyze their processes,
and this is the first step to identify opportunities for improvement. Only by learning to structure the
activities and information flows associated with them, and then introducing operating logic of explicit
processes, the company may lay the basis for identifying indicators of efficiency and effectiveness on
which then act to increase their level of competitiveness to improve the performance parameters
(reduction of delivery time, increase productivity in back-office activities (administration, order
management, purchasing management, etc..), reduction of errors in direct activities (production,
deliveries, sales, etc..) and indirect.
Generally, the management system plays an important role in supporting the change in the company.
From this it appears evident the importance of flexibility in the management system adopted. As more the
system is prepared for the expansion of its functional coverage, the more the management system
becomes an asset for the company to guarantee flexibility (adaptation to the logical management) in
terms of opening opportunities for change offered by evolving business scenarios.
Applications of Business Intelligence (BI)
BI applications are intended to exploit the massive amounts of data (commercial transactions, financial
and administrative, navigation patterns on web email, text and hypertext, etc..) available to the company.
These applications are based theTechnologies DWH / ETL for the collection and storage should be off
line of dates collected, provide access to the dates from different funds to analyze, structure, calculation
of appropriate indicators and generate reports and dashboards with the aim of supporting better
decisions by management enterprise.
Examples of applications are:
Analysis of the overall performance of the company: they allow the employer and / or top
management to monitor key performance (as measured through appropriate KPIs) of the enterprise
as a whole and the level of individual business units or corporate functions;
Business analysis: to analyze the dates for customers, sales and marketing;
Financial analysis, to control the flow of cash input / output, trade receivables and payables and any
critical issues identified and anticipated;
Analysis of suppliers to analyze the dates relating to the supply chain (procurement and inbound
logistics), measuring the basic performance (number of suppliers, costs, delivery times etc..).
The benefits of BI applications, therefore, consist essentially offering the user to quickly and appropriately
to their needs decision-making information and data in large quantities but easily accessible, allowing you
to monitor over time the outcomes of decisions. These features are not offered by "traditional" software
because:
They are often given the use of the information residing on different databases (eg, customer
database, it is used by the CRM system, it's products in the database management, etc.). BI
applications can simultaneously access data instead of these dates in different bases, to analyze and
integrate information structure of decision support;
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Stefano De Falco
The information presented in the various applications are typically structured in
Analytical and synthetic form, the business intelligence applications, allow instead of synthesizing
and presenting such information through an effective graphic form;
Requires analysis of the relationship between different variables, the analysis is not possible with
software applications management "traditional".
CAD to PLM
The CAD and Product Lifecycle Management (PLM) are used to support the activities of product design
and, generally, created to manage the entire lifecycle of the product itself, from its birth until after the
sale.
Alongside the traditional CAD in recent years has significantly developed the methodology / 3D display
technology, enables the realistic simulation of a product from different points of view (style, design,
production and even maintenance), providing considerable support to different decisions on product
development.
In addition, CAD systems have enabled more and more communication with other systems Computer
Aided (CAX) systems such as Computer Aided Styling (CAS) used by product designers and CAM
systems for the automatic generation of programs in machine control numerically.
The PLM is the integration of various ICT applications generate and use the product data from
engineering systems (CAD described above), the software supporting the organization of their work
(PDM - Product Data Management), the document management systems. Within the PLM approach, you
can define different "features" on managing the lifecycle of the product: these features ranging from
collaborative design and distributed to the management of the bill of product in its different views (the
view of the designer For example, different from that of those who make technical assistance), to portfolio
management and product configurations.
CAD systems can reduce design time and improve the quality of the project through the possibility of a
better view of the project, the automatic production of drawings, the easier management of revisions of
the project. PDM systems and "tending to PLM" is usually taken with the specific objective-or to "put
order" in the product data and manage the communication between different actors. In some cases, the
PLM system will increase communication between the technical department and other business
functions, or even with external actors (co-designers and component suppliers), while in others it may
support a more thorough cost analysis life cycle of a product.
Web applications and online services
Web applications and online services typically provide features not provided by traditional management
systems. The company may use their own web applications, developed and customized based on your
needs (Intranet), or use services provided by external providers, are all available remotely as an ASP
(application service provider).
The intranet can enhance such efficiency and the management of the business records of sales activities.
Of particular interest to SMEs are:
The use of shared platform in ASP mode on the standard of services requiring low levels of
personalization (such as management of pay slips);
Services Customer Relationship Management (CRM) for managing customer relationships, which
relate to specific activities such as building a customer database, the creation of reports and
statistics, newsletters, etc..
The use of ASP services online it has the added advantage compared to the intranet, you use these
applications at a cost linked to the real use, freeing the company from start-up costs of investment and
maintenance of software.
Web applications and services online B2B
It intends to intercompany B2B set processes supported by customer-supplier Web applications. We can
then distinguish the applications and services based on the type of process supported.
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1) Buying (e-Sourcing, e-Catalog)
Stefano De Falco
The e-Sourcing applications are applications and services to find new suppliers, their qualification and
certification. The services and applications to enable e-Catalog:
Increased efficiency of the purchasing process, as a result of both automation of some activities,
such as the handling of request tobuying, workflow and approval process of the cycle of
administration and accounting, both of "Reversal" in a logical self-service, certain activities directly
external user;
A reduction in delivery times, thanks to a streamlining of the overall management process and the
request to purchase order (thanks to the delegation of purchase) and a possible reduction in the time
of receipt of goods in the case of special delivery arrangements with suppliers;
A reduction of maintenance costs in stock.
Also in the field of e-Sourcing and e-Catalog is willing to operate the offer its technology solutions in ASP
mode with value-added services related to the use of the platform. The goal of these operators and to
allow SME users to benefit from advanced technology without having to develop in-house.
2) sales
These applications enable the company to market the products to its business customers through the use
of Web catalogs.
Also in this case, the company may decide to develop their own application or extranet use the services
provided by external providers. Extranet applications sales support, in general, the publication of the
catalog of products, with an option for business customers (eg other users of the product on the market
or the distribution network operators) to search for items of interest, to place orders online, to monitor the
progress of the order and receive a set of pre-and post-sales.
The main benefits arising from the use of catalogs are:
Possibility to reduce non-value added activities involving, for example, inclusion of net sales orders
from within the management system, etc.
Reducing the risk of errors in the compilation of trade documents (Eg, orders, etc.).
An increase in the level of service to their clients, with the possibility of offering support services to
the selection and customization of products, services, order tracking and after sales services to
support your use of the product.
3) information exchange and collaboration in the supply chain
These applications extranet or B2B services provided by specific operators, which support the exchange
of information and / or documents between the company and its supply chain partners (eg, contractors,
suppliers, etc.).
Extranet or use the services provided by external providers that, in recent years, played a particularly
important role. These operators provide, in particular SMEs in industrial districts, services that support the
exchange of documents (eg, work orders, notes, business documents) and informations through the use
of a shared platform, based on technology Internet.
The main benefits are:
An increase in labor productivity of people involved in operational interface is the front office to back
office;
Improve the quality of processes, through a reduction of errors in documents;
A more timely exchange of information;
Reduced costs of communication with their supply chain partners.
Web applications and services online B2C
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The main applications or services that the firm can use to support the relationship with consumers and,
more generally, with all those (stakeholders) that have some interest in the enterprise and that can be
classified into three main categories:
i) Institutional sites: they serve to provide a range of information to stakeholders on the company:
slag, products / services, financial data, job opportunities, etc.. These applications are simple and
inexpensive that have no particular impact on the processes and organization of the company and
therefore are particularly popular even among SMEs;
ii) Places of service: used primarily for the provision of services on line of pre-sales and / or post-sale;
iii) e-commerce sites used in a "eCommerce Service Provider".
Again the company intends to market its products through the internet to end consumers have the choice
of a site e-business owner, as his shop "virtual", or the services offered by "eCommerce Service
Provider", bringing together in one place a set of virtual stores, offering a range of common services
(marketing, payment, delivery, etc...)
The advantage for an SME to use the eCommerce Service Provider is the ability to leverage the brand,
visibility and the traffic generated from them, the were able to develop a broad community of users. In
particular, through this new commercial channel an SME may be able to:
Extend their reach the market from traditional channels;
It can better serve its customer base in a logic CRM, through the online channel by providing
increased and more timely information (about products, news and promotions) as well as an
additional way, convenient and always available to carry out orders;
The possibility of increasing the effectiveness of distance selling, and the case of operators
specialized in selling via catalog, telephone, television, etc.., The present, already in their traditional
business model and a value chain particularly suitable for sale on the Web.
The internet offers the opportunity to promote products and brands on the market particularly effective
way. The main marketing tools for Internet-based are:
Purchase of keywords: provides for the promotion of a website on engines research through the
purchase of sponsored links appear in the results of research generated by visitors through the use
of specific keywords. Sponsored links consist of a title, a brief description of the product c / o service
and a link to the Punta advertised site. Paid according to the number of visitors actually click on the
link, the ads are sorted based on what the advertiser is willing to pay for each click received;
Banner, net consists publish graphic panels of various sizes form (banner), which can be positioned
in different parts of a web page, textual or visual content, a fixed or rotating. Banners can also be
inserted in the newsletter, the are sent to a database of members, usually focused on a specific
theme.
Direct eMailing, this tool is based on sending emails to potential (or regular) customers using its CRM
or buying from specialized society, lists of email addresses of the people have expressed their
consent to receive advertisements.
Mobile and Wireless Applications (M & W)
Have applications, taking a growing interest in the support business processes for SMEs. M & W
applications are based on:
Cellular network, whatever the term used (cell phone, smartphone, palmate, finished industrial
notebook with a connect card, box or trasponder3);
Red Wi-Fi, no matter what it terms used (smartphone, palmate, the Hindu-dustry, laptop, box or
transponder);
RFID technology.
These technologies can be of support to:
1) Activities to be carried on cameo as: sales (purchase orders via mobile devices (cell phones,
PDAs, laptops), a collection of dates for operational marketing activities (merchandising), technical
support and maintenance, etc.;
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Stefano De Falco
2) operational activities aimed at monitoring progress (tracking) workmanship. Through terminals
equipped with an optical reader, or RFID, placed in appropriate positions along the production line
inside or at the contractors / suppliers / clients are automatically read the information contained tag /
transponder (put on products or pallets) as, for example, the progress of the production process, the
outcome of the tests performed by the workers, the information on the subsequent stages of the
manufacturing process.
This overview is a preliminary useful step in the proposed methodology to characterize the technology
level adopted by the firm to document innovation.
2. Track and trace innovation
The first step in the application of a methodology aimed at using technology as a tool for documenting
innovation the enterprise knowledge, is the management capability comprehensively from the two
aspects of supporting capability from enterprise knowledge organization and technology environment and
three aspects of knowledge production, diffusion and application in knowledge activities system by dint of
method of knowledge audit, designed evaluating index system of knowledge management capability and
evaluated the knowledge management capability by practical case. (Suo; Wang; Zhang 2009).
The general objectives of the technology infrastructure are to obtain information about the flow of
activities related to interventions of innovation in the enterprise.
This means keeping track of the various activities performed on a single business process in terms of
traceability from upstream to downstream, and traceability in the opposite direction.
A innovation traceability system allows to relate the human resources and structural and infrastructure
resources of a company with innovation activities developed over time, in terms of searches, research
partners outside the company, calls for funding of programs research used for specific research activities,
results (if any prototypes, patents and research agreements, conventions, etc.) (Sixto 2006).
Moreover, this innovation traceability system, as a corollary, allows to define the responsibilities of units
involved in each activity, among other things to improve quality control, to combat counterfeiting, to
increase collaboration among units, to control the increasing complexity of the units and so on.
To implement the proposed innovation traceability system, we consider each business unit as being
composed of a set of processing sites and their operators. At each processing run specific activities
(functions) on the parts compose the whole product or a product. The sites of processing may be related
to the same company or different companies or business units. (Zhonghua and Aihua 2008).
The traceability of innovation must be directed to those units.
In a manufacturing site and the next may be an intermediate storage (referred to as "Buffer"), or a
transport system (in case of processing stations belonging to different sites or different organizational
units).
In general, units can also be regarded as a group or batch of units, if the members of that group have the
same production history. The innovation supply chain traceability is achieved by recording all the
information about the research activities carried out on the unit, and allowing that information to flow
throughout the chain. In this way, we reach the goal of tracking is the tracking unit.
Track a unit is to identify the source going back in the chain, while drawing a unit is to follow the path in
the chain from producer to consumer with regard to the effects of innovative research activities. Tracking
can be also related to each portion of the product concerned from the research for its innovation, and as
such may be capable of tracking each company has played a role in the formation of this portion and thus
was in the innovation process.
The traceability of innovation is therefore also a powerful instrument of control processes. The
management of material flows in critical areas provides insight into a given time what processes are
being developed in order to innovate, to identify the causes greater rapidity and safety of noncompliance,
to manage operations in time and materials-there is the improvement and standardization of
quality, cost reduction, the rationalization of logistics flows and processes. Thus, the traceability must not
only allow the registration of providers, products and locations of materials contribute to the formation of
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Stefano De Falco
the product, but also the association of other important data for process control, such as time, quantity,
indicators, etc..
Description of the technological infrastructure
In the proposed approach we suggest the use of RFID technology to fast detect the past and present
innovation activities implemented in the firm, as a key factor of success (Bradford and Florin 2003).
RFID (Radio Frequency Identification) is considered as the main technology for realizing the ubiquitous
environment by providing the identity to the physical object. (Rosenberg 2006). The RFID tag, which is
consisted of an antenna, transceiver, and integrated circuit with memory, has been widely used for supply
chain and inventory management to increase the business efficiency. Also, it can be used for ID badges,
access control, fleet maintenance, equipment and parts maintenance, parking log access control, toll
gate system, car tracking, manufacturing line control (RFID Implementation in Retail and Manufacturing
IEEE RFID 2008), e-government services (Carter and Bélanger 2005) etc. The tag is attached or
integrated to an object such as a product can be read by RFID reader and then we can identify the object
with the information in the tag.
In this approach this technology is used to give a tool for managers to know fast the existing links
between firm’s resources and research processes and research partners over time (Figure 1) (Brown,
and Russell 2007), (Gentag 2006).
Figure 1: RFID application for tracking research processes
In terms of infrastructure, the traceability system as a model for the documentation of business innovation
is made up of different terminal unit (TU) equipped with a reader / writer and RFID tags, the acquired data
and transmit them to a pin or storage unit (SU). The SU record data sent by UT. Processing unit (PU) is
responsible to collect and analyze data from the SM. Although the data are distributed in different SU, the
PU may ask for a SU only, which will contact the other SU on behalf of the PU. The TU can be mobile
(such as palmate, with screen and keypad) or "bench" (only the reader), and connected to a SU wireless
technology or cable network, respectively. The TU enable operators to collect and send data on the
production flow. The innovation documentation platform offers the opportunity to pose several queries to
the system, including use of keywords, to search specific innovation processes under development or
completed and archived.
This platform was developed in research partnership with the “Solvendo Company”. Solvendo is an italian
software house whose main mission is finding and developing smart solutions to real problems of SME.
The main activities concern document management and dematerialisation, ontology-based knowledge
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Stefano De Falco
management and e-learning, business software, web applications development. Solvendo is actually
involved in technology transfer activities with Federico II University of Naples and is committed in
research projects.
The operation of the platform is as follows: When a request comes of an innovation, both process or
product or system innovation, following a call for research funding, or an agreement with a research
institution, or a customer need, then every element involved in the modification, extension, or integration
process, is identified and associated with that specific request of innovation and it is also associated with
keywords to the action implemented. This builds a database of innovation characterized by many fields
useful for next query (Symbol_Reader, Handheld RFID Readers, (2007). Thus to new each request of
innovation is first carried out a query on the database of innovation to see if there were other actions can
serve as a starting point for the current action and especially if there are already skilled human resources
in the company on that precise issue and physical resources more already evolved into the current target.
Also another big plus of the platform is the possibility to classify, over time, all successful and not
successful innovation activities. Therefore, every new innovation activities on the question of innovation
database can be done by keyword, by date, research partners, by choice of process and by result
(positive or negative). In figure 2 a resource registration form is reported and in figure 3 a palmate reader
used in the implementation of the proposed system is reported (EPC 2007 and EPC GLOBAL 2005).
Figure 2: Resource registration form in the proposed tracking innovation platform
Figure 3: Reader in the proposed tracking innovation platform
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3. An application
Stefano De Falco
The methodology was actually applied at an Italian medium / large firm that produces and distributes
dairy products in Italy and abroad, named ICCA spa. With the helpful cooperation of the processes chief,
the processes of the company have all been surveyed, have been traced all human resources and
equipment of the industrial plant and were made the report, in the time window 2000-2010, all research
projects involving the Icca company and their involvement with these resources, as reported in table I.
Table 1: Innovation grid for “Icca” company
Structural Infrastructural Material Human Existing Innovation Research
Processes Processes Resources Resource Technology Process ID Partner (s)
Preparation -Power supply. -Oven. Unit 1 VoIP R72010 Dep.of
products
-Fuel. -Hydraulic
PLM
Informatics
-Cleaning of the press.
University
workplace.
of Naples
-Calibration
equipments.
-Maintenance
equipments.
-Communications
-Quality Control.
Federico II
Packaging Power supply. Packaging Unit 2 VoIP G32009
-Fuel.
-Cleaning of the
workplace.
-Calibration
equipments.
-Maintenance
equipments.
-Communications
-Quality Control.
-Communications
-Quality Control.
equipment.
CAD
Distribution Product Delivery Vehicles Unit 3 CRM
ERP
-
Sale In outsourcing In
In
- -
outsourcing outsourcing
Promotion In outsourcing In
In
- -
outsourcing outsourcing
4. Results and discussions
A result of applying the methodology of innovation relates to a request by the network of distributors of
the products of “Icca” Company. The request was the possibility of implementing a new telephony
software for order management. The application of the methodology has allowed a quick feasibility study
of the needs required by the network of distributors who provided a positive solution to the case, as the
preceding process of innovation (in the database identified innovation as a process of innovation
R72010) introduced the transition to voice over IP telephony system that facilitates the ability to
implement the new software to manage orders. In order to have committed human resources already
formed in the previous process of innovation and also contacted the Dep. of Informatics of University of
Naples Federico II, which had provided advice on the previous trial.
5. Conclusions
The proposed work concerns the very topical theme of innovation in operational terms, and introduces a
methodology with a case of a real application through development of a platform that can really make an
improvement both for the users of 'innovation, ie companies, but also for the suppliers of upstream
research for innovation, universities and research centers.
In particular, the proposed work addresses the problem from an innovation point of view circular, in the
sense that often sees the technology as a result of the innovation process, but is itself an instrument to
facilitate it. In the approach proposed has chosen to use technology to acquire data using RFID devices
with the aim of documenting all activities relating to innovation developed over time by the company.
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The pursuit of this objective requires a series of preliminary steps, principally, according to Porter's
approach, the classification of all processes which is characterized by the company, both structural and
infrastructural. This arrangement allows the operator of innovation to have a functional association
between processes and resources affected by human activity and structural innovation.
The advantages of a system for documenting innovation in the company consist of the opportunity for
managers of innovation in the enterprise to optimize the choice of the most appropriate resources to
specific objectives related to project financing facility agreements with research centers on innovation
needs of their customers, since they already know the "state of innovation" of each element and also
what process it is inserted.
Acknowledgements
The author thanks to Eng. Fabio Di Marino of “Solvendo” society, for his valuable contribution to this
research work, and thanks to Icca Company for having granted to work on their business processes and
systems to test the proposed methodology.
References
Asian Productivity Organization, Top Management Forum on Strategic Management of Technology and Innovation,
Strategic Management of Technology and Innovation ©APO 2007, ISBN: 92-833-7063-5 Report of the APO
January 2010.
Bradford, M., and Florin, J. Examining the Role of Innovation Diffusion Factors on the Implementation Success of
Enterprise Resource Planning Systems” International Journal of Accounting Information Systems, 4, (2003),
pp.205-225.
Brown, I., and J. Russell, Radio Frequency Identification Technology: An Exploratory Study on Adoption in the South
African Retail Sector, International Journal of Information Management, 27,(2007), pp. 250–265
Carter, L. and Bélanger, F., The utilization of e-government services: citizen trust, innovation and acceptance factors,
Information Systems Journal, 15(1), (2005), pp. 5-25.
EPC2007, EPC Information Services (EPCIS) Version 1.0 Specification, April, (2007).
EPCglobal, The EPCglobal Architecture Framework, July (2005).
Gentag_NFC, Gentag to Piggyback on NFC Technology to Read RFID Sensors, September, (2006).
O. J. Sixto, Is near-field communication close to success?, IEEE Computer, vol. 39, p. 3, March (2006).
RFID Implementation in Retail and Manufacturing, IEEE International Conference on RFID (IEEE RFID 2008), Las
Vegas, April 16-17, (2008).
B. Rosenberg, RFID : applications, security, and privacy. Upper Saddle River, NJ: Addison-Wesley, (2006).
Suo Bai-min; Wang Jia-bin; Zhang Han-bing, Primarily Research on Knowledge Audit for Evaluating Enterprise
Knowledge Management Capability Management and Service Science, 2009. MASS '09. International
Conference on Digital Object Identifier: 10.1109/ICMSS.2009.5302226 Publication Year: 2009 , Page(s): 1 - 5
Symbol_Reader, Handheld RFID Readers, (2007).
Zhonghua Liao and Aihua Yang, Knowledge Sharing Based on Project Management, China Human Resources
Development, vol. 222, 2008, pp. 95–98.
160

Legal, Privacy, Security, Access and Regulatory Issues in
Cloud Computing
Nomusa Dlodlo
CSIR – Meraka Institute, Pretoria, South Africa
ndlodlo@csir.co.za
Abstract: Cloud computing is a sufficiently new research area. Since it is in its development stages, the information
on the field is slowly being compiled by the researchers and practitioners from their experiences. Some of the areas
in which there is still a gap on reporting on legal, privacy, security, access and regulatory issues. This paper raises
an awareness of legal, privacy, security, access and regulatory issues that are associated with the advent of cloud
computing. An in-depth literature survey is conducted on these and an analysis is drawn from the issues that are
identified through the literature survey. Recommendations are then given on how the issues identified in the analysis
can be mitigated. These recommendations centre around the issues of policy interventions, standards, privacy and
data protection, traffic and congestion management, business continuity planning, security and regulation. This
research is an advancement of knowledge in that field and is meant to initiate further debate on cloud computing
Keywords: cloud computing, security, privacy, regulation, legal issues, interoperability, business continuity planning
1. Introduction
The emergence of very large specialised data centres that host thousands of servers has created a
surplus of computing resources that has come to be called the cloud. The cloud is the term for networked
computers that distribute processing power, applications and large systems among machines. This
means that, computing is no longer on local computers but on centralised facilities operated by third party
compute and storage facilities (Foster, 2010). Cloud computing transforms once-expensive resources like
disk storage and processing cycles into a readily-available cheap commodity. By deploying Information
Technology (IT) infrastructure and services over the network, any organisation can purchase these
resources on an as-needed basis and avoid capital costs of software and hardware. By offering
enterprises the opportunity to decouple their IT needs and their infrastructure, cloud computing has the
likely ability to offer enterprises long-term IT savings, including reducing infrastructure costs and offering
pay-for-service models.
One of the definitions of cloud computing given in literature is as follows (Cloud computing, 2009):
“Cloud computing refers to both the applications delivered as services over the Internet and
the hardware systems and software in the datacentres that provide those services. The
services themselves have long been referred to as Software as a Service (SaaS). The
datacentre hardware and software is what we will call the cloud. When a cloud is made
available in a pay-as-you-go manner to the public, we call it a public cloud; the service being
sold is utility computing. We use the term private cloud to refer to internal datacentres of a
business or other organisations that are not made available to the public. Thus cloud
computing is the sum of SaaS and utility computing, but does not normally include private
clouds”
The National Institute of Standards and Testing (NIST) defines cloud computing under 5 identified
characteristics as follows (How cloud computing, 2010):
On-demand self service, which allows business units to get the computing resources they need
without having to go through the IT department
Broad network access, which allows applications to be built in ways that align with how businesses
operate today – mobile, multi-device, etc.
Resource pooling, which allows for pooling of computing resources to serve multiple consumers
Rapid elasticity, which allows for quick scalability or downsizing of resources depending on demand
Measured service, which means that business units only pay for the computational resources they
use. IT costs match business success
Kushida, et.al (Kushida, 2010 ) give the operating definition of cloud computing as:
“Cloud computing provides on-demand network access to a computing environment and
computing resources delivered as services. There is elasticity in the resource provision for
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users, which is allocated dynamically within providers’ datacentres. Payment schemes are
typically pay-as-you-go models”.
With the advent of the cloud arises legal issues and those of privacy, security, access and its regulation.
This paper gives a review of these issues and how they can be mitigated.
2. Problem statement
Since cloud computing is a field that is in its development stages, the information on the field is slowly
being compiled by the researchers and practitioners from their experiences. Some of the areas in which
there is still a gap on reporting are on are legal , privacy, security, access and regulatory issues. This
paper raises an awareness of legal, privacy, security, access and regulatory issues that are associated
with the advent of cloud computing.
2.1 Process
An in-depth literature survey is conducted on the legal, privacy, security, access and regulatory issues of
cloud computing and an analysis is drawn from the issues that are identified through the literature survey.
Literature that is relevant to this article was compiled through Internet searches, and searches of
databases of online journals and conference proceedings. The search was done randomly, on the basis
of the associated keywords identified. Recommendations as identified from current literature are then
given on how the issues identified in the analysis can be mitigated. These recommendations centre
around the policy interventions, standards, privacy and data protection, traffic and congestion
management, business continuity planning, security and regulation.
2.2 Question and objectives
The main research question in this paper is, “ What is the current state of affairs on the soft issues of
cloud computing and what does the literature say on the recommended way forward to further the issues
of cloud computing.”
The objectives are:
Identify the legal, privacy, security, access and regulatory issues prevailing currently in the area of
cloud computing
Identify recommendations on the way forward on these issues
3. Legal implications of cloud computing
(Legal implications, 2010; Legal issues, 2010; Wisdom of clouds, 2008)
There is the issue of “reasonable security” in the cloud computing context, and potential liability arising
out of security breaches in the cloud. A company that provides a service to handle the personal
information of another organisation has the responsibility to ensure that there is reasonable security to
protect personal and confidential information.
The data centres of cloud service providers are located in various locations all over the world. That
means data on the cloud could be stored in any country. The ‘physical location’ raises the question of
legal governance over the data. In case of a conflict between the cloud vendor and the customer the
question of which country’s court system will settle the dispute comes to the fore. In cases where there is
a litigation, an organisation will have to deal with a third party cloud provider to gain access to information
relevant to the litigation. Considering the multiple copies of data that may be created, stored, recompiled,
reused, dispersed and reassembled, what constitutes a “record” for evidence may be difficult to grapple
with the cloud.
The number of trademark filings covering cloud computing brands, goods and services is increasing as
companies seek to better position themselves for cloud computing branding and marketing efforts.
Therefore ensuring the uniqueness of a trademark with the advent of a cloud has been further
complicated.
Sharing and transferring data within the cloud is a problem. Organisations are legally prohibited from
transferring personal information to countries that do not provide the same level of protection with respect
to personal information. That means cloud providers will not be in a position to make any contractual
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promises to their clients because in many cases they cannot say which countries data will be transferred
to and from.
Systems are vulnerable to damage or interruption from earthquakes, terrorist attacks, flood, fires, etc.
Customers have to ensure therefore that they are insured against loss of business due to such potential
losses. This is essential. If there is a breach of privacy due to the fault of the cloud vendor, the carrier
should be liable for the compensation. Vendors on the other hand should do their level best to meet
service level targets committed with any customer.
Ideally, the data that is of the customer’s creation is protected under the intellectual property rights of a
country. Therefore there should be compensation for infringement. Customers own the data. No vendor
can claim ownership of any data that is uploaded or associated with intellectual property. Customer data
includes all data maintained by the customer
In one frequently cited scenario (Gurav, 2010), a government agency presents a subpoena or search
warrant to the third party that has possession of a customer’s data. Had they retained physical custody,
the customer might still have been compelled to surrender the information, but at least would have been
able to decide for themselves whether or not to contest the order. The third party service is presumably
less likely to go to court on behalf of a customer. In some circumstances the customer might not even be
informed that their documents have been released.
With the cloud there is lesser privacy protection under the law. To search a house or office (including
documents stored on a computer), police need a warrant of arrest. To get the information that is stored
on a third party’s web server they only need a subpoena, which is easier to obtain. This kind of search
can happen without the cloud customer’s knowledge.
4. Security issues in cloud computing (hidden risks, 2010)
Due to its distributed nature, the cloud results in weak security systems that are easy to break into. The
security of the system is only as strong as the weakest user’s set-up. Weak password recovery
workflows, phishing attacks, and keyloggers present bigger security risks. In collaborative web
applications that are built for groups, like Google Apps or any web-based project management software,
any breach of security spreads across all participants.
In cloud computing an organisation’s data is locked-in and the third party in control. When you participate
in the cloud, you depend on a third party to make decisions about your data and platforms. Cloud
computing also comes with chances of server unavailability and account lock-out. When the Internet goes
down, access to one’s data is cut off. An important measure of security often overlooked by companies is
how much downtime a cloud service provider experiences. The client should request the provider’s
reliability reports to determine whether these meet the requirements of their business. Exception
monitoring systems is another important area which companies should ask their service providers about
(Binning, 2010).
The biggest concern with cloud computing is that it puts all of a company’s data and applications in one
place. Businesses should be wary of putting sensitive company information in public clouds. They should
instead stick to low-risk, low volume applications and build internal and private clouds to enable
collaboration within the organisation and externally with partners.
Security is one of the most often-cited objections to cloud computing (Zhang, 2010). Cloud users face
security threats from both outside and inside the cloud. This responsibility is divided among the cloud
user, the cloud vendor and any third party vendors that users rely on for security-sensitive software or
configurations. The cloud user is responsible for application-level security. The cloud provider is
responsible for physical security, and likely for enforcing external firewall policies. Security for
intermediate layers of the software stack is shared between the user and the operator. Cloud providers
must guard against theft or denial-of-service attacks by users. One last security concern is to protect the
cloud user against the provider. The provider will by definition control the ‘bottom layer’ of the software
stack, which effectively circumvents most known security techniques. Users also need to be protected
from one another. The primary security mechanism in today’s clouds is virtualisation. It is a powerful
defence, and protects against most attempts by users to attack one another or the underlying cloud
infrastructure.
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Virtualisation is the enabler technology for the cloud and uses physical resources such as a server which
is divided into virtual resources called virtual machines (VM). Customers cannot protect their VMs on their
own. Cloud service providers are making substantial effort to secure their systems, in order to minimise
the threat of insider attacks and reinforce the confidence of customers. For example, they restrict access
to hardware facilities, adopt stringent accountability and auditing procedures, and minimise the number of
staff who have access to critical components of the infrastructure. Security management of virtualisation
technologies is required to reduce the risk of security exposures and enable security policy enforcement.
A cloud-specific security issue is that of running arbitrary VM images. This is only one aspect of making
sure the right data is available to the right user at the right time. The Cloud Security Alliance is directly
pursuing in addition, issues of authentication, authorisation, privacy, integrity and non-repudiation and
data reliability and availability.
According to Chow et.al. (Chow, 2009), security concerns are categorised as:
Traditional security
Availability
Third party data control
Traditional security concerns involve computer and network intrusions or attacks that will be made easier
or possible by moving to the cloud (Chow, 2009). VM-level attacks are a problem because of potential
vulnerabilities in the VM technology. There are also cloud provider vulnerabilities. These could be
platform level such as SQL-injection or cross-site scripting. Phishers and other social engineers have a
new attack vector. The cloud user must protect the infrastructure used to connect and interact with the
cloud, a task complicated by the cloud being outside the firewall in many cases. The enterprise
authentication and authorisation framework does not naturally extend into the cloud. Traditional digital
forensic methodologies permit investigators to seize equipment and perform detailed analysis on the
media and data recovered. The likelihood therefore of the data being removed, overwritten, deleted or
destroyed by the perpetrator in this case is low.
Availability concerns centre on critical applications and data being available (Chow, 2009). As with
traditional security concerns, cloud providers argue that their server uptime compares well with the
availability of the cloud user’s own data centres. There are more single points of failure and attacks in the
cloud. They may lack an assurance of computational integrity.
The legal implications of data and applications being held by a third party are complex (Chow, 2009).
Therefore there are many questions that remain unanswered. There is also a potential lack of control and
transparency when a third party holds the data. If served a subpoena can a cloud user compel the cloud
provider to respond in the required time frame? How can a cloud user be guaranteed that data has been
deleted by the cloud provider? Audit difficulty is another side effect of the lack of control in the cloud. Is
there sufficient transparency in the operations of the cloud provider for auditing purposes? There are
contractual obligation issues also. One problem with using another company’s infrastructure besides the
uncertain alignment of interests is that there may be surprising legal implications. Cloud provider
espionage is the worry of the theft of company proprietary information by the cloud provider. How can a
cloud user avoid data lock-in? The data itself might locked in proprietary format and there are also issues
with training and processes. There is also a problem of the cloud user having no control over frequent
changes in cloud-based services. Another possible concern is that the contracted cloud provider might
use subcontractors, over whom the cloud user has even less control and who must also be trusted.
5. Data access and interoperability
The issue of data access and interoperability continues to be an outstanding matter for inherently
distributed applications and federated organisations. Common best practices and standards are needed
to achieve the fundamental properties of portability and interoperability for cloud applications and
environments.
A major challenge of moving applications to the cloud for most organisations is the need to master
multiple languages and operating environments (Gurav, 2010). In many cloud applications a back-end
process relies on a relational database, so part of the code is written in SQL, or other query language. On
the client side, program logic is likely to be implemented in JavaScript embedded within HTML
documents. Standing between the database and the client is a server application that might be written in
a scripting language (such as PHP, Java and Python). Information exchanged between the various layers
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is likely to be encoded in some variation of XML. Any web application needs to be available to legitimate
visitors from all over the world. A true cloud spans the entire globe, with a server presence in multiple
simultaneous locations.
Besides technical issues, a cloud provider could suffer outages for non-technical reasons, including going
out of business or being the target of regulatory action. Therefore organisations should be wary of this
and put in place measures to ensure business continuity and service availability when outages occur
(Zhang, 2010).
Data lock-in by the service provider is a contentious issue for the customer. Software stacks have
improved interoperability among platforms, but the storage Application programming Interfaces (APIs) for
cloud computing are still proprietary. Thus, customers cannot extract their data and programs from one
site to run on another. This has prevented some organisations from adopting cloud computing. Customer
lock-in may be attractive to cloud computing providers, but their users are vulnerable to price increases,
to reliability problems, or even to providers going out of business (Zhang, 2010).
Applications continue to be more data intensive. Data bottlenecks are likely to occur as more users
subscribe to a cloud service. Cloud users and cloud providers have to think about the implications of
placement and traffic at every level of the system if they want to minimise costs (Zhang, 2010).
6. Privacy issues in cloud computing
Privacy is a fundamental right enshrined in the UN Universal Declaration of Human Rights. There are
various forms of privacy, including ‘ the right to be left alone” and “control of information about ourselves”
(Pearson, 2009). There are different types of information that need to be protected. These include any
information that can be used to identify or locate an individual (e.g. name, address, credit card number
and IP address). Sensitive information such as personal financial information and job performance
information is considered private. Behavioural information such as viewing habits for digital content,
user’s recently visited websites or product usage history need to be protected as well.
Violation of privacy occurs as a result of a number of cloud dynamics. In the cloud the infrastructure is
shared between organisations and is off-premise. Therefore there are threats associated with data being
stored remotely and because of virtualisation. Virtualisation is a method of running multiple independent
virtual systems on a less physical resource making one computer act as many, and sharing the resources
of hosts across multiple environments. The cloud is also a dynamic environment. Services can be
aggregated and changed dynamically by customers and service providers can change the provisioning of
services anytime. Sensitive data may move around within an organisation and across organisational
boundaries. Legal compliance and adequate protection has to be maintained therefore. The speed and
flexibility of adjustment to vendor offerings that benefits business and provide a strong motivation for the
use of cloud computing might come at the cost of compromise to the safety of data. Cloud computing
enables new services to be made available in the cloud by combining other services, e.g. a ‘print on
demand’ service can be provided by combining a printing service with a storage service. This procedure
of service combination is typically under less control than previous service combinations carried out
within traditional multi-party enterprise scenarios. There may be varied degrees of security and privacy in
each of the components.
Privacy risks for cloud computing may also lie in the following (Pearson, 2009):
For the cloud service user: being forced or persuaded to be tracked or give personal information
against their will
For the organisation using the cloud: non-compliance to enterprise policies and legislation, loss of
reputation and credibility
For implementers of cloud platforms: exposure of sensitive information stored on the platforms
(potentially for fraudulent purposes), legal liability, loss of reputation and credibility, lack of user trust
and take up.
For providers of applications on top of cloud platforms: legal non-compliance, loss of reputation,
‘function creep’ using the personal information stored on the cloud, i.e. it might later be used for
purposes other than the original cloud service intention
For the data subject: exposure of personal information
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7. Regulatory issues
Nomusa Dlodlo
In the cloud there are a number of issues that need to be regulated. Potential physical location of data
centres could be anywhere, with geography-blind distribution of applications and data. As a practical
commercial matter, national regulations should be able to influence the actual deployment of cloud
services in countries around the globe.
Without concrete guarantees on the privacy of data held by cloud providers, the diffusion of cloud
services may be hampered by the perceived risk in entrusting sensitive data to external cloud services. In
the US and Europe the regulations require some cloud offerings to allow users to stipulate the country in
which their data will be stored. Non-US firms whose servers are located in the US can have their
information accessed by the US government under the US Patriot Act and Homeland Security Act
(Carrigan, 2008). This impacts on information privacy policy.
Strongly related to the notion of service level agreements and policy, is that of governance – how to
manage sets of virtual resources. At the infrastructure level, applications may consist of many virtual
machines, virtual storage and virtual networks. Managing these virtual missions, or virtual data centres,
requires policy and enforcement from both the provider and consumer (Lee, 2010).
In a private cloud, the infrastructure for implementing the cloud is controlled completely by the enterprise.
Typically, private clouds are implemented in the enterprise’s data centre and managed by internal
resources. A private cloud maintains all corporate data in resources under the control of the legal and
contractual umbrella of the organisation. This eliminates the regulatory, legal and security concerns
associated with information being processed on third party computing resources.
In a public cloud however, external organisations provide the infrastructure and management required to
implement the cloud. Public clouds have the disadvantage of hosting data in an offsite organisation
outside the legal and regulatory umbrella of the organisation. In addition, as most public clouds leverage
a worldwide network of data centres, it is difficult to document the physical location of data at any
particular moment. These issues result in potential regulatory compliance issues which preclude the use
of public clouds for certain organisations or business applications.
According to Enki, et.al (Enki, 2010), the identified regulatory issues in the cloud are in the areas of
service level agreements (SLA), service and support and performance. Cloud-computing services define
an SLA as some guarantee of how much time the server, platform or application will be available. For
example, a cloud provider will provide 99.99% uptime, or five minutes downtime a year, with a 10%
discount on charges for any month in which that availability is not achieved. Since its infrastructure is not
built to reach this uptime, it is effectively offering a 10% discount on services in exchange for the benefit
of claiming that reliability. Another trick is to compute the SLA on an annualised basis. This means that
customers are eligible for a service only after one year has passed. The end-user should pay close
attention to the details of the SLA being provided and weigh that against what business impact it will have
if the service provider misses the committed SLA and regulatory authorities should chip in to level the
playing field.
One of the greatest attractions of cloud computing is that it enables computing to be available to a large
community. In addition, the elimination of the responsibility for physical hardware removes the need for
data-centre administration staff. As a result, there is an increasing number of people responsible for
production computing who do not have systems administration backgrounds, which creates demand for
comprehensive cloud vendor support offerings and thereby greatly inconveniencing the consumer. Round
the clock live support staff costs a great deal.
The cloud is a pervasive federated network in which unregulated personal area networks and local area
networks will interoperate with traditionally regulated electronic communication services. Regulators need
to carefully monitor the challenges posed by these networks, taking action as necessary to regulate for
technical interoperability, consumer protection, support for competition and the appearance of
opportunities for the exploitation of market power.
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8. Discussion and way forward
Nomusa Dlodlo
This sections draws recommendations from literature on the way forward in cloud computing. These
recommendations centre around the issues of policy interventions, standards, privacy and data
protection, traffic and congestion management, business continuity planning, security and regulation.
Any large scale deployment needs to adhere to certain standards. The cloud spans multiple industries
and differs widely in application scenarios and user requirements. The standardisation of the cloud
should cover common communication protocols, at, for example, the carrier level; terminal description
and service discovery mechanisms and application data switching mechanisms such as technologies
based on XML, SOAP and web services. The latter covers terminal, communication protocols and
application specifications.
Concerns over privacy and data protection are widespread. Protecting privacy must not be limited to
technical solutions but encompass regulatory, market-based and socio-ethical considerations. There
should be a concerted effort involving government, civil society and private sector players to protect these
values. One of the hazards of shared infrastructure is that one customer’s usage pattern may affect other
customers’ performance. The cloud must incorporate traffic and congestion management. This will sense
and manage information flows, detect overflow conditions and implement resource reservation for timecritical
and life-critical data flows.
Policy interventions towards the adoption of cloud computing should include (Etro, 2010):
International agreements in favour of unrestricted flow of data across borders (since data centres are
located in different countries with different privacy laws, data portability remains a key issue for the
diffusion of cloud computing)
Agreements between government and industry leaders on a minimum set of technological standards
and process standards to be respected in the provision of cloud computing services to guarantee
data security and privacy and promote a healthy diffusion of new technology
Expansion of broadband capacity
Introduction of fiscal incentives for the adoption of cloud computing and a specific promotion in
particular dynamic sectors ( for instance, governments could finance, up to a limit, the variable costs
of computing for all domestic and foreign firms that decide to adopt a cloud computing solution)
Some examples of cloud computing risks for the enterprise that need to be managed include (Cloud
computing: business benefits, 2009):
Reputation, history and sustainability of the provider to ensure reliability of service provision
The cloud provider should take responsibility for information handling and be held liable for loss of
confidentiality and privacy
Business continuity and disaster-recovery plans must be well documented and tested
Compliance to regulations and laws in different geographic regions can be a challenge for
enterprises. It is critical to obtain proper legal advice to ensure that the contract specifies the areas
where the cloud provider is responsible and liable for ramifications arising from potential issues.
Business continuity planning is identifying core operational systems and work processes that an
organisation requires in order to deliver services and products to their customers. This involves
identifying key suppliers, business partners and staff. From an IT perspective this means three things
(Cloud computing, 2009):
Architecting your IT infrastructure and application systems to be distributed with no single point of
failure
Ensuring the systems have built-in data and application redundancy
Having the ability for these systems to be accessed securely from any location at any time.
The problem that has made business continuity and disaster recovery extremely expensive has always
been the need for redundant hardware, both on-site and in remote sites. The advent of cloud computing
has made the provision of dynamically scalable and virtualised resources widely and cheaply available.
Security is one of the largest concerns for the adoption of cloud computing. Seven risks a cloud user
should raise with vendors before committing are (Foster, 2010):
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1. Privileged user access: sensitive data processed outside the enterprise needs the assurance that
they only accessible and propagated to privileged users
2. Regulatory compliance: A customer needs to verify if a cloud provider has external audits and
security certifications and if their infrastructure complies with some regulatory security requirements
3. Data location: since a customer will not know where her data will be stored, it is important that the
cloud provider commit to storing and processing and processing data in specific jurisdictions and to
obey local privacy requirements on behalf of the customer.
4. Data segregation: one needs to ensure that one customer’s data is fully segregated from another
customer’s data
5. Recovery: it is important that the cloud provider has an efficient replication and recovery
mechanism to restore data if a disaster occurs
6. Investigative support: Cloud services are especially difficult to investigate, if this is important for a
customer, then such support needs to be ensured with a contractual commitment
7. Long-term viability: your data should be viable even if the cloud provider is acquired by another
company.
To avoid customer lock-in, customers would want to see open/standard APIs. Cloud users must not
entrust mission-critical applications to cloud service providers so as to avoid outages when cloud service
providers go out of business. They should also keep backups of the applications and data on premises.
They should also secure favourable service-level agreements from the cloud service provider (Kim, 2009)
9. Conclusion
Cloud computing has transformed the knowledge society by offering enterprises the opportunities to
decouple their IT needs and their infrastructure. It has therefore given rise to new business models and
given the opportunity for those enterprises that would not have had the resources to compete in the
knowledge society a renewed opportunity. As a result the area of cloud computing deserves to be given
attention and further developed. This research does exactly that by contributing to the advancement of
knowledge in that field.
References
Binning, D., Top five cloud computing security issues, [online],
http://www.computerweekly.com/Articles/2010/01/12/235782/Top-five-cloud-computing-security-issues.htm
Carrigan, M., Alex, T., Ward, C., The US Patriot Act deconstruction, Civil Liberties and Patriotism, Journal of
Business and Economic Research, Vol. 6, No. 3., pp. 19-30, 2008
Chow, R., Golle, P., Jakobsson, M., Masuoka, R., Molina, J., Controlling data in the cloud: outsourcing computation
without outsourcing control, CCSW’09, Novembr 13, 2009, Chicago, Illinois, USA, pp. 85-90.
Cloud computing as a business continuity plan, [online], http://www.tectonic.co.za/2009/05/cloud-computing-as-abusiness-continuity-plan/
Enki, D., Why cloud computing will never be free, ACMQUEUE, Distributed Computing, pp. 1-10, 2010.
Etro, F., The economics of cloud computing, [online], http://www.voxeu.org/index.php?q=node/4671
Foster, I., Zhao, Y., Raicu, I., Lu, S., Cloud computing and grid computing 360-degree compared
Gurav, U., Shaikh, R., Virtualisation – a key feature of cloud computing, International Conference and Workshop on
Emerging Trends in Technology (ICWET 2010), pp. 227-229, TCET, Mumbai, India, 2010
Hidden risks of cloud computing, [online], http://lifehacker.com/5325169/the-hidden-risks-of-cloud-computing
How cloud computing can transform business, [online],
http://blogs.hbr.org/cs/2010/06/business_agility_how_cloud_com.html
Kim, W., Kim, S. D., Lee, e., Lee, S., Adoption issues for cloud computing, proceedings of MoMM2009, December
14-16, 2009, Kuala Lumpur, Malaysia, pp. 2-5.
Kushida K.E., Breznitz,D., Zysman, J., Cutting through the fog: understanding the competitive dynamics in cloud
computing, The Berkeley Roundtable on the International Economy (BRIE) Working Paper 190 (Beta), May 1,
2010
Lee, C.A., A perspective on scientific cloud computing, HPDC 2010, June 20-25, 2010, Chicago, USA.
Legal implications of cloud computing – Part One (the Basics and Framing the Issues), [online],
http://www.llrx.com/features/cloudcomputing.htm
Legal issues associated with cloud computing, [online], http://www.labnol.org/internet/cloud-computing-legalissues/14120/
Pearson, S., Taking account of privacy when designing cloud computing services, CLOUD’09, ICSE’09 Workshop,
pp. 44-52, Vancouver, Canada, May 23, 2009.
The wisdom of clouds, [online], http://blog.jamesurquhart.com/2008/08/cloud-computing-bill-of-rights.html
Zhang, Q., Cheng, L., Boutaba, R., Cloud computing: state-of-the-art and research challenges, Journal of Internet
Serv Appl, Vol 1, pp. 7-18, 2010
168

Interoperability Monitoring for eGovernment Service Delivery
Based on Enterprise Architecture
Badr Elmir 1 , Nabil Alrajeh 2 and Bouchaib Bounabat 1
1 Université Mohammed V – Souissi, Morocco
2 King Saud University, Saudi Arabia
b.elmir@daag.finances.gov.ma
nabil@ksu.edu.sa
bounabat@ensias.ma
Abstract: Public administration has to prepare itself to deliver fully integrated eGovernment services. This delivery
often requires cooperation via business processes interoperability across two or more departments. In this context,
public departments and agencies need to implement interoperability using enterprise architecture techniques to
structure business processes, and service oriented models to achieve their integration. Thus, it’s quite interesting to
adopt enterprise architecture paradigm and techniques to analyse, track and control the evolution degree of
processes interoperability from the existing “as-is” state to the future “to-be” state. The present paper proposes a
periodic monitoring approach based on an assessment method which considers three main aspects of interoperation:
1. Potentiality, reflecting the preparation to interoperate. The objective is to foster interoperation readiness by
eliminating barriers that may obstruct the interaction. 2. Compatibility, referring to interoperation implementation
through adequate engineering process. It aims to study the relation between the external interfaces of processes and
the surrounding environment in order to ensure effective interaction. 3. Performance efficiency, focusing on
monitoring operational performance. It consists of the availability assessment of the communication infrastructure
and the supporting system in general. It considers also end users satisfaction of interoperation in use. The proposed
method supporting tool, (IMT) for interoperability monitoring tool, assesses interoperability degree periodically
through five steps: (i) Delineating the scope of interoperation; (ii) Quantifying the interoperation potentiality; (iii)
Calculating the compatibility degree; (iv) Evaluating the operating performance; (v) Aggregating the degree of
interoperability. In addition to its capacity to track the evolution of interoperation degree in time, the IMT measures
the required effort to reach a planned degree of interoperability. Finally, to better illustrate how to use the proposed
interoperability monitoring approach, we present a practical example of integrated public eService. It’s a citizen
oriented eService proposed by a public hospital that offers special fees for persons covered by social security
insurances. It includes government to business collaboration and government to government one.
Keywords: integrated public eService, enterprise architecture, interoperability assessment, periodic monitoring, and
eHealth
1. Introduction
Public administration has to prepare itself to provide fully integrated online services for citizens and
businesses. In this context, horizontal cooperation in the public domain is a key enabler for eGovernment.
Indeed, the delivery of most useful online governmental services often requires cooperation between two
or more public administrations or agencies. This cooperation starts from simple information exchange
and can reach business processes interoperability among public departments (Klischewski 2004).
The present work focuses on monitoring interoperability between automated business-processes
involved in the provision of an integrated public eService. The studied processes may be located within a
single organization or across a group of public partners. Therefore, the proposed approach is based on a
five step measurement method (Elmir 2010b), and takes into account three main aspects:
Interoperability maturity level of the environment surrounding the studied eService.
Compatibility degree between the external interfaces of the involved business processes.
Operational performance of the support systems used to provide the online service.
The objective of this work is to: (1) Identify the most important characteristics of interoperability used to
deliver integrated public services. This work proposes a set of criteria used to assess interoperability in
this context considering all aspects of collaboration. (2) Describe a monitoring approach of
interoperability. This allows to know what is needed to reach a desired level of interoperability.
In this article, the second section is devoted to eGovernment system interoperability. The third section
presents the assessment method based on a set of IT indicators for interoperability measurement. The
fourth section proposes the monitoring approach model adopted in this study. This section presents also
the platform developed to support interoperability monitoring in the context of integrated public eServices
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delivery. Finally, a sample case study is presented. It is about a citizen oriented eHealth service that
encloses government-to-government and government-to-business collaboration.
2. Interoperability in eGovernment system
2.1 eGovernment service delivery
Government-to-government collaboration is a key factor in the success of almost all eGovernment
strategies. In this context, Public online eServices target multiple groups of potential customers that could
be organized into four main categories (Vintar 2002):
Government-to-government services (Chen 2009): generally known by e-administration, it refers to
public interdepartmental coordination and collaboration in order to deliver electronic services.
Integrating the intergovernmental systems is the first step in implementing electronic government
solutions.
Government-to-citizens services (Peristeras 2009): this field implements the relationship between the
government and the citizen, and provides communication information and essential services that
interest individuals or residents in order to ease their life. It represents the main aim of eServices
projects.
Government-to-business services (Shambour 2010): it refers to online interaction between
government and the business sector. This category includes optimizing administrative procedures,
public tenders, various permits, authorizations, electronic transaction services including
procurements and bids; and payment services of various taxes and public charges.
Government-to-employees services (Bercea 2010): it includes a set of employees and managers self
services giving the ability to view and update personal, administrative, payroll and benefits
information via human resources portals. These include also communication, knowledge
management, and collaboration tools made available to employees to well perform their daily
operations.
In term of service nature, public online services have different types (Chen 2006):
Informational use: in which public departments and agencies publish information to educate,
entertain, influence, or reach their potential customers;
Transactional use: where they support a coordinated sequence of user and system activities to
provide a specific service;
Operational use: when an agency provides a new mechanism for conducting business operations by
integrating information systems, human intellect, and other resources into synergistic networks.
In this context public administration can be viewed as a business collaboration network (BCN) (Elmir
2010b). In fact, BCN enables organizations to communicate and collaborate with their customers,
partners and suppliers in a productive way (Sterling 2010). This cooperation takes different forms that
start from simple information exchange, and can reach business processes interoperability among
independent administrations (Sun 2007) (Shishkov2009).
In this sense, this paper studies more precisely the back office integration of public administration
(government-to-government) in order to provide operational integrated eServices essentially those
oriented to citizens and businesses. In order to preserve the autonomy of the actors, this integration
takes usually the form of business process interoperability which represents an obvious prerequisite of
integrated public eService delivery.
2.2 Interoperability
Interoperability characterises the ability, for any number of processing information systems, to interact
and exchange information and services between them.
To implement interoperability, public administration faces technical and semantic difficulties (Gupta 2007)
but also organizational challenges (Goldkuhl 2008). Moreover, monitoring this quality is not easy on such
a macroscopic level.
In fact, interoperability is an information system quality that can be viewed from various perspectives.
Several taxonomies have been proposed in this direction. In this sense, there are:
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Many levels of interoperability scope: business, process, service and data level (Guijaro 2007).
Various approaches to implement this quality: integrated, federated, and unified approach (Missikoff
2004).
Multiple barriers could handicap interoperation: conceptual, organizational and technical barriers
(Arms 2002).
Different scopes of application: within the same organization, cross independent organizations
(Guédria 2008),
Different transactional aspects of cooperation: synchronous or asynchronous collaboration
(Michelson 2006).
Diverse measurement perspectives: potentiality, compatibility, performance efficiency (Chen 2008).
Thus, in terms of scope, there are various levels where interoperability takes place within public
administration (Guijaro 2007):
Business level that refers to how to work within a business network in harmonized way in order to
collaborate.
Process level aims making various processes working together. In the case of a networked
administration, internal processes of two departments are connected to create a common macro
process.
Service level is concerned with identifying, composing, and making function together with various
applications.
Data level refers to making synergy between different data models and heterogeneous conceptual
schemas.
This organization coincides with the four levels of enterprise architecture metamodel.
Also, in terms of barriers, the interoperability implementation faces (Arms 2002):
Conceptual barriers which are related to the syntactic and semantic problems of information to be
exchanged.
Organizational barriers which refer to the definition of responsibilities and authority so that
interoperability can take place.
Technical barriers which deal with the use of adequate protocols, languages and infrastructure in
communication.
In this case, interoperation compatibility check has to consider these barriers on each one of the four
enterprise architecture layers cited before.
2.3 Enterprise Architecture in government structure
Public services users expect to perceive public administrations as a homogeneous and coherent unit in
order to have a unified access to services they need. So, Public administration must be prepared to
interact effectively with all the surrounding actors. This requires essentially openness and willingness to
break functional, organizational and technological barriers.
In this context, several governments have established Enterprise Architecture programmes (Liimatainen
2007). These programmes are well known by Government Enterprise Architecture (GEA). They aim to
eliminate overlapping projects, to support reuse, and to enhance interoperability between public
departments. On another hand, some national strategies were limited to the single issue of interoperation
and developed interoperability frameworks. They are mainly addressing technical problems by
referencing the main specifications recommended to facilitate and promote cooperation between different
government agencies (Guijaro 2007).
At the same time, the concept of enterprise architecture (EA) attracted a lot of interest during the past
decade. It aims to provide a structure for business processes and systems that supports them. It
represents an information system using models in order to illustrate the interrelationship between its
components and its relationship with the ecosystem.
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The Enterprise Architecture (EA) proposes to take an inventory of information system components by
considering: (1) organization procedures, etc. (2) business process (3) IT applications, (4) technical
infrastructure.
Also, with the emergence of service delivery environments, independent businesses become able to
collaborate in order to have beneficial results for all (Aisopos 2009). Among the main forms of
cooperation, occurs integrated service providing to clients.
The service-oriented interaction model implements less coupled connections between various distributed
software components. The approach seeks to provide abstraction by encapsulating functionality and
allowing reuse of existing services.
To facilitate interoperation within a public collaboration network, usually public administration tends to
adopt the enterprise architecture as a strategic choice of organization using "the service oriented"
paradigm and techniques to implement and deploy services.
3. Interoperability assessment method
3.1 Interoperability measurement aspects
Concerning measurement, Chen (2008) differentiates between the following complementary
characteristics (see Figure 1):
Interoperation potentiality: it is an «internal quality» of a system that reflects its preparation to
interoperate. This involves identifying a set of characteristics that have an impact on communication
with peer’s systems without necessarily having concrete information on them. The objective is to
foster interoperability readiness by eliminating barriers that may obstruct the interaction.
Interoperation compatibility: it represents an «external quality». In fact, the interaction between two
support systems is ensured through an adequate engineering process.
Interoperation performance: the third aspect characterizes the «quality in use». It focuses on
monitoring operational performance. It consists of an assessment of the communication infrastructure
availability, and the supporting system in general.
Figure 1: Operational aspects of interoperability (Elmir 2010b)
3.2 Interoperability indicators
Many interoperability maturity models (IMM) were introduced to describe the interoperation potentiality.
They are mostly inspired by the CMM/CMMI model (Chrissis 2003). Pardo (2009) Lists among others:
ITIM (It Investment Management),
LISI (Level of Information System Interoperability),
OIMM (Organizational Interoperability Maturity Model),
EIMM (Enterprise Interoperability Maturity Model),
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GIMM (Government Interoperability Maturity Matrix),
SPICE (Software Process Improvement and Capability dEtermination).
Each model adopts a specific vocabulary to express the levels of maturity. However, the models have in
general five scales ranging from low to high:
An organization with a low level of interoperability is characterized as working independently or in
isolation from other organizations and in an ad hoc or inconsistent manner.
An organization with a high level of interoperability is characterized as being able to work with other
organizations in a unified or enterprise way to maximize the benefits of collaboration across
organizations.
In terms of compatibility and in order to dematerialise a business process and to interconnect it with its
ecosystem, there is a need to study the external interfaces of its support systems. In this case, the
degree of compatibility «DC» is calculated on the basis of a mapping between the underlying
components and the adjacent processes.
Several studies have focused on the characterization of the interoperation compatibility. Kasunic (2004)
identifies for instance several indicators to describe this compatibility.
The operational performance «PO» measurement is done on the basis of IT dashboards of involved
public departments. It takes into account indicators as the availability score of the application servers, the
quality of service of communication, and the end users degree of satisfaction about the interoperation in
use. This information is collected based on surveying end users.
3.3 Interoperability assessment method
The present work proposes a five step method to assess interoperability needed to deliver a specific
integrated public eService. These steps are as follows (see Figure 2):
1. Delineating the scope of the study.
2. Quantifying the interoperation potentiality.
3. Calculating the compatibility degree.
4. Evaluating the operating performance.
5. Aggregating the degree of interoperability.
Figure 2: Five steps of interoperability measurement (Elmir 2010a)
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3.4 Delineating the scope of the study
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Assessing interoperability, whether used or required, to deliver a specific integrated public eService
requires the knowledge of its ecosystem.
In practical terms, the study focuses on a macro business process consisting of a set of sub automated
processes in independent departments. These sub processes are linked together via several interfaces
identified in advance. In this case, the preliminary phase consists of identifying the context of the studied
online service delivery and then lists its underlying automated processes.
This step includes identifying:
Public departments and agencies involved in the cooperation.
Sub process within each department in order to study compatibility.
Information systems that support automated business processes within each department.
3.5 Quantifying the interoperation potentiality
The calculation of the potential for interoperability within the k th department «PIk» requires the adoption of
one of these maturity models mentioned above. The organization is classified then on one of these five
levels noted IMML (for interoperation maturity model level). To identify the potential degree of
interoperability, we propose then the following mapping (See Table 1):
Table 1: Quantification of the maturity of the interoperability
Maturity Level (IMML) Potentiality quantification
1 0.2
2 0.4
3 0.6
4 0.8
5 1
Within each department, the potential is calculated using the following equation:
The final interoperation potentiality is given by:
3.6 Calculating the degree of compatibility
To assess the compatibility degree, the present work uses the compatibility matrix of Chen and Daclin
(Chen 2008).
The compatibility matrix (see Table 2) consists of a combination of the “interoperability levels perspective”
and “interoperability barriers perspective” seen in section 2.2. In practical terms, we enumerate
conceptual, technical and organisational barriers in the different layers of interoperability scope: business,
process, service and data.
Table 2: interoperability compatibility
Conceptual Organizational Technology
syntactic semantic
authorities
responsibilities
Organization platform communication
Business dc11 dc12 dc13 dc14 dc15 dc16
Process dc21 dc22 dc23 dc24 dc25 dc26
Service dc31 dc32 dc33 dc34 dc35 dc36
Data dc41 dc42 dc43 dc44 dc45 dc46
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By noting the elementary degree of interoperation compatibility «dcij» (i takes values from 1..4, and j
takes values from 1..6). Therefore, if the criterion in an area mark satisfaction the value 0 is assigned to
dcij; otherwise if a lot of incompatibilities are met, the value 1 is assigned to dcij.
The degree of compatibility «DC» is given as follows:
3.7 Evaluating operating performance
By Denoting:
«DS» the overall availability rate of application servers.
«QoS» service quality of different networks used between interacting components. QoS is
represented mainly by the overall availability of networks.
«TS» end users’ satisfaction level about interoperation.
Given the cumulative nature of these three rates, the evaluation of operational performance is given by
the geometric mean (DeFusco 2007) as the following equation:
3.8 Aggregating the degree of interoperability
The final calculation of the ratio characterising the interoperability process in question is by aggregating
the three previous indicators using a function f defined in [0,1]3 [0,1]
RatIop=f (PI, DC, PO)
Given the independent nature of these three indicators, we opt for the arithmetic mean (DeFusco 2007)
as follows:
4. Periodic interoperability monitoring approach
4.1 Interoperability monitoring approach
This section shows the metamodel we propose for the interoperability monitoring approach. It includes:
The exposed public integrated online service.
The business processes supporting the delivery of the public online service.
The connections and the compositions that exist between the involved business processes.
The public departments that participate to the provision of the online service.
The maturity model used in every department and their levels and the prerequisites to reach each
level.
The end users Satisfaction level.
The enterprise architecture layers that coincide with the level of interoperation scopes.
The elementary barriers that may obstruct interoperation situations.
The periods within which interoperability is assessed.
The metamodel serves as a basis for interoperability assessment periodically. It considers existing IT
indicators within the public collaboration network like availability rate of application servers and the
network. It includes end users satisfaction about used interoperation. This metamodel includes maturity
score of each involved department. It references furthermore compatibility aspects on all levels of the
enterprise architecture of collaboration in use.
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The metamodel is represented by using UML diagrams: class diagram (See Figure3).
Figure 3: Interoperability monitoring Metamodel (class diagram)
4.2 Periodic interoperability monitoring tool
The Interoperability monitoring tool (IMT) includes three principal modules. The first one is dedicated to
the interoperability assessment at a specific period. Figure 4 describes the interoperability assessment of
an automated macro process within a single department which uses GIMM as maturity model. In this
specific case, we notice that there are a lot of conceptual and organizational incompatibilities on a
business layer.
Figure 4: Screen from Interoperability monitoring tool
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In addition to its capacity to track the evolution of the interoperation degree periodically, the IMT gives the
possibility to propose a scenario to reach a planned degree of interoperability. For instance, in the
example shown on Figure 5, we plan to move the interoperability ratio calculated from 79% to 89%.
IMT proposes to (i) improve the interoperability maturity to reach the fourth level, (ii) optimize the
availability of involved application servers, (iii) better meet end users expectations and (iv) resolve
conceptual incompatibilities.
Figure 5: Planning of Interoperability optimization
Interoperability monitoring tool is able to recognize prerequisites of going from a specific level of maturity
to the next one.
Figure 6: Sample of interoperability maturity optimization details
5. Case study
This section presents an illustration example on monitoring interoperability of an integrated public
eService. The case in this paper consists of an online payment for health care services. It’s a citizen
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oriented eService proposed by a public hospital that offers special fees for persons covered by social
security insurances.
The studied online service is designed and implemented over an inter organizational information system
within four public departments as described in figure 7. This eService includes:
The identification and notification services within the public hospital system.
The fee payment in national treasury department system.
The administrative data validation in the national general mutual: it is oriented essentially to the civil
servants.
The administrative data validation in national social security fund: it is oriented to employees in the
private sector.
The data validation within private insurance: it is oriented to citizens who contracted a complementary
insurance.
Figure 7: Sample of online payment situation in eHealth system
The interoperability is assessed every quarter in this collaboration network. During this period, the
maturity level is brought up. The end user satisfaction is improved. The IT indicators are optimized (See
Figure 8).
Figure 8: Quarterly interoperability monitoring eHealth online payment
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5.1 Discussion
Badr Elmir et al.
The provided case study illustrates the results of interoperability monitoring within a specific collaboration
context. This is provided by the interoperability monitoring tool (IMT) that collects existing IT indicators
like availability score of Application servers and the end users satisfaction level. The IMT logs, in a
convenient way, the interoperation incompatibilities in every architecture layer surrounding the delivery of
the integrated eService.
This automated method enables the establishment of an action plan that aims to improve the integrated
eService delivery.
The IMT is able to propose a scenario to reach a planned result for interoperability ratio. However the
current version of the IMT is not yet able to propose the best scenario to achieve this result efficiently.
This work is a prerequisite for several projects launched in parallel, and dealing with the applicability of
control theory in the information system interoperability field. In this case, the future version of the IMT
will use such techniques to enable the optimal control of interoperability.
6. Conclusion
The delivery of most useful public online services often requires cooperation between two or more public
administrations. This cooperation takes, in general, the form of business processes interoperability
among public departments. The present paper has presented a periodic monitoring approach for
interoperability to deliver integrated public eServices. This approach is based on a five step assessment
method that uses existing indicators within involved departments like quality maturity indicators,
information technology dashboards, etc.
The result of this automated method is a ratio metric enabling the measurement of this quality by taking
into account three main operational aspects: interoperation potentiality, interoperation compatibility and
operational performance.
The proposed method supporting tool tracks the evolution of interoperation degree in time and is able to
propose a suitable scenario to reach planned degrees of interoperability.
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Volume 2, Number 2, pp. 189-204.
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France.
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180

Enterprise Resource Planning Implementation Differences
Within the Same Methodology - Case Study From West
Europe and Turkey
Turan Erman Erkan
At l m University, Ankara, Turkey
ermanerk@atilim.edu
Abstract: Enterprise Resource Planning (ERP) systems are vital for competitive edge in today’s business world.
ERP is an integrated information system that serves all departments within an enterprise. Therefore, business
processes should be optimised before ERP implementation in order to catch a perfect implementation. Before year
2000 all the giant firms realised their ERP projects and after that best practises took place. After those trial and error
based experiences, ERP vendors need to form an ERP implementation methodology. Big ERP vendors developed
implementation methodologies, they were almost the same; starting from project preparation to selection,
implementation to maintenance and control. Those project methodologies improved the success rate of ERP
implementations. This research is both empirical and qualitative. In fact it consists of two monographic researches.
They are both about ERP implementations in the same sector. One of the firms is a national one and other one is a
multinational one. Both implementations done by the same consultant team with the same methodology, so the
evaluation of the project is more objective than any other questionnaire based ones, which are filled by different
implementation teams. The findings of the comparison are surprisingly different from each other within the
implementations, although they both used the same methodology. Basic steps of the ERP implementation such as:
project preparation, business blueprint, realization, final preparation and go live & support differs from each other
both in national and multinational firms. The major difference is seen in the first steps which are project preparation
and business blueprint. Multinational firm seems to have more chance than the national one in achieving
organisational efficiency through successful ERP implementation. The research outcome is useful for professionals
running implementation projects and those making decisions on ERP implementation. The results can also be used
by practitioners managing ERP projects in order to avoid from implementation methodology illusion.
Keywords: enterprise resource planning, ERP project management, ERP implementation, cultural differences
1. Introduction
The business environment is dramatically changing. Companies today face the challenge of increasing
competition, expanding markets, and rising customer expectations. This increases the pressure on
companies to lower total costs in the entire supply chain, shorten throughput times, drastically reduce
inventories, expand product choice, provide more reliable delivery dates and better customer service,
improve quality, and efficiently coordinate global demand, supply, and production (Umble, 2003).
Therefore, the changes in the business perspectives, goals objectives and strategies are pressuring on
organizations and on their structure to be upgraded in spite of their cultures and values. Knowledge
sharing is not a competitive advantage anymore the challenge is in knowledge management.
As the business world evolved it was no longer adequate for companies to merely offer their goods for
sale, in order to stay viable they had to keep their competitive advantage (Tersine 2003).
in the ’60s industry concentrated on how to produce more (quantity),
in the ’70s how to produce it cheaper (cost)
in the ’80s how to produce it better (quality)
in the ’90s how to produce it quicker (lead time)
in the 21st century how to offer more (service
ERP systems have been considered an important development in the corporate use of information
technology in the 1990s, enhancing organizational cross-functional efficiency and effectiveness through
the seamless integration of all the information flowing through a company (Davenport, 1998).
ERP is the business backbone. It is a cross-functional enterprise system that integrates and automates
many of the internal business processes of a company, particularly those within the manufacturing,
logistics, distribution, accounting, finance, and human resource functions of the business. Thus, ERP
serves as the vital backbone information system of the enterprise, helping a company achieve the
efficiency, agility, and responsiveness required to succeed in a dynamic business environment
(Davenport, 1998) and (Olson, 2004). ERP software typically consists of integrated modules that give a
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company a real-time cross-functional view of its core business processes, such as production, order
processing, and sales, and its resources, such as cash, raw materials, production capacity, and people.
However, properly implementing ERP systems is a difficult and costly process that has caused serious
business losses for some companies, which underestimated the planning, development, and training that
were necessary to reengineer their business processes to accommodate their new ERP systems. ERP
literature suggest that an ERP system alone cannot improve the company performance unless an
organization restructures its operational processes, and this is generally accomplished through business
process reengineering (Bingi, Sharma, and Godla 2003, Olson 2004 and Davenport 1998).
1.1 Enterprise resource planning project management
In order to study ERP implementation projects, some researchers are using a critical success factors
(CSFs) approach (Esteves and Pastor 2001, Nah et al 1999). However, little has been done in relation to
the management and the operationalization of these CSFs. Project evaluation is critical to the
understanding, control and monitoring of the CSFs of an ERP implementation project. ERP project
success is influenced by a large number of factors, and most of the times it is difficult to measure them
objectively. Adequate Business Process Redesign (BPR) is one of the most cited CSFs in ERP
implementation projects (e.g. Bancroft et al. 1998, Bingi et al. 1999, Holland et al. 1999, Nah et al. 2001).
Comprehensive BPR is related with the alignment between business processes and the ERP business
model and associated best practices (Esteves and Pastor 2000). As Valiris and Glykas (1999) mention, in
the literature there has been some confusion regarding the use of terms like reengineering, process
improvement and redesign. They suggest that reengineering is synonymous to radical change and
process improvement to incremental change and that both, reengineering and process improvement are
included in the definition of redesign.
This CSF stream focuses on the details associated with implementing ERP systems and their relative
success and cost. Specifically, according to Motwani et al (2005); the articles in this stream include topics
such as the implementation procedures (Abdinnour et al 2003, Al-Mudimigh et al 2001, Mandal and
Gunasekaran 2003 and Umble 2003), critical success factors (Al-Mashari et al 2003, Nah et al 2001,
Clemmons and Simon 2001, Davison 2002 and Hong and Kim 2002), pitfalls and complexities in ERP
implementation (Ip et al 2002, McAlary 1999 and Ribbers and Schoo 2002), and successful strategies for
effective ERP implementation (Aladwani 2001, Cliffe 1999, Markus et al 2000a and 2000b, Scheer and
Habermann 2000, Willis and Brown 2002 and Mabert, Soni and Venkataramanan 2003).
Based on the preceding review of the literature done by Motwani (2005) and also on the research by
Akkermans and van Helden (2002), Grabski, Leech and Lu (2001), and Somers and Nelson (2001),
Grabski, Stewart, and Leech (2007) developed a list of ERP implementation controls,
Business process reengineering
Consultants' involvement
Top management support
Active steering committee
Knowledgeable project team
Close working relationship between the project team and consultants
Detailed requirements specification
Detailed implementation plan
Frequent communication with the users
Managing people
User involvement
Training
Involvement of internal audit
System testing prior to implementation
Close monitoring after implementation
Change management and transition management
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Develop users' project ownership
In-depth, up front project planning
Project management skills
Project sponsor from top management
Clearly identified objectives
Specified measures of success
Ways to manage risk
Turan Erman Erkan
Detailed tracking of actionable items by internal audit
Monthly internal audit reports on project risk items to steering committee.
Therefore, both ERP vendors and clients start caring about those controls and improve their
implementation methodologies.
1.2 SAP ASAP methodology
The ASAP solution was developed to ensure the successful, on-time delivery of a project. SAP delivers
the Accelerated SAP (ASAP) methodology for project management and system implementation.
Developed by SAP to optimize the success of implementing the SAP Business Suite, ASAP streamlines
the implementation by providing templates, methods, tools, and accelerators that have been built on the
success of thousands of previous SAP implementations (SAP, 2001)
The ASAP Roadmap provides the methodology for implementing and continuously optimizing your SAP
System. It divides the implementation process into five phases and offers detailed Project Plans to assist
you (in Microsoft Project format). The documentation stored at each level of the Roadmap tree structure
contains recommendations on implementing your SAP System and links to helpful tools and accelerators
(Niefert 2009, Portougal and Sundaram 2006)
The implementation of your SAP System covers the following phases:
Project Preparation
In this phase you plan your project and lay the foundations for successful implementation. It is at this
stage that you make the strategic decisions crucial to your project:
Define your project goals and objectives
Clarify the scope of your implementation
Define your project schedule, budget plan, and implementation sequence
Establish the project organization and relevant committees and assign resources
Business Blueprint
In this phase you create a blueprint using the Question & Answer database (Q&Adb), which documents
your enterprise’s requirements and establishes how your business processes and organizational
structure are to be represented in the SAP System. You also refine the original project goals and
objectives and revise the overall project schedule in this phase.
Realization
In this phase, you configure the requirements contained in the Business Blueprint. Baseline configuration
(major scope) is followed by final configuration (remaining scope), which can consist of up to four cycles.
Other key focal areas of this phase are conducting integration tests and drawing up end user
documentation.
Final Preparation
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In this phase you complete your preparations, including testing, end user training, system management,
and cutover activities. You also need to resolve all open issues in this phase. At this stage you need to
ensure that all the prerequisites for your system to go live have been fulfilled.
Go Live & Support
In this phase you move from a pre-production environment to the live system. The most important
elements include setting up production support, monitoring system transactions, and optimizing overall
system performance.
2. Case study: ERP implementations
A case study approach was employed to identify the projects steps that were held differently among the
national and international firm projects. The criterion used to select the case study companies was that
each of the case studies should use ERP software from the same vendor. Data was collected primarily
through questionnaires and observations.
This case study consists of two ERP implementations. In fact, this a monographic study of two distinct
firms. Firms are from Turkey because of confidentiality the sector would not be shared. one is
multinational the other one is national. The purpose of the case study is to examine the ERP
implementation method difference between the national and multinational firms.
Both enterprises implemented the same ERP with same modules as it can be seen from Table I. The
author also participated to both of the projects as a BPR and ERP consultant. Therefore, data collected
from the original source. In case of confidentiality the enterprises would take place as Firm A
(international) and Firm B (national)
Table 1: ERP modules used in firms
ERP Module Firm A Firm B
FI Financial Accounting X X
CO Controlling X X
TR Treasury X X
IM Investment Management X X
PP Production Planning X X
MM Materials Management X X
SD Sales and Distribution X X
QM Quality Management X X
WM Warehouse Management X X
PM Plant Maintenance X X
CS Customer Service X X
PS Project System X X
HR Human Resources X X
In Firm A implementation lasted 14 months and in Firm B implementation lasted 8 months. In both firms
ASAP methodology was used. As seen from Table 1 same modules of ERP had been implemented by
the same project team. There is something like 50% difference in implementation time of projects. Thus 6
months difference is mainly because of project preparation and business blueprint steps. Those initial
and vitals steps considered seriously in the international firm rather than the national one.
Table 2 indicates the grades of the project evaluation that was realized by consultant team out of 10 for
each project step. Average and standard deviation of those grades calculated for each step of ASAP
methodology. According to Table 2, in all steps of ASAP methodology there is an obvious performance
evaluation difference between multinational and national firms.
The biggest difference is in project preparation (9.90 to 5.80) and business blueprint steps (9.80 to 6.00)
which are the essential steps of an ERP project. Starting from realization (9.00 to 7.10) and continuing
with final preparation (9.80 to 6.80) and go live & support (9.90 to 8.10) the difference between national
and international implementation reduce. Overall average of five steps (project preparation, business
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blueprint, realization, final preparation, go live & support) are 9,68 and 6.76 respectively in international
and national firms. In other words simply one can easily say that implementation quality is 96.8% in
international firm and 67.6% in national firm.
Table 2: ERP project steps evaluation realized by consultant team
Firm A Firm B
ASAP Steps Average St. D.* Average St. D.*
Project Preparation 9.90 0.32 5.80 1.03
Business Blueprint 9.80 0.42 6.00 0.67
Realization 9.00 0.82 7.10 0.88
Final Preparation 9.80 0.42 6.80 0.79
Go Live & Support 9.90 0.32 8.10 0.74
Overall Average 9.68 6.76
St.D.*: Standard Deviation
3. Conclusion
This research attempted to answer the question. ‘‘Is there a difference in implementing ERP via same
project methodology between national and international firms?” The answer was quite surprising; primary
steps of the ERP implementation such as: project preparation, business blueprint, realization, final
preparation and go live & support differ from each other both in national and multinational firms. The
major difference is seen in the first steps which are project preparation and business blueprint. Therefore,
multinational firm seems to have more probability than the national one in achieving a successful ERP
implementation. Since the questions were asked to the ERP consultants that they participated to the
project, there was no problem about the perception of the questions and therefore answers were
objective.
Although this research is a monographic one, it indicates the project management difference between
national and international firms in Turkey. As discussed in the previous sections both project period (14 to
8 months) and evaluated performance (9.68 to 6.76) differ among international and national firms.
National firms usually do not have budget and time for business process reengineering, organizational
change management and so on.
In conclusion, there is a recordable ERP project implementation difference between multinational and
national firms although they use the same methodology. The difference is mainly on the way of doing
business, the planning method and application. This might be because of cultural differences and
business circumstances. National firms’ ERP projects are mostly about configuration of the software to
the enterprise not a tailor made customization for them to achieve organisational efficiency through
successful ERP implementation. National firms need to redesign their organizations, reengineer their
processes, enforce employees in order to increase their chance of ERP well implementation.
The research outcome is useful for professionals running implementation projects and those making
decisions on ERP implementation. The results can also be used by practitioners managing ERP projects
in order to avoid from implementation methodology illusion. This study was subject to further limitations
due to the measurements of cultural effects and economically readiness of firms that could be a subject
of an other study.
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186

A Meta-Analysis of how the Adoption of Innovative Web 2.0
Tools Like Digital Business Ecosystems can Lead to Improved
SME Collaboration
Francesc Estanyol
University of Edinburgh Business School, Edinburgh, UK
francesc.casals@ed.ac.uk
Abstract: This work studies the increasing role of Web 2.0 tools as enabler of SME collaboration. The author analyses
how innovative Information and Communication Technologies (ICT) like Digital Business Ecosystems (DBE)
could help small and medium enterprises (SMEs) to reduce the gap with large corporations. Nowadays Web 2.0 is
permitting to perform some tasks unimaginable only few years ago. Individuals have evolved from a passive to an
active role and currently are the main actors creating Internet content. However, compare to individuals, business still
in the first stage of Internet revolution and are not taking profit of all the possibilities of Web 2.0. Most of them are
using these tools only to improve existing procedures but not for creating new ways of doing business or interact with
other SMEs. In this scenario, DBE has emerged as a new paradigm to solve some of these problems and to permit
businesses behave in a similar way to what individual users are doing nowadays. In this work, after an analysis of the
nature of co-operative behaviour and the importance of Web 2.0 facilitating its emergence by promoting selforganisation
of their participants, the author evaluates this new paradigm in order to determine if it is a valid approach
for SMEs. Finally, based on previous works of the author about the needs of SMEs, the study concludes with
the definition of MADBE, an innovative multi-agent Digital Business Ecosystems inspired by natural ecosystems
which aims to facilitate collaboration between SMEs.
Keywords: SME, collaboration, multi-agents, digital, ecosystems, business
1. Introduction
The field of SME collaboration has become very popular from the 90s. Terms such as networking, cooperation
or alliances have been widely used in literature in works like (Hoffmann and Schlosser 2001),
(Varamaki and Vesalainen 2003) or (Narula 2004) but in spite of some studies like (Coombs et al. 1996)
have demonstrated the advantages of adopting collaboration and co-operation approaches for improving
business performance and competitiveness, SMEs, due their scarcity of time, knowledge and resources,
have experienced problems implementing and maintaining successful alliances.
Considering a SME as defined in (EU 2009), SMEs represent 99 percent of non-financial businesses in
US and EU and, in addition to their presence, play a key role creating employment: about two-thirds of
total employment in the private sector; economic growth: contributing to more than half of the total valueadded
created by businesses, innovation and social integration (Audretsch et al. 2009). This influence is
not exclusive of western countries and works like (Zeng et al. 2010) present similar figures for Asian
countries like China, Hong Kong or Taiwan.
However, the above-mentioned studies also show that small firms have lower profitability, employee
compensation, and labour productivity than large enterprises. In this context collaboration emerges as a
potential solution but most of firms are reluctant to collaborate even if there is evidence of mutual benefits.
In (Estanyol 2010), the author identifies a set of problems and barriers SME face in order to adopt
collaborative approaches. Among of them, the self-centred behaviour of participants giving priority to their
individual interests or for fear that others will take advantage of their co-operative decision is one of the
most important. In addition, the lack of resources, mainly time, money and personnel, force SMEs to focus
on their daily activities, losing the opportunity to create new business, enter new markets or create
new products in collaboration with other SMEs.
On the other hand, as summarised in (Nooteboom 1994) traditionally large corporations have been more
efficient using external networks. They take advantage of their higher capital reserves and negotiation
power to obtain favourable alliances with other organizations while SMEs need to find imaginative ways
to survive. In uncertain economic periods, this gap increases and the ability to collaborate with others can
make the difference between surviving or not. Fortunately, nowadays this situation is changing and the
emergence of Web 2.0 technologies like DBE are creating a new range of options for collaboration, permitting
SMEs to combine the use of these tools with their major flexibility in order to overcome their
weaknesses by developing smart alliances and to reduce the gap with large corporations (Narula 2004).
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The objectives of this work are as follows: a) to study the current context of SME collaboration in order to
b) analyse how Web 2.0 technologies facilitate the emergence of co-operative behaviour and c) they role
as enabler of business collaboration. Knowing the current situation permits to understand the problems
SME face in order to adopt innovative ICT tools and to d) introduce DBEs as an alternative to facilitate
businesses co-operation. Finally, the main objective of this study is to e) define and present MADBE, the
first ecologically inspired multi-agent to DBE and its main contribution to research.
2. The importance of Web 2.0 for co-operation
During the last decade, ICT and Internet have changed our habits in a wide range of activities. Nowadays,
it is difficult to understand our lives without e-mails, on-line tickets, digital photography or mp3 music.
Although important, is not until the advent of Web 2.0 that the use of the Internet can be defined as
revolutionary. Before that, services and content were made by IT specialists and users had a passive role
interacting with them, simply viewing or downloading it. Software companies and Internet businesses
were the players, the owners and who decided what, where, how and when to publish information on the
World Wide Web (WWW).
The term Web 2.0, firstly coined by Dancy DiNucci in 1999 but popularised by Tim O’Reilly in (O’Reilly
2005) refers to the evolution of the Web and it is associated with applications where users are the main
actors creating the content of the WWW. Although most researchers agree on some common concepts
and principles around Web 2.0, currently there is no accepted definition. In this work, the author uses the
term Web 2.0 as defined in (Hoegg et al. 2006), where the authors clearly separate the concept from
specific technologies and define it as a philosophy or a new way to create web content which implies a
greater collaboration among Internet users and the possibility to create communities.
Independently of the scientific definition, most Web 2.0 applications like Facebook, Twitter, Flickr, Blogger
or Wikipedia share some principles such as information sharing, interoperability, collaboration and cooperation.
But the most powerful consequence of Web 2.0 is that it permits the creation and sharing of
content in real-time. As pointed out by Clay Shirky in (Shirky 2009), nowadays it is possible to be informed
about news, local traffic, deals or just friend information using these types of applications and all
this faster than the official information channels such as TV, radio or newspapers.
2.1 Self-organisation and collaborative behaviour
With this revolution, the role of users has changed radically during the last years. They evolved from passive
to active and nowadays are able to organise themselves, build communities and share information
independently of the external channels.
Web 2.0 facilitates self-organisation of participants and the emergence of collaborative behaviour, two
key aspects to ensure co-operation success. Nowadays, individuals are able to identify something they
would like to do, find others who would enable that action to be a success and access the resources to
move to action. When users are involved in these types of actions, collaborative behaviour emerges naturally
and facilitates the sharing of resources and the creation of a feeling of belonging to a community and
therefore, makes users less dependent on traditional channels.
Web 2.0 applications like CouchSurfing.com, HomeExchange.com or Compartir.org enable users to
specify their interests (e.g. location, days, traffic route, timetable, etc.) and meet others offering the same.
Apart from obvious economic and environmental benefits, these initiatives help to establish new relationships
between users and to promote the creation of social communities with similar preferences.
These tools have created a new way to perform old activities and represent an alternative to traditional
services and products. This is possible because with Web 2.0 users are able to comment inputs, make
recommendations and evaluate, rate, vote or tag users’ information. These actions permit to rank the
users depending on their reputation and help the creation of trust and collective intelligence within the
community.
3. Web 2.0 as enabler for business collaboration
The examples presented in previous section are useful to illustrate how Web 2.0 is changing people’s
habits and routines but businesses, and SMEs in particular, are far from this situation. Despite of abundant
proofs that the Internet is effective for gaining a competitive advantage, most small firms are not
making full use of it (Martin and Matlay 2003).
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Favoured by the declining costs of technology, businesses currently have a wide range of options to organise
themselves and improve the relationships with their providers/clients. Business networking applications
like LinkedIn; Business Intelligence (BI) tools like Pentaho or MicroStrategy; or Customer relationship
management (CRM) solutions permit to control organisational activity more effectively, support
the decision making process, establish links with other partners or facilitate co-operation processes that
require flexibility and trust (Caby-Guillet et al. 2006).
But compare with individuals, most firms are still in the first stage of the Internet revolution and are using
these tools mostly for upgrading existing mechanisms, for example, replacing postal mail by e-mail or
communicating their corporate vision using websites instead of other traditional media but not for creating
new ways of doing businesses or interact with other SMEs, missing the real possibilities that Web 2.0
brings (Hoegg et al. 2006).
In this context, recently DBEs have emerged as a new Web 2.0 paradigm to solve some of these problems.
DBEs permit to access dynamically to valuable information about other participants (e.g. background,
previous collaboration, results, etc.) and to introduce reputation, voting or tagging systems to
ensure security, trust and commitment among the participants. These characteristics promote the creation
of digital environments in which businesses co-evolve and collaborate, permitting enterprises to
adapt quickly to a changeable environment and to save resources.
The next section describes DBEs and how SMEs can benefit from the opportunities that this new paradigm
offers.
3.1 Digital business ecosystems
Although the definition of a DBE may differ considerably depending on the author, in this work it refers to
those digital environments that reproduce natural ecosystems and in which businesses can interact in a
similar way to what people are doing in social networks.
DBEs permit the interoperability of firms thorough the implementation of intelligent mechanisms of publishing
characteristics, services and needs. In this way, SMEs are able to find other partners and to establish
potential relationships with other entities of the ecosystem in a similar way individuals are doing in
the applications presented in Section 2.1.
Moreover, they are an innovative approach to supporting the adoption and development of ICT, which, as
identified in (Nachira 2004), is a crucial element for improving productivity and for enabling business networking
in a competitive knowledge-based economy.
Like other Web 2.0 tools, DBEs enable the self-organisation of their participants that in the case of SMEs,
can lead to improved business networking, greater competitiveness and a better exploitation of new opportunities.
In these environments, businesses are represented by software components that exchange information,
create coalitions and find new opportunities to compete and improve their individual position within the
digital ecosystem but also for the benefit of the community they belong to. In this scenario, SMEs live,
interact, evolve and become extinct as natural species do in natural ecosystems, and working together,
create collaborative behaviour that leads to an improvement of the competitiveness of the whole set of
cooperating companies.
In order to be considered a digital ecosystem, the collection of autonomous digital entities must present
the following characteristics:
Complexity. According to (Lewin 2000), a complex system is one whose properties are not fully explained
by an understanding of its parts.
Self-organisation. Self-organisation is defined as the ability of complex systems to create new order
and coherence. It relies on the spontaneous emergence of order by the interaction of individuals in an
ecosystem.
Emergence. Emergence is a concept closely linked to self-organisation and evolution and it is defined
as the process which creates new order together with self-organisation.
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Co-evolution. Defined in (Mitleton-Kelly 2003) as the evolution of one domain or entity is partially
dependent on the evolution of other related domains or entities, it means that one domain or entity
changes in the context of the others.
Adaptation. Adaptation is an old concept from Darwin’s “Origin of Species” and it refers to the capacity
of individuals to adapt to a changing environment.
In addition to these principles, a DBE must be loosely coupled, meaning that each participant does not
need to expose the details of its internal work-flows and requires only that it presents a service interface.
Although DBE is a relatively new concept, recent projects like (OPAALS 2007) or (ONE 2006) have
shown its potential to promote collaboration. These initiatives focused on providing organisations in the
service industry with more sophisticated mechanisms to concentrate and publish services, improve negotiation
and facilitate learning.
Nonetheless, most of these tools use the Service Oriented Architecture (SOA) paradigm that, although it
has proved to be successful in works like (Briscoe and De Wilde 2006), do not permit to implement all the
characteristics of DBEs, limiting their use and potential. In that sense, Multi-Agent Systems (MAS)
emerge as a perfect alternative because fulfil all DBEs principles. Moreover, MAS have been applied
successfully in a large number of disciplines, from transport systems like (Balbo and Pinson 2005) to
medical automatic diagnosis systems like HealthAgents (Lluch-Ariet et al. 2008).
By definition, MAS facilitate the implementation of distributed architectures in which each entity is represented
by an autonomous intelligent agent which pursues its goals and executes its tasks trying to improve
its performance considering the conditions of the environment and interacting with other agents.
Despite the parallelism between both paradigms seems clear, it is difficult to find MAS approaches to
DBE and currently there is no application focused on SMEs. The work presented in (Muntaner-Perich and
De la Rosa Esteva 2007) and the EveSim simulation tool resulting from the OPAALS project are the only
initiatives to have succeeded in the creation of a multi-agent tool for DBEs but they failed on implementing
the concepts of natural ecosystems.
4. MADBE, a multi-agent digital business ecosystem for SME collaboration
In moving beyond the current approaches and understanding digital ecosystems from an artificial intelligence
perspective, MADBE represents the first ecologically inspired multi-agent digital business ecosystem
for SME collaboration. In MADBE, the digital entities (SMEs) are represented by agents with their
characteristics, services and needs. Therefore, the interactions with other agents are the representation
of business-business relationships.
Apart of the new technological approach, the step forward from similar initiatives is the introduction of
mutualistic ecological network concepts to define the business interactions. Digital entities are defined by
rules found in natural ecosystems in order to reproduce the characteristics of mutualistic networks, where
species interact in a co-operative way and benefiting each other. Additionally, as summarised in (Bastolla
et al. 2009), this type of network minimises competition and promotes species diversity and stability to the
network itself, resulting in an environment with a larger number of SMEs collaborating with each other
and establishing long-term mutual benefit relationships.
Following these principles, the agents in MADBE are defined based on the set of ecological concepts
presented in next section. This set of features are a starting point for designing the particular characteristics
of each of the entities willing to join the digital ecosystem and create the necessity, covered by this
study, to translate them into business concepts defining SME collaboration. In order to define the business
concepts to include in MADBE regarding SME collaboration, the author used the findings of (Estanyol
2010), a study which summarises why SMEs should co-operate, the problems they face adopting
collaborative approaches and the factors influencing interfirm collaboration effectiveness. Therefore, the
mapping process presented in next section is based on the results of that work, which permitted to understand
SME collaboration and to select only the relevant business concepts, discarding ecological concepts
with no applicability in the business domain and vice versa.
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4.1 Mapping ecological concepts to the domain of SME collaboration
The combination of natural ecosystems and the characteristics of real SME collaboration result in the
definition of the MADBE agents by the following ecological concepts:
Traits: a set of characteristics that define any entity within the system. In terms of SMEs, these traits are
related to the characteristics of the firm and its expertise/interest in collaboration. The following items
were selected in order to find complementarities and compatibilities between SMEs and facilitate partner
search and selection. They cover most of the factors identified to do with collaboration success and to
overcome the barriers to collaboration identified in (Estanyol 2010).
Number of employees.
Age of the company.
Type of SME (individual enterprise, SL, SA, association, other).
Goal. A short description of the firm’s global vision and main objectives.
Average employee education level (no studies, undergraduate, graduate, postgraduate).
Average age of employees (less than 25, between 25 and 35, between 35 and 50, more than 50).
IT skilled personnel (yes/no).
Technological capability (none, low, medium, high).
Management style (owners, owners with management studies, professionals).
Interest in co-operation (no interest, low, medium, high).
Previous collaborations (yes, number of collaborations/no).
Previous collaboration with the candidate (yes/no).
Currently involved in co-operation projects (yes, number of projects/no).
Level of satisfaction with previous collaborations (unsatisfied, low, medium, high, very high).
List of services and resources (core competences). An array of a dynamic list of services and resources.
The company has the option of adding non-existing items, making them available to other
firms and increasing the list of system known services and resources.
List of needs and resources. The same concept of the previous traits but about the needs of the
firms.
Degree of complementarity: the degree to which any trait of a given info-habitant is complementary to
another trait possessed by another info-habitant. In MADBE, for each service, a degree of complementarity
is given. It is normally a value between 1 and 5. For example, if a SME is looking for local transport, it
could specify a maximum distance from its location. In this case, the degree of complementarity depends
on the distance from the candidate to this location, the closest being the maximum. Although this ranking
method has been adopted as a standard approach to define the degree of complementarity, the possibility
of specifying different types of services and resources implies to treat each case individually and to
create a system which permits the users to define how they want to specify the complementarity of their
core competences.
Habitat and Meta-communities: habitat refers to the place where an organism most commonly occurs.
Basic market information like trend or the type of industry items is included in this section. Additionally,
MADBE also needs to include those characteristics of the environment which influence the activity of the
SME. In that sense, as it has been identified that SMEs look for external help and public funding when it
comes to collaboration, MADBE includes a couple of lists indicating the presence of collaboration agents
and funding organisations in the environment. In addition, SMEs tend to collaborate with firms from the
same area due their preference for face-to-face contact, which required the inclusion of the firm location.
On the other hand, meta-communities are aggregations of entities that belong to different habitats (or
regions) and that occasionally interact when certain conditions are met. This concept is important for
those situations when SMEs are looking to collaborate within the framework of a bigger association, not
individually.
Type of industry (monopoly, oligopoly, perfect competition).
Market trend (unknown, downward, stable, upward).
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Government regulations (low, medium, strict, very strict).
List of collaboration agents. Information about agents which can help and provide support to SMEs
during the collaboration process.
List of public/private funding organisations. List of organisations promoting and funding collaborative
initiatives.
SME Location.
A list containing the associations which the SME is a member (cluster, science park, etc).
Niche: the niche is the “job” of the organism within the habitat. This concept groups those characteristics
about the interactions and role of the agent in the ecosystem. The niche concept is also useful in explaining
how seemingly similar species can coexist in the same community. In MADBE, the niche is the multidimensional
space composed by the identified characteristics of the habitat and the way agents interact
with their environment. Therefore, it is necessary to include the business context of the company and its
sector. Additionally, SMEs within small areas tend to have similar world-views and to speak similar languages,
which have been identified as key factors for collaboration success. It is for those reasons that,
apart from location and culture, it is important to include the languages known by the company. Finally,
the niche concept also explains how species from a specific habitat collaborate temporarily with species
from a different environment, which is why it has been included a parameter to determine the willingness
of the company to create new businesses in different business contexts.
Business context (local, national, European, international).
Business sector (research, innovation, product development, marketing, etc.)
Interest in creating new businesses in a different business domain (low, moderate, high, very high).
Languages. List of languages known by the company.
Size of the SME in relation to the market size (very small, small, medium, big, very big).
Employee mobility (yes/no). Parameter to detect the capacity of the company to send employees to
other companies for learning and transfer of knowledge purposes.
Fitness: a measure that is used to determine how well an entity is doing during its lifetime in the digital
ecosystem. An intelligent tool like MADBE needs fitness measures in order to evaluate the different options
during simulations and to provide the optimum results to the user. Unfortunately, there is no consensus
about a specific set of measures to determine the fitness of SME collaboration. Some authors
defend objective measures like the duration of the co-operation or the number of sales while others prefer
to consider the subjective perception of their participants. MADBE has two set of parameters in order to
implement both. A first group including basic accounting concepts and useful to evaluate the fitness of
the SMEs within the ecosystem and a second group including those parameters to evaluate the collaboration
process itself.
Individual SME performance:
Number of current collaborations. Useful to identify the role and the influence of the company in the
ecosystem.
Average of previous collaborations duration.
5 year annual turnover (i.e. sales).
5 year proportion of annual turnover of new products/services.
5 profit margin = pre tax net profit/turnover.
5 year RoA (return on assets) ratio.
5 year Liquid Ratio = (current assets - inventories) / current liabilities.
5 years percentage increase of number of employees.
Performance of the collaboration:
Reputation rate. An array of evaluations including the opinion about the SME from partners with
whom it has collaborated. A reputation mechanism to overcome the trust, credibility and compromise
problems and to evaluate the co-operation skills of the company. This measure permits to identify reliable
partners and discard partners that break collaborations or fail to carry out their assigned tasks.
Duration of the co-operation.
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Number of new products/services. The proportion of current sales from products newly introduced
during the co-operation.
Subjective perception (bad, neutral, positive, very positive).
Number of new jobs created.
Access to new markets (yes/no).
New relationships (yes/no).
The concepts of traits, niche and fitness have been employed for the design of the agents interacting and
living together within MADBE, and are therefore responsible for much of the behaviour displayed by them
in any given interaction. More details about the ecological concepts and their role specifying rules of interactions
and specific details of MADBE architecture can be found in (Lurgi and Estanyol 2010).
5. Conclusions
On the basis of the findings from the literature review, the author explored the current context of SME
collaboration and how Web 2.0 applications are changing the way individuals interact. By using current
examples, it has been demonstrated that nowadays users are able to self-organise themselves creating
communities in order to satisfy their needs independently of the traditional and external channels. These
communities facilitate the emergence of collaborative behaviour among the participants but businesses,
and in particular SMEs, are not taking profit of it.
In order to understand why, the author analysed the type of existing ICT tools, concluding that most applications
are not specifically designed considering SMEs needs and they focus on how improve their
current business practices instead of looking for mechanisms to create new ways of doing businesses.
In that context, the new paradigm of DBEs has been introduced as a possible solution to overcome these
problems and, after studying the existing alternatives, the work concluded with the presentation of
MADBE, the main contribution to research of this study and the first ecologically inspired multi-agent
DBE.
The author believes that DBEs can play an important role enabling and improving SMEs co-operation. In
line with Nachira, who in (Nachira 2002) proclaims that “DBEs produce an extraordinary competitive advantage
for SMEs”, the author thinks that DBEs designed and developed considering SMEs needs could
benefit them in the long-term and enhance their chances of competing with larger organisations.
In addition, the adoption of multi-agent technology in MADBE and the mapping between business and
ecological concepts found in natural mutualistic networks permits to define an application fulfilling SME
needs and truly inspired in ecology. Moreover, by treating SMEs as autonomous intelligent agents, the
system requires a minimum level of dedication and permits to analyse the individual behaviour of each
company in a collaborative environment.
At this point, it is important to remark that this work only covered the definition of the ecological concepts
from a business perspective, which is a fundamental step to demonstrate that the concepts explaining
natural mutualistic networks of interaction could be translated into the business domain and report benefits
for SMEs but the system is still under development and therefore, it has not been deployed to a real
market scenario and there are no results yet. It will take time to develop the system and convince SMEs
to use it in order to collect real data. In that sense, the current participation of the author in (EcoBusiness
2010) ensures the continuity of this research.
Another aspect to consider when evaluating DBEs as enablers for collaboration is that the utilisation of
any Web 2.0 tool is not enough to ensure collaborative success. In order to become part of Web 2.0 it is
necessary a change of mentality. E-business is more than e-commerce and it is not enough to use Web
2.0 tools for collaboration without a planned strategy. It is obvious that companies cannot take the same
risks as individuals and that their bureaucracy and risk aversion make sudden changes difficult, but it is
also true that Web 2.0 opens up a wide range of business opportunities for collaboration and cooperation
that companies should consider. In order to succeed, it is necessary that firms interested in
collaboration have a clear understanding of why they want to co-operate and which results they expect
before the process starts. Collaboration requires a favourable attitude and an analysis of the individual
characteristics of the participants in order to find complementarities and synergies while avoiding the
emergence of conflict.
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Francesc Estanyol
Finally, a positive consequence of DBEs is that business environments are represented as complex systems,
permitting to analyse and understand the principles of their formation, evolution and interrelationships
and exploit the research carried out in other sciences like biology, mathematics, computer science
or social science in the business domain. For example, by applying network analysis algorithms in a system
like MADBE would be possible to identify the key firms of the ecosystem, the “leadership companies”
or the ones who have a strong influence on the others. In that sense, MADBE will not benefit only the
involved SMEs but also third parties like public governments, who, for example, could use it to identify
which companies should receive more funding or those reaching undesired monopolistic positions.
Acknowledgments
The author wants to thank Miguel Lurgi for the specification of MADBE from an ecological perspective
and for the identification of the key ecological concepts to be included in the system. This work is part of
the EcoBusiness project, funded by the European Commission through the Seventh Frame work programme
Marie Curie Actions – Industry-Academia Partnerships and Pathways (IAPP). Grant agreement
no.: 230618.
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195

Ideas About Profitability in Research and Development and
the Selective Pressure From Management Accounting
Albrecht Fritzsche
Technical University, Darmstadt, Germany
a.m.fritzsche@gmx.net
Abstract: The selective pressure on the development of products and production technologies is not exerted directly
by customer demand, but by its interpretation in a company. The decisions on technical development usually take place
a long time before a product reaches the market on the basis of calculations about profitability in management accounting.
The profitability can depend on various factors, including production facilities, supply networks, intellectual
property, distribution channels and competition. The calculations that lead to decisions on an investment tend to be
very complex. Nevertheless, they do not represent fully realistic market conditions, but only a simplification for the sake
of reliable estimates. In a conventional simple evolutionary model of innovation, technical development does not express
expert knowledge. In addition, it adapts as much to the shortcomings of the financial calculations as to the
prognostic information they are based on. If the selective pressure from management accounting is high, technical
development is likely to focus on the exploitation of the missing cost factors in the calculations and neglect the reality of
market demand. In practice, innovations in research and development are not propelled by arbitrary change. Expanding
the conventional model, the expertise in research and development can be represented by introducing intentional
improvement operators. These operators show a potential to avoid unwanted directions of adaptation, which
gives reason to believe that common sense in research and development play an important role in avoiding detrimental
effects of incomplete cost calculations.
Keywords: computational models of innovation, investment decisions on R&D, technology assessment and management
accounting, simulation of evolutionary adaptation, profitability calculations and human expertise
1. Background
During the last decades, it has become very popular to use Genetic Algorithms for the solution of complex
computational problems. In contrast to conventional optimization techniques, such as gradient-based or
simplex-based methods, Genetic Algorithms require only a minimum of analytic representation of the
problem structure. They can therefore also be applied to problems with a very high level of complexity.
Genetic Algorithms represent a heuristic approach to problem solving. There is no guarantee that they
produce optimal results. Nevertheless, they have proven to be very useful in a large variety of different
scenarios, from factory scheduling over jet engine design to financial portfolio management (see Goldberg
2002).
Thanks to their success as a search method, Genetic Algorithms have become the object of extensive
scientific research. The concept of Genetic Algorithms is based on the principle of evolutionary adaptation.
Evolutionary approaches are quite common in many different disciplines, for example in economics, sociology
and philosophy (Dennett 1996, Broesel et al. 2007). In economy, evolutionary models are used, for
example, to describe the dynamics of technological change. While analytic approaches focus on the
identification of optimal economic transactions and the way how they can be achieved, evolutionary approaches
put the emphasis on the explanation of innovative processes in complex environments where
optimal, equilibristic states are unknown (Dopfer 2008).
2. Evolutionary approaches to technical development
2.1 Technology, economics and evolution
Evolutionary approaches in economy are strongly related to the idea of a dynamic relationship between
supply and demand on a free market. Consumption and production are interdependent: Consumers react
to price changes and the introduction of new products; producers offer goods up to the extent to which
selling them is profitable. Technical development, in terms of new products as well as new production
methods, is an adaptive process that can be compared to natural evolution, which, according to Darwin,
advances through repetitive arbitrary changes under selective pressure from outside (see e.g. Hodgson
1993). Finding exact economic correspondences for the reproductive processes in nature, the genetic
carriers of information and the genotype of adaptation is rather difficult. The general principle of evolution
as an adaptive activity without intentional direction, however, applies very well to the dynamics business on
an unrestricted market (see e.g. Broesel t al. 2007, Beck-Sickinger/ Petzold 2009).
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The idea to describe the development of trade and industry similar to the biological models of natural
adaptation and selection dates back to the late nineteenth century (Marshall 1890, Veblen 1898). In the
twentieth century, Joseph Schumpeter has been very influential with his evolutionary approach to innovation
(Schumpeter 1912). Schumpeter describes innovation as a source of continuous change, driven by the
search for competitive advantage of the companies on a market. After several decades in which economic
research showed little interest in evolutionary models, the approach regained increasing popularity during
the 1980ies (Hodgson 2005), mainly due to the seminal paper by Richard Nelson and Sidney Winter
(Nelson/ Winter 1982).
Evolutionary economics is a relatively open field of research, which has been influenced by various scientific
concepts, such as bounded rationality or complexity studies (Simon 2005, Frenken 2006). It is concerned
with both microscopic and macroscopic phenomena of economic adaptation and their dependency
on socio-cultural or administrative structures. It is characteristic for evolutionary economics to assume that
the economic development cannot be guided and controlled (comp. Dopfer 2008, Winter 2005). Nevertheless,
it is possible to influence the process of their adoption on a market, which depends on their representation,
distribution and the selective pressure exerted on them.
2.2 Simulated evolution in Genetic Algorithms
An important source of influence on the studies of evolutionary processes in general has been the development
of electronic data processing and the rise of modern information technology. Computers can
execute a large number of logical operations in short time; they are therefore a very useful tool to simulate
adaptive phenomena that are caused by the combination of many simple change routines. It also turned
out very quickly that it was possible to apply these simulations of evolutionary developments and similar
procedures in solving optimization problems in complex search spaces. For this purpose, the core elements
of the evolutionary process were formalised in the concept of what is now known as Genetic Algorithms.
Figure 1 shows a rough sketch of the design of Genetic Algorithms (see e.g. Goldberg 1998). The search
starts with a set of possible alternatives to solve the problem, called a population. In course of the search,
the alternatives in the population repetitively go through some changes, usually caused by mutations or
re-combinations of the alternatives.
Figure 1: Concept of evolutionary search in Genetic Algorithms
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Albrecht Fritzsche
As the genetic metaphor indicates, these operations are inspired by processes in biological reproduction.
With a mutation, certain characteristics of the alternatives are modified at random; a re-combination puts
together arbitrary characteristics from two (parent-) alternatives in order to create a new one. The operations
have no knowledge about the quality of the alternatives. The evaluation of the changes in the population
happens separately in a subsequent step of the procedure, where the best alternatives are selected
to form a new population. Since these changes are performed on alternatives which already possess
positive characteristics, it can be expected that the population will step by step develop into set of optimal
alternatives, similar to the survival of the fittest in nature.
2.3 Imitation and innovation
Genetic Algorithms are just one heuristic search method among many others, but they play an outstanding
role as a representation of evolutionary processes. In fact, Genetic Algorithms have widely replaced the
biological model of natural development as the point of reference for the concept of evolution, thanks to the
simplifications they provide and their implementation on computers. It is much easier to understand the
principle of evolution on the example of a Genetic Algorithm than by looking at the development of species
in nature, which retains importance as the origin and the symbol for the general importance of evolutionary
processes.
In particular, Genetic Algorithms have been used to research how technical change becomes possible.
According to David Goldberg, the basic reproduction methods of Genetic Algorithms, the mutation and the
re-combination, in combination with the selective pressure from outside, represent the two fundamental
activities in research and development (Goldberg 1998, Goldberg 2002). The combination of mutation and
selection describes continuous improvement processes as they are addressed, for example, by the kaizen
principle. This improvement leads to a higher efficiency of the processes that are already implemented. In
that sense, Goldberg understands it as imitation. The combination of selection and re-combination, on the
other hand, leads to improvement by a new arrangement of the single elements that define a technical
solution. The new arrangement changes the effect of technology rather than its efficiency. Inasmuch as
technology is defined by its effect, the result of the change can be considered as an innovation.
Topologically, mutations and re-combinations describe two different movements in the search space.
Mutations cause arbitrary small changes. Most of the original element of the search space remains intact.
Re-combinations, on the other hand, bring the characteristics of two different elements together. If such a
change had to be generated solely by mutations, it would require a huge number of steps. Considering the
selective pressure under which the changes are taking place, it is highly improbable that mutations lead to
similar results as re-combinations. At the same time, re-combinations are not very effective in generating
small changes of one original alternative.
In general, it is hardly possible to identify the best elements of the search space, if mutations or
re-combinations are used exclusively (see Goldberg 2002). Both of them have to be used together. For
some problems, it may be necessary to apply re-combinations more frequently than mutations; for other
problems, the opposite may be true. In addition, the size of the population is also an important parameter
for the success of Genetic Algorithms as optimization tools. Other parameters have also been researched
(Reed et al. 2001). Genetic Algorithms therefore are no "free lunch" (Wolpert/ MacReady 1997); they do not
provide a generally applicable solution technique. Instead, they have to be adapted to the given problem
situation. In Goldberg's model, this can be understood as the need for innovation management.
3. The influence of accounting on technical development
3.1 The paradox of heuristics and analytics
The strength of the evolutionary approach in the different fields of research is mainly due to the fact that it
shows how improvement is possible without knowledge of the reasons for preference (see e.g.
Beck-Sickinger/ Petzold 2009). It does not matter why certain alternatives are considered to be better than
others. It is only necessary to know that they are better in order to initiate the selection procedure. Apart
from the current set of alternatives and the operators to identify new alternatives, the evolutionary process
does not carry any further information. Economy, on the other hand, is the expression of a systematic activity
of understanding and enabling improvement. The idea of stable economic structures that do not
evolve themselves over time is contradictory to the evolutionary approach. Economic structures can be
considered as expressions of expertise in improvement, both in a deductive and an inductive way. The
notion of quantifiable goods and their prices represents, for example, certain ideas about what can be
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improved; the notion of trade and production represents certain ideas about the way how this improvement
takes place.
The strength of the evolutionary approach lies in the fact that it does not require any expertise to explain
improvement. Quite in the contrary, it shows how arbitrary change can lead to improvement under selective
pressure. Research in evolutionary economics is therefore confronted with one fundamental question: How
do evolutionary adaptation and economic expertise connect? The following pages give an example of such
a connection. They also show that research on Genetic Algorithms and similar search methods can help to
identify various different levels on which evolutionary adaptation and economic expertise come together.
Our study explores the relation between departments for management accounting and for research &
development. Both departments have a strong influence on technical change, based on certain systematic
activities to enable and assess improvement. At first sight, it might seem that the installation of these departments
contradicts the understanding of technical development as an evolutionary process. This paper
shows, however, that there is good reason to approach the interaction of these departments in evolutionary
terms. In particular, the paper uncovers certain parallels between technical development as an evolutionary
process and recent experiences with the application of Genetic Algorithms for optimization in complex
systems.
3.2 The split between entrepreneur and engineer
The high frequency in which companies introduce new products to a market makes it easy to forget that
technical innovation is a slow process. Cars, computers, cell phones or medicine require a long period of
preparation, both for research and development of the products themselves and for the establishment of
production facilities, skills and supply networks. The investments during this phase are considerable. The
most important decisions about technology therefore take place a long time before it enters a market. At
this time, however, there are no sales figures yet that could exert a selective pressure. Instead, the decisions
are made on the basis of estimates about the expected profitability as marketing and accounting
departments are able to supply them (see e.g. Trott/ Lataste 2005).
For the sake of a brief illustration, the difference between the reference to the market and the reference to
investment calculations in accounting can be, very roughly, described in the following way: It starts with
naming the dimensions in which the profitability of the innovation will be measured. This includes, for
example, the raw material and parts supply, labour, energy, maintenance and services as well as the
one-time effort to implement the production facilities. In these dimensions, the innovation can be expressed
as a transformation vector that shows the ratio of the quantity of the goods consumed in production to the
quantity of the good produced. Marketing research then provides estimates for customer demand and the
prices of the different goods. Knowing the implementation effort, the transformation vector of production
and the prices, it becomes possible to calculate the expected profitability of the innovation. If the evaluation
of the innovation referred directly to the market, it would not be necessary to establish these dimensions.
The profit could simply be measured by looking at the bank account.
As a consequence of replacing the market response as the selective pressure from outside by investment
calculations, the process of technical development is split in two. In the first part of the process, market
response in approximated in the dimensions of the calculation and the pricing vector. This approximation is
subject to constant change, because it is impossible to consider all sources of influence on the market. It
can therefore be understood as an evolutionary process by itself. Since an entrepreneur is essentially
somebody who discovers new ways to make profit, the approximation of market response for investment
calculations reflects the entrepreneurial approach to innovation. In the second part of the process, research
and development activities change technology under the selective pressure from accounting. Inasmuch as
accounting measures profitability in certain dimensions, this process resembles a multi-objective optimization
problem, with slowly changing objectives over time (see Table 1).
3.3 The complexity problem of profitability calculations
Considering the multiple dimensions of profitability, it is clear that the improvement of a product or a production
process with respect to material costs, product utility or any other single objective does not necessarily
lead to an overall better solution. Quite in the contrary, an improvement with respect to one objective
is most likely to have detrimental effects with respect to other objectives. The investment calculations
in accounting can display these effects, but it is quite a different question whether it is also possible to
predict them. Some directions of research and development may sound very promising in advance, but
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later turn out to be to expensive, considering all factors involved. This phenomenon is, for example, widely
known in supply chain management. It can be described as "over-complexity" (Klaus 2005).
Table 1: Appearance of objectives in technical development
Sequence Objective Activity
1. Maximize product utility. Increase efficiency and effectiveness of the product for the
customer.
2. Minimize raw material costs. Reduce material consumption, waste, and expensive substances.
3. Minimize labour costs. Reduce staff, reduce wages, and optimize external consulting
effort.
4. Minimize tax payments. Optimize distribution of costs, use government support measures.
5. Optimize maintenance intervals.
Adapt product to service infrastructure and competences.
6. Minimize supply risks. Optimize size of supply network and tier co-operation.
7. Optimize capital management. Adapt production to own capital, shareholder interest etc.
8. Minimize novelty conflicts. Reduce efforts for product implementation and version changes.
9. Optimize ecological impact. Reduce energy consumption, hazardous waste etc.
10. Optimize intellectual property. Reduce risk of copies by competitors, dependency on outside
patents, knowledge etc.
Assuming such a scenario of research and development activities, technical change and the decision about
its profitability must be understood as two separate procedures. If so, it makes sense to approach these
activities in terms of evolution. The creation of solutions and their evaluation and selection for further use
can be considered to interact as displayed by the boxes in Figure 1. It is important to note that the specific
expertise in marketing and accounting and in research and development does not contradict the idea of
evolutionary adaptation. In fact, the high level of sophistication of the work in the different departments
must be seen as the very reason why it is necessary to use an evolutionary approach: it is impossible to
combine all the expertise in both fields. The complexity of the task is so high that it requires a separation.
The success of the technical development as an overall optimization depends on various parameters. In
particular, the way how the change operators are applied has to be appropriate to the problem. Market
demand in general is not determinate enough to reflect this issue. The dimensions of the investment calculations
in accounting, however, provide very explicit information about the evaluation of the solution
quality. In that sense, the role of management accounting for the selection of technical solutions is easily
comparable to the role of a formal evaluation function in a computational multi-dimensional optimization
problem. Recent research on the design of Genetic Algorithms can therefore convey important insight into
the question of innovation management.
4. Evolutionary models and engineering expertise
4.1 Operators and landscapes
Goldberg discusses the task of innovation management as the design of a competent Genetic Algorithm. In
this context, competence means that the algorithm is able to identify good solutions. For Goldberg, this
depends on the question whether the operators are able to reproduce the good characteristics of previous
alternatives (Goldberg 1998). Topologically, the problem can be described as the question whether it is
easy to find a path from any given alternative to the best ones. This problem is addressed by the notion of
fitness landscapes.
A fitness landscape is a triple (S, q, N) of a search space S, an evaluation function q and a neighbourhood
structure N on that space. The neighbourhood structure is induced by the changes that an operator can
cause for a given element of the search space, for example by all the mutations that can be performed on
an alternative. For certain instances of the Travelling Salesman Problem, (Boese et al. 1994) have shown
that the landscape induced by a mutation operator on an intuitively plausible metric leads to a structure
shaped like a big valley on the search space. With respect to that landscape, local optima are situated close
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to one another and a simple heuristic search algorithm can calculate best solutions quite effectively.
(Reeves 1999) has extended this approach to a permutation flow shop scheduling problem using operators
for mutations, shifts and inversions of parts of the sequence. With reference to these operators, the landscape
on the search space provides easy paths to local global optima. (Knowles and Corne 2002) discuss
different strategies of search on a global assignment problem, developing solutions intently either in the
direction of better quality or somewhat "horizontally" to that direction once that good solutions have been
found.
In a complex multi-objective optimization problem, the direction of change that leads to better quality is
generally unknown. However, the single objectives suggest certain directions in which intentional change
can proceed. With respect to one dimension of the problem, these directions indicate the steepest ascent of
solution quality. Under the assumption that the different objectives of the problem are not fully contradictory
in their notion of good solutions, changes in these directions can be expected to have strong influence on
the overall fitness, too. It therefore seems sensible to introduce operators that work explicitly on the improvement
of solutions with respect to single objectives.
Recent findings about the application of heuristic search methods to order scheduling problems indicate
that such operators can indeed have a positive effect on the optimization procedure (Fritzsche 2009, see
also Solnon et al 2008). Genetic Algorithms for order scheduling show better results, if they do not only
execute arbitrary mutations and re-combinations but also constructive changes of the schedule with respect
to the given objectives. For example, it is useful to apply operators which can move items in the
sequences according to given constraints of minimal production distances or the due dates of the orders.
With reference to such constructive operators, the notion of expertise can be introduced to the model of
evolutionary adaptation.
4.2 Expertise in evolutionary procedures
Based on the study of fitness landscapes, the role of expertise in technical development can be explained
in terms of the directions in which intentional changes are performed. Management accounting defines
these directions by setting up the dimensions of the profitability model. The dimensions give orientation for
the efforts to improve technical solutions. Table 2 gives an overview over the different activities that contribute
to technical change with respect to the dimensions of profitability. These activities reflect the diversity
of the work in research and development as well as some other departments that are closely connected
to it. While Goldberg's model of technical change only involves two different operators, it seems more
adequate to consider the contributions of product designers, project managers, physicists, technicians and
engineers as many separate operators. All of them contribute in different ways and to a different extent to
improvement with respect to the single objectives.
Table 2: Expertise involved in technical development
No. Objective Activity
1. Maximize product utility. Product design and usability, marketing, social studies.
2. Minimize raw material costs. Physics, material research.
3. Minimize labour costs. Factory design, robotics, training departments.
4. Minimize tax payments. Project management, infrastructure planning.
5. Optimize maintenance intervals. Customer relationship management and service.
6. Minimize supply risks. Modular design, cross-company research.
7. Optimize capital management. Financial advice.
8. Minimize novelty conflicts. Change management and engineering.
9. Optimize ecological impact. Ecological auditing, systems engineering.
10. Optimize intellectual property. Legal departments, R&D administration.
The comparison of these activities with the constructive operators in Genetic Algorithms leads to an important
conclusion about the way how these activities facilitate technical improvement. They do not have to
be brought together in a systematic process of rational problem solving; technical improvement is also
possible in a more liberal scenario of interaction. If all different experts are free to contribute to the solutions
in whichever way they like, they can still evolve into something better, even if the single changes performed
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on the solutions seem highly contradictory. Innovation management, however, has to make sure that this
process takes place under a certain selective pressure of profitability. In addition, it is necessary to make
sure that the changes of the solutions do not become too big, because this would inhibit the interaction
between the operators. Small contributions to change, like the measures for continuous improvement in a
factory, can therefore play a huge role for evolutionary adaptation.
4.3 Expertise and the market
Genetic Algorithms using constructive operators show how technical development can proceed as an
evolutionary process in the presence of professional expertise. A fundamental problem of the whole approach,
however, has so far remained unmentioned: If technical development is subject to the pressure
exerted by management accounting, the solutions it creates can only be as good as the model of profitability
that is used in the investment calculations. Since this model can never be fully adequate to the reality
of market demand, it must be assumed that technical change always leads into a slightly wrong direction. It
will not adapt to market itself, but to the dimensions in which the profitability is measured. Technical solutions
will consequentially reflect all the strengths and weaknesses of management accounting. In particular,
the development will be detrimental with respect to all aspects of market demand that are neglected
in the investment calculations. If so, the development of technology can never fully meet the economic
necessities. In fact, one would have to expect that it is often led far astray.
The study of fitness landscapes, however, indicates that the evaluation function is not the only source of
influence on the direction of an evolutionary process. The neighbourhood topology also plays an important
role. The search algorithm can only identify solutions that are within reach of the operators applied under
the circumstances set by the population size and the selection technique. In that sense, the operators do
not only change the course of the search; they also set the boundaries of the areas in which the search
takes place. If the search space is very big, it is quite important to reduce the search procedure to a suitable
subset of the space in order to identify good solutions. If the operators perform very specific changes, the
subset in which the search proceeds can be rather small. The application of such operators is justified, if
they can be assumed to cover a subset of the search space that contains the elements with the highest
quality. Operators that perform changes in the direction of the dimensions of the evaluation function can be
expected to do so, if they are used interactively.
Considering this, it becomes clear that the direction of evolutionary processes is not determined exclusively
by the selective pressure under which they take place. The selection of the best elements can only cause
an adaptation in the boundaries set by the operators that generate new alternatives. It therefore would be
wrong to say that technical development is completely dominated by management accounting. Before it is
possible to select the best technical solutions, they first have to be generated by research and development.
Although the activities involved in research and development are related to certain dimensions of the
profitability model in accounting, there is good reason to assume that they are also influenced by the
common sense of the people involved. This influence becomes visible, for example, in the variations of
technical development between different cultures. Although one can assume that the profitability calculations
in competing companies are rather similar, the technical solutions that are generated in the various
European countries, America or China are quite diverse. It lies at hand to attribute these variations to the
fact that work in research and development is not solely guided by professional expertise in certain fields,
but also by general assumptions about profitable technical solutions.
5. Conclusion
The purpose of this paper has been to show how different activities in a company can be brought together
in an evolutionary model of technical change. Research on Genetic Algorithms gives evidence that systematic
procedures to define and execute improvement do not contradict the evolutionary approach. Industrial
implementations of Genetic Algorithms often use sophisticated evaluation functions that bring together
many different objectives. In many cases, specific operators are used to identify better solutions with
respect to one single objective. These operators can significantly increase the performance of the algorithm,
if the interaction between them is organized in the right way.
David Goldberg has repetitively claimed that the way how Genetic Algorithms produce change is closely
connected to human skills in technical development (e.g. Goldberg 1998, Goldberg 2002). This paper does
not give evidence that supports this claim, but it makes clear that the evolutionary search in Genetic Algorithms
can serve as a reference for a model of technical development in a complex economic context.
The concept of Genetic Algorithms gives an explanation how the investment calculations in management
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accounting and the technical change procedures in research and development can interact as two separate
processes. In addition, Genetic Algorithms using sophisticated operators show how it is possible that
the direction of technical improvement deviates from the selective pressure of profitability. In the future,
studying Genetic Algorithms may allow further conclusions about innovation management.
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203

Case Study on Information Evaluation by GIS for Aging
Society Urban Planning: GIS Application on Urban Planning-
Hiroatsu Fukuda, Yupeng Wang and Kiyoshi Shinriki
The University of Kitakyushu of Japan, Japan
fukuda@env.kitakyu-u.ac.jp
y09e0101@hibikino.ne.jp
shinriki@hq.kiu.ac.jp
Abstract: Japan’s aging society and shrinking population are leading to serious problems, including a declining level
of community vitality in most of Japan’s secondary cities. Structural changes in Japan’s population are expected to
continue for the near future, making sustainable urban design and renovation more important than ever. Proper
urban design must seek and evaluate the relevant social information. This research presents a typical case study
using a new information evaluation method, the Geographic Information System (GIS), against the background of an
aging and shrinking society. It is carried out in Yahatahigasi-ku, a ward in the city of Kitakyusyu, Japan. The ward’s
land is characterized by steep slopes, which are inconvenient for aged people and reduce their outdoor mobility.
Moreover, most of the ward’s houses are over 30 years old, the average lifespan for houses in Japan. The quality of
the houses is inadequate to the demands of modern life, perhaps explaining the area’s inability to retain its youth. As
a result, the shopping districts of Yahatahigasi-ku, prosperous in the 1950s and 1960s, are declining in proportion to
the number of deserted houses This research explores GIS design approaches as configured for an aging society. It
discusses the important factors that flow into an urban design meant to address a declining population, such as the
plot ratio, the mixing of commercial and residential spaces, and the placement of public facilities for the aged. The
city planner must find the most suitable area for planning. Sustainable urban design requires that new elements be
introduced into the traditional configuration; the constructional style of buildings in a mixed-use area will reflect the
character of the district. This study considers the GIS urban planning method as a development of the GIS
application. We see here the importance of geographic information to urban planning. This paper will exemplify the
importance of sharing informational evaluations to the urban planning process. In this paper, a case study of Japan
was investigated. It makes contribution on urban regeneration for aging society that also appropriate for cities outside
Japan.
Keywords: urban design, GIS, aging society, compact city, migration
1. Introduction
Urban design tends to correspond to the development of the city. One consequence of Japan’s declining
population is that its shrinking housing density is reducing the utilization of cities’ public facilities. The
results of GIS condition analyses allow us to identify the sites most in need of innovation. Information
evaluation by GIS would be a crucial component of this planning method. This study proposes that
reducing the size and compacting the functions of its cities would solve Japan’s social problems. Efforts
to cope with reduced utilization efficiency by reducing city sizes have not been well executed but
represent an important facet of dealing with our globally aging society. This proposal should be qualified
to meet the special requirements of the aged, who tend to retain a traditional attitude towards the street
that may no longer be suitable. Other, newer elements are also indispensable to sustainable city
planning. These new elements could evolve from traditional ones, connecting different generations. This
study analyzes factors such as the plot ratio, the building type, the mixing of commercial and residential
spaces, and the locations of public facilities for the elderly.
2. Background and goal
Aging society and the diminishing population are getting more serious in Japan, leading to related
problems, such as the declining vitality of communities in most of the secondary cities. This tendency of
the population and its structural change is supposed to continue in near future, thus makes the
sustainable urban design urgent.
Japanese average life span is 78.6(men), 85.5(women) in 2007 the longest in the world. The population
ratio over 65 years old is 22.8% in 2009, largest in the world. As the prospects in 2055, by the research
conducted by Japanese government in 2005, the population will decreased from 127.8 million to 89.9
million. The average life span will be 83.7(men), 90.3(women). The population ratio over 65 years old will
be 40%. According to this result, aging society problem will grow into a serious problem in the further.
The industrial structure of Yahatahigasi-ku has totally changed over the last 50 years in tandem with
changing lifestyles. In 1960 to 70, Kitakyushu supported Japanese rapid economical growth, through the
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aggregation of such material industries as the steel, chemical, metal and ceramic industries, which began
when the government-managed Yahata Steelworks, the largest steelworks in Asia, which was founded in
1901. Yahatahigasi-ku, the biggest industrial area of Japan, was deeply affected by the changing times.
Today, the material industry moved to the Asian countries, high-technology industries including industrial
robots, IC-related products and biotechnologies are being generated. The shopping streets of
Yahatahigasi-ku, prosperous in the 1960s and 1970s, are in decline, as the proportion of deserted
houses increases; a new plan for urban regeneration is expected. Yahatahigasi-ku’s problem exists
throughout Japan and other developed countries. An approach to the reconstruction of these typical old
towns will be discussed in this paper.
3. Methods of research
We will first analyze the existing condition through GIS and propose a construction site based on a
comprehensive understanding of the site information evaluation and contracting studies.
The date of population was obtained from web side of Kitakyushu city. The landform current situation and
the distribution of living facilities of Yahatahigasi-ku were inspected by field trips. All of the dates are
collected and synthesized by GIS
The building typologies with new elements appropriate for the elderly will be proposed.
4. Case study
Yahatahigasi-ku is a ward in the city of Kitakyushu, where Yahata Steelworks is located and the people
who work for the company live. The population here is decreased from 81,956 (1988) to 73,162 (2008)
and the population ratio over 65 years old is 30.2% now. The land here is characterized with the steep
slop which is inconvenient for aged people and reduces the chances of their outdoor activities.
On the other hand, most of the houses here are used far more than 30 years, the average lifespan for
houses in Japan. The quality of the house is not adequate for the modern life which may be responsible
for the losing of young people.
4.1 City size reduction
Figure 1: Overview of Yahatahigasi-ku
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As shown in the overview of Yahatahigasi-ku, most areas of this ward are mountainous, with steep
slopes. Many residential areas were built for employees during the period of Japan’s industrialization.
Therefore, housing developments extended to the steeply sloped areas as the city grew. The proportion
of retirees has increased over the last 50 years; meanwhile, young people have been fleeing the city
because of its unsuitable living conditions. Thus, the concept of “compact” is an appropriate response to
the ward’s decline. First, we must designate a proper site.
As shown in Figure 2, the steeply sloped areas on the mountain pose an acute problem: access by car is
impossible; one can only walk after the slope begins, making it hard for inhabitants to perform daily
outdoor activities. The elderly, in particular, who have to get to nursing facilities and go shopping, cannot
bear the necessary effort.
Figure 2: Pictures of the residences on the steeply sloped area
This ward has five cultural zones. Two of those are on the steeply sloped area, as shown in Figure 2, and
three lie on a flat area. Four main roads cross in the central zone; there is a railway station near the flat
area that is conveniently accessed from outside the ward. There is a famous theme park, “Space World,”
the biggest commercial area in this ward, and an area boasting three museums and other public facilities.
City functions are already densely compacted here. Based on its merits, the central zone on the flat area
was selected as the best site for innovation.
4.2 Inhabitant migration proposal with information evaluation by GIS
Figure 3 shows the designated migration-in promotion area, migration-out promotion area, and the buffer
area. The study proposes an inhabitant migration from the sloped area to the flat area based on an
examination of the aging population and the old dwellings on the slope as analyzed by the GIS. Many
residences were built on the steeply sloped area. To solve the environmental problems produced by the
steep slope, flat areas were chosen as the object region for inhabitant migration. The migration is
expected to reduce the size of city and compact it, improving the efficiency of city services and facilities.
Migration-out promotion areas are those with high slopes and high ratios of elderly—where there is,
roughly, a level higher than 80m and a slope degree higher than 5. We propose to keep inhabitants from
moving in and to encourage them to move out of this area.
Migration-in promotion areas are flat with convenient traffic and public facilities—where there is, roughly,
a level lower than 40m and a slope degree lower than 3. In addition the areas where is anticipated to rich
of these facilities in the further.
Buffer areas lie between migration-out promotion areas and migration-in promotion areas. Government
offices and universities are situated there. Migration-out areas will become sparsely populated during the
process of migrating-in. In the buffer areas, sparse landscape, community decay, and crime in streets full
of abandoned houses could be alleviated by adding public facilities and encouraging more human
interaction.
A high density of population and buildings is required to keep public facilities efficient. Inhabitants living in
migration-out promotion areas cannot access public facilities conveniently; meanwhile, those public
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facilities will decay as population density decreases. Sustainable city planning must compact city
functions and increase population density.
Figure 3: Object region for inhabitant migration
Figure 4: The situation of public facilities
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4.3 Share-ride taxi
Hiroatsu Fukuda et al.
The share-ride taxi is a kind of conveyance that can take a maximum of 10 people a short distance. It
normally services only one or two residential areas. It does not use a designated station and can stop
and collect passengers anywhere along its route. The price of a share-ride taxi is lower than that of a
normal taxi and is more convenient for the aged than the bus. It can be used for daily shopping or other
short errands. We can expect this form of sharing to lighten the city’s traffic. This system has been
successfully introduced into many areas of Japan.
Figure 5: Pictures of share-ride taxi (http://www.asagiri-town.net/q/aview/102/687.html)
Two share-ride taxi routes are proposed for the central zone. Route 1 is a circle connecting a big hospital
and the old residential areas with the steep slope on the mountain. Route 2 is a circle connecting a big
shopping centre, three museums, and the theme park. Route 1 and 2 cross at the mixed-use area. The
operational hours are to be from 9 am to 5 pm. The full route will take around 20 minutes to travel. It is
now used mostly by housewives and students.
Most of the facilities on the routes could not be reached by bus from the mixed-use area. Life would be
made more convenient for the aged if their public facilities were connected. The GPS (Global Position
System) allows users to pinpoint the location of their taxi in real time on their mobile phones.
Figure 6: Routes of share-ride taxi
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Figures 7 to 9 show the image of each stage of the Share-Ride Taxi Rolls. Initially, share-ride taxis will
connect the mountainous areas with the flat commercial areas.
Figure 7: The first stage of share-ride taxi rolls
Figure 8: The second stage of share-ride taxi rolls
Figure 9: The third stage of share-ride taxi rolls
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Hiroatsu Fukuda et al.
After 10 years, the population density of the flat area will increase with the addition of the inhabitants from
the sloped area. The taxi route in the flat area is proposed for the elderly and others (like students) who
cannot drive.
After 20 or 30 years, the taxis will connect several central regions in the flat areas. Given the results of
the inhabitant migration program, routes connecting the mountainous and flat areas will not be
necessary. Taxi routes in the flat area should enhance the convenience of the compacted city area.
4.4 Site analysis
Figure 10: Public facilities Figure 11: The zoning of city functions
The central zone used to be a gateway into the residential area, through which employees would pass on
their way home from work. We will explore the character of the central zone, analyze the relative
positions of some of its facilities, and discuss the city’s zoning function.
The central zone mixes commercial and residential uses. In this mixed-use area, all necessary city
facilities are located within 500m of the center and are thus conveniently accessible. This mixed-use area
is therefore suitable for habitation.
A city axis extends from the station, goes through the mountainous area, and passes through the
mixed-use area. There should also be a green axis extending from the mountainous area, in order to
strike a balance between the city and nature.
As an urban planning restriction, the maximum plot ratio for the mixed-use area is 500%. However, the
actual plot ratio is much lower than that, as it does not take full advantage of existing city functions. To
maintain a bustling city community, both the population density and plot ratio should be increased.
The mountain at the south side of the site is key to the landscape. We propose to take advantage of the
view of that mountain. This can be achieved through the appropriate building disposition and
building-type analysis.
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Figure 12: Restriction of plot ratio
4.5 Building-type analysis
Hiroatsu Fukuda et al.
The maximum plot ratio for the mixed-use area is 500%. To achieve a residential building style through
sustainable urban design, we must consider three functions of the building under the plot ratio restriction.
Figure 13: Land use zoning in 3D space
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Commerce: commerce affects the activity on the street and should thus occur on the lower floors, not
only for the sake of daily shopping but also for amusement. The main target is youth who live elsewhere.
The plot ratio for commerce is about 100%.
Service facilities for residences: considering our aging society, service facilities for the local elderly are
located on the higher floor: this makes them easier to access and somewhat separate from activities on
the street. The plot ratio for residential service facilities is about 100%
Residences: we will draw contrasts among 5 building types in order to discuss the way the residential
environment is linked to the plot ratio, the number of plies, and the construction styles. We expect to see
high buildings with low plot ratios.
Three types of relationship between building and street are contrasted.
Figure 14: Building types
Effective ventilation, solar irradiation, and privacy can be ensured by changing the residence into a slim
tower; this way, the public space will be used only by residents.
Type 1: face onto the street
Commerce on the lower floors is close to the street. The facade of the Japanese traditional street can be
maintained.
Type 2: Increase greenery
Set the lower floors back and introduce a green area in an open space, though this would differ from the
traditional Japanese style. A slim building also increases the amount of sky an inhabitant can see from
the street. Type 2 takes advantage of the city’s rich and varied local character.
5. Conclusion
This paper analyzed a method of urban design for an aging society through a case study that applies GIS
to a Japanese city, Yahatahigasi-ku, once considered a leading city during Japan’s industrial age. A GIS
information evaluation leads us to propose a method of urban reduction that requires compacting city
functions, connecting access points to public facilities, and improving the residential environment.
Introducing GIS is crucial to achieving the goal of designating a suitable site for inhabitant migration. The
ideal site is the central zone, once an important ward gateway.
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Therefore, it is imperative that the city planner find the most suitable area for planning by way of a site
information evaluation. Additionally, formulating a sustainable urban design requires that new elements
be introduced into the traditional configuration. Ultimately, the constructional style of buildings in
mixed-use area will reflect the character of their district.
Acknowledgments
The authors wish to express their appreciation to “Revitalization of Local Area Project” for providing the
subvention for this research.
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213

Distortion Free Algorithm to Handle Secondary Watermark
Attack in Relational Databases
Sajid Iqbal, Azhar Rauf, Huma Javed and Shabir Ahmad
University of Peshawar, Pakistan
sajidiqbal84@gmail.com
rauf.azhar@yahoo.com
humajaved15@yahoo.com
shabir_usmany@yahoo.com
Abstract: Publishing data over the internet has greatly facilitated the ways of data transfer and file sharing but
opened new threats of piracy and copyright violations. The technique of relational database watermarking is used to
protect digital assets by embedding imperceptible watermarks into the data before publishing. Relational database
watermarking got inspiration from digital watermarking and efforts are being made to protect databases from such
attacks by embedding watermarks. Database watermarking has been an active area of research for the past few
years. This process causes distortion of data and may affect the quality of information and reporting. A novel
approach is proposed to embed non-visible Unicode character spaces as watermark instead of changing the least
significant bits of numeric data, which avoids distortion of the data. Similarly in the previous works, watermarks were
embedded in numerical data only while our technique is applicable to character type data which is another novelty of
the proposed technique. Researchers have identified different types of attacks against the databases. One of them is
secondary watermark addition attack. The proposed technique provides a distortion free solution to protect the
database from secondary watermark addition attacks. The owner’s private key along with a timestamp issued by a
trusted timestamp authority is embedded to protect the database from the threats of secondary watermark addition
attack. Instead of involving the third party at a later stage, we propose its involvement at the stage of watermark
construction. The third party will keep the record of timestamps, issued against owner’s encrypted key, and database
for which the timestamp has been issued. Experiments have shown that our algorithm is effective even after changing
90% of the contents of database by the attacker. The proposed technique not only takes care of the secondary
watermark addition attack but also other types of attacks for example subset attacks and bit attacks.
Keywords: relational database watermarking, secondary watermark, trusted time stamping
1. Introduction
In the current age of Technology, data is on the move. People can transmit data over the internet or copy
it from different locations. The protection of digital assets like images and videos from piracy and
copyright protection is done through watermarking. But to protect databases from piracy, little effort has
been done so far.
Watermarking Relational databases got its inspiration from digital watermarking. In relational databases,
watermarks are embedded in the least significant bits of numeric values of some specific columns of
selected records (Agarwal 2002) (Hu 2009) (Zhang 2004) (Li 2005) (wang 2008) (Cui 2008). The
selection of these records and columns is based upon some hash function applied to owner’s defined
key, image, voice or fingerprint (Agarwal 2002) (Hu 2009) (Zhang 2004) (Li 2005). Information hiding
using watermarking technique causes some distortion but it is assumed that this distortion is acceptable
(Agarwal 2002) (Hu 2009) (Zhang 2004) (Li 2005) (Wang 2008) (Cui 2008). Later on, if at some stage the
real owner suspects the piracy of his database, he can use the watermark detection algorithm to recover
the hidden pattern and thus prove his ownership.
In this paper we present a better approach to watermark relational databases. We thus propose a novel
distortion free algorithm to protect relational database assets from reversibility and secondary watermark
attacks. In our proposed scheme, an identification image is used as a watermark embedding information
which proves the copyright information. The proposed algorithm is resistive to different kinds of attacks
including benign updates, malicious attacks, reversibility attack and secondary watermark attack.
Rest of the paper is organized as: Section 2 gives a brief introduction to secondary watermark addition
attack. Section 3 describes the existing work regarding secondary watermark attack in relational
database watermarking. Section 4 describes the notations used and the proposed algorithm for
watermark insertion and detection. Section 5 shows some experimental results and analysis and finally
section 6 concludes this paper.
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2. Secondary watermark addition attack
Sajid Iqbal et al.
Watermarking databases and digital assets has gained enormous attention from researchers since the
term was coined by Agarwal et al. (Agarwal 2002). One of the many reasons behind this effort is the fast
movement of data across internet and many file sharing services for sharing and transfer.
So far, different types of attacks have been observed against the relational databases causing piracy and
copyright conflict including benign updates and malicious attacks. One of the important attacks in this
regard that causes ownership conflict is secondary watermark addition attack. In secondary watermark
attack, the attacker simply successfully discovers an unreal watermark and then fraudulently embeds his
own watermark. Using that watermark he can claim his ownership, thus causing ownership conflict. It
cannot be confirmed which watermark was embedded first. The scenario of secondary watermark attack
can be shown as follows:
The real owner of relation embeds his watermark WR to the original Relation RO using some private key K
as:
WE (WR, K, RO) Watermarked Relation where WE is a function that embeds watermark to the
relation.
An attacker finds an unreal watermark WR' although he doesn’t have access to the watermarked relation.
He embeds a false secondary watermark to the database in order to prove his ownership. The addition of
secondary false watermark to an already marked database can be shown by a scenario as follow:
WE' (WR', K', Rw) Watermarked Relation
Where WE' is the fraudulent operation that embed unreal watermark to the marked relation Rw.
Now the relation contains the watermark of two different persons, the real owner and the attacker. This is
hard to prove the ownership of a relation as both the persons can run their algorithm and thus detect their
respective watermark.
Embedding a secondary watermark to a watermarked relation can cause Destruction.
3. Related work
Relational database watermarking for copyright protection and piracy protection is one of the major
research areas now a day. Different approaches have been adapted to tackle with piracy attacks. But so
far there has been no prominent achievement to handle the secondary watermark addition attack in
relational database.
(Dong 2009) proposed the insertion of characteristic code as watermark information to take care of
invertibility attack. In their proposed approach, the characteristic code is calculated by selecting an even
number of attributes from the relation and calculating the average value of each attribute. Next the even
number of attributes is divided in pairs and members of each pair are compared with each other. And
finally string of bits to be watermarked is calculated by taking XOR of compared attributes. When
ownership conflict occurs, owner can prove his ownership by the help of characteristic code. But a very
obvious shortcoming with this approach is that in order to prove the ownership one must have original
database relation which goes against one of the primary characteristics of database watermarking
“Blindness” as defined by (Agarwal 2002)
(Gupta 2009) proposed another watermark technique, resilient to secondary watermark addition attack.
They claim that their technique is resilient to benign updates, additive attacks and bit attacks. They insert
watermark information to float value attributes. In their proposed approach, initially a tuple and then an
attribute is selected for the insertion of watermark information. After selection of attribute value, a bit is
removed from integer part of the target value and is added to float value of the same attribute. In this way
distortion is produced in both integer and float type values.
An obvious shortcoming with their technique is that it is applicable on the float type attributes only. Very
few relational databases have float type attributes. . They are producing distortion to both integer as well
float value of the attribute causing distortion at maximum level. Furthermore, data containing float values
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Sajid Iqbal et al.
have more precision and can accommodate distortion to minimum level. They propose that their
technique is resilient to secondary watermark addition attack but after the addition of secondary
watermark attack to their watermarked relation, there is no way to find out which one of the watermark
was embedded first.
(Gupta 2006) proposed an algorithm for embedding watermark information to relational databases which
is based upon the difference expansion of attributes values. Their technique selects two attributes from a
single record and then on the basis of their difference, watermark information is embedded to selected
attributes. Insertion of watermark is based upon the difference of attribute values.
One problem is that they select two attributes from a single record which causes maximum distortion at
record level. Furthermore, they claim that their technique is resilient to secondary watermark addition
attack but after an addition attack, there is no way to find out which watermark information was
embedded first to the relation?
4. Proposed algorithm
In this paper, we propose a novel algorithm to handle secondary watermark insertion attack. The main
idea of the proposed algorithm is as follow:
Database Owner calculates his watermark string by applying one way hash function which is SHA-1
(SHA-1 NSA) in proposed case to his private key ko. He then sends his encrypted key to a Trusted Third
Party which acts as a Time Stamping Authority. Time Stamping Authority (TSA) appends Trusted Time
Stamp τ to the owner’s key and sends back the new key k to owner which is now owner’s key plus
trusted time stamp. Then on the basis of trusted time stamp appended to owner’s key and percentage of
watermark ω decided by the owner, a Unicode non-visible character Hair Space is embedded to
calculated attribute for specific tuple.
In case of an ownership conflict, owner can prove himself as real owner by regenerating his watermark
information. Time stamp appended to the key proves that the watermark of claiming owner was
embedded first in case of any secondary watermark attack.
Our proposed algorithm is more robust as we are providing a two-level encryption security to the owner’s
key. Besides a third party is involved at watermark insertion stage.
4.1 Watermark construction
Watermark information (trusted time stamp appended to owner’s key) is a series of binary string which is
calculated by applying one-way hash function to owner’s key which is actually an image converted to
binary string in our case. Then appending trusted time stamp to the key and again applying one-way
hash function.
Trusted time stamp is issued by trusted third party who acts as time stamping authority. Time stamp
records the occurrence of a specific event at a specific time. Steps included in construction of watermark
can be summarized as follow:
Apply one-way hash function to owner’s key k which is private only to the owner.
k = H (ko) where ko shows the owner key.
Owner after applying hash function to his key sends it to Time Stamping Authority. They append Trusted
Time Stamp to it and again apply a hash function.
k = H (ko $ TTS)
Once trusted time stamp is appended to owner’s key and hash function is applied upon it, the final key is
sent back to the owner. The watermark bit string k which is now time stamp appended to owner’s key is
embedded to the relational database to be watermarked.
The watermarking procedure is shown in Fig 1:
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Figure 1: Watermark construction process
4.2 Watermark insertion
Sajid Iqbal et al.
In contrast to current approaches, we propose a unique method for watermarking which does not cause
any distortion at all. Instead of changing some least significant bits (LSB) which are mostly exposed to
bit-flip attack and alteration attacks, we add a non-visible character space which is Unicode Hair Space
to non-numeric attributes. Unicode hair space is a character space which is invisible, smaller than a
usual space and does not produce any distortion at all.
In order to distribute the watermark equally along the relation, the embedding process is cell-based. Up
till now approaches have been adopted to embed watermark by first selecting a tuple and then specific
attribute for that tuple.
We are adopting cell based approach in order to distribute our watermark uniformly. The whole relation is
considered as a one-dimension array of data elements and then watermark is embedded to them.
A one way hash function is applied to owner’s defined key. The resulting bit string is sent to trusted third
party, where a Trusted Time Stamp (TTS) is appended to the bit string and again a hash function is
applied to the resulting string. The final key which is the owner’s defined key and trusted time stamp is
returned to the owner.
The embedding algorithm is described as: whereas table.1 shows list of notations used in algorithm
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Table: 1. Notations used in this paper
Sajid Iqbal et al.
Symbol Description
Η Number of tuples in relation
Ε Number of attributes in relation
Γ Total Number of Cells in Relation (η * ε)
Ω Percent of cells to be marked
N No. of cells to be marked
K Final Secret Key
Τ Trusted Time Stamp
Algorithm 1: Watermark insertion
// Insert a watermark to relation R and return watermarked relation Rw
// Parameters k, τ, ω all are private to the owner
1. Calculate total Number of cells γ = η * ε
2. Calculate number of cells to be marked N = γ * ω
3. While marked_cells ≤ N
i) if bit [H(ko concatenated τ)] = = 1
ii) Add double space to Cell contents
iii) Else add a single space
iv) Increment bit stream of [H(k concatenated τ)]
v) marked_cells = marked_cells + (γ / N)
5. commit
6. return Rw
Some of the parameters including Key ko, time stamp τ and percent of cells ω to be marked are private to
the owner and are decided by him.
First of all in step 1 the total number of cells ‘γ’ in a relation is calculated. It is done by multiplying total
number of tuples ‘η’ in a relation across total number of available attributes ‘ε’ to be marked. In step 2 we
are calculating the number of cells N to be marked out of total available cells. The calculation is based
upon the percentage of watermark as decided by owner. Once the calculation is done, the loop starts
marking the specified cells according to the private key. If the bit of watermark string is binary ‘1’ then
double Hair Spaces are added to the contents of cell under consideration and if the bit is binary ‘0’ then a
single Hair Space is added to the contents of cell. Once all the required cells are watermarked, the
operation is committed and a watermarked relation Rw is returned.
4.3 Watermark detection
If the owner of a database suspects piracy at some stage or there is a secondary watermark attack on
his relation, he can prove his ownership by simply running watermark detect algorithm. Detection
algorithm will successfully retrieve owner’s key and the trusted time stamp which can prove his real
ownership showing that owner’s watermark was embedded first.
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As the watermark was embedded uniformly across the relation using cell based approach, detection
algorithm will retrieve the whole pattern.
The detection algorithm is described as follow:
Algorithm 2: Watermark detect
// Search relation R, extract time stamp τ and Key k
// Parameters k, τ, γ all are private to the owner
1. bit_stream = ‘’ //retrieved bit stream from relation
2. Calculate total Number of cells γ = η * ε
3. Calculate number of marked cells N = γ * ω
4. Search relation for desired character
5. While cells ≤ N
i) if cell[contents] contains double space
ii) append ‘1’ to bit_stream
iii) else
iv) cappend ‘0’ to bit_stream
6. Return bit_stream
In case of any piracy suspect or ownership conflict owner will run his watermark detection algorithm. First
of all number of cells are calculated and then on the basis of percentage of watermark decided by owner
at the time of insertion cells are searched for the desired pattern.
On successful completion of detection algorithm, the results returned by detection algorithm are checked
against a pre-defined threshold. If detected pattern reaches the threshold α ownership can be confirmed.
5. Experiments and results
The database that we used in our experimentation contains 14 attributes out of which 8 were numeric
and 6 were non-numeric with one primary key attribute. 30,000 tuples were selected for experiment. We
ran our algorithm on Intel dual core 2 GHz with 2 GB of RAM and running windows XP as operating
system.
5.1 Resistance against secondary watermark attack
The basic purpose of our proposed algorithm is to handle Secondary Watermark attack. An attacker can
add his factitious watermark as a secondary watermark to already marked database. In order to achieve
this, attacker simply follows following steps:
1. Take any factitious key Kf, apply some processing on it and prepare it as watermark string.
2. Randomly select tuples and attributes for the addition of watermark string. Then randomly change
the least significant bit, changing ‘1’ to ‘0’ and ‘0’ to ‘1’.
3. And finally claiming the ownership of the database by retrieving his own fraudulently added
watermark to prove his ownership.
Since the attacker adds his factitious watermark after the embedding of original watermark, real
ownership can be easily found. Whenever ownership conflict occurs, the real owner can retrieve his
watermark which is actually his private key and Trusted Time Stamp representing the time at which the
watermark string was provided and possible time of publication of database.
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In our experiments, a secondary watermark addition attack was simulated. A secondary watermark was
added to a watermarked database, producing some distortion in attributes for randomly selected tuples
with % of tuples selected for watermark was greater than that of actually embedded watermark.
Then actual watermark detection algorithm was run. The detection rate of actual watermark was 99%.
The retrieved string was the owner’s key and trusted time stamp which was the same as provided by
trusted third party and same as date of publication of database. The retrieved string finally proved the
ownership of real owner.
5.2 Resistance against benign updates
Along with handling secondary watermark attack, our proposed algorithm is highly resistant to subset
attacks such as subset deletion, subset addition and subset selection attack. We simulated all these
attacks against different ratio of ω = 90% and 50%. Although the proposed technique does not produce
any distortion at all and hence can be applied to entire candidate records but we did not simulate such
scenario.
5.3 Subset selection attack
In the subset selection attack, an attacker simply selects a part of the relation R. In our experiments we
selected different number of tuples from relation R which was watermarked to two different extents i.e.
with ω = 50% and ω = 90%. Experiments showed as shown in Fig. 2 that at both stages our watermark
pattern was found in more than 75% of tuples which was quite enough for the claim of ownership. In the
first go, 90% of total relation was watermarked and then the same relation was embedded with 50%.
Figure 2: Detection rate on subset selection with ω = 90% and 50%
5.4 Subset deletion attack
In subset deletion attack, the copy right violator deletes a subset from the relation R in order to temper
the imperceptible watermark and hence cause the ownership conflict. In our experiment we simulate the
subset deletion attack by deleting at maximum of 90% of tuples and the watermark was still found at a
very good ration as shown in Fig. 3.
5.5 Subset alteration attack
Subset alteration attack is little different in nature from subset deletion and subset selection. In this kind
of attack, the attacker randomly selects attribute values for tuples and changes their least significant bits,
i.e. flip 1 to 0 and 0 to 1. In our simulated experiments, our algorithm proved very robust against this kind
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of attack, as we are not producing any distortion in numeric fields. Simulated results against this kind of
attack showed 100% detection of embedded watermark.
Figure 3: Detection rate on subset deletion with ω = 90% and 50%
6. Conclusion
In this paper we propose a novel approach to handle the secondary watermark attack. Up till now,
approaches have been used to embed a private key only. We embed an identification image as well as a
trusted time stamp in our proposed scheme. Trusted time stamp can prove the ownership of real owner
in case of any reversibility attack. Experimental results have shown that the proposed scheme is robust
against different kinds of attacks. The proposed technique does not cause any distortion.
References
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221

Engineering Change Through the Domains of Enterprise
Architecture
Tiko Iyamu
Tshwane University of Technology, Pretoria, South Africa
iyamut@tut.ac.za
Abstract: Change continues to be a challenge, as organizations strive hard to change with time and with new and
evolutionary processes, activities and requirements. Many organizations are thus challenged by this change. Some of
these organizations attempt to address the challenges of change through different strategic approaches, such as
Enterprise Architecture (EA), which involves the development of an organizational capacity to respond to changing
needs and conditions. The research investigated the practice of EA to understand how EA, through its domains
engineer Change in the organizations in order to respond to rapid technological and business changes. Interpretive
case study approach, using two organizations was adopted.
Keywords: change, enterprise architecture and domains architecture.
1. Introduction
Enterprise Architecture (EA) comprises of several different types of architectures, each with its own type
of deliverables, analysis methods, processes and participants. The EA is defined differently by different
experts, both academics and practitioners. The domains of EA include Business, Data, Information,
Technology, Infrastructure, as well as Service Oriented Architecture. This research adopted the EA,
which consist of four domains: Business Architecture (BA), Information Architecture (IA), Technical
Architecture (TA) and Application Architecture (AA) (Cook 1996; and Zachman 1996). This is mainly
because the two case studies adopted the same model of four domain approach. This helps the study to
reflect and align on its objective. EA is a paradigm which premises to address challenges in the
computing environment. According to the IT Architecture Affinity Group, “Architecture is a blueprint that is
developed, implemented, maintained, and used to explain and guide how an organization’s IT and
information management elements work together to efficiently accomplish the mission of the
organization”. EA is said to enable change by bridging the gap between strategic planning and
implementation efforts through a strategy process that is holistic in its coverage and enterprise-wide in its
scope.
On one hand, organizations’ activities including service delivery practice and organizational structure
keep changing. On the other hand, information technology infrastructure also keeps changing and doing
so rapidly. Nothing is permanent in organizations – not even for months. As a result, there has been
emphasis on the significance of change in organizations (Finkelstein 1999). Many organizations are
struggling to adapt to technological and business rapid change. This research investigated how EA,
through its domains could be deployed to address fast changing need in the organizations.
Where EA is adopted, the processes are a critical step in the growth and development of competitive
advantage particularly in large organizations. This is due to the pace of change of activities, processes
and requirements. According to Mack and Frey (2002), the primary reason for creating an overall IT
architecture is to build the new as well as manage transition from the old. Change is not necessarily
positive; it could be prohibitive and potentially pose risk to the organization. This is the primary motivation
for the study, which led to the research question: What are the elements of change in EA and how
could they be used to engineer change, thereby mitigating potential risk in the organization?
EA is intended to provide the required flexibility to achieve change in the fast-paced, rapidly growing IT
and business environments (Cook 1996; and Watson 2000). Iyamu (2009) argued that EA defines the
scope, scale and nature of required changes within an organization and that it helps to identify the
resources that must become involved. EA also provides a platform to consistently address all the
activities in the organization and many related concerns such as the information and technology that
supports the business processes and activities. This is the argument of some individual and group
experts including Zachman (1996); Armour, et al (2007); Gartner; and The Open Group Architecture
Framework (TOGAF). According to Lankhorst et al (2005), EA is a valuable instrument for
operationalising and implementing policies and strategies.
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EA is therefore inevitably seen as fundamental to strategic planning, systems design, software and
hardware development, and the production of multiple systems with different functionalities but all from
the same basic architectures (Youngs, et al 1999). As a result, irrespective of the requirements from both
the computing environment and business, EA thereby ensures uniformity, reuse and manageability of
change from the current state to realization of strategic intent, and thereafter.
In many of the organizations, EA serves as a tool for identifying and driving reuse throughout the existing
and planned architecture. This is not as smooth as it is claimed. According to Spewak (1992), from the
development to implementation stages of EA, there are challenges from both technical and non-technical
perspectives. For other organizations, EA serves as an agent in managing application and technology
infrastructure change within information systems supporting business transactions and information
processing (Zachman 1999).
Due to the complexity of the study, appropriate research method was key, in order to achieve the
objective. This was to ensure a comprehensiveness and richness of the data. The adopted method is
described in the next section.
2. Research approach
The study employed a qualitative, case study approach to investigate the elements which engineer
Change in EA. It is argued that the qualitative methodology is more suitable for this type of study as it
allows clarification of questions. According to Walsham (1995), qualitative research is a very useful
method for complex situations and theories. It has been argued that case study materials are drawn from
different means including interview questions, structured and semi-structured interviews with some of the
key players, documentary sources and ad hoc observational and experience-based notes (Lee 1989; and
Yin 1994). The case study method was applied primarily because it allows in-depth exploration of the
complex issues involved in this study. Two case studies were conducted with a Financial institution and a
Government institution. The two organizations were selected on the basis of prima facie evidence that
each provides a good example of an organization subject to Change as engineered by EA, and each
provides some evidence of success and failure in the process. The two case studies were adopted to
gain an insightful, qualitative interpretation of the changes which were happening as a result of the
practice of EA in the organizations.
The Financial institution is referred to as “Company A” and “Company B” the Government institution.
There were 150 and 80 employees in the computing environments of Company A and Company B,
respectively. Each of the companies has been in operations for more than hundred years.
Data sources included interviews and documentation. As shown in Table 1 below, the number of
interviewees varied, depending on the size of the organizations. A set of balanced respondent
demographics was a key factor in achieving a true reflection of the situations. Targeted respondents
were from different units and were at various levels of the organizational structure within the Business
and IT departments. They included Business and Systems Analysts, IT Architects, IT Managers, IT
Project Managers, IT Executives and Business Managers. The interviewees, as tabulated in Table 1
below, were selected on the basis of their closeness to the topics of EA, including their individual levels of
experience in management, organizational and architectural issues. In the study, closeness is defined as
the area of specialization, with significant amount (5 years) of stock of knowledge and experience. In
Company A, the Chief Technology Officer (CTO) and in Company B, a senior manager assisted in
identifying the interviewees in their various organizations. Employees also assisted in identifying relevant
interviewees.
Structured and semi-structured interviews were designed to elicit information on what the Change
elements were in the practice of EA. Questions were asked around the understanding of EA; the
perception of the impact and implication resulting from the practice of EA in the organization; and
involvement and levels of commitment of actors in the organizations.
The data was analyzed using the interpretive approach. Interpretative rules create signification or
meaningful symbolic systems that provide ways for actors to see and interpret events. Agents reflexively
apply interpretative schemes and stocks of knowledge. The interpretive approach looks at ‘reality’ from a
different perspective (Walsham 1995). According to Kaplan and Maxwell (1994), in an interpretive
research project, there are no predefined dependent and independent variables, but a focus on the
complexity of human sense-making as the situation emerges.
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3. Analysis of the case studies
Tiko Iyamu
The analysis was done to understand how EA engineer change in the organizations. The results of the
case studies are combined and presented in this section.
As mentioned in the introduction section, both case studies adopted the model as advocated and
supported by consultants and groups including Zachman (1996); Gartner; and TOGAF. The model
categorizes domains of EA: Business Architecture (BA), Information Architecture (IA), Technical
Architecture (TA) and Application Architecture (AA) were the domains which constituted EA in the
organizations. Each of these architectures has a specific set of deliverables, analysis methods,
processes and participants through which they facilitate change within the computing environment and
between IT and Business departments. Thus EA has made ongoing representation of the existing and
planned information systems required to support the ever-changing business strategies. This included
the consequential business processes, information, and application requirements and technology
selections.
All the activities and processes which were happening in the computing environment of the case studies
at the time were categorised into domains of BA, IA, TA and AA. This includes selection, deployment and
use of technologies as well as the services within the organizations and their clients. There were many
architects in each domain. Each domain was managed by a senior architect, titled architecture manager
and team leader in companies A and B, respectively. The EA was managed by Chief Architect and
General Manager in Company A and Company B, respectively.
Each domain had its guiding Principles, Standards and Policies through which their various mandates
were implemented and managed. These principles, standards, policies were defined based on IT and
business requirements and interpreted by the architects. As a result, the roles of the architects were
critical in the deployment of EA in the organizations. As such, not anyone could be appointed to take on
the task of architect, it required special skill. For example, in Company A, the evaluation and
recommendation of server virtualization and consolidation which was conducted in the organization
required in-depth knowledge of specialized skill. The project was led by the architecture unit on behalf of
the organization.
One of the main requirements for the deployment of EA in both organizations was to bridge the gap
between the business and technology components of the organization. This requirement was
emphasized and prioritized in the organizations. This occurs during the process of development and
implementation of EA. In order to achieve the required flexibility to handle the fast-pace of IT, change
was inevitable. This was a serious challenge in both case studies. As a result, there was emphasis on
business vision and requirements, how they were extracted, documented and achieved.
Technical requirements were as important and critical as the business requirements in engineering
change through EA. Technical requirements were defined, implemented in both technical and application
domains of EA. The drivers were however derived from information and business architectures. Some of
the business managers acknowledge the contribution and role of EA in their various processes. A
business manager in “Company A” had appreciatively expressed as follows: “Shareholder Value would
not be successfully achieved if IT didn’t support and influence aligned business goals – imagine the
business driving client centricity and IT ignoring this and continuing to push silo- or product-centric
solutions, thus jeopardizing or even failing to drive projects to focus on the client (like Client Relationship
Management), and thus continue to compete for the client’s business and not integrating IT solutions
across the organization for a single client experience and view; such unaligned behaviour is of the past
and cannot drive profitability, as the client inevitably gets annoyed with the corporate organization for
wasting his time and hence taking his business elsewhere”.
However, available skill-set posed a serious challenge, especially in the area of business architecture.
Company B didn’t have enough skilled people to carry out the tasks as dictated by EA. The other
organization fared better. According to one of the interviewees, a senior manager in Company B, the cost
for the retention of people with specialized skill was prohibitive. The manager admitted that in some
areas, change couldn’t be implemented as a result of lack of technical know-how.
According to an interviewee, a senior manager in Company A, one of the biggest challenges in managing
change is gaining an accurate view of the current state. It was clear, EA is critical and significant in
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providing a more accurate view of the current quo. Once the status quo was identified, a plan of action
followed. EA further facilitates the assessment of the impact of Change on the current business
environment and the conception of strategic alternatives for consideration. According to one of the
interviewees, “Yes definitely, the company is now able to consolidate technologies and business
solutions, as well as more rapidly engage in mergers and acquisitions – architecture is an intellectual
capital investment increasing organizational maturity from tactical to strategic”.
The organizations were determined to establish current-state of the environment in order to understand
the gap, if any. Particularly, senior executives were keen to understand how EA could be applied to
reasonably articulate their future business environments and resulting strategies and then use gap
analysis to assess the impact of change and associated risks. To achieve this, the cooperation of both
the computing environment and the business units of the companies were very important, including the
support of the executives and other managers in the business. The IT architects realized and admitted
the criticality of the support and buy-in of these managers to the success or failure of EA in the
organization. Interviewee, some of them, architects in Company “A” explained as follows: “More and
more business managers walk the architecture talk. I’ve often been in discussions between business
managers and outsiders, where the business manager’s first question would be how proposed solutions
fit with our defined architecture”. Similarly, in Company “B” stakeholders understood the importance of
business buy-in. One of the interviewees, an architecture manager says: “Get the business buy-in to the
architecture process first, and let them sell it to the rest of the organization. . . A closer alignment with
business was formed in order to ensure a speedy and successful implementation”.
The scope of EA was therefore the union of the organization, the business reengineering and
development that was applied to it, and the technical domains that supported it. Thus, EA was defined
through a pragmatic need: the need to design and redesign as well as continuously improve the
functioning of organizations. EA can be applied in different environments and contexts to facilitate
change. A business manager in “Company B” says “the business architecture has helped in the design,
documentation and implementation of process-oriented activities in the organization”. This view was
echoed in many quarters of the organization. Processes were easier to follow as a result of avoidance of
re-inventing the wheels. Processes were reused in accordance to set rules and definition of the various
domains of the EA.
In the organizations used in the study, change happened in the areas of process, information flow,
business function, technology innovation, as well as personnel movement. The frequency of change was
a huge challenge, and the impacts and implications were of significant importance to both organizations.
The changes were instigated and influenced by internal and external factors. The internal factors
included business as well as IT vision, strategies, roles and responsibilities, technical know-how and
budget. While the external instigating and influencing factors were technology innovation, industry trends,
market competitiveness and government policy.
Each component of architecture provided a unique view of the enterprise leading to its own capabilities,
primarily: the BA provided the tools, models, techniques, and participants to manage the impact of
change on business processes, clients and partners. Similarly, the IA enabled the management of
change on information flow and exchange between applications as well as processes; the TA enabled
the management of change on technology infrastructure; and the AA enabled the development and
portfolio management of business application and software.
However, the level of success or failure was not measured as it was out of the scope of the study. This
could be an opportunity for future research work.
The study revealed that EA was typically not mastery of a single innovation, but ongoing learning,
adaptiveness and the development of collaborative work cultures. It was admitted that changing the
culture of the organization was the highest ambition. According to one of the managers in “Company A”,
“EA seem to be helping in achieving the challenges of rapid change in the organization”. Even at the
demanding level, EA helped by giving all concerned a shared view of how the business works, and what
it works within the context of the organization.
The organizations’ strategies were the means and the domains of EA were the ends in an attempt to
achieve the vision of the organizations. The study also revealed that the change elements of EA impact
both technical and business components of the organizations. This was a key factor in bridging the gap
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between the business and IT through the domains of EA. The change elements in EA had strong
influence on the development and deployment of technology strategy and the amalgamation of both the
IT and the business units towards one vision.
Each domain had its specific template, which was designed to help achieve both business and IT
objectives. The template was used to review the current state, mainly to detect deficiency, identify gap
and plan for the future. The review was a major process carried out every quarter in Company A. In
Company B, it was an exercise, which was done only in the technical domain on yearly basis.
The templates made prediction and specifics possible in the various domains. The areas covered by the
domains became stabled, uniformed and easily accessible. According to some employees in the two
organizations used in the study, the templates reduced guesswork and try-and-error. Thus, encouraged
and helped bridged the relationship gap between architects and other employees in the IT department,
on one hand, and between the IT and business departments on another hand.
4. Findings
The above analysis reveals some findings. The most critical of them are presented below. The headings
were reached based on what were common and critical in both organizations:
4.1 Business requirements
The business requirements were extracted from the companies’ strategies. They included operational
goals and strategic intent, which were being pursued at the time. It focused mainly on the strategic
objectives of the organization. The requirements included the drivers and trends of the organizations’
vision and strategy. These drivers were influenced by factors such as time, economics and
environmental trends.
In order to achieve the required flexibility to handle change in the fast-paced, rapidly growing IT and
business environments, EA was deployed with the intention of addressing the organizational needs and
to facilitate change through the adaptation of innovations of technology to business process model, in a
uniform manner. This was said to be successful only if it aligns with the business strategy and have the
buy-in of the business executives.
4.2 Technical requirements
The technical requirements were based on the business processes and activities, which were meant to
support and enable competitive advantage. The requirements drive the introduction and selection of new
technology by focussing on function and scalability, compatibility and interoperability. It translated the
business requirements into common terminology, which enabled consistent semantic meaning across
information systems and technology in the organizations. These were the primary focus of the TA and AA
domains. Through this approach, for example, technologies were certified usable or obsolete in terms of
manageability. The change in technologies often had impact on business processes.
4.3 Process oriented
The analysis revealed that EA is a process oriented approach, not an event or project. This seemed to
have been understood by many of the promoters in the organizations. For example, it required continued
business and technical requirements to be translated and technology selected to respond to changing
needs. It continually facilitated other activities such as concept reuse, system role definition, and the
modeling of optimal information flows. It guided organizational learning and constantly enabled learning
of new things and subsequent sharing of that learning. One of the examples as revealed in the study
was, if the direction of the Enterprise’s vision changes, then resources and infrastructure has to be
managed so that they could be shared in order to achieve the vision. This was done in a virtual circle
manner and it became the norm in Company A.
4.4 Skill set
In EA, it was argued to have adequate specialized skill set as the execution of its functions required more
than basic understanding hence skill set was critical. However in both case studies this was a challenge.
Specialized skill sets were required in all the above listed findings. The issue of skill was as important as
the rest of the factors in the development, as well as in the implementation of EA to engineer change in
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the organizations. Change requires the development of an organizational capacity to respond to
changing needs and conditions within scope and periodically. This is only achievable through skilled and
adaptability of personnel, including the architects. The architects engineered the process of change
through domains of EA, which was under their auspices. The organizations fell short in some areas of the
domains, such as business.
Change involves adaptations in practices, skills, and often beliefs about what is important and valuable,
such as requirements of both technical and business. It required the interaction and connectedness to
ensure uniformity, alignment of skills, business and technology processes. In addition, change was
intended to enable sharing of power across different components of the organizations. These were very
significant and were only achievable through specialized skill set.
5. Interpretation of the findings
The above four findings were interpreted and six critical factors were extracted. The factors are
Adaptiveness, Innovation and Governance, Culture, Uniformity, Strategic Alignment and Technical Knowhow.
These factors were primarily, the taproots in engineering change through EA. They were critical and
prevalence in the activities of the EA domains.
5.1 Adaptiveness
EA is not a "quick fix" solution for the replacement of lack of planning. It requires adaptiveness. This
enables it to effectively and efficiently build, maintain, and apply the entire domains of EA. It is more
beneficial when it is applied uniquely to each need of the organization, depending on its business
strategies, architectural maturity, priorities, corporate culture, and political environment. Its adaptiveness
enabled any of the domains to address the potential risk as well as enable and support the movement
from current to the desired state. Change must be adaptive to achieve its goals, either in business or
technology.
5.2 Innovation and governance
Through its change process, EA attempts to find different and better ideas and ways of enhancing and
increasing the companies’ productivity in a competitive market. Innovation was well guided, this including
the selection and deployment of technology and process engineering. Through domain, EA provides
governance in many activities such as data usage, software development and infrastructure deployment
and management in the computing environment of the companies. For example, in Company B, EA was
used to carry out investigations and implementation of server consolidation and virtualization as dictated
by the requirements of the organization.
5.3 Culture
The rules, norms and procedures, together, created a specific culture, which were institutionalized over
time in the individual company. According to Iyamu (2009), institutionalization is the process where a
practice is assimilated into the norm. It is not easily disassociated, dismantled or re-designed. This
affected the human actors and was also reflected in the use of technology. For example, no software
could be installed on the network server without a written approval from the domain expert in architecture
team. This was the norm. It helped to change individual’s attitude and approaches in carrying task in the
computing environment.
Culture was one of the key elements through which EA impacted change in the organizations. Within the
scope of the organizational requirements, EA was developed and implemented and practiced. Certain
factors of a personal nature need a particular organizational culture in which to thrive, or would feed on
particular internal policies. Similarly, certain internal policies would only be possible within a particular
organizational culture.
5.4 Uniformity
EA provided a uniform process for selecting technology infrastructures, of documenting the current state
of business process, data and infrastructure; future states; and the gap between the current and future
states. This applies to the autonomous business units of the organizations. This was critical to providing
support for both the business processes and technologies in terms of factors such as technological
enablement reuse, licensing optimization and skill management.
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Tiko Iyamu
The EA will not work if there is no understanding between the business and IT specialists and
executives, but that it can encourage that understanding. The understanding typically concerns change
of processes, management, methods, technology infrastructure design, pattern and selection. EA was
instrumental in facilitating closer relationships as well as bridging the gap between the business and IT
through sharing of a common view and vision of what had to be done and how. Similarly, each domain
was aligned to the IT and business strategies of the organization.
5.6 Uniformity
The EA approach facilitated processes, activities and procedures within the computing environment of
the organizations. This included all the domains of EA and began from project initiation to implementation
stages. It facilitated framework to manage and share information and to ensure that the business
processes and activities were supported by technology infrastructure and applications that provided the
needed data, information flow and the infrastructure to enable the data.
The EA facilitated change, which affected not only business processes, clients and partners, but also
information, supporting business applications, and the technology infrastructure. This made it a
challenging task to attempt to manage change by any means, including the adoption of EA. The evidence
from the case studies revealed the elements, which made EA a change agent. On the basis that the
change was the focal factor for EA deployment, these elements were also used as measurement criteria
for success and failure of EA in the organizations.
6. How EA engineer change through its domains
The findings and the interpretation presented above are now been mapped to the domains of EA, from
the perspective of change. The mapping was done to make sense of the interrelationship between the
findings and the interpretation and how they engineered change through the domains of EA.
As identified in the findings, the most critical factors required in engineering change through the domains
of EA were Business Requirements, Technical Requirements, Process Oriented and Skill Set. This is
illustrated in Figure 1 below. Based on these factors, the EA formulated principles, standards and policies
within the various domains. These domains engineered change through identified elements. The primary
aim was to move the organization from the current to future state.
Resource EA Domain Change Element
Business Requirements Business
Architecture
Technical
Requirements
Information
Architecture
Process Oriented Technical
Architecture
Skill-Set Application
Architecture
Adaptive
Innovation &
Governance
Culture
Uniformity
Strategic Alignment
Technical Know-how
Figure 1: Engineering change through EA domains
The domains were not independent of each other in the business processes and technical activities of
the organizations. Change to one domain had impact on others. The domains collaborated with each
other. This is illustrated with the up and down link arrows in Figure 1. Typically, businesses pursuits
improved or reacted to change schematically.
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The discussion that follows should be read together with Figure 1 to get a full appreciation of how
elements of resources constituted themselves into the domains, through which change was engineered
in the organizations.
The next section provides how EA engineered changed through its domain in the organizations. The
change effort is articulated on generalization. Generalization is an explanations of particular phenomena
derived from the empirical interpretive study in the specific settings, which could be valuable in the future
in other organizations and contexts.
6.1 Business architecture
Base on the organizations’ strategy, business requirements were formulated. The BA developed
principles, standards and policies to provide guidance for the development of response plan. It also
ensures uniformity of processes, where possible, across the organizations. In addition, the BA:
Led the executive team and the line-of-business managers through the development and usage of
their various strategic models, which was intended to be adaptive to changing needs.
The gap between strategy development and tactical decision-making was a shortcoming of many
strategic plans. BA eliminated much of the guesswork for operational managers in interpreting the
impact of strategic plans on operations, and the priority that was placed on different plans. This was
done by providing guidance concerning the organization information assets to knowledge workers,
information processors, IT application developers, infrastructure managers, and executives.
6.2 Information architecture
The elements were able to effect Change mainly through their impact on the organization’s key factors.
The IA defined availability and usage of information for business requirements and other key business
processes and enabled the underlying processes and skill-sets for changing needs in the organization. IA
primarily engineered change by:
Defining the sources of information and ensure the availability and usage of this information by the
key business processes and enabled by the underlying application and technical architectures.
Identifying the information flows that was intended for optimization (increased velocity, density, and
reach) as well as the information entities that had to be defined and used consistently across the
information value chain to increase the value of information across the organizations and the external
transactions.
6.3 Technical architecture
In the deployment of new technology, based on functional and utility advantages, the TA facilitated
alignment between business and technical requirements and ensures compatibility and interoperability
with the strategic infrastructure. This was a key to rapid response continual changes in the organization.
It provided configuration standards and guidelines for using standard products in the environment. TA
was adopted to manage technology change in two primary ways:
Provided the principles, standards, configurations, process, and governance mechanisms to
establish and maintain an adaptive technology infrastructure and application reuse methods.
Drove the introduction of new technology based not only on functional and utility advantages, but
also on compatibility and interoperability with the existing architecture. This was key to rapid
implementation of infrastructure configuration standards; guidelines for using standard products; and
principles for integration. These provided both a view of the recommended technology and basis for
assessing the impact of new and replacement technologies within the context of the whole
organization.
6.4 Application architecture
The application architecture defined the way applications were designed and deployed, and how they
cooperated with each other. The AA provided standards and guidelines that supported Build, Reuse and
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Buy of robust application for business productivity gains. The AA employed and managed application
change through oriented process, innovation and adaptiveness. Other focus areas included:
Defined the gap between the existing systems functionality and the functionality needed to satisfy BA
and IA requirements.
Provided a framework for migration by taking into account not only functional requirements, but also
investment strategy in information systems and the “technology fit” of existing and planned systems
with the TA and technology infrastructures.
Responsible for reuse, this was a key component to success in the drive to facilitate change, by
guiding developers toward systemic analysis, design and development of business components and
objects.
In summary, EA provides standards based planning, development and implementation methodology that
will help IT strive to meet the rapid changes in the business processes. It allowed a translation of
functional requirements to the selection of services, standards, components, configurations, their
phasing, and the acquisition of products that implement them – much more than the project management
and systems analysis disciplines that have been widely adopted over the last thirty years in trying to
solve the same problems. Some independent consultants have in the past attempted to generically
address some of these elements of Change. This has however been without empirical evidence as in this
study.
7. Conclusion
Neither Change nor the development and implementation are simple in any organization. The return on
investment depends on how well business and technical requirements are articulated, and how the
people interpret the process and the technology they are using to support and enable the business. The
contribution of the study arises from implications for the decision makers responsible for sponsorship of
EA, including the architects. These decision makers need to understand the functions, dynamics and
causes of what, why and how EA bring about Change on both business and technology, and how the
impact can be ensured and measured. The other contribution of this study aims to be of significance to
decision makers, professionals, including managers and employees of the organization within the
computing environment, and IS researchers. It is expected that the key contribution will arise from the
understanding of the fundamental elements through which EA engineer Change. Through this, a better
understanding of the contribution of non-technical factors in the deployment of EA is gained.
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230

Evaluating Interoperability Artifacts for the Exchange of
Public Service Information: Outline of a Conceptual
Framework
Veit Jahns
University of Duisburg-Essen, Essen, Germany
veit.jahns@icb.uni-due.de
Abstract: Drivers to improve the interoperability of information systems in public authorities are initiatives for
simplifying the access to public authorities and their services for citizens and enterprises. The spectrum of such
initiatives reaches from initiatives on the regional and national level up to global initiatives. All these initiatives have in
common, that they are related in some way or the other to public services. I.e., they have to deal with the challenge
of describing public services either as a base for exchange information about these public services within the public
administration or between public authorities and citizens and enterprises or as a base for developing information
systems to support the provision of public services. As a result of these initiatives numerous artifacts have been developed,
including languages and methods for modeling public services, ontologies and taxonomies for public
services, etc. Although, this multitude of artifacts has the positive effect, that there is a high chance, that every aspect
of the complex concept “public service” is covered by at least one of these artifacts, it is difficult to keep track on all
these artifacts and how are these artifacts are related to each other, in particular what interoperability issue they
address in detail, on which foundations and assumption these artifacts are based on, etc. In this paper a conceptual
framework for evaluating such artifacts is proposed, which shall allow an evaluation of these artifacts with respect to
the question given above. But this conceptual framework can be also useful for support of an artifact to solve a
particular description problem regarding public services on the one hand, and on the other hand, it can be useful for
the integration of these artifacts.
Keywords: eGovernment, evaluation, public service, interoperability, artifact
1. Introduction
Once Garfield (1977: 175) with the numerous scientific journals and the need for literature reviews in
mind stated, that maybe there are too many journals. The same can be stated for interoperability artifacts
today: there are (too) many of them. Driven by private and public initiatives standards, models, as well as
modeling languages and methods have been developed to address different interoperability problems
and issues. This applies not only for the whole field of interoperability between information systems in
public and private organizations, but also in the field of interoperability of repositories for public services.
The objectives of such initiatives with respect to public service repositories are to simplify the access to
public services as well as to improve the production of public services by a better integration of public
authorities across administrative as well as geographical boundaries. Examples for such initiatives are
projects within the European Union for the implementation of the European Service Directive, which demands
a single point of contact, where a company can handles all its concerns with the public administration.
But this doesn't require, that the single point of contact has to provide all these public service,
but rather that this single point of contact manages the communication and transaction with the
authorities providing the respective public services, and thus, needs to be interoperable regarding these
public services with the respective, in particular with the respect to the exchange of information about
public services.
In addition, the objective of simplifying the access to public services gains more relevance by developments
on the political level. E.g., it is stated in the “Ministerial Declaration on eGovernment” by the
European ministers responsible for the eGovernment policy in their countries (European Union 2009),
that it is the common aim of the respective states to facilitate and simplify the access to public services –
not only for their own citizens and enterprises, but also for the citizens and enterprises from the other
states. These efforts finds expression in many research and implementation projects that have been
started in the past, e.g., TERREGOV (http://www.terregov.eupm.net), Access eGov (http://www.accessegov.org)
or SemanticGov (http://www.semantic-gov.org), or are underway, e.g., Peppol
(http://www.peppol.eu).
Besides this Euro-centric examples many other examples for such initiatives dealing in one way or the
other with interoperability issues regarding the provision of public services can be found in America, Asia-
Pacific or even on the global-level. But to shorten the discussion, in all these projects, initiatives and
efforts many different artifacts were created: ontologies, data models, modeling and markup languages,
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etc. In general, these artifacts serve the purpose to describe public service in a unified manner, but every
project has a particular perspective on public services. So this rise the questions, if they address the
same interoperability issues or do they focus only on selected and distinguished interoperability issues, if
these are artifacts based on the same technological and methodological basis, and how these artifacts
are related to each other? Is there a reason, why there are so many different interoperability artifacts or is
this field—as Frank (2000: 48) once self-critically states—just another play-ground for researchers and
the purpose of the artifacts’ creation just to satisfy its creators (Frank 2000: 48)?
Against this background it seems to be a promising task to review and evaluate the current state-of-the
art of interoperability artifacts for modeling and describing public services, in particular to answer
questions like how are these artifacts related to each other, i.e., do they compete or complement each
other, which interoperability issues are addressed by the interoperability artifact, what are the technological
and conceptual foundations of these artifacts, what assumptions about the domain of public
services are made for the developing of these artifacts, etc. Answers to these questions will be useful to
guide the further development of interoperability artifacts To this end a conceptual framework to support
such a review and evaluation of interoperability artifacts will be developed and presented in this paper.
The paper is organized as follows: after the introduction the two key concepts of this paper public service
information and interoperability artifact will be discussed and defined. The third section is dedicated to the
elaboration and justification of the conceptual framework. A conclusion with future research questions
finishes this paper.
2. Definition of key concepts
In this paper two key concept are used, and therefore have to be defined: public service information and
interoperability artifact. The concept public service information shall be defined within this paper as
information about public services. In the first place, this concept seems to be clear with this definition, but
looking at this concept a little bit closer this concept will be become vaguer. Then what means public
service and what is information about public services? The first question is difficult to answer, because
what a public service is and shall be depends on the weltanschauung by the person defining the concept
of public service. Thus, providing a definition, which is acceptable for everyone (Jäckering 1991: 18–19)
is a difficult task, if not impossible. Hence and for pragmatic reason, public service will be defined very
generally and with the aid of Lynn (2006: 24) as a service provided by an organization assigned to it by a
sovereign to provide this service. And public service information will be defined as information about this
service that give indication who provides this service, how this service can be accessed, which
requirements have to be fulfill to access this service and so on. But as a consequence of such a definition
of the concept of public service, the manifestations of public services cover a wide spectrum.
Furthermore, this spectrum possesses a high dynamic, i.e., services sometime lose their characteristic to
be a public service and will be provide by private organizations, or gain it, i.e., will be provide by a public
organization instead of a private organization (see e.g. Fugge 2003).
The second key concept of interoperability artifact has been used before by Fustar (2009: 1–2) in his
Interoperability Meaning Diagram. In this diagram he relates the concept of interoperability artifact to
concepts like standard semantic model, reference model, components and so on. As the discussion in
the introduction indicates, a semantic model can be also seen as an artifact: a man-made tool to address
a particular interoperability issue. Furthermore, Fustar does not give a detailed definition, what an
interoperability artifact shall be. Hence, an interoperability artifact shall be defined as any artifact that is
able to facilitate interoperability between information systems. This concept is defined in a wider sense as
Fustar's Interoperability Meaning Diagrams indicates and fits also the widely used definition of
interoperability as the capability of systems to exchange information (Institute of Electrical and Electronic
Engineers 1990: 114). But within this paper only such interoperability artifacts will be considered that
facilitate the interoperability of information systems managing or processing information about public
services. In this sense, an artifact can be any application systems, software tools, system architecture
modeling language, as well as analysis and design methods. These artifacts are characterized by a
remarkable complexity by the underlying information technology, by a rapid technological change, and by
a notional and conceptual diversity in naming and terms. The latter applies in particular for artifacts
developed and used in the practice (Frank 2000: 39). If not stated otherwise and to simplifying the
language the term interoperability artifacts will be used for interoperability artifacts used to exchange
public service information within the further course of this paper.
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3. Elaboration of the conceptual framework
Usually evaluation is defined as determine the worth or the value of something using appropriate, explicated
and justified criteria (Scriven 1991 in House 1993: 1). But speaking about worth and value, raises
the question, for whom and to what end? And how should a framework used to perform the evaluation be
designed and what are the reasons justifying the selected criteria? As it is the concern of this paper to
evaluate artifacts, it should be drawn upon here on a proposal by Frank (2009: 41–43). As he is
concerned in his paper with the evaluation of artifacts in the information systems research and which
requirements should be fulfilled by an framework supporting the evaluation of artifacts, he proposes the
following criteria (Frank 2009: 43):
Goal-orientation: The objectives of the evaluation should be explicated and justified. In particular, to
avoid or at least to reduce chance of an instrumentalistic fallacy (Albert 1960: 217), where the
objectives—here the objective of an evaluation—is determined by the means—here the selected
criteria (see e.g. Frank 2009: 37 or for a similar argumentation Streeten 1954).
Seriousness: The scientific standard should not be sacrificed in favor of a high relevance to the
practice. In particular, the criteria's operationalization should be made in a cautious manner.
Justification: The proposed criteria should be justified in a comprehensible manner.
Regarding the goal-orientation it is referred to the explanation and justification of this paper's objective
given above. In the objective it is asked about interoperability artifacts, their scope of application as well
as the underlying technologies and concepts. Regarding the seriousness of an evaluation of interoperability
artifacts, it seems valuable to take a close look on the nature of interoperability artifacts
regarding the exchange of public service information:
Interoperability artifacts are created by humans in a development process. As a result of a development
process the interoperability artifacts pass through a life cycle. They were created and
applied, they mature and die, i.e., that they will not be used anymore. And because the development
of interoperability artifacts can be considered as an eGovernment project, the development of an
interoperability artifact has to deal also with the “ongoing changing pattern of relations or interactions
between government organizations, business, and citizens” (Gupta and Jana 2003: 368).
They describe more or less the public services. Thus, they are mostly some kind of models, codes,
taxonomies, or in short: lingual artifacts.
The subject—public services—of the interoperability artifacts considered in this paper, is characterized
by a “fuzziness”, which makes it difficult to find the one interoperability artifact. Instead, a
wide spectrum of manifestations of interoperability artifacts—as stated above—can be found.
Due to the aspects given above many different perspectives and views have to be considered and/or
incorporated into the interoperability artifact. But interoperability itself is a manifold phenomenon,
which cannot be reduced to one single and isolated aspect (Dorloff et al. 2011).
Considering these aspects, i.e., that interoperability artifacts are difficult to grasp and to quantify, that
they are primarily lingual constructs as well as having Rowlands (2003: 3) characterization of qualitative
research in mind that “qualitative research tends to work with text rather than numbers”, it seems appropriate
to see interoperability artifacts as qualitative data and therefore to use an qualitative approach in
this evaluation. But to give the qualitative evaluation a structure it will be recurred to an approach that has
its origin more in the field of quantitative evaluation: the Goal/Question/Metric (GQM) paradigm (Basili
1992). But here not the complete GQM paradigm will be applied, but rather its structure will be borrowed
here.
The GQM paradigm the procedure is that in a first step the objective or goal will be refined by deriving
questions from the objective, and subsequently these questions will be made measurable by defining
metrics. So, to refine the objective of this paper the questions will be formulated. To this particular end
and as the issue of exchanging public service information between public authorities is related to interoperability
of information systems a step back will be taken to look at this issue and to observed it from
a greater distance. The step back taken is a step to the point of view by Dorloff et al. (2011). They
examine in the paper the field of interoperability problems. To structure this field they refer to an idea
once used by Wand and Weber (1995) and differentiate the phenomenon of interoperability from the
social, communication, and the technological dimension (Dorloff et al. 2011: 5–6):
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Social dimension: Here they refer to the aspects and characteristics of interoperability related to the
way how humans experience and influence interoperability. As they consider interoperability from a
wide perspective. Every aspect and characteristic of the social-economic reality is gathered here.
Communication dimension: They consider in this dimension the linguistic aspects and characteristics
of interoperability. Primarily, the aspects and characteristics of the artifacts created to achieve
interoperable information systems.
Physical dimension: In this dimension Dorloff et al. (2011) consider the technology used to achieve
interoperability, e.g., the used protocols and middle-ware technologies.
The categorization by Dorloff et al. (2011) based on the view, that interoperability is an object. As this
object has different aspects and facets they approach this object by observing it from different perspectives
each on highlighting some particular aspects and hiding others.
Another and orthogonal approach to understand interoperability is, to understand interoperability as a
process, i.e., that interoperability is established on a certain point of time, operated for a certain time span
within some kind of collaboration until the collaboration ends and the interoperability will be dissolute.
Based on this view Mallek et al. (2010: 441–446) developed an interoperability requirements model,
which considers interoperability from the perspective of compatibility, inter-operation and reversibility
requirements:
As compatibility requirements they consider functionality, capability or characteristic of an information
system that is related to its interoperability and is independent of time. Compatibility requirements
need to be satisfied by organizations or its respective information systems to become interoperable.
Inter-operation requirements are requirements related to the interactions of organization respective
their information systems. How the interaction is performed and so on. So inter-operation
requirements are dependent of time and primarily of a dynamic nature.
Reversibility requirements refer to the end of a collaboration. In particular, this requirements aim to
maintain the autonomy of an organization and reverse it to its original state after an collaboration has
ended and no need to be interoperable with the collaboration organization is given. As the
implementation of interoperability requires adaption and modification of the used information
systems, the reversibility requirements aim to maintain the capability of an information system to
return to its original state, e.g., by limiting the impact of the interoperability implementation on the
information system itself.
To combine the both views and to summarize the reflections above and to word the question it is referred
to table 1. In this table the questions to be used to narrow down the objective of this paper are given.
After the elaboration of the question, it is needed now to define the metrics. Instead of defining metrics for
these questions the concept of morphology also called morphological box (Zwicky 1973: 94–100) is used
here. This approach was originally a creative technique to find new and undiscovered instances of a
given type of entities (solutions, types, artifact, etc.). It is looked for the essential characteristics of an
entity type. The characteristics (rows) and its possible categories (columns) are arranged in a
morphological matrix describing all possible objects of the entity type. By combining the applicable
category—or categories—of each characteristic it is possible to describe the object considered object. At
the first glance, it may be inappropriate here to use a creativity technique for an evaluation, but as the
purpose of this evaluation is Also the concept of the morphological box has been successfully used before
to examine similar research questions, e.g., by Dorloff et al. (2011) with respect to e-business
interoperability. Furthermore and as the questions given above suggest, it is not the intention of this
paper to perform a quantitative evaluation, but a rather to perform an evaluation in a qualitative way. The
concept of morphology by Zwicky offers the opportunity to do this in a structured but also in a simple
manner.
By perusing the questions given above, the morphological box will be constituted by the following
characteristics and categories:
Question (1a) can be related to the communicating pattern between actors. These types of actors are
can be classified as citizens (C), business (B), non-profit organizations (N) and public administration
(A). As all these actors interact amongst themselves, only those interactions where the public
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administration participates are considered here (Dorloff et al. 2011: 8; Sundgren 2005: 85; Wirtz
2001: 34–39).
Table 1: Evaluation questions
Requirement
Dimension
Social Dimension (1a) Which type of actors
exchange public service information?
(1b) Which perspective of
social actors are considered?
(1c) Are legal rules taken into
account?
Communication
Dimension
Physical Dimension
Compatibility Inter-operation Reversibility
(4a) How is the concept of
public service and its subconcepts
defined in detail?
(4b) What is the formalization
degree of the artifact?
(7a) What interoperability
entities at the technological
level are considered in the
interoperability by the artifacts?
(7b) Have and existing governmental
interoperability
frameworks been taken into
account and if so, which one?
(2) Does the artifact indicators,
how this artifact
improves the interoperability
between two organizations
respective information systems,
e.g., by reducing costs,
and how this improvement
can be measures?
(5a) What spectrum of the
interaction process is
covered by the interoperability
artifact?
(5b) Does it reflect the
different types of information
accrued during the interaction
process?
(8) Does the artifact indicators,
how this artifact
facilitate the implementation
of interoperable information
systems in public
administrations?
(3) What assumptions are
made in the artifacts' creation
process regarding the
duration of the interaction?
(6) Has the own terminology
regarding public services to
be adapted to the underlying
terminology of interoperability
artifact?
(9) How tight is the integration
of these artifacts intro the
information systems?
For question (1b) it referred to a distinction once made by Jahns et al. (2009: 359). They distinguished
ontologies by the point of view from which the ontology was developed, i.e. the view of the
public administration or the citizens’ respectively the business’ point of view.
As the actions of the public administration is rule by law, which impedes the implementation of
eGovernment services, the question (1c) aims at this fact, by asking, if legal rules are referable in the
artifacts (Alpar and Olbrich 2005).
The performance evaluation of interoperability artifact is a task of its own and not within the scope of
this paper. But in the other side, many creators of interoperability artifacts promise that their
interoperability artifact improves interoperability in one way or the other. So, it seems reasonable to
ask, if indicators and possible metrics are provided with the interoperability artifacts. Like question
(2), this is a binary question and two categories can be considered here: yes and no.
From question (3) the characteristics of the interaction’s stability, i.e., if the interoperability artifacts
tends more to support ad hoc interactions or long-term respectively permanent interactions.
The type of definition of public service concept given in the respective approach can used to provide
indications about the answer of question (4a). There can be found definitions based on public tasks
as defined in public regulations like laws, or definition based on activities in public organizations
(Jahns et al. 2009: 359).
Regarding degree of formalization ask about in question (4b), there are three possible categories no
formalization, i.e., using natural language, semi-formalization, .e.g., structured natural language or
graphical models without formal semantics, and complete formalization with a well and formal defined
semantic.
For question (5a) and (5b) a characterization by Sundgren (2005: 90–92) of data processed in public
information systems can be applied here: operative data, i.e., data that is necessary to process and
235

Veit Jahns
to complete as task within the provision of a public service, procedural data, i.e., descriptions or
representations of rules related to the provision of public services, e.g., rules emanate from laws,
directive or analytical data, i.e., statistics and other indicators regarding the state of the public services'
provision, e.g., performance, meta-data, i.e., data describing the data itself, e.g., what format it
is used to explicate the data, the source of the data and so on, process data, i.e., information
gathered in the provision of the public services they inform about, e.g., archival data, i.e., data
extracted from or generated during a public service provision to reflect or document the provision.
Public authorities have their own special terminology regarding their field of activity. Also the
interoperability artifacts require a fixed understanding of concepts they are dealing with. But is an
adequate mapping between these terminologies possible or have the public authorities to adapt their
terminology to the underlying terminology of the interoperability artifact? So, two answers to question
(6) are possible here: yes and no.
Question (7a) Here five categories of entities can be identified: the data types as the smallest and
simplest entities dividing atomic data elements into different types and determining the allowed
values of a data element, the vocabulary, i.e., the data elements defined on the basis of the data
types, the documents as a set of logical related data, and the process as the sequences of
exchanged documents (Dorloff et al. 2011: 10; Beckmann et al. 2004: 52–56).
Question (7b) refers to sets of guidelines and regulations, e.g., the European Interoperability
Framework (European Communities 2004) regarding the implementation of information systems in
public authorities. Such regulations can be found on a national, international and global level.
Similar to question (2), one can also ask with question (8), if indicators are provided allowing the
determination, if and to what degree an interoperability artifacts facilitate the implementation of an
information systems. As this is also a binary question the same two categories can be identified as in
question (2).
Refining question (9) two options are at hand here. Firstly, annotating existing public service
information or export into a separate exchange format (Jahns et al. 2009: 359). Secondly, regarding
the interoperability mechanism, i.e., achieving interoperability by standardization or by conversion.
(Dorloff et al. 2011: 10; Wüstner et al. 2002: 55–57). Standardization means that allowing more
individuality and therefore limits the impact on the information system and makes it easier to restore
the original state. In contrast, standardization tends to have a stronger impact on information systems
as its inner structure and processes may have to be changed to be compliant with the standard. A
conversion approach on the other side allows preserving these inner structure and processes.
These characteristics and their categories are summarized in table 2.
Table 2: Morphological box for evaluation interoperability artifacts
Characteristics
Communicating
Pattern
Categories
A2A A2B B2A A2C C2A A2N N2A
View Citizens/Business Administration
Considering
Legal
Frameworks
Yes No
Duration Ad hoc Long-term
Public ServiceDefinition
Degree of
formalization
Types of
data
Activity-based Task-based Not Explicated
Natural Semi-formal Formal
Operative Procedural Analytical Metadata Process data Archival data
236

Characteristics
Interoperabilityentities
Considering
Interoperability
Frameworks
Facilitation
Indicators
Interoperability
mechanism
4. Conclusion
Veit Jahns
Categories
Data types Vocabulary Document Process
National International Global
Yes No
Standardization Conversion
Based on the premise, that there are many artifacts to support the interoperability of public administration
with respect to the exchange of public service information, a conceptual framework for the evaluation of
these artifacts was developed. The development of this framework was completely based on theoretical
reflections on this issue. What is missing up to now is the application and use of this conceptual
framework by the means of real interoperability artifacts? This will be the next step will. The framework
will be applied to evaluate the existing artifacts created in research and implementation projects, e.g.,
those mentioned at the beginning of this paper. But performing the evaluation will not only prove—or
disprove—the framework itself. As the used perspectives to develop the framework highlight particular
aspects of interoperability, and obscure others, performing the evaluation can reveal further perspectives
and aspects of interoperability, which should be considered in an evaluation also. Furthermore, the result
of the evaluation can be helpful to integrate these interoperability artifacts and reveal new research
directions, as well as can be—a minor hope of the author—a contribution to the efforts (e.g. Charalabidis
et al. 2010) to establish a science of interoperability or at least give interoperability a more profound scientific
base.
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238

Free and Open Source Software for Public Sector Enterprise
Applications in Sri Lanka
Srimal Jayawardena 1 and Gihan Dias 2
1 Australian National University, Canberra, Australia
2 University of Moratuwa, Sri Lanka
srimal.jayawardena@anu.edu.au
gihan@uom.lk
Abstract: This paper describes a study done on the use of Free and Open Source Software (FOSS) for enterprise
applications of the public sector in Sri Lanka. The study investigates factors that affect the selection of software for
public sector information systems with, an emphasis on how Free and Open Source Software (FOSS) is used and
could be used in such projects. The objectives of the study are as follows. The study aims to identify factors that affect
the adoption of Software in Sri Lankan government sector projects. In addition to this it identifies features that
are considered as important in such large Information Systems, and how they relate to Open Source Software adoption
in the context of the public sector in Sri Lanka. The findings are analyzed and suitable recommendations are
presented for better selection of software in the public sector. The work is important as it identifies and highlights
factors that affect the choice of software in the public sector. This is important for several categories of people. It is of
importance to the strategic management and policy makers to know what drives the information system procurement
decisions in order to make more relevant policies and guidelines that are congruent with the needs in government
sector departments. It is useful when advocating new technologies and information systems. This is especially true
when advocating the use of Free and Open Source software for the use in the public sector in a wholesome and sustainable
manner. The research is also important to software vendors and solution providers to the public sector in
identifying what factors need to be taken in to account when bidding for public sector IS projects. The research is of a
qualitative nature. It consists of multiple case studies of selected government sector departments and projects in Sri
Lanka. The study investigates information systems developed by internal staff, developed by external consultants,
procured systems, system implementation via private public partnerships (PPP) and projects guided by the Information
and Communication Technology Agency (ICTA) of Sri Lanka. Data was gathered through interviews of staff at
different levels of selected government sector Information Systems projects. The data was comparatively analyzed
on a case by case basis to identify common patterns and trends among the investigated organizations and projects.
The identified factors affecting the choice of software include the cost, technical specifications, bidder’s expertise in
selected technology and user’s expertise in selected technology amongst other factors described in the full paper.
The study identifies patterns between the choice of software - FOSS or non FOSS, and these identified factors.
Based on these, recommendations are given to adopt and benefit from the use of FOSS in public sector enterprise
level software projects.
Keywords: enterprise software, government, free and open source software, software adoption
1. Introduction
We introduce the work to the reader by describing the research problem and objectives of the research.
The research methodology, scope and nature of the study are briefly highlighted before being discussed
in detail in the sections which follow.
1.1 The research problem
Government sector Information Systems projects guided by the ICTA (ICTA 2008) are a part of the e-
Development initiative of Sri Lanka (e-Sri Lanka), which is funded primarily by the World Bank. The World
Bank publication by Hanna (2006) describing the experiences of envisioning and designing of the Sri
Lankan e-Development program highlights that it can benefit from the use of FOSS. Apart from this, the
literature surveyed has highlighted how organizations could benefit from the use of FOSS.
However, to realize the benefits of FOSS, decision makers should perceive it as a viable option. Hence it
is important to identify what affects the choice of software at a strategic level. This leads us to the problem
statement of this research.
“What factors influence the choice of software for government sector enterprise applications in Sri
Lanka?”
Complexity. According to (Lewin 2000), a complex system is one whose properties are not fully explained
by an understanding of its parts.
This problem statement is further elaborated by the research objectives explained below.
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1.2 Research objectives
Srimal Jayawardena and Gihan Dias
Based on the above problem statement, this research consists of the following objectives.
1. To identify factors that affects the adoption of Software in Sri Lankan government sector projects.
2. To identify what features are considered as important in large Information Systems, and how they
relate to Open Source Software.
3. To develop suitable recommendations for the better selection of software in the Sri Lankan government
sector.
1.3 Significance of the study
The study identifies the factors that affect the adoption of software for enterprise applications. Moreover,
it focuses on those factors that are peculiar to the government sector in Sri Lanka. It also identifies what
aspects of ISs are taken in to account when different government sector institutions evaluate an IS. The
study will help formulate polices that will aid government sector organizations to leverage on the benefits
of FOSS as explained in section 2.
1.4 Research methodology
The research methodology involved a rigorous study of selected government organizations as out lined in
the scope of the study. The research was designed based on the findings of the literature study and the
research objectives. Data collection was carried out using personal interviews based on this research
design. The obtained data has been analyzed in detail in section 4. The research methodology is described
in depth in section 3.
1.5 Scope of the study
The scope of the research is limited to government sector ISs. Government projects coordinated through
the Information and Communication Agency (ICTA) of Sri Lanka and other selected government organizations
have been taken as case studies (Appendix A & B).
1.6 Data collection
The organizations covered included, those with ICTA guided projects as well as organizations without an
ICTA involvement for comparison purposes (Appendix A). The data was collected by interviewing staff at
different levels in the selected organizations (Appendix A). This included personnel at a strategic level
and heads of the IT/IS departments. In the case of ICTA guided projects the interviews consisted of the
ICTA project managers and relevant external stakeholders. The information systems (IS) projects covered
in the research are indicated in Appendix B. Interviewed personnel and sample interview questions
are included in Appendices C and D.
1.7 Data analysis
The data was comparatively analyzed on a case by case basis to identify common patterns and trends
among the investigated organizations and projects.
1.8 Nature and form of results
The results of the research are qualitative in nature. It is a comprehensive study of the factors that affect
the adoption of FOSS in the Sri Lankan government sector organizations for enterprise systems. The
results also include suitable recommendations for capitalizing on the advantages of FOSS in the Sri
Lankan government sector.
1.9 Structure of this document
The remainder of this paper is organized as follows. A background to the problem is presented which is
followed by an explanation of the research methodology employed. This followed by an analysis of the
investigation outcomes which are followed by conclusions and recommendations.
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2. Background
Srimal Jayawardena and Gihan Dias
We present a background to the work by consolidating literature surveyed on Free and Open Source
Software (FOSS), on the use of FOSS in the government sector and on FOSS adoption models. FOSS
is claimed to have a unique blend of benefits that have aroused the interest of organizations across the
world. Some of these benefits have been reported to be as follows.
A Total Cost of Ownership (TCO) study conducted by the Robert Francis Group (Orzech 2002) reveals
that the use of FOSS computer operating systems like GNU/Linux can lower TCO up to 40%.
Further to this, Gartner has reported a cost reduction of 15% (Maguire 2003) when using FOSS Operating
Systems as opposed to Windows XP, which is a proprietary Operating System. A study done
by Merill Lynch (Lemos 2003), a major financial management company, has revealed that TCO reductions
by the use of FOSS are not only due to software licensing costs but from personnel and
hardware costs.
A recent e-Primer of the United Nations Development Program (Wong 2004) mentions enhanced
security and vendor independence as other benefits of the use of FOSS in government applications.
2.1 Free and Open Source Software (FOSS)
According to the Wikipedia (2005), Free and Open Source Software are software that is licensed such
that its human readable source code is freely available for implementers to study, change and improve its
design.
Research (Reddy and Evans, 2002) reveals that more than 48% of the government institutions in
Chile use FOSS with at least another 11% planning to do so. Out of this 93% of the institutions use
FOSS for server side applications. According to the findings of Chan (2007), several developing governments
like Peru have attempted to adopt FOSS at a national level.
A recent online survey done by the CIO magazine (Schindler 2008) during the period April 28, 2008
to May 2, 2008 shows that more than 50% of the participants are using FOSS. Another 10% of the
participants are planning to use FOSS during the next 12 months. Therefore there appears to be a
growing interest in the use of FOSS across the world.
10.00%
53.00%
Figure 1: Survey conducted by the CIO magazine
37.00%
241
Currently
using
Planning to
use next 12
months
No plans to
use open
source
applications

2.2 Success in Enterprise Systems
Srimal Jayawardena and Gihan Dias
Several models have been developed to asses the success of Enterprise Systems. Out of these the
popular D & M model (DeLone and McLean 2003) considers the success of the system based in the information
quality, system quality and the service quality. The model strives to analyze the associations
between these dimensions and the intention to use, the user satisfaction and net benefits. A pictorial representation
of the updated D & M model is shown in the figure 2.
Figure 2: The updated D & M model
The Enterprise System Success Model (Gable et al 2003) presents a temporal analysis of the success
based on what is to date and what happens in the future. The success to date is said to be influenced by
the organizational impact and the individual impact. The future success is said to be influenced by the
system quality and the information quality. A pictorial representation of the Enterprise Success Model is
given in figure 3.
2.3 Use of FOSS in the government sector
Government sector software applications require long term continuity and a lower total cost of ownership
(TCO) while maintaining a high degree of quality and integrity. Mitch Stoltz (1999) mentions that governments
can use open source as a vehicle for promoting economic development.
Some of the benefits of the use of FOSS in the government sector have been identified by Reddy and
Evans (2004) as follows.
2.3.1 Cost savings
Significant cost savings can be made due to the lack of expensive licensing fees in FOSS (Reddy and
Evans 2004). However this factor alone does not justify the use of FOSS.
2.3.2 Security, stability and privacy
As the source code is open for inspection, it is claimed that FOSS is more secure and stable. According
to Reddy and Evans (2004), the German government was concerned that some versions of the proprietary
Microsoft Windows operating system contained back doors designed to grant the US National Security
Agency, access to user data. Based on this rationale, the government of Germany has adopted a
strong FOSS policy.
2.3.3 Independence
Proprietary software solutions are often based on one or few software companies. Hence a government
implementing such proprietary solutions will have to depend on those few companies for support and
business continuity. Due to the open nature of FOSS, dependence on software companies is less.
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Figure 3: The enterprise success model
Srimal Jayawardena and Gihan Dias
2.3.4 Helping domestic industries
The open nature of FOSS will help the domestic software industry to actively contribute in developing
applications. This is important for the long term sustainability of government projects and in terms of national
interests.
2.3.5 Innovation
The open nature of FOSS helps innovation. This results in more advanced and efficient software which
are released faster than proprietary software which have to adhere to conventional release cycles.
Figure 4: Kwan and West (2005) FOSS adoption model
2.4 Open Source adoption models
Kwan and West (2005) of the Silicon Valley Open Source Research Project, San José State University,
have presented the following Conceptual Model for Enterprise Adoption of Open Source Software (Figure
4).
The model assumes a three phase process:
2.4.1 Policies
The firm establishes a series of policies (formal or informal) that guide its procurement decisions.
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2.4.2 Choice set
Srimal Jayawardena and Gihan Dias
From the range of available options, at the first decision point the firm identifies those acceptable alternatives
that meet minimum requirements.
2.4.3 Selection
From the range of acceptable alternatives, at the second decision point, the firm makes its final selection
decision.
The following factors are said to influence the adoption decisions.
Features
These are the attributes commonly used to measure what is new or valuable about a given technology,
and used by vendors to differentiate their products. Because anything could be tautologically classified as
a “feature,” we define feature as the residual of the two remaining categories
Risk
Risk for a system is often thought of in terms of reliability — the comparative scarcity of crashes, failures,
or data loss. However, risk-lowering measures might also include efforts to mitigate the effect of inevitable
if rare failures (such as redundant data or 7/24 support). Firms may also consider the risks of their
investments over time, such as the risk that the technology may be orphaned by the vendor (either deliberately
or with the vendor’s bankruptcy), or that for some other reason the investment is rendered obsolete.
Cost
These may include both the initial purchase price, and the ongoing usage costs such as support contracts
and upgrade fees. An attempt to calculate total cost of ownership would also include personnel
cost, and (for large data centers) related equipment costs such as power, air conditioning, security, etc.
The following factors have been identified by Dedrik and West (2003) as open source adoption factors in
their grounded theory based research.
Willingness to take risks on a new, unproven technology.
Need for organizational slack to evaluate the new technology and to self-support unsponsored technologies.
Tendency of open source software to be inexpensive if not free and the inherent trialability of “free”
software distributed on the Internet.
Availability of external sources of support and expertise.
Having set the background to the research with the aid of relevant literature, we move on to describe the
research methodology employed in the section which follows.
3. Research methodology
The study intends to investigate a selected set of government IS in considerable depth. Therefore a case
study based approach was adopted. As suggested by Yin (2003) the overall evidence from a multiple
case study could be considered to be more compelling and robust, when it can be afforded to. Therefore,
selected enterprise IS of selected government organizations were taken as case studies. Therefore the
study is mostly qualitative in nature. The data collection was done through in-depth interviews. Staff at
different levels of the organization has been interviewed as appropriate in order to obtain a more holistic
perspective. The selected government organizations (Appendix A), the IS projects (Appendix B), personnel
interviewed (Appendix C) and the interview outline with sample questions (Appendix D) are included
at the end of the paper.
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3.1 Scope of the research
Srimal Jayawardena and Gihan Dias
The research focuses on IS pertaining to a selected set of government organizations. The sample set
consists of ICTA guided IS projects as well as non-ICTA IS projects in order to facilitate comparative
analysis. The list of organizations and the IS projects included in the study are indicated in Appendix A
and B.
3.2 Interview design
In depth interviews were carried out based on a broad outline. The structure of the interviews was designed
to bring out the factors that affect the choice of software in the organizations concerned. In particular,
the selection or the absence of FOSS has been investigated. The interviews investigate the
source of the requirements specifications along with the nature of the technologies and factors that influenced
the IS solution. The IS solution was examined in terms of its modules which included different
combinations of FOSS and proprietary technologies. This ranged from totally FOSS or proprietary systems
to IS with a combination of both. Issues and room for improvement in the selected IS have also
been investigated. The interview outline covers the following aspects.
3.2.1 A general investigation
The main projects, the project objectives and components were identified in this section.
3.2.2 Technology and components
The software, hardware and middle ware components used for each project were identified. The use of
proprietary and FOSS components were investigated and identified.
3.2.3 Specification development and selection
The nature of the specifications development for each IS was identified. This section investigates if specifications
were developed internally, by an external consultant and in the case of ICTA guided projects,
the involvement of a SAGE.
3.2.4 Factors affecting the selection
This section investigates the key factors affecting the selection of the IS system concerned. In the case of
a procured solution the factors affecting the selection process were investigated. It was also investigated
if the interviewees had any recommendations to improve the current selection process. If the IS was developed
by internal staff, the reasons behind this decision was investigated.
3.2.5 Issues, improvements and FOSS
For ISs that have already been fully implemented, the issues and room for improvement in those systems
were investigated. Also the management inclination towards using FOSS components as a viable option
to resolve those issues and to make improvements was investigated. The perceived areas where FOSS
could be used most advantageously have been investigated.
The data collected using the described research methodology is analyzed in the next section.
4. Analysis
The following factors have been broadly identified to affect the selection of IS's, as a result of the in-depth
interviews carried out during the study.
Cost
Technical Specifications
Usability
Bidders Expertise in selected Technology
Users Expertise in selected Technology
Interoperability and Open Standards
245

Trilingual Support
Support and Maintenance
Security
Srimal Jayawardena and Gihan Dias
It has been attempted to analyze the factors based on how the requirements specifications were developed.
The following categories have been identified during the study as possibilities of developing the
requirements specifications.
Developed by internal Staff
Developed by External Consultant
ICTA Guided
Private Public Partnerships (PPP)
4.1 Analysis of the factors
The identified factors can be analyzed from several perspectives. An analysis of the 4 most commonly
mentioned factors is shown in Figure 5. Based on this, organizations that considered ‘Bidders/Developers
expertise in the selected technology’ as an important factor had a significantly lower percentage of FOSS
systems as opposed to the others. Therefore, we see that this factor is a strong deterrent for using FOSS
in the organizations investigated.
Figure 5: Factor summary showing the use of FOSS and proprietary IS
4.1.1 Cost
Almost all investigated organizations have indicated the cost of the IS as a decisive factor. Almost half
(43%) of investigated projects where the cost was considered as an important factor were for systems
that were developed in-house. Next in line were ICTA guided projects which composed of 11% of the
population. A few interesting points have been noted when analyzing the cost as a factor.
Total Cost vs. IS Cost
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Srimal Jayawardena and Gihan Dias
Certain projects, where the cost of the IS is small compared to the capital cost of the entire project have
placed a lower importance on the cost of the IS. For example, in the CEB power systems the total cost of
a power station is very large when compared to its IS component.
80-20 Rule
In most ICTA guided projects where the cost is a decisive factor, the cost of the projects has been given
prominence in the requirements specification by using the 80-20 rule. This is where the final selection is
done by allowing an 80% weight on the cost of the bid while a weight of 20% is given on technical specifications.
This rule has been used to indicate to bidders that cost is an important factor in the selection
process. In such situations, certain vendors have considered FOSS components in the proposed solutions.
4.1.2 Technical compliance
Technical compliance has been reflected in most projects by indicating a minimum level of compliance.
Other factors have been considered subject to this minimum level of technical compliance. Certain projects,
however, have specific technical requirements.
Compliance with existing technology
Certain projects impose technical constraints as it is required to migrate data that is already stored using
a particular technology. For example the Department of Education has had its data in an IBM mainframe
since 1974. This system was migrated to the IBM AS/400 platform in 1998 as the migration of the past
data was easier within the selected platform.
4.1.3 Usability
Usability has been identified as a decisive factor in projects developed internally and in procured systems.
However, usability was not explicitly highlighted as a decisive factor in the other categories of
specification development.
4.1.4 Implementers and specifications developers influence
We see in figure 6 that different methods of specifications development and implementation have resulted
in varying levels of FOSS and proprietary software being used in the resulting IS. The largest percentage
of FOSS usage is reported from ICTA guided government enterprise IS projects. This reflects an
increasing FOSS awareness within the ICTA. Other methods of implementations have lower levels of
FOSS – lower than 50%. It is interesting to note that the PPP category consists entirely of proprietary
software. Salient aspects of each of these categories are discussed next.
PPP Projects
In the Government Information Center (GIC) project, the private partner organization maintained that the
single most reason for their choice for a particular set of proprietary technologies was because their expertise
lay in those technologies.
ICTA Guided Projects
The Lanka Government Network (LGN) project is facilitated via a Korean government loan. The loan
conditions dictate that the bidders of the project are required to be Korean. The expertise of these bidders
has influenced the ultimate choice of technology for this project, although the ICTA has not limited the
requirements to technology in particular. Also the degree on inter dependency between components of
this project limit the freedom of choice given that a particular component has been implemented by a certain
vendor using a proprietary solution.
External Consultant
The same notion is reflected under this category as well. It was found that a particular MIS at the Tertiary
and Vocational Education Commission has been developed in a certain technology as the consultant
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Srimal Jayawardena and Gihan Dias
concerned was familiar with it. The system has had problems in scaling up to new requirements that have
evolved and a new MIS is being implemented at a larger scale.
Figure 6: Specifications developer / Implementer effects on the IS
4.1.5 Users expertise in selected technology
The expertise of existing users in a given technology has been found to be an important factor in certain
ICTA guided projects. This is particularly so in the LGN project which also relies on the expertise of the
existing staff in government organizations to maintain the infrastructure installed at those organizations.
4.1.6 Interoperability and open standards
Compliance with open standards and interoperability has been identified as important factors in certain
ICTA guided projects.
4.1.7 Trilingual support
Trilingual support has been highlighted as an important factor in most recent government sector projects
that involve the general public as users. This was especially noted in the design of the E-Local Government
project.
4.1.8 Support and maintenance
Support and maintainability of the IS projects have been especially highlighted as an important factor in
the internally developed category. In the TVEC MIS project for example, the consultant who implemented
the initial MIS had been unable to provided support and maintenance of the system after a certain point.
Hence the management had decided that the future MIS should be implemented with internal expertise
using an open technology, so that the system can be maintained by the internal staff.
4.1.9 Security
Security of the IS has been explicitly identified as an important factor in the Examination Information System
of the Department of Education. In fact, security has been a strong factor for the choice of the particular
technologies used to implement the system – namely IBM AS/400 based technologies.
Having analyzed the data as explained above, we draw the following conclusions.
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5. Conclusions
Srimal Jayawardena and Gihan Dias
We conclude from the analysis that although a considerable number of government organizations perceive
the benefits of using FOSS, the following factors prevent FOSS adoption.
5.1 Lack of FOSS expertise in companies that bid for government projects
A significant reason for not using FOSS based IS in the government sector was the fact that companies
bidding for such projects did not propose such solutions. It is only recently that companies bidding for
government projects have started to integrate FOSS components in the proposed solutions, to lower cost
and leverage on the other benefits of FOSS.
5.2 Lack of internal expertise in FOSS
Certain organizations that were investigated noted that they do not have the expertise to implement and
maintain FOSS IS internally. Therefore there is reluctance towards implementing FOSS solutions.
5.3 Lack of FOSS support companies
In several organizations, FOSS solutions have been implemented by internal software developers. A
cause for concern was the lack of FOSS support companies to obtain support services. Often the FOSS
expertise was from a few key developers in the staff who have had an exposure to FOSS.
5.4 Use of unlicensed proprietary software
The use of unlicensed proprietary software makes the cost unrealistically lower than when using legal
licensed versions. This is a disincentive to consider FOSS alternatives which would have been otherwise
cheaper.
6. Recommendations
Based on these conclusions, we make the following recommendations, in order to leverage on the benefits
of FOSS in government sector enterprise software applications.
6.1 Nurture a FOSS ecosystem
FOSS service provider companies should be nurtured and encourage to support government IS development.
This should encourage places where FOSS expertise exists, for example Universities, to provide
FOSS services to government IS projects. Since, government IS will have long term benefits by leveraging
on FOSS components, nurturing a FOSS ecosystem with companies that provide FOSS solutions will
be a win-win situation for the government as well as for those companies.
6.2 Developing internal expertise
Internal expertise within the government organizations should be developed. IT personnel within government
organizations should be trained to be FOSS savvy. Technical expertise within the organizations
should be capable of maintaining FOSS IS. The following aspects could be considered in achieving this.
6.2.1 Knowledge sharing
A knowledge sharing mechanism among government (and other) organizations should be encouraged.
This is to facilitate support and maintenance experience of FOSS solutions which would otherwise remain
in silos.
6.2.2 Government IT service
With the increasing use of IT/IS within the government sector, a government IT service should be developed
that could cater to the IS needs of government organizations. The personnel in this service should
be trained to be FOSS savvy. There should be close liaison between this service and the private FOSS
solution companies.
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6.3 Licensed software
Srimal Jayawardena and Gihan Dias
Licensed software should be insisted on when proprietary software components are used in government
enterprise software applications. This will safeguard organizations from litigation when the legal framework
develops and is capable of prosecuting the use of illegal software. Insisting on licensed software will
make the costs of proprietary software components reflect realistically in the procurement process.
Therefore, the monetary benefits of any comparable FOSS components will be more obvious.
6.4 Policies in general
Government organizations should encourage FOSS friendly policies in IS procurement policies. FOSS
experience of companies is relatively young as FOSS itself is comparatively new. Government tender
policies should accommodate this fact, if FOSS based solutions are to be encouraged. Also, open standards
and non restrictive policies should be encouraged.
List of Acronyms
CIO – Chief Innovation Officer
CRM – Customer Relationship Management
FOSS – Free and Open Source Software
HRM – Human Resource Management
ICTA – The ICT Agency of Sri Lanka
IS – Information System
LGN – Lanka Government Network
MIS – Management Information System
PPP – Public Private Partnership
SAGE – Software Architecture Group of Experts
Appendix A
Organizations investigated in the research are as follows.
Table 1: Organizations investigated
Organization Code
Ceylon Electricity Board CEB
Department of Agriculture DeptAgri
Department of Education DeptEdu
Department of Local Governments LocalGov
ICT Agency of Sri Lanka ICTA
Ministry of Public Administration PubAdmin
Sri Lanka Customs Customs
State Engineering Corporation SEC
Tertiary and Vocational Education Commission TVEC
Appendix B
List of IS projects investigated are as follows. Please refer Appendix A for organization codes.
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Table 2: Investigated IS projects
Appendix C
Srimal Jayawardena and Gihan Dias
Project Organization
Accounting and Inventory System CEB
Bill of Quantities System SEC
Call Center DeptAgri
Consumer Billing System CEB
CRM System GIC/ICTA
E-Learning System TVEC
E-Learning System DeptAgri
EHRM System ICTA/ PubAdmin
eLocal Government Project ICTA/LocalGov
ePensions Project ICTA/PensionsDept
eSamurdhi Project ICTA/SamurdhiAuthority
Examination Processing System DeptEdu
Goods Processing System Customs
Grama Niladari HR System PubAdmin
Inventory System SEC
LGN Phase 1 ICTA
Mail Server SEC
Management Information System TVEC
Motor Vehicle Records System Customs
Payroll System SEC
Power System Control Systems CEB
Timex BPO (Pvt) Ltd.(Public Private Partnership) PPP
Warehouse Monitoring System Customs
Web Information System DeptAgri
Web/Email System PubAdmin
People interviewed in different organizations. Please refer Appendix A for organization codes.
Table 3: Interviewed personnel
Name Designation Organization
Dr. T.A Piyasiri Director General TVEC
Mr. Ajantha Dias Director IT Customs
Mr. Bandula Perera Chief Innovation Officer LocalGov
Mr. Chinthaka Ranasinghe Project Manager ICTA
Mr. Dammika Karangoda Chief Innovation Officer DeptEdu
Mr. Janaka Jayalath Director Information Systems TVEC
Mr. K.S.P Jayawardena Additional General Manager CEB
Mr. Kumudu Munasinghe Head of Information Management SEC
Mr. Lalith Waduge Systems Engineer PubAdmin
Mr. M.G Tillakaratne Deputy General Manager CEB
Mr. Moin Habeeb Manager PPP
Mr. Neil Gunadasa Director of Education DeptEdu
Mr. W.A.G Sissirakuimara Subject Matter Specialist
Program Director- Re-engineering Govern-
LocalGov
Mr. Wasantha Deshapriya
ment ICTA
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Appendix D
Srimal Jayawardena and Gihan Dias
The interviews were based on the following sample questions.
1. What are the Information Systems (IS) projects in your organization and what are the components
of those projects?
2. What technology, hardware, software or middleware components were used in these IS? Were
any FOSS components used?
3. How were the specifications of the project developed?
4. Who are the key people involved in the selection decision?
5. Regarding the procurement process, a) What factors influence the selection decision in your procurement
process? b) How do you rank these factors based on their importance for the existing procurement
process? c) Do you have any recommendations to improve the selection process?
6. Regarding issues and room for improvement, a) If these systems are up and running, are there
any problems? b) In the said systems what areas need improvement? c) Which parts of it are you
happy with and which parts are you not satisfied? d) For the unsatisfied areas, do you see FOSS as
a viable option?
7. In your opinion in what areas would FOSS be more advantages to you?
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252

Evaluating the Success of Customer Relationship
Management (CRM) Systems
Farnoosh Khodakarami and Yolande Chan
Queen’s University, Kingston, Canada
Fkhodakarami@business.queensu.ca
Ychan@business.queensu.ca
Abstract: Based on the Delone and McLean IS success model (1992), this qualitative study explores customer
relationship management (CRM) system success factors. A case research approach was applied to examine CRM
applications in three organizations. Through these case studies, five factors of CRM success were explored, namely:
system quality, customer information quality, system use, user satisfaction, and system impacts. With regard to
system quality, a main determinant of success was the system’s primary characteristics. CRM systems can be
categorized as operational, analytical and collaborative, based on their characteristics. The study showed how
system’s characteristics directly affect the purpose of system use. Operational CRM systems are mostly used for
providing customer services. Analytical systems are primarily used for decision support. Collaborative systems are
used both for work integration and providing service for internal and external customers. The study showed that if
systems properly address users’ expectations and employees have the required skills to work with systems,
employees are more willing to utilize the capabilities of systems to support CRM processes and, in turn, are more
satisfied with the outcomes. Customer information quality relates to system quality; integrated CRM systems that are
based on standard platforms are more capable of generating high quality customer information in a timely manner.
Individual and organizational impacts of CRM systems were explored. Individual productivity, improved decision
making and planning, learning and awareness were shown to be important individual benefits that CRM systems
provide for employees. At the organizational level, the study showed that CRM systems help organizations to acquire
and share more knowledge about their customers, and improve business processes, products and services.
Keywords: customer relationship management, CRM, system evaluation, IS success, system effectiveness
1. Introduction
In response to increasing competitiveness in the global market, organizations are looking for means to
manage their relations with customers more effectively over time. As a result, customer relationship
management (CRM) has become a central part of most businesses and many organizations are
implementing CRM systems. CRM systems are a category of organizational information systems that
enable organizations to provide services for customers, gather and analyze customer information and
manage their relationships with customers more effectively. However, despite substantial investments,
many CRM systems fail to meet expectations. Besides, organizations often do not know appropriate
success criteria to use to evaluate their CRM systems’ effectiveness. This study addresses these issues
by drawing on a qualitative case research approach.
The rest of this paper is organized as follows. First, the theoretical backround and research framework
are presented. Then, the research method and findings are described. Finally, conclusions, limitations
and implications are discussed.
2. Theoretical background
The main objective of CRM is to retain current customers through increasing their loyalty and to select
new customers that provide higher profitability (Hansotia 2002). With the growth of information
technology applications in organizations, CRM systems are popular. Successful CRM systems help
organizations to manage customer information more effectively and increase customer satisfaction,
customer loyalty and customer profitability through meaningful communication with customers (Winer
2001). CRM systems fall mainly into three classes (Bose and Sugumaran 2003; Henning et al. 2003):
Operational CRM systems that aim at automation of CRM processes to improve efficiency and
productivity. Examples of such systems are sales and marketing automation systems (e.g., point of
sales (POS) systems), call support centres and customer databases.
Analytical CRM systems that aim to provide better understanding of individual customers’ behaviours
and needs. Analytical systems incorporate various tools for consumer behaviour predictive modeling
and purchase pattern recognition, such as data mining, data warehouse and OLAP (online analytical
processing).
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Farnoosh Khodakarami and Yolande Chan
Collaborative CRM systems that manage and integrate customer communication channels and
networks. Email, websites, internal portals, and tele-, video- and web-conferencing applications are
examples of collaborative systems that organizations use.
Organizations invest in CRM systems and in turn expect the systems to positively impact their
organizations and various customer related processes (Barua et al. 1995; King and Burgess 2008).
Accurate measuring of the impacts of CRM systems requires “understanding systems’
multidimensionality, and the development of a correspondent, standardized, validated, and robust
measurement instrument” (Sedera and Gable 2004, p. 449).
However, within the CRM domain, there is a lack of research that evaluates the success of CRM systems
in actual use. To measure the success of information systems, Delone and McLean (1992) developed a
model that includes both individual and organizational impacts of information systems. Considering the
CRM systems as a category of organizational information systems, their success can be evaluated using
the Delone and McLean model.
This model (see Figure 1) has been widely cited and has been a valuable means to measure IS success
in organizations (Gable, Sedera and Chan 2008).
Figure 1: DeLone and McLean IS success model (1992)
In the IS success model, two main factors, system quality and information quality, influence system
usage and user satisfaction, which in turn lead to individual and organizational impacts. System quality
refers to the desirable characteristics of an information system, such as system flexibility and ease of
learning, while information quality refers to the desirable characteristics of the system outputs, such as
management reports and Web pages. ”Use” can have different meanings. It can refer to the amount of
use, frequency of use, and extent of use, as well as the nature and purpose of use (Petter et al. 2008).
Examples of measures in each category (i.e., system quality, information quality, individual and
organizational impacts) were gathered in a multidimensional IS success measures instrument developed
by Sedera and Gable (2004) that also helped to inform our study. See Table 1.
Table 1: Validated measures for IS success, Sedera and Gable (2004)
For the purpose of this exploratory study, a framework was developed based on the Delone and McLean
(1992) model. This framework is discussed in the next section.
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3. Research framework
Farnoosh Khodakarami and Yolande Chan
The impacts of information systems are often interdependent and influenced by various factors. The
research framework (see Figure 2) indicates the factors that are investigated in this research. Not all of
the DeLone and Mclean factors are considered in this paper because of space constraints. Some of the
most important variables that affect the success of CRM systems are as follows:
Figure 2: Research framework
3.1 System quality
System quality refers to the desirable characteristics of an information system (Petter et al. 2008).
System quality is a multi-dimentional measure. Many researchers focus on the engineering
characteristics and features of the system as main indicators of system quality (Ravichandran and Rai
2000). Therefore system features such as integration, complexity and flexibility have been considered as
system quality measures in a broad range of IS sucess studies (Petter et al. 2008). Besides, in regard to
CRM systems, the primary characteristics of the system (i.e., operational, analytical and collaborative
characteristics) can be considered as system quality factors. It is worthwhile to investigate how these
characteristics affect systems’ success. In addition, users’ judgement is also critical for the evaluation of
system quality. Measures like user requirements, ease of use and ease of learning reflect the users’
evaluation of system quality (Ravichandran and Rai 2000, Petter et al. 2008).
3.2 Customer information quality
In the DeLone and McLean (1992) model, information quality refers to the desirable characteristics of the
system output, namely the quality of information that system produces in the forms of reports, analyses
and web pages (Petter et al. 2008). The main output of the CRM system is customer information, and
effective management of customer information is a central characteristic of CRM systems; it helps
organizations to better understand their customer needs and expectations and to respond to those needs
in a timely manner (Hansotia 2002). Large amounts of data available to organizations through different
communication channels are becoming a challenge for organizations. CRM success is therefore strongly
associated with systems’ capability to manage the data and provide real time, meaningful, accurate and
high quality customer information (Reid and Catterall 2005). Thus, availability of customer information is
in fact a good indicator of the quality of the information.
3.3 System use
System use is an important dimension of IS success and is associated with the impact or benefits
realized from IS (Petter et al. 2008). It indicates the degree and manner in which employees utilize the
capabilities of an information system, and it can be described as amount of use, frequency of use and
appropriateness of use (DeLone and McLean 2003; Petter et al. 2008). Most studies have measured the
extent of use ( i.e., amount and frequency of use). However, the extent of use may not be the best
measure of IS use since more use is not always better. To overcome this deficiency, Doll and Torkzadeh
(1998) suggested that system use can be measured based on the purpose of use. They identified
decision support, customer service and work integration as three main usage behaviours. Decision
support refers to the extent to which the information system is used to analyze data and make decisions.
Customer service is the extent to which the information system is used to provide service for both internal
customers (employees) and external customers. Work integration incorporates horizontal and vertical
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Farnoosh Khodakarami and Yolande Chan
integration. Horizontal integration refers to the extent to which the information system facilitates
communication in work groups and helps employees to collaborate on various tasks. Vertical integration
refers to the extent to which the system is used to “plan one’s work, monitor performance and
communicate vertically with superiors and subordinates” (Doll and Torkzadeh 1998, p. 174).
3.4 User satisfaction
User satisfaction refers to the user’s level of satisfaction with system reports, outcomes and support
services (Delone and McLean 2003). Scholars use various measures for user satisfaction. End User
Computing Satisfaction (EUCS) (Doll and Torkzadeh’s 1994) and the User Information Satisfaction (UIS)
instrument (Ives et al. 1983) have been the most widely used instruments. However, some scholars use a
single measure for user satisfaction (e.g., Rai et al. 2002) and others measure positive user attitude as
an indicator of IS success (e.g., Coombs et al. 2001). While some measures of user satisfaction focus on
cognitive aspects of user satisfaction and the "extent to which users believe the information system
available to them meets their information requirements" (Ives et al. 1983, p. 785), other measures focus
on affective responses (i.e., favorable and unfavorable attitudes toward systems) as indicators of user
satisfaction (Melone 1990). In this research both cognitive and affective responses are explored.
3.5 System impacts
System impacts refers to “the extent to which IS are contributing to the success of individuals, groups,
organizations, and industries” (Petter et al. 2008, p.239). CRM systems provide benefits at different
organizational levels. Individuals in different departments use CRM systems to accomplish their tasks
more effectively and efficiently. Individual impacts indicate the extent to which CRM has influenced the
capabilities and effectiveness of individual users. Organizations also take advantage of CRM systems.
Organizational impacts indicate the extent to which CRM has promoted improvement in organizational
results and capabilities (Gable et al. 2008). The Petter et al. (2008) review of literature on IS success
revealed that few studies have considered organizational impacts of information systems. However,
despite measurement difficulties, impacts of information systems cannot be monitored only at the
individual level. Specifically, in the context of CRM, we know these systems provide benefits beyond the
individual level. Within organizations, several departments such as marketing, sales, customer relations
and R&D can substantially take advantage of CRM systems. Business process change, overall
productivity, increased outcomes/outputs are some examples of organizational benefits of IS.
4. Research method
This study explores CRM system usage and evaluates systems’ effectiveness in organizational contexts.
Given the exploratory nature of this study, a qualitative case study approach was used. The case studies
allowed the researchers to learn about CRM systems in their business contexts and explore various
factors that affected the usefulness of the systems. Case studies are specifically appropriate for
information systems research; due to the rapid pace of information systems evolution, previous studies of
the phenomena are limited. Case studies provide researchers with valuable insights to study phenomena
and generate theories from practice (Benbasat et al. 1987). Three Canadian organizations were selected
for this study. These organizations represent different industries and vary in terms of CRM capabilities,
system development levels and organizational characteristics (see Table 2). The organizations use CRM
systems and other information systems to support customer relations and processes. Call centres, POS
and customer databases are the main operational systems used. For customer analysis, the electronics
organization uses data warehouse and data mining systems, but the other two organizations largely rely
on Excel analyses. In regard to collaborative systems, e-mail, company websites and social media (e.g.,
Facebook, online communities and forums) are the main means of communication with customers. Each
organization has several internal portals to support customer-related processes. The electronics
organization has an e-support website to provide online customer services.
During a four-month period in 2010, twelve telephone and in-person interviews were conducted with
CRM users and with managers and employees from customer service, marketing, and IT departments
within the three organizations. Sample interview questions are presented in Appendix. Interviews were
recorded, transcribed and coded using the Nvivo program. The results are discussed in the next section.
This research methodology is rigorous, satisfying criteria that Dube and Pare (2003) have recommended
for a good IS positivist case study. Criteria for research design include: clear research questions, a priori
specification of the constructs, a clean theoretical slate, and a multiple-case design. As recommended by
Dube and Pare (2003), to assist with data analysis and the formulation of arguments, a case study
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Farnoosh Khodakarami and Yolande Chan
database was developed as interviews were coded, field notes recorded, cross-case patterns explored,
and quotes tracked.
Table 2: Comparison of case characteristics
Organization
Organization Size
Product/Service System Development Level
Structure
Electronics Large
Health Medium
Several companies,
Local stores across
Canada
One company, Local
stores across
Canada
Education Small One local school
Various categories
of electronic
products
Weight loss
services, health
and nutrition
products
Services
(Educational
programs)
Well developed systems with various
applications, systems are upgraded
regularly
Few systems that were recently
launched, system development is in
progress
Few systems that have been used for
years with minor upgrades, systems
applications are not well utilized
5. Results and discussion
Using the case data, the relationships among system success factors were explored. Interviewees were
asked to explain the benefits that systems provide for them and their organizations. Figure 3 presents the
relationships that were identified through the interviews. These relationships are discussed below.
Figure 3: Summary of findings
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System quality: Customer information quality
Farnoosh Khodakarami and Yolande Chan
System quality affects customer information quality in several ways. An important factor that determines
the quality of systems is system integration. The interviews revealed that system integration greatly
affects the availability of customer information. Customer information exchange is an important issue for
many organizations; integrated systems facilitate the flow of information through the organization and
allow the employees to get access to the right information in a timely manner. In the health organization,
the disintegration of systems has increased the work overload in s, since the employees have to spend
time to manually gather and combine all the information they need to do analyses and make decisions.
There’s still not that direct connect between the reports. And I have to go back through so
much manual work to find out how many leads each centre had and then try to correlate it to
how many actually showed up and then manually again to find out how many sold.
Regional Director, Health Organization
In addition to system integration, system flexibility affects the availability of customer information. Flexible
CRM systems allow users to define their specific information requirements and get access to that
information. It is assumed that more system flexibility is beneficial for the availability of information;
however an interesting observation was that the high level of flexibility will in fact restrict the availability of
information in some occasions. For instance, the CRM system which is used in the education
organization has a high level of flexibility that allows the employees to easily create new databases.
These databases consist of custom-made fields based on individuals’ preferences. As a result,
paradoxically, employees cannot easily retrieve the information they need from other employees’
databases and integrate it to their own databases and this restricts the flow of information.
The amount of flexibility is incredible, almost too flexible. It allows us to keep creating these
separate databases as often as we can without relating any information between them and
that's a big challenge.
IT Associate Director, Education Organization
System quality: System use
System quality affects the use of systems. Both purpose and frequency of use are affected by system
quality. The data suggested that purpose of use is associated with the primary characteristics of CRM
systems. Within the studied organizations, operational CRM systems such as call centres and point of
sales (POS) systems are mostly used for providing customer services for external clients. Analytical
systems are primarily used for decision support. Employees use analytical systems (e.g., data
warehouses, Excel) to analyze customer information and discover patterns of consumer behaviour.
These analyses aid the decision making processes to a great extent. Collaborative systems have the
highest applicability since they are used for multiple purposes. Some of these systems are used for
vertical integration. For instance, in the health organization and the electronics organization, district
managers have regular web conferencing and teleconferencing with the store managers to monitor
stores’ performance and share customer experiences and best practices. A group of collaborative
systems such as portals supports horizontal work integration. Through the internal portals, employees
collaborate on projects and collectively accomplish tasks. Another group of collaborative systems
facilitates internal and external customer service provision. All three organizations have e-learning
websites that provide customer support training for employees. The electronics organization has a
website that provides customer and product information that sales associates need. This website is
updated regularly to include new products. This organization also has an e-support website that supports
repair and maintenance services for external customers.
There are other system quality variables that affect the frequency of use and employees’ willingness to
use the systems. User requirements are one of these variables. If a system fails to address users’
requirements properly, understandably employees are less likely to use it. This is particularly a challenge
for the education organization. This organization uses a CRM system which was primarily developed to
support sales and marketing processes. Therefore, the CRM system’s nomenclature and functionalities
are not fully compatible with the particular requirements of an educational organization. As a result, the
capabilities of the systems have been largely underutilized.
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Farnoosh Khodakarami and Yolande Chan
A lot of examples in the training guide are sort of product related, which is not really the area
that we fall under… if we go out into the more sales and marketing aspect of it [the CRM
system] we might realize that it’s limited in what we’re trying to do. We’re just not using those
parts.
Director of Executive Development Centre, Education Organization
Ease of learning is another system quality factor that influences system use. The interviews at the
education organization revealed that the CRM system has sophisticated analytical capabilities and a
database management tool that “scares people”. It is not easy to learn and utilize these capabilities since
“it takes a different IT skill set and is not something that the average employee can do”. As a result,
employees do not use these tools and merely rely on Excel spreadsheets to do basic analyses and
reporting.
Customer information quality: System use
No direct relationship was found between customer information quality and system use. In the literature
also there is little research demonstrating this relationship. The Petter et al. (2008) review of 180 papers
on IS success showed that, at the time, only six papers had discussed this relationship. In general, Petter
et al. (2008) did not find sufficient data to support this relationship.
System quality: User satisfaction
As expected, it became clear that if a system has the capability to meet the users’ requirements,
employees are more satisfied with the system. For instance, the health organization has a system that
allows employees to monitor clients’ weight loss progress, easily get access to their profiles and
purchase behaviour, perform analyses, and provide consultancy services. This system was developed
internally to address the specific requirements of the users; therefore, employees are very satisfied.
My first real experience with [the new system] was just like there was a wild moment for me
where I went 'Wow!' it gives me everything I need, I can actually be more effective as a
regional manager by spending an effective administration day, reviewing what's going on in
centres before I go there.
Regional Director, Health Organization
System integrity also affects user satisfaction. In many cases, lack of system integration leads to
duplication in data entry and manual work in order to aggregate data from different sources; this leads to
dissatisfaction. Similarly, if the CRM system is not compatible with other information systems, it can
cause problems and unnecessarily increase the workload, which also leads to employee complaints.
Customer information quality: User satisfaction
Availability of customer information affects user satisfaction. CRM systems provide employees with the
information they need for their analyses, planning and decision making processes. When CRM systems
provide the right information in a timely manner, employees feel satisfied with the system. However, if the
information is not properly organized, it will take a long time for employees to pull out the right information
they need. This inefficient process can be tedious and time consuming, and lead to user dissatisfaction.
We put a lot of information into different areas and therefore pulling out the information is
difficult …. It can sometimes take a few hours to get information that if it was done properly
could be probably at your fingertips.
Director of Operations, Education Organization
System use: Impacts
CRM systems provide various benefits for organizations. Interviewees were asked to discuss some of the
benefits that systems provide for their individual work and for the organization. In general, most of the
interviewees admitted that CRM systems have improved their business capabilities and helped them
know their customers better and make more effective decisions. The main systems’ impacts which were
identified through the interviews are as follows:
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Farnoosh Khodakarami and Yolande Chan
Individual impacts:
Productivity
Interviewees believed that CRM systems help them work more productively. They spend less time
acquiring and aggregating information, they can perform more comprehensive analyses, and they provide
better customer service. In addition, the feedback that organizations receive through various collaborative
systems helps managers to evaluate employees’ performance and provide recommendations for training
that can help employees to further improve their performance.
Improved decision making and planning
Systems also improve individual decision making and planning. Using the systems, employees have
access to more knowledge resources and can get the information they need for decision making in a
reasonable time. Exchanging ideas and feedback through the collaborative systems also helps managers
with their decision-making and planning tasks.
Learning
Information systems provide learning opportunities for employees and customers. The organizations
studied have e-learning systems and internal portals which provide documents and knowledge resources
related to customers. The electronics organization also has an internal portal that provides product
information for sales associates and call centre agents who can learn about the specific features of each
product. This enables the sales associates and call centre agents to provide better customer service.
Awareness
There are several systems that increase employees’ awareness of events, market fluctuations and
product changes. The health organization has an internal portal where all events and discussions are
posted. Within the education organization, the instant messaging tool is broadly used for this purpose. In
the electronics organization, agents benefit from increased awareness as a result of a “product alert”
CRM feature. If a specific problem is identified regarding a new product, the call centre manager makes
the call centre agents aware of this problem by assigning an alert to the product. It helps the agents to
provide better service for customers when they have inquiries about the particular product.
Organizational impacts
Knowledge sharing and communication
Collaborative CRM systems facilitate knowledge sharing and communication through the organization.
For instance, in the electronics organization, employees can share their new ideas through an electronic
suggestion box. Web-conferencing is also used in all three organizations to facilitate real-time
communication in team meetings. Online communities and social media (e.g., Facebook and Twitter) are
some of the systems that these organizations use to communicate with potential and actual customers.
Process improvement
Knowledge sharing and feedback from employees and customers help the organizations to improve
various processes (e.g., marketing, advertising, and financial forecasting). The electronics organization
has launched an advertising and product recommendation process which is supported by analytical CRM
systems. By analyzing customer purchase history for each individual customer, the organization is able to
suggest products that match each customer’s needs and complements his or her past purchases.
Product /service improvement
CRM systems, and specifically analytical CRM systems, help organizations to better understand
customers’ need and predict their behaviour. Customer feedback which is collected through collaborative
systems also reveals customers’ expectations. Having more detailed knowledge about customers helps
the company to improve products and services. In addition, CRM systems enable organizations to
provide a broader range of services to their customers. For instance, the health organization has
launched an online system which allows customers to monitor their weight loss progress at any time,
consult with health and nutrition experts, and receive supplemental resources and articles that give them
the information they need to maintain their weight loss. The e-support system of the electronics
organization is another effective system that helps to provide superior self-service support for customers.
The system not only provides manuals and information on products but also guides customers to
personally recognize product problems and fix them without the need to refer problems to repair shops.
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6. Conclusion
Farnoosh Khodakarami and Yolande Chan
Organizations are interested in evaluating the effectiveness of CRM systems; however the effectiveness
of systems is influenced by various technological and organizational factors, and the measurement of
systems’ success is challenging. Using the Delone and McLean (1992) multi-dimensional IS success
model, this study explored factors that affect the success of CRM systems. The qualitative case studies
provided the researchers with insights and real examples of how CRM systems are used in their
organizational contexts and what variables contribute to their success. System integration was found to
be an important technological variable that affects the use of systems. Systems integrity facilitates
information sharing and allows employees to access accurate information in a timely manner. It was
confirmed that if systems properly address the users’ requirements, they are more likely to be used.
However, the level of systems’ complexity should match the employees’ IT skills; otherwise systems’
capabilities will not be utilized.
CRM systems help employess be more productive. They also provide learning opportunities for
employees and customers. But CRM systems’ impacts go beyond the individual level. At the
organizational level, systems facilitate communication and knowledge sharing throughout the
organization and with customers. Furthermore, CRM systems enable organizations to provide a broader
range of services for customers and improve products and business processes.
In summary, CRM systems have major impacts at different levels and their effectiveness depends on
several technological and organizational factors. As a result, in order to evaluate the effectiveness and
success of CRM systems, organizations should draw on multi-dimensional measures and pay careful
attention to the interdependency of these measures.
7. Limitations
Some study limitations should be acknowledged. Our findings are based on case studies and interviews
in three industries. As a result, the generalizability of our findings is limited. However, our findings can
serve as a starting point for other researchers exploring measures for the evaluation of CRM systems.
We invite other researchers to conduct quantitative, large-scale follow-on explorations.
8. Research implications
This exploratory research contributes to our understanding of CRM system success measures. Previous
studies on IS success have rarely focused on CRM systems. The success dimensions discussed in this
paper can serve as the basis for a CRM system effectiveness construct. Future research can enhance
and validate measures for the evaluation of CRM systems. The current study‘s findings can also help
researchers and organizations better understand the strengths and weaknesses of current CRM systems,
and collaborate on the design of future systems.
9. Appendix 1: Sample interview questions
On a daily basis, how often do you use CRM systems?
For what purposes do you use CRM systems?
What benefits do CRM systems provide for you and your organization?
To what extent are CRM systems successfully and effectively supporting business processes within
your department or in the whole organization?
In your opinion, what are the strengths and weaknesses of your organization’s current CRM
systems?
What are your suggestions for improving CRM systems to match your requirements?
In your opinion, what are the barriers for more extensive and effective use?
How does your organization help you better utilize CRM applications?
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Toward a Novel Methodology for IT Strategic Planning
Mouhsine Lakhdissi and Bouchaib Bounabat
ENSIAS, Université Mohammed V, Morocco
mlakhdissi@gmail.com
bounabat@ensias.ma
Abstract: Defining IT target state and the specific roadmap to attain it, are main focuses of IT strategic planning
which is considered increasingly as the basis for IT decision-making and governance. Unfortunately, it hasn’t evolved
with the same speed as other fields in the IT sphere. Most of the techniques, approaches and methods related to IT
Strategic Planning date back to the 80s or 90s and are most often oriented business rather than IT. Enterprise
Architecture is a really promising discipline aimed at capturing the as-is architecture of an enterprise, defining the
target and the roadmap to get from existing to desired state. In that way, it is tightly related to IT strategic planning
and it can provide a framework to fill the gap and contribute in structuring and formalizing IT Strategic Planning field.
Enterprise Architecture benefits from a standardization effort as well as from tool support. Deliverables and artifacts
are generally well defined and structured in the existing frameworks. This paper present a new methodology for IT
Strategic Planning based on Enterprise Architecture.
Keywords: IS strategic planning, enterprise architecture, methodology, metamodel, content framework
1. Background
1.1 Motivation
With the complexity of today’s information systems and the necessity to make the existing IT assets more
agile to provide for the constant business change, the task of governing and planning for IT assets
become a key success factor for IT.
Information Systems Strategic Planning is the discipline that deals with this task. Unfortunately, it hasn’t
evolved with the same speed as other fields in the IT sphere. Most of the techniques, approaches and
methods related to IT Strategic Planning date back to the 80s or 90s and are most often oriented
business strategic planning rather than IT strategic planning (Hsu 1995). As a matter of fact, they don’t
take into account the complexity of today’s information system and their diversity. Furthermore, this field
lacks from a formal, rigorous and agreed upon methodology and suffers from the absence of tools to
support, structure and industrialize the discipline
Enterprise Architecture is a really promising discipline aimed at capturing the as-is architecture of an
enterprise, defining the target and the roadmap to get from existing to desired state. In that way, it is
tightly related to IT strategic planning and it can provide a framework to fill the gap and contribute in
structuring and formalizing IT Strategic Planning field. Enterprise Architecture benefits from a
standardization effort as well as from tool support. Deliverables and artifacts are generally well defined
and structured in the existing frameworks.
Existing Enterprise Architecture frameworks are of different types. While some frameworks like (Zachman
1987) define a taxonomy for architecture artifacts, others like TOGAF (The Open Group 2009), tend to
describe a process to produce architecture deliverables (Sessions 2007). The main concept underlying
both the process and the taxonomy is the metamodel to describe architecture elements and to produce
architecture deliverables.
This metamodel is often either very poor to describe fully the architecture or not well structured to define
the dependencies and the relationships between elements. We think that in order to define a more
rigorous and structured methodology for IT Strategic Planning, it is necessary to define a rich and
structured metamodel covering both architecture elements (processes, applications, data..) and
transformation elements (programs, projects, budgets). This metamodel is the main focus of our work
aimed at defining a new methodology for IT Strategic Planning.
Our aim in this paper is to demonstrate the insufficiencies, deficiencies and inconsistencies in existing IT
strategic planning methods and show how a new methodology based in part on the Entreprise
Architecture practice could be proposed to address these problems. The metamodel we project to define
could be used as a platform for describing the architecture, evaluating it and defining the needed
transformations and planning them in term of programs/projects.
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Mouhsine Lakhdissi and Bouchaib Bounabat
This paper proposes a new methodology for IT Strategic Planning based on Enterprise Architecture. One
of the causes of IT project failure is poor strategic planning for them. This methodology can address the
insufficiencies in existing approaches by using a rich metamodel and by combining architecture
description and project definition.
The second section presents IS Strategic Planning and Enterprise Architecture, compares the two
disciplines and tries to bridge the gap between them. The content framework and the underlying
metamodel is introduced in the the third section as a way to combine ISSP and EA. The fourth section
describes the suggested metamodel and content framework. A comparison is made in the fifth section
with existing metamodels before presenting future work and directions.
1.2 Basic concepts
The term methodology is very often misused in research as well as in practice. Many methods or
frameworks are labelled “methodology” while they are not. So what is a methodology? It is defined by
(Merriam 2010) as “a body of methods, rules, and postulates employed by a discipline” and by (TEAF
2000) as "A documented approach for performing activities in a coherent, consistent, accountable, and
repeatable manner". A method in the other hand is defined by (Merriam 2010) “a way, technique or
process of or for doing something”
From these definitions we can conclude that a methodology could be a structured composition of
methods, rules and principles. It has a larger and more abstract scope than a method.
Confusion is also often made between a framework and a methodology. (FEAF 1999) defines a
framework as "A logical structure for classifying and organizing complex information". A framework is
more of a structure that gives guidelines on some discipline without being prescriptive and without
defining a structured process to undertake the underlying tasks.
The table below summarizes some of the differences between the three concepts:
Table 1: Comparison of method, framework and methodology
Method Methodology Framework
Scope Specific General General
Abstraction Concrete Abstract Abstract
Nature Prescriptive Prescriptive Descriptive
Composition Simple Composite Composite
Process Optional Mandatory Optional
Product description Poor Average Detailed
2. IT strategic planning and enterprise architecture
2.1 IT strategic planning
Strategy is defined by Chandler as “The determination of the basic long-term goals and objectives of an
enterprise and the adoption of courses of action and the allocation of resources necessary for carrying
out these goals”1 and by porter as “The art to build durable and defendable competitive advantage” 2 .
One of the most complete definitions was given by (Arnoldo 1996), “A fundamental framework for an
organization to assert its vital continuity, while, at the same time, forcefully facilitating its adaptation to a
changing environment.”
For most of the definition, strategic planning is focused on three main questions:
Where we are?
Where we want to go?
How to get there?
IS Strategic planning has been defined by (Lederer and Sethi 1992) as the process of identifying a
portfolio of applications/projects that can help an organization achieve its business strategy. Its focus is
on defining the IT roadmap in term of key initiatives, projects and transformations to be made on the
existing information system with two main intentions:
How to align information systems with business needs and overall strategy?
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Mouhsine Lakhdissi and Bouchaib Bounabat
How to use information technology to change and impact the business?
Due to the complexity of today’s information systems and the diversity of enterprise’s technology
approaches, many methods have been defined to structure the ISSP process and techniques have been
defined to address some aspects of the discipline. (Vitale 1986) classifies ISSP methods into two
categories:
Impact methods : trying to make It help create a positive impact and drive the change of the business
Alignment methods : where the main focus is on aligning IT to respond to business needs and to help
achieve strategic goals
Among the methods used in IT Strategic Planning we have Critical Success Factors (CSF) (Rockart
1979) which could be considered as an impact and alignment method, Business Systems Planning (BSP)
(Wiseman 1988), Porter’s Competitive Forces Model (Porter 1980), Porter’s Value Chain (Porter 1985),
and Scenarios (Schwartz 1991). Methods can be grouped together to constitute a methodology.
Methodologies used for ISSP include those of the CCTA (1988, 1999) and Boar (2001).
Many IT vendors and consultancy organizations use proprietary methods and/or methodologies, some of
which are adaptations of open source approaches. Examples are Arthur Andersen’s Method/1 and
Coopers and Lybrand’s Summit (Lederer and Sethi 1988, Min et al. 1999). It is also well known that
organizations often develop their own in-house methodologies, often based on open or proprietary
methods or approaches (Earl 1993, Lederer and Sethi 1988).
2.2 Enterprise architecture
ISO/IEC 42010: 2007 defines ‘‘architecture’’ as: ‘‘the fundamental organization of a system, embodied in
its components, their relationships to each other and the environment, and the principles governing its
design and evolution.’’. The (Open Group 2009) defines it as:
“A formal description of a system, or a detailed plan of the system at component level to guide its
implementation”
“The structure of components, their inter-relationships, and the principles and guidelines governing
their design and evolution over time”
An architecture is typically made up of:
A picture of the current state
A blueprint, vision or detailed description for the future
A road-map on how to get there
Enterprise Architecture appeared in the eighties thanks to John Zachman who introduced the framework
that bears his name. This framework consists of taxonomy for producing architecture artifacts from
different viewpoints and perspectives. As a matter of fact, Enterprise Architecture has been defined by
(Zachman, 2005) as a "set of descriptive representations (i.e. ‘models’) that are relevant for describing an
Enterprise such that it can be produced to management’s requirements (quality) and maintained over the
period of its useful life".
Several other frameworks appeared subsequently, most of them initiated by government bodies like
TAFIM (Technical Architecture Framework for Information Management), DODAF, MODAF or FEAF
especially due to the requirement of the Clinger-Cohen Act.
IT consulting firms created their own EA frameworks, based on the feedback from projects they
undertook. Gartner as well as Cap Gemini or Accenture have their own EA frameworks which could be
more accurately considered as EA practices as stated by (Session 2007)
The Open Group Architecture Framework (TOGAF) started with TAFIM and reproduced practices and
techniques used in other framework to constitute an EA framework of reference in the IT industry.
TOGAF is with Zachman the two most used EA frameworks according to (Schekkerman 2005).
TOGAF consist of:
A architecture development methodology describing the process
A set of guidelines and techniques supporting the methodology
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A content framework with a metamodel describing the products (deliverables)
Reference models that provide best practices to compare with
A structure and description of the architecture repository (enterprise continuum)
A capability framework for architecture governance and implementation
TOGAF could be used in combination with Zachman where TOGAF defines the process and Zachman
the deliverables. (Archimate 2009) defines a notation for architecture elements but also defines its own
metamodel for architecture description.
Enterprise Architecture could be used for different needs and in various contexts. It can operate as:
A method to describe the enterprise as a whole with different levels and views of enterprise elements
and their relationships. In this way it relates to Enterprise Modeling as was stated by (Lillehagen et
al., 2005)
A way to align the IS environment with the business reality and the strategic goals or to assess this
alignment as described by (Bounabat 2006) (Elhari 2010)
A modelling structure to define the vision for IS evolution or to describe in detail the IS to-be state
A process to plan the migration between the as-is situation and the to-be state.
All these EA use cases could be related to a step or a phase in term of process or deliverables of ISSP.
2.3 Comparison and correlation
A theoretical comparison of IT Strategic Planning and Enterprise Architecture was conducted by (Wilton
2007) and (Beveridge and Perks 2003). These comparisons concluded that both ISSP and EA share the
same intent and scope. (Wilton 2008) gave a more empirical comparison based on a survey which led to
establishing a significant correlation between the two activities in term of topics they cover.
The main difference that was highlighted by (Wilton 2008) is that ISSP tends to be process-oriented with
little specification of deliverables and content while EA is product-oriented in that it defines the way the
as-is and to-be state are described and modelled.
We think that this difference tends to disappear due to the progress made in the field of Enterprise
Architecture. As a matter of fact, with frameworks like TOGAF the gap is being bridged with a detailed
process to produce architecture deliverables.
Furthermore, we think that other differences are to be considered. They are summed up in the table
below
Table 2: Comparison enterprise architecture and IS strategic planning
IS Strategic Planning Enterprise Architecture
Period of development 1970-1995 1987-2010
Process Linear Iterative and incremental
Nature Business oriented Business and IT oriented
Main deliverables Programs, projects, budgets Architecture description (as-is and
to-be) and Roadmap
Strategy support High Medium to low
Techniques and modeling Techniques Techniques, Modeling
Repository No Yes
Tool support Rare Mainstream
One of the main differences that still exists and that is related to the Enterprise Architecture practice is
the fact that there is no concrete link between the architecture description and the programs/projects
defined in the roadmap. This lack of correlation makes it difficult to address the strategic planning main
objective which is planning for IT transformations with existing Enterrise Architecture frameworks.
2.4 Bridging concept: Transformation
A project is defined by (PMBoK) as “A project is a temporary endeavor undertaken to create a unique
product, service or result.”. This definition underlines the fact that a project is intended to create a
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product/service or result without mentioning the elements that the project will impact whether they are
new elements created or existing element transformed.
A project –in the context of ISSP and EA- could be defined as a set of transformations (including
creations) applied on architecture elements. These elements could be business elements, application
elements, data elements or technical elements or a combination of them.
Elements are the basic constituents of architecture like applications, processes, servers, databases...etc.
These elements are combined to create architecture models and diagrams. The transformations of these
elements are combined as well to create ISSP’s projects and programs.
3. Importance of a content framework and a metamodel
The ISO/IEC 42010: 2007 definition of architecture as “the fundamental organization of a system,
embodied in its components, their relationships to each other and the environment, and the principles
governing its design and evolution.’’ highlight unequivocally the importance of the organization of
elements and their relationships. This structure is defined through a metamodel of architecture elements.
Enterprise Architecture is supposed to produce architecture artifacts. These artifacts are based on an
architecture content framework as defined by TOGAF or an architecture map.
3.1 Content framework
The content framework defines the layers, views, questions and aspects that architecture description
deals with. The importance of this framework is that it organizes, classifies and links architecture
elements and artifacts. It is also interesting because it ensure the coherence and exhaustively of the
metamodel.
The content framework is classically defined as a bi-dimensional grid with lines representing layers or
views and columns representing concerns and classifications.
The content framework defines elements of the metamodel in a high level way emphasizing the global
structure rather than the detail model.
3.2 Metamodel
The metamodel is the backbone of architecture description and methodology. The metamodel
guarantees the exhaustiveness of overall architecture work and the coherence and alignment of
architecture layers.
It is similar in form to a Conceptual Data Model or a Class Diagram in UML. It is important in term of
objects definition, attributes definition and relationships.
Objects definition ensures the exhaustiveness and coverage of aspects like standardization,
requirements and integration.
Attributes provide the way to perform diagnosis and analysis on existing and future assets. Attribute
can also cover aspects like security and performance necessary to the evaluation process.
Relationships are very important to perform Gap Analysis inside the same layer and for alignment
needs between layers.
4. Existing content frameworks and metamodels
Many metamodels have been defined explicitely or implicitely by EA frameworks. They are of different
natures and focus depending on their intent. Some of them are poor in term of business or IS content.
Others don’t take into account some aspect tightly related to EA and ISSP like :
Requirements
Strategy
Standards
Program and projects
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4.1 TOGAF metamodel
Mouhsine Lakhdissi and Bouchaib Bounabat
TOGAF metamodel which has been introduced only in the last version of the framework, is a theoretical
metamodel somehow poor especially in the application, data and infrastructure layers. The metamodel of
TOGAF describe elements of the four layers with their relationships and dependencies. The business
layer is otherwise well detailed and provide for a good foundation for our metamodel. In the business
layer nevertheless, only the static information is represented (no information flow) and the link between
organization and data is not defined.
We think that one of the contributions of this metamodel is its extensibility since TOGAF defines a core
metamodel and many extensions applicable depending on the organization and project nature.
Furthermore, some aspects like requirements, standards and project are not taken into consideration in
the metamodel even if they are core in the framework
4.2 Archimate
Archimate is a structure and notation for architecture work. If used as a notation, it can be considered as
complementary to frameworks like TOGAF or Zachman. Otherwise Archimate defines its proper content
structure and metamodel. The structure is composed of three layers: Business, Application and
Technology, with three views: passive structure, behavior and active structure.
Archimate defines in a more detailed manner than TOGAF, the architecture elements of the three layers.
In the business layer, it’s quite complete while still lacking definition of dynamic information flow and
relationship between organization and information.
In the application layer, it introduces integration elements like “application interface” and “application
collaboration” but lack the underlying data integration elements (data flows, data messages…)
One of the advantages of Archimate is its well defined structure combined with the detailed notation. It
has intentionally -as stated in the specification document- omitted the strategy, standards and principles
and strategic planning aspect. Other aspects like security and performance are also absent. They will add
some of this aspect in future versions or as optional extensions.
4.3 Zachman
Zachman doesn’t define explicitly a metamodel. The metamodel is an implicit component appreciable
through the models and artifacts defined in the Zachman grid.
Through the different viewpoints and question, we can conclude that the Zachman metamodel has a
large scope with detailed business and IT description. The main problem of Zachman is that it doesn’t
define the relationship and dependencies between artifacts and thus between architecture elements
which is a major drawback.
Besides, Zachman doesn’t take into consideration Strategic Planning elements and their link with
architecture elements.
4.4 EA tools metamodel
EA modeling tools have their own metamodel which are more often extensible. The architecture
description is more or less detailed depending on the vendor positionning and history. Tools like Mega
and Aris have more focus on the business layer with poorer IS capabilities, while tools like Power
Designer are more relevant for IS and infrastructure description than in business modeling.
Even though ISSP elements like projects can be defined and described, there is no link between the
projects and architecture elements they impact.
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5. Presentation of a new content framework and metamodel
5.1 New content framework: NEOXIA Architecture Map (NAM)
We introduce here a new content framework that is based on feedback from consulting projects on EA
and ISSP. We call it NEOXIA Architecture Map. In this content framework we differentiate between
Static element: tending to describe an element in a static most often hierarchical way
Dynamic element : focusing on the dynamic view of the same element
Figure 1: New content framework: Neoxia Architecture Map (NAM)
We also distinguish between three natures of element:
Structure elements: like organization and network
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Function elements: like services or functions
Content element: like data or storage
Mouhsine Lakhdissi and Bouchaib Bounabat
Two additional but crucial architecture concerns emerge as intermediate planes between these elements:
Security and integration.
Figure 2: Architecture concerns in Neoxia Architecture Map (NAM)
Between every layer and the one below we have an intermediate layer that is not shown in figure 1 but
that is important to detail in some cases.
As a matter of fact there is:
A functional architecture layer between Business and the IS Architecture,
A solution and development architecture layer between the IS and Software Architecture,
A deployment and production architecture layer between the software and hardware layer.
5.2 New Metamodel: NEOXIA Content Metamodel (NCM)
The content metamodel is the mechanism by which we suggest to mix architecture and strategic planning
element base on transformations. The content metamodel follows the overall structure of the content
framework and could be illustrated as in figure 3.
The suggested metamodel is composed of six layers:
Strategy
Requirements
Business
Information Systems
Technology
Strategic planning
All layers are interrelated with static and dynamic element of the three natures: function, structure and
content. Every layer is connected with the layer below with a realization link. A process is automated in
an application which uses a database and are both deployed in a server. This dependence is
fundamental to align the IS with the Business Architecture and the Technology with the IS Architecture.
This link allows us also to analyze the gap between layers in term of coverage to make it possible to fill
this gap in the strategic plan.
The metamodel could be also represented as package and class diagrams. We focus on the strategic
planning layer.
The central concept is “Transformation” which is a migration from an as-is state to a to-be state of an
architecture element. An architecture element could be any architecture object of the metamodel (ex:
process, application, Hardware server…etc).
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Mouhsine Lakhdissi and Bouchaib Bounabat
Figure 3: New Metamodel : NEOXIA Content Metamodel (NCM)
is composed of
defines
is a set of
originates from
Program Project Transformation
execute
I nt er n al
Or g a ni z ati o n
Uni t : 2
Impact
Requirement
originates from
Strategic Objective : 2
Figure 4: Class diagram of the package “IT Strategic Planning”
originates from
Gap
concerns
concerns
Architecture Element
A transformation is operated either:
A realization of a strategic objective : this allows us to align the to-be IS situation with the strategy
and to justify the strategic plan investments
271

Mouhsine Lakhdissi and Bouchaib Bounabat
A consequence of an IT or business requirement (principle, standard, rule, constraint) defined by the
organization
A result of a gap analysis: in that case the gap is observed on one or more architecture elements and
the transformation is a way to fill the gap.
We have as a result three types of transformations :
Alignement transformation
Requirement transformation
Gap transformation
Many transformations are grouped into projects which are managed through programs.
6. Comparison with existing content framework and meta models
The suggested metamodel defines the detailed structure and relations of architecture elements starting
from strategy and requirement and going through the different levels (Business, Information Systems and
Infrastructure) with the necessary link with Strategic Planning element like gap analysis, program and
project.
In addition of giving a more detailed structure for IS and infrastructure levels which are often poorly
defined, the main contribution of this metamodel is the link it establishes between architecture elements
and strategic planning elements.
We summarize a theoretical comparison of our metamodel with existing metamodels presented in section
3.
Table 3: Comparison of the new metamodel with existing ones
New metamodel TOGAF Archimate Zachman EA Tools
NCM
metamodels
Requirement Yes No No.
Partially Yes
Undergoing
Strategy Yes Yes No Yes No
IT Planning Yes No No No Yes. To some
Link between
projects and
architecture
Yes No No No
extent
No
Standards Yes No No No Yes. (Not
native)
Strategy definition Yes Yes No Yes Yes
Business
Detailed Detailed Detailed Average Poor
description
IS description Detailed Poor Average Detailed Detailed
(Depending on
Infrastructure
description
tool)
Detailed Poor Average Detailed Detailed
(Depending on
tool)
Tool support No Partial Yes Partial Yes
Methodology
support
No. Undergoing Yes Yes No No
Independence Yes Yes Yes Yes No
7. Conclusion and future work
We think that based on this proposed metamodel, a new methodology could be defined to cope with the
needs of ISSP and to complement and enrich existing EA metamodels. The metamodel described was
already used successfully in consulting projects in the public and private sector and was able to capture
more meticulously architecture element and to support the process of IS Strategic Planning.
The model could be enriched to highlight crossover architecture aspects like security, performance and
integration. These aspects are very important in evaluating existing IT assets and in defining their target
state.
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Mouhsine Lakhdissi and Bouchaib Bounabat
A planned continuation of this work is to develop a basic modeling tool (or adapt an existing one) based
on this metamodel and content framework with support to Enterprise Architecture as well as IS Strategic
Planning techniques and activities. The tool will allow to put into practice the metamodel and to
demonstrate the added-value of the methodology.
Another extension is to formalize diagnosis and evaluation techniques into the meta model to make sure
the whole IS Strategic Planning process is automated.
References
Archimate (2009), “Archimate 1.0 Specifications “, http://www.opengroup.org/architecture/togaf8-doc/arch/
Arnoldo C. Hax (1996), “Strategy Concept and Process: A Pragmatic Approach” Barnes and Noble, bn.com
Boar, B. (2001). The Art of Strategic Planning for Information Technology, John Wiley and Sons, New York, NY.
Bounabat, B. (2006), “Enterprise Architecture Based Metrics for Assessing IT Strategic Alignment”, European
Conference On Information Technology Evaluation (ECITE), 2006.
CCTA (1999). IS Strategy: process and products, Format Publishing Limited, Norwich.
Chandler, Alfred A., Jr. (1962), Strategy and Structure: Chapters in the History ofAmerican Industrial Enterprise, The
MIT Press, Cambridge, MA
DODAF, U.S. DoD (2003). DoD Architectural Framework Version 1.0,
http://www.teao.saic.com/jfcom/ier/documents/DOD_architecture_framework_volume1.doc,
Elhari K., Bounabat. B (2010), “Strategic Alignement Assessement Based on Enterprise Architecture”, ICIME 2010
FEAF, 1999, “Federal Enterprise Architecture Framework Specification”, http://www.whitehouse.gov/omb/e-gov/fea/
Lillehagen F., Karlsen D., Enterprise Architectures – Survey of Practices and Initiatives, Rapport Computas 2005.
Lederer, A. L. and Sethi, V. (1988). The Implementation of Information Systems Planning Methodologies, MIS
Quarterly, September 1988, 445-461.
Merriam Webster Dictionnary (2010), Dictionnary definition of Methodology and Method http://www.merriamwebster.com/dictionary/method,http://www.merriamwebster.com/dictionary/methodology?show=0&t=1290517042
Pant S., Hsu C. (1995), Strategic Information Systems Planning: A Review, 1995 Information Resources
Management Association International Conference.
Perks, C. and Beveridge, T. (2003). Guide to Enterprise IT Architecture, Springer-Verlag, New York.
Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance, Collier Macmillan, New
York, N.Y.
Schekkerman J. (2005), Trends in Enterprise Architecture 2005: How are Organizations Progressing? Institute For
Enterprise Architecture Development (IFEAD) report
Sessions R. (2007), “A Comparison of the Top Four Enterprise-Architecture Methodologies”,
http://msdn.microsoft.com/en-us/library/bb466232.aspx
TEAF, U.S. Department of the Treasury (2000). Treasury Enterprise Architecture Framework Version 1,
http://www.software.org/pub/architecture/teaf.asp,
The Open Group (2009). “TOGAF as an Enterprise Architecture Framework”,
http://www.opengroup.org/architecture/togaf8-doc/arch/
Vitale, M., Ives, B. and Beath, C. (1986), “Identifying Strategic Information Systems,” Proc. 7th Int’l Conf. Inf. Sys.,
San Diego, December 1986, pp. 265-276.
Wilton, D. (2001). The Relationship Between IT Strategic Planning and Enterprise Architectural Practice, Journal of
Battlefield Technology, 1, 18-22.
Wilton, D. (2007). The Relationship between IS Strategic Planning and Enterprise Architectural Practice: a Study in
NZ Enterprises, Information Resources Management Association (IRMA), Vancouver.
273

Applying Innovative Information System to Improve the
Effects of Community Health Promotion
Chih-Yu Lin 1 , Wen-Yu Ho 2 , Chia-Hsien Wen 3 and Hui-Mei Hsu 4
1
National Chung Cheng University, Chiayi, Taiwan
2
China Medical University Beigang Hospital, Yunlin, Taiwan
3
Providence University, Taichung, Taiwan
4
National Kaohsiung Normal University, Kaohsiung, Taiwan
cylin@ccu.edu.tw
shiaoyin0505@gmail.com
chwen@pu.edu.tw
hmhsu@nknu.edu.tw
Abstract: “Ottawa Charta” indicates that the importance of strengthen community actions is to achieve better health
for residents. For achieving this goal, the health promotion works through community organizations is the most
effective way. There are two models to promote community health in Taiwan. One is to set up a single community
health department within a healthcare organization. The other one is to set up a community care center in the
community by civic or government organizations. However, there is a common drawback of lacking a suitable and
effective information system to evaluate the two models and serve as a basis to adjust future service content and
efficiency. This study establishes an Internet information platform with Interactive Response System (IRS) to
effectively evaluate the two models of community health promotion and to improve the services to upgrade the
management of community health promotion efficiency. The results showed that the average satisfaction score of the
Internet information platform is greater than 4 which mean that the innovative information system in this study is in
accordance with the needs of community health department users and acquires a high satisfaction. The average
satisfaction score of IRS is greater than 4 with the factor of “perceived usefulness” scores 5 which means residents of
the community care center show a higher acceptance of using IRS in learning health education materials than that of
traditional one. IRS can also improve diseases perception of community residents.
Keywords: information system to improve community health promotion, community health promotion effective,
interactive response system (IRS)
1. Introduction and background
In 1995, the Taiwan government implemented the National Health Insurance (NHI) System to provide a
sound healthcare service for the citizens. According to the report of Department of Health, cancer and
chronic diseases were the most serious health threats for the citizens in 2006. 78% of the funds were
spent on the treatment of patients with chronic diseases. Therefore, patients who suffer from chronic
diseases or have needs of long term care are the financial heavy burdens of NHI.
Most citizens do not visit the doctor’s unless they are affected by a disease; this is the nature of the human
beings. “Ottawa Charta” indicates that the importance of strengthen community actions is to achieve better
health for residents. For achieving this goal, the health promotion works through community organizations
is the most effective way. Health promotion includes promoting the cognition of health of individuals and
communities, altering their attitudes for changing their behaviors of life, and seeking the methods to
improve their health (Squyres, 1985).
Many countries have enforced laws to protect the health of their people. For instance, Australia has
enforced the Health Promotion Act in 1995; United States of America passed The Model State Public
Health Act in 2003. With the rapid progress of information technology (IT), many enterprises, schools,
hospitals and other organizations have employed IT to achieve their strategies and goals.
There are two models to promote community health in Taiwan. One is to set up a single community health
department within a healthcare organization. The other one is to set up a community care center in the
community by civic or government organizations. However, there is a common drawback of lacking a
suitable and effective information system to evaluate the two models and serve as a basis to adjust future
service content and efficiency.
The objectives of this study are to develop the community health promotion system to collect and analyze
the changes of health cognition and health status of residents by using interactive response system (IRS).
The data also can help the healthcare providers to understand the health conditions of the communities.
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2. Community health promotion
Chih-Yu Lin et al.
According to the Ottawa Charter, health promotion is the process of enabling people to increase control
over, to improve their health, and to reach a state of complete physical, mental and social well-being
(Ottawa Charter, 1986 ). As proposed by the Ottawa Charter, many countries have established health
promotion policy such as Japan. In order to encourage all citizens to be healthy, keep away from diseases
and get health information from the community, Japan announced Healthy Japan 21 in 2000. This policy
focused on healthy dietary habits, promotion of physical activities, and diagnostic tests (Yajima, Takano,
Nakamura & Watanabe, 2001; Dorjsuren, 2008).
There are two mechanisms for health management: one is initiative model, which the health organization
and government takes the initiative for the citizen’s health promotion; second is passive model, which the
citizens and community takes the initiative in promoting their own health. Regardless of which model, the
same objective is the prevention of diseases occurrence. Therefore, the subjects of health promotion
include individuals, groups and community residents. The strategies of health promotion include health
education, behavior motives, organization reengineering, economic effectiveness, and policy changes to
further influence the living environment and people’s behaviors and to improve health and quality of life
ultimately.
Hancock and Duhlru (1986) defined community health as: continuing to create and enhance the physical
and social environment of the community, while strengthening the community resources so that people
can support each other, the implementation of all its living, and the maximum potential. WHO (1994)
defined a healthy community as: healthy communities by healthy people, healthy environment and healthy
social integration as a whole should be able to continuously improve the physical and social environment,
expand community resources, support each other, and maximize potential. In brief, community health
promotion is "health education" and "health policy", from the government, other non-governmental
volunteer organizations, community participation, and hoping every community health issues for
themselves, by residents spontaneous reaction to address community health problems, thus contributing
to the community's health.
The WHO (1978) proposed the concept of "National Health" that includes six principles, "strengthening
community participation" is one of them. In addition, Ottawa Charter (1986) indicated that "strengthen
community action" is one of the five health promotion actions. Both statements display community health
promotion can be achieved through strengthening community actions. Community health building is a way
to achieve community health. The community is regarding as a living body, and the whole community
health is improved continuously through a planned action to change the health behaviors and decisions of
community residents, and environments.
The use of information technology in healthcare service has grown exponentially over the last several
years (Pagliari C, Sloan D, Gregor P et al., 2005). Several studies noted that information technology was
employed to improve health and health education. Heilman et al. (2011) indicated that Wikipedia is a key
tool for public health promotion because the Internet has become an important health information resource
for patients and the general publics. In 2004, Wikipedia editors formed a group called WikiProject
Medicine to coordinate and discuss the Wikipedia’s medical content. Today, it has become the dominant
online reference work. (Heilman et al., 2011). The Wantland’s study addressed important claims the use of
web-based interventions compared to non-web-based interventions. The results indicated that the
specified behaviors of individuals were changed by using web-based interventions, such as increasing
participation in healthcare or improving body shape perception (Wantland, Portillo, Holzemer, Slaughter, &
McGhee, 2004 ).
3. Methods
3.1 Case background
The scale of case hospital is 429 beds, and the employees include 51 doctors, 195 nurses, 49 other
medical staff, and 125 administrative personnel. We established a large group in this hospital for
community service, which has been further divided into 22 smaller teams according to the three different
structures: 1. Biopsychosocial, 2. Community- Oriented Primary Care, and 3. Integrated Delivery Systems.
In order to provide a higher quality service, the care station was set up in the community.
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3.2 System design and implementation
Chih-Yu Lin et al.
In this study, we adopted the prototype model to develop the community health promotion system. Since
system users are mainly healthcare workers, thus they do not have enough knowledge about the system
development. This system includes two subsystems: (1) Community health promotion website (CHPS)
which contains the diseases and health knowledge, Such as diabetes and hypertension. (2) IRS system.
For example, the teachers can use this system to get the feedback from community residents on their
health education progress. The system architecture has shown schematically in figure 1. The system is
developed by using the PHP programming language and MYSQL database.
Figure 1: The system architecture
3.3 Survey instrument
In order to evaluate the system performance, the system was evaluated in two parts: one is on the website
effectiveness, and the other is on the IRS system. We surveyed the user's satisfaction for website and the
IRS by distributing questionnaires to various members and IRS users.
Both questionnaires were developed based on the literature about system satisfaction measurement and
then sent to expert panel for review before being distributed to various members and IRS users. All items
are structured on a Likert five-point scale ranging from 1 (strongly disagree) to 5 (strongly agree) in both
questionnaires.
There are two parts in the website’s questionnaire. Part one of the questionnaire collects respondents’
demographics such as occupation, gender, age, work experience, and education level. Part two is the
measure of end-user computing satisfaction (EUCS) developed by Doll and Torkzadeh and that is
comprised of 12 questions (Doll and Torkzadeh, 1988).
The questionnaire for IRS satisfaction includes four constructs such as perceived usefulness (PU),
perceived ease of use (PEOU), total satisfaction, and perceived enjoyment. The items of first three
constructs were modified from Wang’s study (Wang, 2003), and the items of perceived enjoyment were
based on Agarwal and Karahanna’s research (Agarwal and Karahanna, 2000).
4. Results
4.1 The results of the CHPS website’s satisfaction
The majority of users for CHPS website were hospital employees who join our health promotion activities.
These users included physicians, nurses, other medical staff, and administrative personnel.
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Chih-Yu Lin et al.
A total of 165 questionnaires were mailed out and 141 returned. The majority of respondents were female
(66.0%), aged over 30 (67.4%), nurses (39.0%), and work experience less than ten years’ (77.3%). The
details of demographics about the respondents are summarized in Table 1.
Table 1: The details of demographics information about the respondents
Item Category (Percentage)
Male (24.1%)
Gender
Female (66.0%)
Missing value (9.9%)
21-30 years old (32.6%)
Age
31-40 years old (44.7%)
More than 40 years (22.7%)
Less than 1 year (9.2%)
1-10 years inclusive (68.1%)
Work Experience
More than 10 years (20.6%)
Missing value (2.1%)
Physician (7.1%)
Nurse (39.0%)
Occupation
Other Medical staff (28.4)
Administrative personnel (25.5)
Senior high school (7.8%)
College (84.4%)
Education
Graduate school (7.1%)
Missing value (0.7%)
We use the EUCS instrument to evaluate the user's satisfaction for the website. The EUCS instrument
comprises five constructs for measuring end-user computing satisfaction: content, accuracy, format, ease
of use, and timeliness. The average score of this questionnaire is 4.3, and all of the items in the
questionnaire are higher than 4.18. That means most people were satisfied to the website. The results
showed that PEOU was the dimension satisfied the most people. It means the operation of the website is
easy for users. The reliability of the instrument was measured by Cronbach’s alpha. The α values is 0.901
which means this questionnaire has high internal consistency. The results of descriptive statistics about
the user's satisfaction for website are summarized in Table 2.
Table 2: The results of descriptive statistics for the user's satisfaction for website
Construct Item Mean S.D. AVE.
Content
Accuracy
Format
Ease of
Use
Timeless
Does the website provide the precise information you need?
Does the information content meet your needs?
Does the website provide reports that conforms to exactly what you need
?
Does the website provide sufficient information?
4.24 0.608
4.18 0.628
4.23 0.569
4.26 0.630
Is the website accurate?
Are you satisfied with the accuracy of the website?
4.29
4.25
0.606
0.638
4.27
Do you think the output is presented in a useful format?
Is the information clear?
4.26
4.31
0.659
0.623
4.29
Is the website user friendly?
4.36 0.668
Is the website easy to use?
4.44 0.669
4.40
Do you get the information you need in time?
4.33 0.615
Does the website provide up-to-date information?
4.27 0.685
4.30
Total 4.30
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4.23

Chih-Yu Lin et al.
The user's satisfaction for website among groups had significant difference. According to the analysis of
LSD post hoc test, most of the medical professional groups (physicians, nurses, and other medical staff)
have high satisfaction than administration personnel in 4 constructs (accuracy, format, ease of use and
timeless), especially in accuracy. The result implies that the website is more suitable to the medical
professionals because they have more medical knowledge than administration personnel to estimate.
Users with different work experience also had different satisfaction to the website. Group of “< 1 years”
working experience is more satisfied to the website than user who have “1-10 years” or “> 10 years”
working experience in content, accuracy, format, and timeless. The results may be reasonable because
people with more working experience may have higher competence to know what they really need. The
details of different satisfaction among groups are summarized in table 3
Table 3: The details of different satisfaction between groups
Content
Accuracy
Format
Ease of Use
Timeless
Item
*P < 0.05
Occupation Gender Age
1. Physician
2. Nurse
3. M.T.
4. Executives
1. Female
2. Male
1. < 40 years
2. 31-40 years
3. > 40 years
Work
Experience
1. < 1 years
2. 1-10 years
3. > 10 年 years
Education
1. Senior high
school
2. College
3. Graduate school
F value Test F value Test F value Test F value Test F value Test
Q1 0.923 — 8.089 — 0.728 — 1.852 — 0.977 —
Q2 2.621 — 0.284 — 2.101 — 1.485 — 0.118 —
Q3 2.084 — 4.506 — 1.462 — 3.369*
1>2
1>3
0.887 —
Q4 1.286 — 0.134 — 2.773 — 2.122 — 0.597 —
Q5 4.461*
2>4
3>4
0.101 — 3.420* 2>3 3.430*
1>2
1>3
0.181 —
Q6 3.119* 3>4 1.743 — 0.212 — 3.095* 1>3 1.129 —
Q7 2.864*
2>4
3>4
2.853 — 0.335 — 3.666* 1>2 0.869 —
Q8 1.459 — 3.280 — 4.176*
2>1
2>3
2.207 — 0.244 —
Q9 4.376*
Q10 4.767*
Q11 3.049*
1>2
1>4
3>4
1>4
2>4
3>4
1>4
3>4
3.669 — 0.015 — 1.021 — 0.605 —
1.021 — 1.651 — 1.182 — 1.158 —
5.397 — 1.130 — 0.922 — 0.470 —
Q12 1.176 — 0.044 — 0.211 — 4.355*
278
1>2
1>3
0.362 —

Chih-Yu Lin et al.
4.2 The results of the CHPS for IRS satisfaction
The majority of users for IRS are community residents who came to care station to participate the health
promotion activities, there are 27 subjects in our study.The instrument comprised four constructs for
measuring the user's satisfaction for IRS: perceived usefulness, perceived ease of use, perceived
enjoyment, and total satisfaction. The average score of this questionnaire was 4.74, and all items were not
less than 4.22 score, which means most residents are satisfied to use the IRS in the health education
program. The results of descriptive statistics for user's satisfaction of IRS are summarized in Table 4.
Table 4: The results of descriptive statistics for IRS satisfaction.
Construct Item Mean S.D. AVE.
Perceived
usefulness
Perceived
ease of use
Perceived
enjoyment
Total
satisfaction
5. Limitation
The IRS system makes it easy for you to discuss questions with your
teachers.
The content provided by the IRS system is easy to understand.
It is easier to concentrate on the content when the IRS system is used.
4.93 0.385
5.0 0.0
4.93 0.267
The feedback from the IRS system allows the teacher to understand
how well I have educated myself about the diseases.
4.85 0.456
I would like to request the teachers to use the IRS system as frequently
as possible during the classes.
If a teacher uses the IRS system during classes, I will continue to use
4.52 0.509
the IRS system. 4.52 0.509
The remote control function of IRS system is easy to use. 4.41 0.501
The operation of the IRS system is stable. 4.22 0.506
Using the IRS system during classes makes the class more interesting.
4.89 0.320
The IRS system creates a more interactive environment in the class. 4.89 0.320
4.79
4.32
4.89
As a whole, you are satisfied with the IRS system. 4.96 0.192 4.96
Total 4.74
Due to the restriction of resources and time limit, we are currently using it in two different communities. By
using the system we would like educate the communities on the healthy living and how to prevent
ourselves from various diseases. As we are currently using them in two communities, therefore we are
unable generalize the feedback of these two communities to represent the feedback of a larger population.
Therefore, we are not able to identify the performance of the system on a larger scale.
Most of the subjects are currently from community residents who are 60 years old and above and have a
low literate rate. Therefore, it must be spent more time consuming to educate the older community
residents to use our system. If a health organization would like to follow our method, we would like to
recommend them to use them on people who have at least elementary education so the effectiveness of
community residents’ self-health management will reduce the time consumed to understand how to use
our system.
6. Conclusion
The purpose of IRS that applied on the community health promotion and health education is to build a
friendly learning environment to improve community residents’ cognition of health promotion. Through a
teaching tool of IRS, the departments related to community health promotion can be integrated
horizontally and they can support the community health promotion programs continuously. In addition,
building a effective management system of community residents’ health according to the learning
effectiveness and developing a health promotion education program and a community website which are
proper to community characteristic are in order to promote the health care of community residents.
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Chih-Yu Lin et al.
The results of this study could be a reference for healthcare institutions. It can improve effectiveness for
healthcare institutions to adopt IT to community health promotion activities. Therefore, healthcare
institutions will involve in community health promotion activities actively.
Applying IT into community health promotion activities properly can help healthcare institutions to manage
self-care quality of community residents effectively. Therefore, it might reduce the incidence of chronic
diseases and the medical expenditure on chronic diseases and long-term care.
Combining IT in community health promotion activities in this study could be a reference model. We
suggest that developing a better community health management information system and technology can
improve the health of community residents continuously and conform to the spirit of sustainable
development of community health promotion. In further, it also can fulfill the health policies of localized
medical care, localized health service, localized aging, and preventive medicine.
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Hancock, T. and Duhl, L. (1986) Promoting Health in the Urban Context.Copenhagen, WHO Regional Office for
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Stomp, W., Martone, M.F., Lodge, D.J., Vondracek, A., de Wolff, J.F., Liber, C., Grover, S.C., Vickers, T.J.,
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Pagliari, C., Sloan, D., Gregor, P., Sullivan, F., Detmer, D., Kahan, J.P., Oortwijn, W. and MacGillivray, S. (2005) What
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Squyres, W.D. (1985) Patient Education and Health Promotion in Medical Care.Palo Alto, CA: Mayfield Publishing Co.
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Wantland, D.J., Portillo, C.J., Holzemer, W.L., Slaughter, R. and McGhee, E.M. (2004) The effectiveness of
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280

Information Security Practices in Zambian Copper Mines: An
Investigation Into the State-of-Practice of Information
Security Within Zambian Copper Mines Based on the ISO/IEC
27002 Standard
Chishala Lukwesa and Christopher Upfold
Rhodes University, Grahamstown, South Africa
g09l2525@campus.ru.ac.za
c.upfold@ru.ac.za
Abstract: Information has become an important aspect of daily operations in the mining industry. This is due to the
mining industry’s increased dependence on information for strategic operations and competitive advantage.
Therefore, the need for reliable and accurate information to achieve this, demands enhanced information security
practices in these organisations. Sound information security practices require an effective information security
program backed by information security policies and frameworks. The research aims to investigate the state-ofpractice
of information security in Zambian copper mines using the ISO/IEC 27002 standard as the foundation of
information security, and to explore leadership perceptions regarding information security practices within these
mines. Available literature on information security practices within the mining industry is used to identify barriers to
effective implementation of information security practices and a conceptual framework is proposed to this effect. This
framework is then verified by responses obtained by means of a survey administered to senior management and
heads of Information Technology in Zambian copper mines, and an in-depth case study of information security
practices in one of the said Zambian copper mines using an ISO/IEC 27002 audit tool. Identified barriers to effective
information security implementation include, differing perceptions between senior management and middle
management, incomplete information asset inventory, poor staff awareness, inadequate information security policies
and procedures, inadequate risk management processes, and inadequate control system policies and procedures. A
framework for enhanced implementation of information security in Zambian copper mines is further proposed. This
framework is made up of proposed considerations and enhancements that can be used to address the barriers
identified in the literature review, based on results from the leadership survey and the ISO/IEC 27002 audit
instrument. This framework, based on ISO/IEC 27002 guidelines and controls, includes full management
commitment to information security, adoption of an information security standard or framework, improved personnel
awareness, complete and up-to-date asset inventory, defined information security governance framework, and
enhanced policies and procedures for industrial control systems.
Keywords: information security, leadership perceptions, state-of-practice, copper mines, ISO/IEC 27002
1. Introduction
The mining industry is a continuous operational and strategic industry, which contributes to both local and
international economies (Teseleanu et al., 2006). This industry, like other manufacturing industries, is
data intensive as it deals with information about processes, product designs, shipping, inventory and
customers (Paladion, 2008). Although sometimes considered to be low-tech with little innovation and
appreciation for information technologies, the industry is best understood as a scale-intensive innovative
industry with its own characteristics (Upstill and Hall, 2007; Pavitt, 1984). Although argued to be slowchanging
and somewhat traditional, the face of the industry has been seen to change. Part of this change
has been in the timing of mining information, which is becoming indispensable to sound policy making,
strategy and forecasts for future changes (Sawada, 2004). The quality of information, its production, use,
flow, accessibility and credibility have been identified as key to developing trust and cooperation amongst
stakeholders in the mining industry. This is coupled with openness and greater transparency in
information production and dissemination throughout the mineral life cycle for enhanced decision making.
(MMSD, 2002: 296). Therefore, just as quality management standards such as ISO 9000 have become a
requirement for doing business in industries such as the mines, internationally recognised information
security standards continue to be accepted and will eventually become a necessity for many mines
(Ernst&Young, 2008). One of these information security standards is ISO/IEC 27002. This standard is
universally accepted and used globally. ISO/IEC 27002 has over the years become the de facto standard
for high level definition of an information security management system as it defines a comprehensive set
of controls that help organisations implement a good information security program (Wessels et al., 2007:
253). ISO/IEC 27002 was used in this research as it provided a framework that was suitable for Zambian
copper mining organisations. ISO/IEC 27002 encompasses 11 information security domains, which are
universally accepted information security domains. These domains were all applicable to current
information security practices in the Zambian copper mining industry.
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2. Literature review
2.1 Risk management
Chishala Lukwesa and Christopher Upfold
Risk management in the mining industry has been concentrated on safety, environmental, occupational
health, and quality management. With the advent of the information age, the risk management process
has been extended to include physical IT assets. Information that is stored, transmitted and processed
within the same IT infrastructure has, however, not yet been well covered (Pironti, 2008). In view of this,
although the use of information is critical to effective risk management in the mining industry, information
risk management itself has not been one of the high priority risk areas. An integrated or enterprise risk
management approach, which aims to identify, evaluate and manage major corporate risks in an
integrated framework, is, however, now being adopted by the mining industry. This is in order to
encompass all risk areas and not just focus on safety, environmental, occupational health and quality
areas (Fagg, 2009; Olson and Wu, 2008: 3).
2.2 Contingency planning
Organisations are built on similar principles but each has unique characteristics in the way business is
conducted and products and services provided. There are certain components that particular
organisations cannot function without. These components are a combination of people, processes and
technology. There is at least one person, certain technology or information specific business processes
and some critical infrastructure components that are critical to business operations. If their continuity is
not catered for in times of manmade or natural disasters, the business might fail. Therefore, an
organisation should identify the critical components that need to be protected (Seldon, 2009).
Contingency planning in the mining industry covers a lot of areas and issues and may involve production,
distribution, Information Technology (IT) and other functional areas (Musson, 2007: 185). All functional
areas and not just IT should be catered for in the business continuity plan as they need to co-exist at any
given time. Recovery in mining industries also presents challenges, which may not be found in other
industries. These range from government regulations to certification and re-certification requirements
such as ISO 9000 (Musson, 2007: 185; Warner, 2007). It is, therefore, vital for the mining industry to
deploy a business continuity process that encompasses all areas of the enterprise including supplier and
customer networks. Disaster Recovery Plans (DRPs) and/or Business Continuity Plans (BCPs), should,
provide a solution that will account for and ensure the recovery of all business processes cater for an
alternate workspace environment for employees, facilitate ongoing operations within a consistent
timeframe and cover all regulatory requirements (Warner, 2007). Warner (2007) argues that in many
cases, the amount of investment in a DRP or BCP could literally mean the difference between the
business and its shareholders sinking or swimming. A Meta Group report in 2000 revealed that metal and
natural resource industries can lose an average of $580,588 per hour in downtime costs. It is not only
money that can be lost but also reputation, current and potential customers, and customer confidence
(Hinton and Clements, 2002).
2.3 Information Security Governance
Peltier et al. (2005: 240) define Information Security Governance (ISG) as the management structure,
organisation, responsibility, and reporting processes surrounding a successful information security
program. According to Von Solms and von Solms (2009: 24) information security governance is also the
system by which the confidentiality, integrity and availability of an organisation’s electronic assets are
maintained. Mears and von Solms (2004) and Krehnke (2007: 41-43) define the factors that make up the
pillars of information security governance. They all agree that these factors include accountability and
responsibility, ethics, resource allocation and management, security awareness and education,
information security policies, good practice standards, risk management, compliance with legal
requirements, and information sharing.
Employees are a critical factor in information security as they are the first line of defence in any operation
within an organisation. Security Education, Training, and Awareness (SETA) is, therefore, an important
aspect of any information security program (Whitman and Mattord, 2009: 206).
The Zambian government has enacted a number of laws, policies and acts, which are meant to provide
for information security and to which mining organisations and its employees like every other entity in the
country should adhere to. These include the National ICT Policy, Electronic Communications and
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Chishala Lukwesa and Christopher Upfold
Transactions Act, 2009, and the Copyright and Performance Rights Act No. 44 of 1994 (Ministry of
Communications and Transport, 2006; National Assembly of Zambia, 2009; GRZ, 1994; Campbell, 2008:
260).
Employees in the mining industry also make use of mobile devices such as two-way radios (EPA, 2007),
iPhones and Blackberry handsets and laptops, which create a security loophole in the organisation.
Security strategies, employee training and awareness, and a revised IT infrastructure are required to help
achieve effective mobile security governance (Zhang, 2009).
Failure in corporate governance threatens the future of every organisation (Arjoon, 2005). Information
security should, therefore, be an integral part of corporate governance, aligned with IT governance and
integrated into strategy, concept, design, implementation and operation (ITGI, 2006: 15).
2.4 Information Security standards
Implementation of best practice standards is important in order to ensure that an organisation’s
information security governance practices instil confidence in the stakeholders, shareholders and
customers (Brotby, 2009: 84). Adoption of an information security standard complements an
organisation’s information security policy and assists in making the implementation of the policy more
effective (Peltier, 2002: 70).Just as quality management standards such as ISO 9000 have become a
requirement for doing business in industries such as the mines, internationally recognised information
security standards will continue to be accepted and eventually become a necessity for many mines
(Ernst&Young, 2008). An organisation wanting to implement security controls which are in compliance
with a standard or set of standards requires support from top management and other employees in the
development and implementation process. These standardised policies and guidelines must be
applicable to the organisation’s culture, business and operational practices (HKSAR, 2008).
3. Information Security concerns
Although Zambian copper mining organisations have implemented information security measures in their
organisations, there are certain aspects of information security practices that are considered to require
addressing. A summary of the concerns that were identified in the literature review as barriers to effective
implementation of information security in the Zambian copper mining industry is outlined in table 1 below.
Table 1: Summary of identified information security concerns in the Zambian copper mining industry
Concern Author(s)
1. Lack of or inadequate security policies Bradley, 2008; Welander, 2007
2. Lack of or inadequate security procedures Bajpai and Gupta, 2005; Welander, 2007
3. Poor staff awareness Bajpai and Gupta, 2005; DTT, 2008
4. Inadequate risk management process Pironti, 2008
5. Increased regulation PricewaterhouseCoopers, 2009; WIPO,
2009
6. Dispersed data and information Copans, 2007; PricewaterhouseCoopers,
2008
7. Email threats such as viruses and spam DTT, 2008
8. Inadequate control system policies and procedures Lowe, et al., 2007; Welander, 2007
9. Cultural clashes between IT staff Bartels, 2005
10. Poor asset identification and inventory PricewaterhouseCoopers, 2008
11. Lack of formal mobile security governance Zhang, 2009
12. Irregular or no patching of systems Bartels, 2005
13. Inadequate access control procedures Bajpai and Gupta, 2005
14. Inadequate email policies Bradley, 2008
15. Informal change management procedures Bartels, 2005
16. Informal BCPs DTT, 2008
17. Lack of or irregular testing of contingency plans DTT, 2008; ICMM, 2009
18. Ill-defined crisis communication procedures ICMM, 2009
19. Lack of formal information security governance frameworks DTT, 2008
20. Inadequate integration of information security into
DTT, 2008
employment policies and practices
21. Poor incident response management Helberger, 2009
22. Unsecure application software Tomlinson, 2007: 12; Dobelis, 2007: 46
23. Ill-defined user access privileges Van Holsbeck and Johnson, 2004;
Kairab, 2004: 7
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Chishala Lukwesa and Christopher Upfold
Concern Author(s)
24. IT-based BCPs Warner, 2007
25. Ill-maintained legacy systems Zoufaly, 2009; Welander, 2009; Shelton,
2009
26. Human error such as social engineering Tomlinson, 2007: 12; DTT, 2008; Piccoli,
2008: 431
27. Incorrect dissemination of information MMSD, 2002
28. Environmental threats to hardware Falco et al., 2002
These concerns were mapped against the eleven (11) ISO/IEC 27007 information security domains and
controls to determine to what extent the ISO/IEC 27002 security domains cater for all or part of the
security concerns.
4. Research methodology
The research was conducted by means of an instrumental case study and includes such data collection
methods as surveys in the form of questionnaires, interviews and document reviews. According to Stake
(1995: 3), an instrumental case study is used when there is a need for a general understanding and there
is a possibility of getting insight into the question by studying a particular case. The case study method
was chosen as it is an intensive study that sheds light on a larger class of classes and uses different
methods to collect various kinds of information and make observations (Gerring, 2007:20; Hamel et al.,
1993: 45). It is through these methods that the object of study is understood (Hamel et al., 1993: 45).
Case study methods also answer the “how” and “why” of research questions and also focus on
contemporary events (Yin, 2003: 5).
Descriptive statistics were used for quantitative analysis of the data. Fisher and Marshall (2009) define
descriptive statistics as “the numerical procedures or graphical techniques used to organise and describe
the characteristics or factors of a given sample”. Two survey instruments were administered. One set of
questionnaires made up of information security concerns identified in the literature review was
administered to senior executives and heads of Information Technology departments in these mines.
These questionnaires were meant to explore leadership perceptions surrounding information security
practices in Zambian copper mines and were administered in four of these mines. An in-depth case study
was then administered to personnel in charge of infrastructure in these mines by means of a
commercially available survey instrument in the form of an ISO/IEC 27002 audit tool procured from
Praxiom Limited. This representation of middle management included human resource and administrative
personnel, and personnel in charge of the various sections of the mining organisation’s Information
Technology department. The audit tool was administered in person by the researcher. Ethical, reliability,
and validity issues surrounding the collection and analysis of data were addressed.
5. Findings and recommendations
Research findings and recommendations that were deemed to be most significant are discussed below
and outlined according to the 11 ISO/IEC 27002 domains. These domains were categorised into
administrative, technical and physical domains. Recommendations were made based on the responses
from the two sets of questionnaires.
Administrative domains include:
5.1 Information Security policy
Senior management believe information security policies in their organisations adequately address
information security requirements, business and organisational requirements and that they also cater for
changing business needs. Middle management, on the other hand felt that the information security policy
was in need of attention. 75% of senior management believe information security policies have been
implemented in their organisations while 25% do not. All these respondents further believe their
organisation’s information security policies meet their information security requirements, business
objectives, and business requirements. Middle management on the other hand revealed that the
information security policy is not kept up to date.
Recommendations
Information security policies provide support for information security governance and serve as a
backbone for information security programs in an organisation. Thus they should be regularly reviewed at
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Chishala Lukwesa and Christopher Upfold
planned intervals or when a significant information security change is made in the organisation in order to
ensure that they continue to reflect the organisation’s current business and information security
requirements. Users should also be notified of subsequent updates to information security policies and
procedures.
5.2 Organising Information security
Both senior management and middle management believe only part of organisational data has been
consolidated. Therefore, not all data and information in these organisations can be accounted for. 25% of
senior management firmly believe that all organisational data has been consolidated and accounted for in
their organisation while 50% could neither agree nor disagree as to whether this was the case in their
organisations. An additional 25% on the other hand, does not believe that all their organisation’s data and
information have been adequately consolidated for it to be appropriately accounted for.
Recommendations
Information assets should be clearly identified, defined, and responsibility allocated for each information
asset. This includes definition of responsibilities for specific information security processes such as
business continuity. Allocation of responsibilities should be done according to the information security
policy and further documented.
5.3 Asset management
Both senior and middle management believe asset management still requires attention.
Recommendations
All organisational information assets should be identified and inventoried. This inventory should be
regularly updated and should include among other things, BCPs, contracts and agreements, archived
information, research information, training materials and user manuals, and audit trails.
5.4 Human resources management
Senior management believe information security is adequately integrated into employment policies and
procedures while middle management on the other hand felt that the organisation’s security roles and
responsibilities are not documented or communicated in such areas as employees’ job descriptions.
However, both senior and middle management agree that personnel do not receive adequate information
security education, training, and awareness.
Recommendations
Effective management of personnel information security roles and responsibilities ensures that their use
of information processing facilities is appropriately managed and minimises insider threats. Therefore,
management should undertake the responsibility of ensuring that all personnel receive the appropriate
level of awareness, training, and education, which is relevant to their job role, responsibility and skills.
Job descriptions should also be used to document and address employees’ information security roles and
responsibilities.
5.5 Business continuity management
Senior management endorses business continuity strategies in these organisations and certainly the
impacts that failures could have on the organisations’ processes have been evaluated. However, the
inclusion of information security requirements in the BCPs and regular reviews of these BCPs still require
attention. Both senior and middle management are aware that some aspects of business continuity
management still require addressing. 50% of senior management firmly believe that contingency plans to
deal with system failures in their organisations have been established and are regularly tested and
reviewed. 25% could neither agree nor disagree as to whether this is the case, and a further 25% do not
believe these contingency plans have been established or are regularly reviewed and tested. Additionally,
50% of senior management believe their organisations have detailed BCPs in place which specify actions
that should be taken in the event of a disaster. A further 25% could neither agree nor disagree as to
whether this was the case and 25% do not believe these detailed BCPs are in place in their
organisations.
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Recommendations
Chishala Lukwesa and Christopher Upfold
Effective business continuity management reduces the chances of interruptions to business activities and
minimises the impact these interruptions would have on the business. A single framework for BCPs
should be adopted and maintained to ensure that all plans are consistent and that they consistently
address information security requirements, along with the identification of priorities for testing and
maintenance. These plans should also be regularly tested, reviewed, and updated to ensure that they are
realistic and can be used in a real-life scenario.
5.6 Compliance
Senior management believes their organisations adhere to regulatory requirements while middle
management on the other hand, felt that requirements for intellectual property rights are in need of
attention. Middle management felt that procedures that deal with intellectual property rights and
proprietary software products as well as user awareness regarding the protection of these rights still
require attention.
Recommendations
Compliance with legal, statutory, contractual, and regulatory requirements is necessary for the
organisation to avoid legislative implications. All regulatory, statutory, and contractual requirements that
are applicable to the organisation should be explicitly identified, documented and updated regularly. This
should also be done for each information system. Appropriate procedures to ensure compliance with
legislative, contractual, and regulatory requirements regarding intellectual property rights and proprietary
software products should also be implemented.
5.7 Information Security incident management
Both senior and middle management believe the establishment and implementation of incident response
plans still requires attention. 50% of senior management firmly believe that their information security
incident reporting responsibilities and channels have been defined while the other 50% could neither
agree nor disagree as to whether these incident reporting responsibilities and channels have been
defined in their organisations.
Recommendations
Information security incidents should be incorporated into personnel awareness programs as examples of
possible incidents, and how they could be handled and prevented in the future. Additionally, procedures
that would be used to handle different information security incidents should be established. These
procedures should cater for, among others, malicious code, denial of service attacks, and breaches of
integrity.
Technical domains include:
5.8 Access control
Both senior and middle management believe mobile security governance requires attention. 50% of
senior management believe mobile security governance measures have been put in place to address
mobile computing and communications in their organisations while 25% could neither agree nor disagree
as to whether this was the case in their organisations. A further 25% do not believe these security
measures have been put in place.
Recommendations
The mobile computing and communication policy should be used to address all mobile devices in use in
the organisation coupled with personnel training to raise awareness on the risks associated with mobile
computing. This policy should include requirements for physical protection, access control, backup
facilities, cryptographic controls, and virus protection.
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Chishala Lukwesa and Christopher Upfold
5.9 Information Systems acquisition, development and maintenance
Both senior and middle management believe emphasis on information security requirements during the
acquisition, development, and implementation of information systems still requires attention. 50% of
senior management believe that information security requirements are emphasised during the
procurement and development of application software in their organisations. 25% could neither agree nor
disagree as to whether this is so as there have been cases of violations in the procurement process. A
further 25% believe these information security requirements are not emphasised in their organisations.
Recommendations
Controls to be used for ensuring authenticity and message integrity in applications should be identified
and implemented. This includes implementation of cryptographic controls and development of a policy on
the use of these controls. Cryptographic techniques such as digital signatures should be used to achieve
confidentiality, authenticity and integrity, and non-repudiation of information.
5.10 Communications and operations management
Senior management believe adequate electronic communication policies and procedures have been
developed in their organisations while middle management on the other hand, felt that electronic
communication procedures and controls still require attention.
Recommendations
Formal policies, procedures, and controls should be used to address the control of the exchange of
information through all communication facilities. These controls should include:
Use of cryptographic controls in information exchange to ensure the authenticity, confidentiality, and
integrity of information.
Restrictions on the forwarding of electronic mails to external mail destinations.
Physical domains include:
5.11 Physical and environmental security
Adequate protection of an organisation’s assets from physical and environmental threats helps prevent
loss, misuse, theft or compromise to an organisation’s activities. While senior management believe their
organisations’ equipment is protected from environmental threats, middle management on the other hand
felt that although this was the case, security of equipment from physical threats still requires attention.
Recommendations
Physical access controls should be implemented to only allow authourised access to secure areas. This
should include regular review and update of access rights to secure areas. All personnel and visitors
should be required to wear visible identification and personnel should notify security personnel when they
encounter anyone not wearing visible identification. Measures for the protection of information processing
equipment used offsite should be enhanced and should include:
Disguising portable computers when travelling.
Using risk assessments to identify and further implement home working controls including clear desk
policies.
5.12 Summary of findings
Findings from senior management revealed that information security concerns deemed to be most
prevalent in Zambian copper mines include:
Poor staff awareness.
Inadequate control system policies and procedures.
Findings from the in-depth analysis of information security practices in a Zambian copper mine revealed
the following information security concerns:
Lack of or inadequate information security procedures
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Poor staff awareness
Poor asset identification and inventory
Chishala Lukwesa and Christopher Upfold
Lack of formal mobile security governance frameworks
IT-based Business Continuity Plans
Inadequate email policies
Informal BCPs
Ill-maintained legacy systems
These findings revealed that in most cases, senior management perceptions do differ from those of
middle management. This implies that senior management may not be fully committed to the information
security process within these organisations or may not be fully aware of the extent to which their
organisations meet International best practice standards such as those outlined in the ISO/IEC 27002
standard.
6. Conclusion
Zambian copper mining organisations face numerous challenges when it comes to safeguarding their
information assets. These organisations have evolved from a background where business efficiency
mostly affected the physical component of business operations to one where newer technologies have
led to an increased dependence on information for efficient and strategic operations This evolution
requires that management take up the ultimate responsibility of driving the efficient use of this information
which includes effectively safeguarding information assets in order for this efficiency to be achieved.
Information security programs, therefore, have to be effectively implemented and should emphasise
allocation of information security responsibilities, implementation of Security Education, Training and
Awareness (SETA), and adoption of an information security framework or standard. Adoption of a
standard or framework will ensure that information security practices in these organisations are
standardised and evidence from their information systems can be admissible in court in case of legal
implications. Although the security of information can never be foolproof as the nature and use of
information systems continues to evolve and new risks are identified, measures can still be put in place to
reduce the effect these risks will have on business activities and the organisation’s operations.
7. Directions for future research
There is a need to conduct further in-depth case studies by administering the ISO/IEC 27002 Audit Tool
Questionnaires in more than one copper mining organisation in Zambia. This would most likely yield
further in-depth understanding of information security practices in these organisations, especially from a
middle management perspective.
A possible limitation of this work could relate to the ‘halo’ effect in which perhaps a slightly optimistic view
of questionnaire responses could have been given by respondents. In addition, administering a similar
audit tool to the users themselves would give a more complete picture of information security practices in
these organisations from a senior management, middle management and user perspective.
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290

Proposing an Optimized Change Management Process by
Analyzing ITSM Frameworks
Negar Madani, Ali Suzangar, Mohamad Kajbaf, Shirin Nasher and Mehrdad
Kalantarian
Infoamn, Tehran, Iran
n.madani@infoamn.com
a.suzangar@infoamn.com
m.kajbaf@infoamn.com
sh.nasher@infoamn.com
m.kalantarian@infoamn.com
Abstract: This paper proposes an optimized change management process for simplified organizational transition by
evaluating and analyzing widely accepted ITSM frameworks such as ITIL, MOF v3, MOF v4 & FITS from different
aspects including but not limited to the benefits and deficiencies of work flow, roles and responsibilities, key
performance indicators & ARCI matrix. IT service management (ITSM) as a sub-discipline of IT management plays
an important role in achieving the organizations goals and objectives. Many frameworks have focused on ITSM, and
as a best practice Information Technology Infrastructure Library (ITIL) is the most widely accepted approach to ITSM
and it is owned by United Kingdoms’ Office of Government Commerce (OGC). ITIL v3 is presented in five main
categories and each category contains its related processes. Based on ITIL, Microsoft Corporation developed a
framework for IT service management named Microsoft Operational Framework (MOF). Although MOF 3.0 is mostly
in accordance with ITIL framework, MOF 4.0 is presented by three main areas and a management section that
covers the activities in each area. MOF 4.0 focus is on insuring the alignment of business and IT throughout the
organizations activities. One of the most important aspects in ITSM frameworks is the manner in which changes are
managed in an organization. This article includes evaluating and analyzing the change management process in the
above mentioned frameworks from different aspects. As identifying the role of individuals and groups is the most
critical aspect of any process, the first step is to assign roles and responsibilities. This is done by using an ARCI
matrix which presents the individuals and groups responsible, accountable, consulted and informed. In order to
identify the deficiencies of the ARCI matrix for each framework, the matrixes are analyzed and compared and a new
ARCI matrix is introduced. The next step is to define the sequence in which the actions are taken, mentioned as a
work flow. The work flow of each framework is analyzed and the importance and disadvantages of each action is
discussed from a practical point of view. After defining the change process, each framework applies key performance
indicators for assessing its performance. These indicators are listed and compared and the most effective and
efficient indicators are determined. This evaluation and the lessons learned, resulted in an optimized change
management process flow with a particular ARCI matrix and revised key performance indicators which covers the
identified gaps and deficiencies and can be used to benefit organizations in adopting changes and making successful
transitions.
Keywords: IT management, ITIL, change management, ITSM framework
1. Methodology
This article focuses on the comparison of change management processes in ITIL, MOF 3, MOF 4 and
FITS.
At first change management is introduced briefly, and the reasons for its importance and its goals and
objectives have been presented in the second section.
The Third section includes a table in which change management processes of ITIL, MOF3, MOF4 and
FITS are presented. The processes are compared based on the main activities required for a change
management process, and then the benefits, advantages and disadvantages of each process are
discussed.
The disadvantages of the change management processes are solved and an optimized change
management process is presented in section 4, this optimized process has the advantages of all of the
discussed change management processes.
One of the important categories in section 4 is defining responsibility types for the optimized change
management process known as RACI matrix, and assigning it to specific roles. Due to the fact that there
has not been a RACI matrix in the studied processes, it is not gained by reviewing the change
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management processes, but it is the result of a practical experience of implementing change
management process.
There are many other requirements for an optimized change management process, which mostly depend
on the specification of each organization, therefore they are mentioned briefly as the additional
requirements of a change management process. Outstanding results that have been achieved by
optimizing the change management process are explained in the conclusion.
2. Introduction to change management
Change management plays a key role in any organization. A change may be triggered from inside or
outside of an organization. The manner in which the change is managed and implemented is the subject
of change management process (Duck, J. D. 2000). It is not always easy to make a change due to
various reasons, for instance a single organization may have varied entities, and changing an entity may
be reflected in other entities. The role of the staff is also very important for the change process to be
smooth. Change management requires a broad set of skills including analytical, financial, business,
system and communication skills. To make a change many different types of models, methods,
techniques and tools are used, however all of the different methods follow a certain structured organized
process which has proven to be successful for leaving the current state and moving to the final state
(OGC 2007). The change management would help an organization and its processes to be stable.
Change management is responsible for the changes made to the IT infrastructure and services, and
ensures that changes are made with minimal risk or consciously taken risk. The main benefits of following
standard processes or proper change management is reduction of the number of potential incidents and
problems associated with each change, simple return to a stable configuration, reduction of back-outs
needed, etc. Like any other process, the main elements of Change management process are as
following:
Process flow, which defines the steps and sequence of activities required to successfully deploy a
change.
Process owner, which is the person in full control of change management process, gathers process
performance data and is consulted in activities related to the process.
RACI matrix, which determines the responsibility types assigned to different roles, and
Key performance indicators (KPI) are the most important metrics which indicate and help authorities to
manage the efficiency and effectiveness of the processes.
2.1 Scope
There are many different approaches to the scope of change, yet changes are divided into two main
categories, reactive changes and proactive changes (OGC 2007).
Reactive changes are changes made in order to align the organization with the business and technology
requirements (OGC 2007).
Proactive changes are changes which are made in response to every day requirements like errors (OGC
2007).
The scope of change management is based on the specifications of each organization. In most
organizations the scope of changes are defined based on the scope of configuration items (CI). If any CI
is altered due to an action, the action is considered as change therefore, it should be done through
change management process (Haber, L., 2003).
3. Process flow
In change management an important step is to define a standard process which presents the activities
required to successfully deploy a change. Different processes have been presented for change
management. The change management processes of ITIL, MOF4, MOF3 and FITS are compared in the
table below. The first column presents the activities mentioned in ITIL V3 service transition publication.
The next two columns present Microsoft Operations frameworks (MOF). Because of the different
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approach to MOF4, there are still reasons to consider MOF3 as well. And the last column presents the
British Educational Communications and Technology Agency point of view on a change management
process.
Table 1: Comparison between change management processes
ITIL MOF4 MOF3 FITS
1-Create and record the RFC
(Recommended to use a tool that
automatically stores the initial
data)
2- Review RFC and change
proposal:
3-Assess and evaluate the
change
4- Authorize the change
5- Coordinate change
implementation
6- Review and close change
1: Baseline the
configuration.
2: Initiate the change.
3: Classify the change.
4: Approve the change.
5: Develop and test the
change.
6: Release the change.
7: Validate and review
the change.(update
database)
No steps No steps
1: Identify change
1-Change initiator
2-Change request 2: Create request for
3-Change
change
classification
4-Change
3: Approval to proceed
authorization
4: Plan and prepare change
5-Change
5: Peer review
development
6: Approval to implement
6-Release
management
7-Change review
7: Implement
NO steps defined for
validation
8: Update configurationmanagement
database
No steps defined closure 9: Closure
As presented in the above table, the firs activity in change management is base-lining and recording the
current state, before taking any actions. Base-lining is clearly cited in MOF4 (1.Baseline the
configuration) and is implicitly mentioned in ITIL (1- Create and record the RFC).
The next activity which is alike in all processes, is initiating a change by a Request for Change (RFC). A
RFC is a formal proposal for a change to be made and includes details of the proposed change, and may
be recorded on paper or electronically (British Educational Communications and Technology Agency
2004). In most of the above processes when the first step is determined as “initiating a change”, it is
assumed that base-lining is an obvious fact and will be carried out before making any changes to the
environment. The person which initiates the change is called the change initiator and is informed of the
progress and the result of the change. Therefore in this activity the need for a change is recognized and
is requested by a change initiator.
The next step in MOF3 and MOF 4 is classifying the change, but in ITIL the change is reviewed first and
then it is classified in another step. Classifying the change in MOF 4 includes identifying the priority and
the category of the change (Microsoft 2008).
The priority includes:
Low: The change can wait until the appropriate time.
Medium: Because of the impact on the change, the change should be attended as soon as possible
High: The change should be made as soon as it has been tested.
Emergency: The change should be made immediately; therefore many of the approval and the
development steps are abbreviated.
The category includes:
Standard change: This change has minimal business impact and has a known set of release
processes that has been proven to be successful.
Minor change: This change has a low business impact and affects a small percentage of users and
resources.
Significant change: This change has a moderate impact on the business. It might involve downtime of
services.
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Major change: This change has the greatest impact on business, with a high risk and high cost.
Emergency change: This category is high risk because of the urgency of release and the minimal
time in which to test it.
Unauthorized change: This level involves changes that occur outside of the agreed-to change
management policies or that are specifically forbidden.
MOF 3 has a similar category with a slight difference. In MOF 3 changes with the emergency priority, are
assumed emergency changes. No category is defined for unauthorized changes in MOF 3 change
management process (Microsoft 2004).
As mentioned above, ITIL change management process has addressed classifying the RFC in step 4
“Authorize the change”. ITIL has the same priority levels and category; moreover it contains a risk
categorization matrix based on impact and probability (OGC 2007), as follows:
Risk category 1: high impact/high probability
Risk category 2: high impact / low probability
Risk category 3: low impact / high probability
Risk category 4: low impact / low probability
The next step is to review the request and to approve it. This activity is indicated by different titles in each
process, however the concept and explanations for each title declares the meaning of “reviewing and
approving the RFC”.
After a change has been correctly prioritized and categorized by the change manager, depending upon
the category and priority, the change is routed to the appropriate authority for approval. A significant or
major change is usually approved by presenting the change to a team of reviewers known as the change
advisory boards (CAB) (Microsoft 2004). The CAB is composed of many different people with many
different skills for the many different features of the organization. One member of the CAB will be chosen
as the change owner which will be held accountable for the results of the change.
It is the responsibility of the CAB to determine if the change should be approved and scheduled, be
refused and ended or be returned for further clarification. Emergency changes are normally reviewed by
an emergency committee of the CAB typically known as the Emergency change advisory board (ECAB).
Standard changes are approved automatically and progress directly to the change development and
release phase. Minor changes can be approved by the change manager without reference to the CAB.
The next step of the change process is the preparation of the change. ITIL addresses preparing the
change with the title of “Assess and evaluate the change” which includes: The seven Rs of change
management, risk categorization, allocation of priority, evaluation of change, change planning and
scheduling and assessing remediation (OGC 2007).
The stated activities are mostly covered in MOF 4, MOF 3 and FITS with slight differences. For instance
MOF 4 and MOF 3 address the allocation of priority in step three. In step four, MOF 3 schedules the
change, appoints an owner, prepares and develops the change (Microsoft 2004), while MOF 4 designs
the change, identifies configuration dependencies, builds and tests the change (Microsoft 2008).
FITS on the other hand attends to the above mentioned activities in step four, five and six of the change
management process: 4.Plan and prepare change, 5.Peer review, 6.Approval to implement. “Plan and
prepare change” includes: details of change, impact of change, risk of change, remediation plan, change
schedule, authorities names (British Educational Communications and Technology Agency 2004).
The next step of the change process is making the actual change. This is usually done by passing the
RFC to the relevant technical group. Therefore this step is largely a coordination role in change
management.
ITIL has named this step “coordinate change implementation”. MOF 3 and FITS simply forward the RFC
to release management process which is responsible for releasing changes. From then on the role of
change management is to observe the progress of releasing the change.
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MOF 4 does not have an independent process for release management. In MOF 4 the release process is
a combination of Deploy SMF which is a sub-process of Delivery phase, and Change and configuration
SMF which is a sub-process of Manage phase. The change is applied through the steps defined in the
sub-processes.
The last step is to review and close the change. On completion of the change, the results should be
documented and reported to appropriate authorities. To confirm that the change has met its objectives, a
post implementation review (PIR) should be carried out. Depending on different types of changes, after a
certain time has elapsed, changes should be reviewed (OGC 2007).
ITIL addresses reviewing and closing the change in a single step with fewer details (OGC 2007), while
closing the change is mentioned implicitly in MOF 4 (Microsoft 2008).
In MOF 3, reviewing the change is determined in an explicit process with detailed activities and
explanations for each types of change (Microsoft 2004).
4. Optimized change management process
The reason for presenting an optimized change management process is to solve the problems identified
in the above processes and to present a process which has the advantages of all of the mentioned
processes. The advantages and disadvantages of the above processes have been identified through
reviewing the requirements of a successful change management process presented in ISO publications
(ISO 2005), management controls (Institute of Internal Auditors 2005) and ITSM success measures
(Haber, L., 2003).
The optimized change management process includes:
Process flow: This process flow is obtained through considering the main requirements of a
successful change and, the comparison of different change management processes.
RACI Matrix: The concept of the RACI matrix for change management does not exist in any of the
above processes; therefore the RACI matrix has been the result of implementing change
management.
Key performance indicators: The KPIs of all other processes have been compared and revised in
order to present a new list, which contains the appropriate KPIs for the optimized change
management process.
Additional requirements: Different types of organizations require different types of templates and
instructions for a successful change management process; therefore it is not possible to pre define all
the additional requirements. However, a brief list of templates and instructions which were required
for the implementation of change management has been presented.
What is unique about this optimized change management process: The outstanding achievements
that have made this process unique and what distinguishes it from the other processes has been
presented and thoroughly explained.
4.1 Process flow
In order to present an optimized change management process, main activities that are required for a
successful change (ISO 2005) and the sequence in which the activities should be presented (Duck, J. D.
2000) has been identified.
The activities are selected based on the advantages of all the reviewed processes. And the order of the
activities is arranged in a way, which will require minimal duplication.
The steps and activities of the optimized change management process are selected based on the above
analysis and the consideration of different environments and organizations; therefore, the steps and
activities are arranged in a way to address the identified deficiencies mentioned in the above analysis.
The table below presents the optimized change management process flow, which the first column
indicates the main steps required to perform a change, while the column on the right indicates the
activities required to fulfill each step.
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Table 2: An optimized change management process
Negar Madani et al.
Step Activity
1-1) Create and record the RFC
1-2) Review RFC
1) Record and review the RFC
1-3) Approval to proceed
1-4) Baseline and identify CIs effected
1-5) Assess and evaluate the change
2) Change classification
2-1) Prioritize the change
2-2) Categorize based on risk
2-3) Classify the change
3) Authorize change 3-1) Select the authorized person/advisory board
4) Change schedule and escalation
4-1) Schedule change
4-2) Appoint a responsible person
5) Release management 5-1) Release management
6) Review and close change
4.2 RACI matrix
6-1) Select the review team
6-2) Schedule the review
6-3) Review
6-4) Check for Standard change
6-5) Close the Change
In order to determine the required roles and responsibilities for the optimized change management
process, the determined roles and responsibilities in each framework has been reviewed and after
considering the different environments, organizations and their requirements and also taking the
optimized change management processes steps and activities into account, the bellow RACI matrix is
presented.
The RACI matrix has not been included in any of the mentioned change management processes;
therefore it was not possible to present a comparison. The presented matrix is the result of implementing
the optimized change management process.
An RACI Matrix categorizes tasks into four responsibility types, which each type is assigned to specific
roles per process step and activity.
Responsible: This type indicates the person who actually carries out the task.
Accountable: This type is usually assigned to one person through a process and that person is
accountable to the correct and through completion of the task.
Consulted: This type is assigned to authorities who are consulted and asked for advice in specific
sections of the process.
Informed: This type indicates the authorities who should be informed of the progress of a change.
As determined in the table, the change initiator is accountable and responsible for requesting a change in
the format of an RFC. The change manager is held accountable for the rest of the process. The first two
steps are also, mostly the responsibility of the change manager or another person assigned by him. But
in the rest of the process the change manager is just accountable while the responsibilities are assigned
to the CAB. When the change is ready for deployment, the incident and problem management should be
informed and ready to confronting any problems occurred due to the change. And from then on, it is the
responsibility of the release management to deploy the change. After the change has been deployed, it
has to be reviewed and checked, and the change initiator should be informed of the results.
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Table 3: Change management RACI matrix
Change management Activities
Negar Madani et al.
1-1) Create and record the RFC A/R
1-2) Review RFC A/R C
1-3) Approval to proceed A/R C/I
1-4) Baseline and identify CIs effected A R
1-5) Assess and evaluate the change A/R
2-1) Prioritize the change A/R C
2-2) Categorize based on risk A/R
2-3) Classify the change A/R
3-1) Select the authorized person/advisory board A/R I
4-1) Schedule change A R C/I
4-2) Appoint a responsible person A R
5-1) Release management A I R
6-1) Select the review team A R
6-2) Schedule the review A R
6-3) Review A I R C
6-4) Check for Standard change A R
6-5) Close the change A I I R I I
4.3 Key performance indicators
The metrics determined as key performance indicators, should have specific meanings and should help
with identifying trends (Haber, L., 2003). It is important that the measures indicate the rate of achieving
business goals (Institute of Internal Auditors 2005). The KPIs presented in the reviewed processes have
been compared. And lots of similarities have been identified between the KPI lists. The appropriate key
performance indicators for the optimized change management are:
Increase in the number of successful changes
Reduction of the cost of changes
Reduction in the number of unauthorized changes
Reduction in the number of emergency requests
Reduction in problems and incidents related to a change
Reduction of astonished personnel due to uninformed changes
Reduction in the number of unnecessary changes
Increase of identified standard changes
Reduction of the time of attending to a change request
Reduction of the time of implementing a change
4.4 Additional requirements
The key elements of change management have been presented in the above sections; however several
templates and documents are required for a successful change management process. The most common
templates which should be prepared before lunching change management process have been cited
below:
A request for change template which includes fields for unique ID, requester details, date/time fields,
change information, escalation and decision results, etc.
A change schedule table containing the date and time of all changes.
Terms and instructions for unauthorized changes
297
Change manager
Change initiator
Configuration
manager
CAB
Incident/Problem
manager
Release
management

Instructions for determining standard changes
Instructions for selecting CAB members
Instructions for the CAB agenda
Negar Madani et al.
The voting logic and the method by which the CAB will approve the change
4.5 What is unique about the optimized change management process
The main achievements and benefits of following this optimized process for implementing changes in an
organization are cited bellow. These statements indicate the strengths of this process and how it adds
value to the organization and the IT infrastructure from different points of view.
1. Improved sequence of steps: in order to avoid unnecessary repetition of activities, the sequences
of the steps are assessed and the sequence with the best results has been selected. As mentioned in
classifying the change in section 2.3, In MOF3 and MOF4 before achieving an official approval for
proceeding, the change is classified, which if the change is not approved it will result in the waste of
resources. Plus there is no certain step for scheduling the change and appointing a responsible
person for each change, which in the optimized change management process is placed in step four.
The last but not the least is the final step of MOF3 and MOF4 which do not close the change
properly. If a change isn’t closed properly the organization will soon face many problems due to the
unfinished changes. Therefore the last step is the step where all the involved people are informed
and the change is properly closed and recorded.
2. Flexible and clear process activities
3. Identifying standard changes: One of the main activities which is not covered in the above
processes is the identification of standard changes. There should be a certain step and certain
instructions for identifying standard changes. In the optimized change management process, before
closing a change, it is checked to see if the change can be categorized as a standard change. This is
the perfect step for identifying standard changes because up to here, the change has been
thoroughly deployed and the specifications of the change are clearly understood; therefore the
decision of categorizing this change as a standard change can be made based on sufficient
information.
4. Base-lining and identifying CIs effected: One of the disadvantages for a change management
process is the lack of base-lining. Usually base-lining is not taken seriously and its importance is not
recognized until a change has failed. As this common mistake is repeated in many organizations,
base-lining is mentioned in the first step, right after the change is approved to proceed.
5. Authorizing the change based on priority, category and classification: Clearly authorizing the
change should be based on the specifications of a change. And because the activities should be
chosen based on the type of the change this is a very important step and should be done carefully.
Classifying the change was thoroughly discussed in section 3.3 and is presented as a major step in
the optimized change management process.
6. Appointing a specific owner responsible for each change: like every other process, a change
management process owner is determined which is in full control of the activities, gathers process
performance data and is consulted in activities related to the process
7. Performing well planned and effective reviews: Reviewing a change is one of the important
activities in any change. A review is consisted of a review team, review schedule and the results of
the review. The optimized change management process has taken care to cover all the required
steps for a successful review, which clearly is lacked in the other processes.
5. Conclusion
Many organizations depend on IT and therefore an appropriate IT service management is essential for
any organization. There are several frameworks for ITSM including ITIL, MOF3 and MOF4, etc., with
each framework focusing on a specific aspect of IT service management.
The mentioned frameworks have been implemented and their advantages and disadvantages have been
discovered in time. These disadvantages include, deploying change through too many steps or
insufficient steps, not addressing certain requirements such as identifying standard changes, the lack of
an accountable person, etc.
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Therefore an optimized change management process has been presented in this article, which based on
the detailed explanations in section 4.5, which links the final findings with the problems, will result in more
success, less disruption and loss, increased revenue, reduced costs and achieving the business
objectives. Also this process is designed in a way that requires a minimum amount of time, budget and
effort for implementing a change.
References
British Educational Communications and Technology Agency (2004) Change management: Millburn Hill Road,
Science Park, Coventry CV4 7JJ.
Duck, J. D. (2000) Managing change: the art of balancing, Harvard Business Review, November–December.
Haber, L., (2003) How do you measure ITSM success. Jupitermedia Corporation.
ISO (2005) ISO/IEC 20000-1 Information Technology – Service Management Part 1: Specification,
ISO (2005) ISO/IEC 20000-2 Information Technology – Service Management Part 2: Code of Practice.
Institute of Internal Auditors (2005) Global Technology Audit Guide 2: Change and Patch Management Controls:
Critical for Organizational Success, Institute of Internal Auditors Altamonte Springs, Florida, US.
Microsoft (2008) Microsoft® Operations Framework version 4., Microsoft Publications, USA.
Microsoft (2004) Microsoft® Operations Framework version 3., Microsoft Publications, USA.
OGC, (2007) Service Transition. ITIL Service Management Practices v3., London: The Stationary Office.
OGC, (2007) ITIL Service Management Practices v3., The Stationary Office: London.
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The use of RFID and Web 2.0 Technologies to Improve
Inventory Management in South African Enterprises
Sizakele Mathaba¹, Nomusa Dlodlo², Quentin Williams³ and Mathew Adigun³
¹ ² ³Council for Scientific and Industrial Research, Meraka Institute, South Africa
¹ ³University of Zululand, South Africa
smathaba@csir.co.za
sizamath@gmail.com
ndlodlo@csir.co.za
qwilliams@csir.co.za
madigun@pan.uzulu.ac.za
profmatthewo@gmail.com
Abstract: Cost-effective inventory management includes balancing the cost of inventory with its profit. Most business
owners fail to recognize the value of the cost of carrying inventory, which include not only the direct cost of storage,
insurance and taxes but also the cost of money tied up in inventory. Running inventory using paper-based systems,
Excel files and traditional enterprise software is a costly and resource-intensive approach that may not even address
the appropriate issues for most businesses. It is with this in mind that this research proposes taking advantage of the
Internet of Things (IoT) and Web 2.0 tools in the management of inventory .IoT promotes the communication of
things/object through sensors. On the other hand Web 2.0 tools promote the communication of people through their
phones or desktop computers. The collaboration of these two technologies could improve inventory management. A
comprehensive literature survey is conducted on inventory management functionalities. IoT and Web 2.0
technologies are then mapped to the identified inventory management functionalities. As a result the research
proposes inventory management architecture. The paper looks at the architecture of a system that fully integrates the
technical advantages of Radio Frequency Identification (RFID) and IoT, in collaboration with web 2.0 tool, twitter, for
loss prevention and as an enabler for locating misplaced stock, anti-counterfeiting of stock, etc. The system will focus
on South African Enterprises as a developing country in Africa.
Keywords: Internet of things (IoT), Radio Frequency Identification (RFID), Web 2.0 tools, inventory management,
South African Enterprises, Twitter
1. Introduction
Supply chain management is the well-organized management of the end-to-end process. It begins with
the design of the product or service and ends with the time when it has been sold, consumed, and in the
end, discarded by the end user. The complete process involves product design, procurement, planning
and forecasting, production, distribution, fulfilment, after-sales support, and end-of-life disposal (Michael
and McCathie, 2005). Inspection and anti-counterfeiting for merchandise are vital contents of supply
chain management, enterprises which need to open the market completely, have to offer consumers a
real-time information inquiry platforms on commodity, and to let consumers have a clear understanding of
the entire life cycle of the goods they consumed and to give them a convenient way to identify the
accuracy of the products. Unfortunately, few enterprises have systems in place that can monitor whole
cycle of products currently. To resolve this difficulty, this paper recommends a products monitoring
information system based on RFID and IoT.
The paper is structured as follows. Section 2 is the literature review on the IoT. Section 3 is the research
methodology, Section 4 represent the rationale of the study, while Section 5 looks Web 2.0. Technology
in general. Section 6 is the proposed architecture of the inventory management system that fully
integrates the technical advantages of RFID and IoT, in collaboration with web 2.0 tools twitter, for loss
prevention and as an enabler for locating misplaced stock, anti-counterfeiting of stock, etc. The system
will focus on South African Enterprises as a developing country in Africa.
2. Background and context of the study
2.1 Internet of Things
The IoT is an incorporated part of the Future Internet and could be defined as a dynamic worldwide
network infrastructure a with self configuring ability based on criterion and interoperable communication
protocols where physical and virtual things have distinctiveness, physical characteristics, and virtual
personalities and use intelligent interface, and are seamlessly integrated into the information network(de
Saint- Exupery, 2009).
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Figure 1 is an example illustrating how IoT works in warehouse management. Traditionally, operations in
warehouse management are processed manually, with information gathered by hands and captured
through keyboards, voice entry or barcodes and integration through human- machine -interface. The
introduction of IoT, involving RFID sensors & actuators, changed the laborious processing of warehouse
operations. Data entry is now automated, which results in accurate information for informed decisions.
Figure 1: IoT in warehouse management (adapted from Fleisch, 2010).
Figure 2 illustrates how the IoT functions.
Figure 2: Illustration of Internet of Things (adapted from Shen, 2010)
It consist of tags which are programmed into an object, each tag contains product information such as the
expiry date, object pressure, temperature, prices etc. Sensors are embedded into these tags and
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readers, and they enable data transfer from the tags to the readers. Readers access data from the tags in
a code form. IoT middleware filters repeating and irrelevant data and sends the code to the local server.
The object information will be available to the internet through the remote server. Object Naming Service
(ONS) works similar to the Domain Name Service (DNS), it points out the servers storing object
information.
In the IoT, objects are autonomous entities in companies, information and social processes where they
will be enabled to interact among themselves. They also interact with the environment by exchanging
data and information sensed on the environment, while reacting autonomously to the real/physical world
events and influencing it by running processes that trigger actions and create services with or without
direct human intervention. The interfaces in the structure of services facilitate communications with these
smart things over the Internet, query and change their state and any information related with them, taking
into account security and privacy matters(de Saint- Exupery, 2009).
Typical Applications of IoT:
“Toyota (South Africa), Carrier tagged to streamline manufacturing and vehicle tracking. The tags are
intended to remain with the vehicle throughout its life cycle” (Baudin, 2005).
A car which notifies you when it must have a service.
A smoke detector which is directly connected to local fire station.
Washing machine twittering when it finishes washing etc. There are quite many areas where IoT can
be applied.
2.2 Radio Frequency Identifiers
RFID tags are divided into two general types, active and passive, depending on their supply of electrical
power. Active RFID tags consist of their own power source, normally an on-board battery. Passive RFID
tags get power from the signal of an external reader. RFID readers also come in active and passive
selections, depending on the kind of tag they read (Intermec Technologies, 2007).
2.2.1 Active tags
Active tags contain their own power source. They send out a stronger signal, and readers can access
them from further away. The on-board power source makes them big and costly, and thus active RFID
systems normally work well on big objects tracked over lengthy distances. Low-power active tags are
generally a little larger than a deck of playing cards. Active tags can stay inactive until they come in range
of a receiver or can continuously transmit a signal. As a result of their on-board power source, they can
function at higher frequencies, normally 455 MHz, 2.45 GHz, or 5.8 GHz, relying on the application’s read
reach and memory needs. Readers can converse with active RFID tags across 20 to 100 meters
(Intermec Technologies, 2007).
2.2.2 Passive tags
On the other hand, passive tags are very economical, they can cost as little as 20 cents a piece, and new
technologies are continuously manufacturing them on a low-price for integration into general materials
and products. Since passive tags are inexpensive, they are expected to be the starting point in the
expansion of RFID implementations especially in South Africa as a developing country. Besides to their
low cost, passive tags can also be reasonably small. Recent antenna technology confines the smallest
functional passive tag simply to the size of a quarter. The larger the tag, the larger the read range. At
present, passive RFID tags contain about 2 Kbits of memory which is quite small to hold much more
complex information than identification and history information. Technology in the nurture of RFID is
continuously improving. Consequently, the amount of information and capabilities of RFID tags will
increase over time, thereby allowing RFID tags to ultimately hold and transmit enough information
(Weinstein, 2005).
Passive-tag readers can continuously transmit its signal or transmit it when required. Once a tag moves
across the reader’s range, it accepts an electromagnetic signal from the reader through the tag’s
antenna. The tag then keeps the energy from the signal in an on-board capacitor. This process is called
inductive coupling. Once the capacitor has made sufficient charge, it can be able to power the RFID tag’s
circuitry, which transmits a modulated signal to the reader. The return signal consists of information
stored in the tag. Low-frequency tags (less than 100 MHz) send information by releasing energy from the
capacitor to the tag coils in altering strengths over time, which affects the radio frequency produced by
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the tag. The reader perceives these varying waves and can use these variances to demodulate the code.
(Weinstein, 2005).
In higher-frequency tags (greater than 100 MHz), the tag transmits the signal by means of backscatter, in
which the tag’s circuit adjust the resistance of the tag’s antenna. This change in resistance makes a
transmission of Radio Frequency (RF) waves, which the reader can accept and demodulate. Passive
tags usually work at frequencies of 128 KHz, 13.6 MHz, 915 MHz, or 2.45 GHz, and have read ranges of
only few inches to 30 feet. Frequency selection depends on the system’s environment, kind of material
the signal have to pass through , and the system’s essential read range. RFID tags can be enclosed in
numerous materials. Plastics are the most familiar material for RFID, making identification cards for
building entrance, credit cards, or bus fares (Weinstein, 2005 and Intermec Technologies, 2007).
Figure 3 represents the RFID components and illustrates how these components works in any given
environment. Tags which usually very small in size, are attached to any given object and they send out
signals which are received by the reader through antenna, which is an enabler for tags and readers to
transmit information. The information is sent to a back-end computer system for processing.
Figure 3: RFID system components (adapted from Yan et.al, 2008)
3. Methodology
A comprehensive literature survey was conducted on inventory management functionalities, and to
identify research work that has been covered in the IoT and web 2.0 in enhancing the management of
inventory in South African Enterprises. IoT and Web 2.0 are then mapped to the identified inventory
management functionalities.
The research question is:
How can IoT and web 2.0 technologies be utilized to improve inventory management systems in South
African enterprises?
Objectives of the study
Review literature on inventory management
Identify systems that have adopted IoT technologies that can be utilised in inventory management.
Come up with inventory management architecture.
4. Rationale of the study
Stock outs result in much loss for enterprises. It is estimated at 30%, which affects retail sales by
between 5 and 18%. In most cases, the stock maybe available but misplaced (Xin, 2009). This is a huge
loss for enterprises. South Africa is not only becoming more aware of RFID, but is also progressively
rising in the uptake of this technology. RFID vendors are becoming specialised in providing specific
applications and catering their offerings to particular industries. Diversity of factors currently influences
South Africa's demand for RFID applications namely:
The need to reduce theft,
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Fraud and counterfeit products.
Sizakele Mathaba et al.
The RFID technology is able to keep track and trace the location of products precisely than current
technologies in use, which leads to a reduction in losses. The ability of technology to increase efficiency,
government support for RFID projects and international policies that require RFID applications on specific
goods for import, such as beef products, are also influencing the adoption (online, url:
http://dataweek.co.za/article.aspx?pklArticleId=5027&pklCategoryId=31 ).
The slow adoption of RFID in South Africa presents diverse opportunities for retailers. The most vital is
the availability of abundant opportunities that have not yet been exploited but are perfect for early mover
advantage. Mission to roll out RFID applications in different countries are also on the rise. Supply chain,
asset management and mining are amongst the areas expected to increase the demand for RFID
applications, and actions in these areas are on the rise in many African countries. Despite the numerous
opportunities for RFID applications, there are hindering factors to its expansion. The most remarkable is
the high cost of installing the application, particularly for low value volume products. Most enterprises in
South Africa are small to medium enterprises with low quantity of manufacturing. RFID is costly for such
businesses to implement. Consequently, many sectors continue to use alternative solutions such as bar
codes.
The RFID technology is ineffective if function under certain conditions i.e. Transponders do not function
well when tagged on iron objects or wet surfaces. This creates complications for manufacturing and other
industries that use a variety of metallic objects (Dane et. al, 2010). The low level of alliance among
industry participants is also slowing the market's development. Having agreed that RFID requires a
standard of infrastructure, mostly in power and telecommunications, the demand is affected in many
countries and regions facing infrastructural complications. Regardless of various technological
challenges, the cost of RFID tags has started to drop. This movement is expected to carry on as more
advances in the manufacturing of low cost RFID continue. The continued drop in prices will be a key
issue in growing the demand for RFID in South Africa. Low cost tags will be particularly engaging to low
value volume things, where the market for RFID is currently small. This will offer solution for a variety of
enterprises of all sizes. Participants in market have need of working together to resolve interoperability
and other concerns that have an effect on the use of RFID applications, such as discovery of a general
approach to the industry principles(online, url: http:// dataweek.co.za ) .
The forecast for RFID technology in South Africa are not as rosy as those for biometrics. It is doubtful that
RFID in SA will see the same adoption rate as seen in the US, as local retailers are unlikely to set up
RFID go-ahead like they did in the US. On top of that, the charge of importing tags and the difficulty of
deployment are likely to put off many potential RFID customers, says Max Stone, distribution and partner
manager at Motorola Southern Africa's Enterprise Mobility business(online, url:
http://www.autoidlabs.ch/).
RFID in South Africa is well established in some niche environments, such as access control i.e.
Biometrics, tollgates. South African regulator ICASA only permitted suitable EPC (Electronic Product
Code) RFID frequencies for SA last year, so major deployments are yet to happen. RFID has been
deployed very selectively in South Africa; the cost of the tags has been too high for retail organisations to
see advantage from using this type of real-time tracking. However, this may change as time elapses
(online, url: http://www.iweek.co.za/ViewStory.asp?StoryID=201372 ).
5. Web 2.0
Web 2.0 technologies outline the beginning of the subsequent creation of web-based applications. It
allows web applications to be created, that are more operationally rich and quick to respond than the
usual static pages of traditional web technologies. It’s also enabling content to be produced and shared in
real time, with end-users commonly able to add content to applications themselves (O’Reilly, 2007). This
implies that Web 2.0 technologies support open communications and provide users the freedom to share
their suggestions and opinions.Most organizations of all types and sizes and from all industry verticals
have noticed the explosive growth on the web of social and community sites in the consumer space such
as MySpace, YouTube, and the deluge of Web 2.0 sites. Enterprises have observed the move of major
Web players such as Amazon, eBay, Live, Google, and Yahoo to include social and community
elements, and the interest and demand that this has created. Now they are enthusiastically considering
and in several cases constructing portals in communities and businesses for their own organizations.
Web 2.0 is moving to enterprises (Kittowski et.al, 2009).
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Organizations are interested in using Web 2.0 practices mainly in two places, which is within the business
to advance competency and production, and from the organization to the customers to improve revenue
and customer satisfaction. The use of Web 2.0 within organizations is called Enterprise 2.0 and is likely to
be the first area where Web 2.0 will be used by organizations. Enterprises are using Web 2.0
technologies to mainly communicate with customers (advertising), business partners and potential
employees, allowing them to achieve the goal of true real-time collaboration among these parties. This
can increase output and provides enterprises with a way to easily promote their products. The creation of
online communities and blogs or wikis to initiate conversations and share knowledge is proving to be
particularly interesting to enterprises. Enterprises are already using the Web 2.0 technologies inside the
organization, for communication with employees and customers and marketing, etc. IoT technologies, on
the other hand promote the communication among objects without any human intervention leading to a
reduction of labor costs. This study proposes that IoT can be collaborated with web 2.0 technologies for
communication purposes with humans. The objects will communicate with humans for updates through
web 2.0 technology Twitter, to bridge the communication divide between objects and humans.
6. Proposed architecture for inventory management
Enterprise architecture (EA) presents a bright approach to support business strategy execution. EA is an
outline that can direct organizational activities in the technological sense, and supports the business
strategy from the lowest level of process. This outline helps to facilitate an organization’s business vision
by encapsulating multiple views of an enterprise and provides a general understanding of what the
organization aims to achieve. In addition, EA view the enterprise from a holistic and more complete
architectural point of view (Chuang and Loggerrenberg 2010). Figure 4 shows the proposed architecture
for inventory management. It is architecture of a system that fully integrates the technical advantages of
RFID and IoT, in collaboration with the web 2.0 tools twitter, for loss prevention and as an enabler for
locating misplaced stock, anti-counterfeiting of stock, availability of stock on shelves etc.
In this architecture, RFID basically serves as a replacement for the bar code scanners which are normally
used to track products and shipments in similar ways. This architecture fully integrates the technical
advantages of RFID and web 2.0 to provide feedback on the process to end user. Since the application of
FRID require no human intervention, it is essential that the end user is updated in the whole process.
The RFID system consists of three fundamental components. Initially, the RFID tag is attached to an
asset or product in the inventory. The tag contains information about the particular asset or product and
also may include sensors. The next component is the RFID reader, which communicates with the RFID
tags. The last component is the backend system, which links the RFID readers to a centralized
database/server. The centralized database will store information, such as price, for each RFID tagged
item. In this proposed architecture for inventory management, the passive tags will be used due to their
low cost. Among the functionalities expected to be performed by this system includes:
Checking the availability of stock on shelves.
Identifying misplaced stock on shelves.
Identifying expired/ ruined stock.
Identifying counterfeit products.
Sending updates to the relevant user.
Electronic Product Code (EPC) is a unique global identifier of each product in IoT technologies which is
used to track and trace products (Yan, 2008). The EPC RFID readers will be placed among the shelves
and the products will be programmed with EPC RFID enabled tags. EPC RFID tags will send out the
signal which will be received by the EPC RFID readers in the radio frequency field. The readers will
receive the signal through their antennas and transmit the stored information, i.e. validation, tracking,
counts, and error messages to the EPC middleware. The EPC middleware will filter out the repeating and
irrelevant information. Thereafter, information will be sent to the local server. The local server computer
system will twitter the information to the user i.e. reports on inventory, aggregate counts, errors occurred,
misplaced stock etc. through the use of web 2.0 technology. The end user/owner will receive the
notification on inventory through his/her phone. This system gives effective technical reference for
enterprise managers to monitor whole process of inventory without them being physically involved in the
process. The consumers of the products will benefit also in this proposed architecture. They can query
information about the product on the remote server using the EPC (Electronic Product Code), the ONS
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(Object Naming Service) is network system which works similar to the DNS (Domain Name Service).It
spots out servers storing information in the internet.
Figure 4: The proposed architecture for inventory management
7. Conclusion
Internet of Things integrated with the RFID technology and web 2.0 technologies can assist enterprise
owners in managing their inventory, i.e. using them in monitoring the stock validity, stock on shelves,
misplaced stock etc. The use of web 2.0 tools could play a major role in keeping enterprise owners
posted about what is happening on the inventory without them being physically there and helping them to
make informed decisions, and to know urgent matters which may need their attention immediately. Web
2.0 tools bridge that divide of objects and humans. As a result, this study encourages South African
enterprises to actively promote the development procedures of the RFID technology with web 2.0 tools
and the Internet of Things to improve the inventory management in their enterprises. The IoT have the
drawbacks though i.e. the cost of the technology is a major concern for developing countries like South
Africa, but that can addressed by major investments and collaboration with developed countries if
possible.
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8. Acknowledgments
Sizakele Mathaba et al.
This research was sponsored by Council for Scientific and Industrial Research (CSIR) MERAKA,
Pretoria, South Africa and Internet of Things Capability Group under supervision of Dr Louis Coetzee
(Group Manager).
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Chuang C, Loggerrenberg J,( 2010), Challenges Facing Enterprise Architects: a South African Perspective,
Department of Informatics, and University of Pretoria, South Africa.
Dane, H. and Michael, K.and Wamba, F. S., (2010) RFID Enabled Inventory Control Optimization: A Proof of
Concept in Small-to-Medium Retailer, University of Wollongong, Australia.
de Saint – Exupery A,(2009) Internet of Things Strategic Roadmap, CERP-IoT EC, Europe.
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Enterprises” Proceedings of I-KNOW ’09 And I-SEMANTICS’09.
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International Conference on Mobile Business (ICMB’05) IEEE, University of Wollongong, Australia.
Mtuszak G, (2007) Enterprise 2.0 Tales and Trenches”, Information Communications & Entertainment (KPMG
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Intermec Technologies, North America.
O’Reilly T, (2007), What is web 2.0, O’Reilly Media Inc.
Shen, G. and Liu, B. (2010), Research on Application of Internet of Things in Electronic commerce, Third
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Weinstein R, (2005), RFID: A Technical Overview and Its Application to the Enterprise, IEEE Computer Society,
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Yan B., Huang G, (2008) ,Application of RFID and Internet of Things in monitoring and Anti-counterfeiting for
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307

Modeling the Genetic Schemes of Human Memory
Information in the Process of Production and Reparation of
Knowledge
Fatemeh Mohammadi, Tahereh Mohammadi and Bahram Rezaie
Faculty Member of Islamic Azad University, Shiraz, Iran
faramatn@yahoo.com
tmohammadi@live.com
bahramrezaie@gmail.com
Abstract: In this paper the theory of "genetic scheme of human information" is presented for the first time. This
theory is in based on fifteen years of continuous study and research on related sciences including cognitive and
meta-cognitive psychology, the system of processing information, information pathologies such as amnesia,
information interference, mistakes in remembering information such as the time of tests and exams, neurology and
learning, chemistry and long term memory compounds, electricity physics and electrons movements in data
transferring. To make the theory more comprehensible, a conceptual model on the process of receiving knowledge,
repairing knowledge and finding the relationship between different sciences to each other was created and
presented. This included the use of factor analysis method and path analysis with multiple variable regressions. Its
fitness degree was accepted with 86.12% by a group of 186 Faculty members of Iranian universities. The paper also
offers a conceptual model for understanding the way information system of human mind performs in data saving and
recalling. This model benefits from the results of previous studies and researches on the way memory performs In
terms of neuroanatomy, neuropsychology, physiology, and the system of data processing in the field of
metacognitive Psychology. This model was approved by a group of 97 lecturers in education and neuropsychology,
who have been randomly selected. The related ratio is 85.538. The statistical method employed is factorial and path
analysis. This model depicts the structure of the type of information and the way it is preserved and saved in the
memory. In addition, the model makes it possible to transform the data into other forms which can be recalled and
recognized in a simpler way.
Keywords: information genetic scheme, memory, knowledge generation and reparation, human mind information
system (HMIS), conceptual model, data saving and recalling
1. Introduction
The way human mind performs in saving, processing and recovering information has been studied for
many years by different fields of study including psychology, neurology, and education. The result of
these studies offers models, paradigms, and conceptual frameworks to simplify the understanding of
complexities of human mind performance and his intelligence. (Sternberg, 2006)
These authors’ primary concern was whether a simple conceptual model can show the way information
system of human mind performs, and whether this model can help human to save, process, and recover
information in a better and faster way?
Human being’s dependency on artificial and man-made memories such as portable microcomputers and
electronic note-books in twenty-first century has resulted in mind laziness and malfunction of human
memory. (Mohammadi, 2010)
Therefore, this paper with its emphasis on using the mentioned model, tries to demonstrate how a person
can avoid forgetfulness and mental laziness and enhance his mental capacities. Based on the
introduction presented, the main research questions of this study are as follows:
What are the main components of the conceptual model of Human Mind Information System?
Which model can be proposed to understand HMIS complexities?
What is the degree of validity In university lecturers’ answers to the questionnaires.
2. The significance of the research
Having an appropriate model for the process of remembering and recalling information in information
system of human mind is as important as using models in other experimental disciplines. If the sum of all
endeavors and studies conducted on the performance of human mind, thought, memory and human
intelligence is considered as a whole, then we must be able to create a concrete symbol to represent this
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Fatemeh Mohammadi et al.
totality. The model presented in this paper tries to show the complexities of HMIS using simple and
understandable symbols.
3. Review of literature
When a child is born he lacks any type of concept or meaning. No sign or symbol of the world makes
sense to him (Berlo 1970, P.178). When we use a word representing a thing or a matter in the presence
of a child, he mysteriously matches the two types of stimuli and then make a relationship between them.
That is because the brain and its neurons are flexible. On the other hand, Berlo shows that meanings and
concepts exist inside humans (Ibid PP 184-5). We know that the organism which maintains these
concepts is memory (Sachs 1967, P437& wallas, 1921, P16).It seems that these concepts lie in the longterm
memory (Hilgard 1975, pp 236-40).
Studies on growth and evolution of memory have been the specific field of Leontiev. Having worked with
normal and retorted children of various ages, he created a device by which the examinee could use
secondary stimuli in order to remind a series of stimuli which were offered by the examiner. Eventually,
Leontiev showed that the process of mediated remembering is long-termed and difficult. This
remembrance is not regular and that there is no evidence showing if the person performs a special
activity to remember previously saved information or not. Luria called this type of behavior "natural
remembering", because she thinks stimulus is remembered through direct affecting process and without
any mediation. But there are times when a person cannot recover and recall the related information by
provided stimulus (Luria, P. 6l).
Following Tief's studies, Morozova believes remembering the stimulus in relation to the response is
difficult for the child. But secondary stimuli can guide the child's chosen response to a right way. She
found out that the rules for mediated remembering are also true for natural remembering. Luria
conducted other research studies in a different setting but with the same substructure. She shows that
memory's activity can twist from a normal form of speech into complex self-folding functions. In 1929,
Luria’s group started an original research on understanding the meaning of stimuli and function of
mediated devices for remembering a series of words and pictures. This group showed that children at
their first stage of growth are not able to create pictorial stimulus which makes the future remembering
possible. But when they grow up, they project effective technique usage. It seems that older children can
organize some of stimuli characteristics in order to facilitate remembering (Ghasem Zade, 2008, P. 85).
In contrast to previous researchers, Vigotesky believes that mental abilities of human being can be
elevated up to a full capacity. He emphasized the qualitative description of organizing information and the
behavior originated from it. As a result, he founded another psychological discipline which emphasizes
the human's socially organized experiences and the structure of his conscious activities. This new branch
has a close relationship with neurology, but it was different from neurology regarding different controlling
areas of psychological functions. Therefore, understanding the abilities of human brain is needed for
neuropsychology or psychology of nervous system (Luria and Cole, 80, P.64).
Vigotesky offered an approach based on his analysis of the structure of psychological function. First he
considered the relationship between preliminary and elevated psychological functions, and then he
determined their mental classification in a normal adult. Vigotesky's approach acted as a model for future
neuropsychology researches (Luria, pp.66-70).
Durkheim believes that basic mental processes cannot be considered as inner-life manifestation or
outcome of natural evolution. His discussion focused on two questions:
Do the content of thought and basic categories used in describing an experience differ in various
cultures?
And, are human’s intellectual functions different in various cultures?
Berlo showed that primitive people followed different rules and functions compared to people in
modern era because primitive individuals did not organize their information enough (ibid, P 73).
In 1980 opinion, intellectual power in primitive cultures basically was not different from individuals living in
nowadays’ technological communities, because the process of thinking, remembering necessary
information, combining them, and creating consequent information has the same logical rules. But other
gestalt psychologists pay attention to the common characteristics of mind in all cultures. They developed
this theory that the principles of understanding and thought are similar worldwide (Werner, H. 1890-
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Fatemeh Mohammadi et al.
1960). But mental characteristics are not separate from their biological and physiological structures.
Human being’s nervous system has the responsibility of creating harmony between different biological
functions. (Eysenck and Flanangan, 2009).
Human's information is kept in memory. Physiologists found that memory is in Hippocampus area and
they believe that hypo camp has a major role in recording and keeping human information. Hippocampus
is located at the brain cortex. This border is called limbic. Limbic has a role in the setting of feelings,
behavior, motivation and memory due to several links to other parts of nervous system. Hippocampus is
extended in the length of inner edge of temporal boarder. The structure of Hippocampus reflects strata.
Surface of Para Hippocampus has six layers. If we observe Hippocampus from the surface, we face three
layers (out of six layers). These three layers include surface molecular layer which contains nervous
fibers and small scattered neurons, the pyramidal layer which contains several large pyramidal neurons,
and a multishaped layer whose structure is similar to the multishaped layer of other parts of the surface
(Snell, pp.342-5).
This stratified structure led to us to gain a stratified image from the first model of information system of
human brain. Especially where I found that pyramidal layers of Hippocampus are made of round or oval
compact neurons, which create a synapse with dendrites of pyramidal cells of Hippocampus Here, is the
intersection of bringer and sender fibers of information. The study of this section on theoretical
foundations was very important to find out the basic structure of HMIS.
According to this evidences, Hippocampus has a role in converting the short-term memory to long-term
memory. If Hippocampus is damaged, one cannot keep information in his memory for a long time. This
disorder is called Anterograde amnesia. But in this case, the far-off memory which has already been
formed will not be damaged. Damage to the core of Hippocampus makes severe memory disturbances
(ibid P. 347). Despite these facts, Physiologists believe that what is kept in memory is not primary and
raw information but it is often mixed with a meaning whose root has an inner part. (Snell, 2006, p373).
Until the present time, a collection of various hypotheses has been offered in order to describe the
physiological and neurological function of memory. They include, coding of detailed information in a large
collection, -e.g., remembering the details of a trip, physiological coding in the variety of electrochemical
activity of cells and also chemical changes of neuron bonds in message transferring (Mesulam 1981,
p.250). Besides, Asratyan showed that there exists a great correlation coefficient between learning
process and memory. Also, there is a direct relationship between learning and change of protein
composition in the brain (Asratyan, 1983, P.43)
4. Research methodology
The present work is a descriptive research based on modeling the information system. The statistical
population is all faculty members of Educational Science in the universities of Fars Province, Iran), for
estimating the statistical sample we used Z=1.96, Confidence Coefficient = % 95 and d=0.05. Therefore
our sample was n= 86. Since we estimated that about 15% of questionnaires would not be returned, we
increased the number of subjects to 97, in a random basis.
5. Performance of the questionnaire
The study of theoretical literature and effective components on the model showed that these
components, including basic and secondary components, can be primarily classified into five basic
groups:
Philosophy of the model
Objectives of the model
Theoretical foundation and confirmer of the model
The model’s potential for answering and generalizing
The model’s potential to adapt to facts.
For evaluating the suitability of the philosophy of the model three questions, for the objectives of the
model four questions, for the theoretical foundations five questions, for the potential of answering and
generalizing seven questions, and eventually, for the evolution of suitability of the model adaptation to
experienced facts six questions were formed. The discrete method and percentage answers were chosen
since they are more logical and accountable compared to Licret spectrum. Questionnaire’s validity was
confirmed by the experts and through formal validity. We studied twenty six subjects in a pilot test to
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Fatemeh Mohammadi et al.
obtain their views for future changes in the questionnaire. To evaluate the inner validity of the
questionnaire, test split-method calculation of intensity of relationship between two halves was used
(r=%67.11). To evaluate the validity of relationship power of each question with total score of
questionnaire, dotted two-threaded correlation coefficient was used with the related r value of 0.71.08.
The validity of all questions was checked against Cronbach's Alpha coefficient. The result was α=0.76
which shows the questionnaire was appropriate for final exertion.
6. HMIS model and the findings
The first question of the study is: What are the basic elements of conceptual model of mind information
system?
Theoretical studies show that the elements of HMIS consist of the following parts:
Short-term and long-term memory
Information processing system
Intelligence and the part responsible for discovering the relationship between phenomena
Power of adaptation and compatibility of human brain
Relationship between information type and the speed of memorization and remembrance.
Relationship between the types and amount of received information from the five senses
Meaningfulness of the relationship between new materials and previous information.
Learning methods with emphasis on Bandora, Gestalt, and Azubell.
Nervous system in message transferring (neuropsychology)
Communication system (communication model in message transferring from sender to receiver)
Semantic flexibility in cognitive field
Previous and subsequent information interference system
Learning psychological affections
Ultra cognition and models of self-leading in learning
In answering the second question of the research i.e., which model can be suggested for understanding
the complexities of human mind information system, elicited factors taken from the first question's answer
were entered in the raw and primary model after lecturers' opinions were reviewed, and they were
classified into five basic sections:
Philosophy of the model
Objectives of the model
Theoretical foundations of the model
Potential of the model in answering and generalizing
Potential of the model in adaptation to the experience facts.
7. Philosophy of the model
Philosophy of the HMIS model was evaluated for understanding its complexities by answering three
questions. The result of the analysis of the answers shows that the focus of the model’s philosophy is on
understanding and facilitation of the memorization process and recalling information from long term
memory. This process follows a neuropsychological mechanism which is very complex and its
understanding is very difficult. In order to facilitate understanding of this complex process, the main
structure of the model is based on the type of information introduced to short-term memory and then to
the long-term memory as well as their placement and saving.
To simplify the model, we put the name of the first upper layer in short-term memory, the "current layer".
Current layer is a layer that keeps received and recalled information for a short period of time. This layer
consists of all of information types. Data analysis of answers to the basic component of the model
philosophy showed that %78.62 of statistical sample accepted this philosophy for suggested model of
human mind information system.
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8. Objectives of the model
Fatemeh Mohammadi et al.
We explain the objectives of the HMIS model by four questions and by regarding components elicited
from the review of the results of research questionnaire and opinion polls of lecturers. We consider the
following objectives for the model:
Understanding the complexities of the performance of memorization and remembering in our
information system.
Engendering meaningful communication for constant saving and quick remembering.
Familiarizing the lecturers with teaching active methods and involving various senses of students for
effective learning.
Arranging the information in the mind, identifying the reasons of forgetting information, and
preventing information forgetfulness.
Statistical descriptive analysis showed that % 89.15 of sample agreed with these model objectives.
9. Theoretical foundations of the model
The current model’s theoretical foundations were evaluated by five questions. The combination of
theoretical studies and acquired results of previous researches as well as data analysis of the
questionnaire and lecturers’ opinions showed that elicited data from the five senses are not saved and
recovered by the same speed and quality. We resulted that, that specific information is remembered
sooner or it is closer to the current layer or simply chemical combinations act more quickly for the
analysis. Therefore, the conclusion is that information is memorized earlier. In other words, they entered
to their special layer of long-term memory sooner. According to the results of sample answers and
background studies, the following order for saving all types of data is offered:
The nearest type of information to the current layer is the information which is received and saved
through experiment or experience. The reason may be the involvement of more senses for learning
or memorizing. For each of the five senses, chemical links opens. Senses of smell touch and taste
function in this layer.
In the second layer, visual and pictorial information exist. As theoretical studies show, the speed of
image memorization and remembering is more than all other types of information received through
hearing and reading. The bulk of received information from visual sense is more than other senses. It
means that %75 of information is received from the sense of sight.(Mohammadi, 2010)
In the third layer, information received through reading and writing is located. The reason for
durability of read and written information compared to heard information and also their careful and
quick remembering can be the use of empirical senses in memorizing and remembering read and
written information .In the case of sighted-talent people while reading, the form and characteristics of
page and written images are facilitating factors which come closer to the tested layer. In a blind
person, the sense of touch makes perception easier and is closer to test and experience layer
compared to heard information.
Finally in the lowest layer the information from the sense of hearing is saved. The bulk of saved
heard information is less than the information received through visual data. Remembering heard
information is also more difficult and memorizing them lasts only for a short time. We know that %75
of heard information can be lost in 24 hours if they are not repeated. (Mohammadi, 2010)
The analysis of answers to questions of the model showed that surface bulk and type of received
information from the five senses are not equal. Therefore, the layers cannot be at the same level
regarding their setting. So, we should design the surface ratio of each layer according to theoretical
foundations. Studies show that on average % 74 of healthy people gain information through sight sense,
%15.67 through sense of hearing, and % 6.9 from reading and writing. %2.999 of the information is also
perceived through experiment and experience; besides, %0.006 of human being’s information is in the
current layer. So, the surface of each layer changes according to the arrangement of layers’ information,
quality and the bulk of each layer. The following simplified model is suggested for better understanding.
The information analysis of the samples' viewpoints about the component of theoretical basis showed
that %86.09 of them accepted the component.
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Figure 1: Two types of memory
Fatemeh Mohammadi et al.
Current data layer (Short Term Memory)
Long term Memory
Experienced information layer
Seen information layer
Written information layer
Heard information layer
Figure 2: Types of information layers
10. Model’s potential in answering and generalizing
The elements of model’s potential in answering and generalizing were considered by seven questions.
Since theses elements are more important, the number of questions is more than other parts of the
model. Based on the results of information analysis, the samples' viewpoints, and also the answers for
the first research question, we showed with %95 certainty that the bulk of different information types are
not equal for saving & recovering. The more continuous and detailed the parts from large groups, the
easier they can be recalled them. For instance, obtained information from a journey experience has a
great bulk. It consists of so many small fragments and without any attempt; they are saved in the memory
and can be remembered more easily. Yet, a short sentence or a scientist's birth date which is heard via
radio can hardly be recalled. Such information is shown with a big empty circle, because it cannot be
decomposed. Thus, they cannot be recalled easily unless they can appear in another shape or through
association with other information.
In 1986, Mohsenian Rad in an interactive model on man to man relationship presented a meaning unit as
a ball in human mind. According to him and based on the speed of memorizing & remembering data,
‘listened to’ information can be explained by the smallness and roughness of their shapes. The smaller
parts make an apparent shape which move in a limited space, the greater chance of memorizing and
recalling them. In neuropsychology theories, it is said that as all kinds of information are made of
electrochemical energy, they can change from one form to another and potentiality can be re-read and
remembered. So, there should be a way to get to the surface (the current layer). Each group of
information which can enter to the current layer simultaneously and in the form of a group of information
can be remembered more quickly. The combination of the two, displays a complete picture of the model.
Experienced and experimented information layer
Seen information layer
Written and read information layer
Heard information layer
Figure 3: Symbols of any type of information
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Fatemeh Mohammadi et al.
The analysis of data obtained from the answers of the sample group on "the power of answering and
generalizing of the model" showed that %89.06 of them agree with the mentioned component.
11. Model's power of adaptation to experienced facts
This element of model's power of adaptation to experienced facts was checked by six questions. The
results of the samples’ viewpoints and statistical analysis of their answers to questions indicated that the
given model has %87.06 of adaptation to the experienced facts. %48.91 of faculty members of the
sample group graded the component, appropriate to completely suitable in the information system of
human mind. The model’s adaptation to experienced facts means that by the help of the model, one can
explain the process of learning level discrepancy from one method to another, based on the movement
from one layer to another one. For instance, when somebody is listening to a song or psalm in order to
recite it, he writes it on a piece of paper because by this method, he can recall the order of the psalm
lines by its position on the paper. In other words, instead of just using the Layer responsible for hearing,
he goes to upper layer and uses the Layer which stores read information, written layer and also the layer
that save pictorial information, In fact while he memorizes the song's lines from their position on the
paper, he creates a link between two above layers.
Current data layer (Short Term Memory)
Experienced information layer
Seen information layer
Written information layer
Heard information layer
Figure 4: Information layers format
As people experiment at a particular time, the amount of experienced information is more remembered
and recalled than the heard information. One can conclude that the passage of transferring information
from current layer to other layers and vice versa cannot have the same expanse. For example, the
expansion of experienced information input and output transferring band is much wider than the
expansion of heard or read information transferring band. Similarly, the width of other layers' bands
cannot be the same. Therefore, the suggested model of human's mind information system will reform in a
way that it can adjust itself to the experienced facts. Thus, the channels of transferring information have
different band expansion according to their bulk and type. The theoretical findings based on the existing
literature and the results of faculty members’ viewpoints were approved by %84.91 of faculty members as
Figure 5: Fully Information layers
314
The current information layer
Experienced information layer
Seen information layer
Written and read information layer
Heard information layer

Fatemeh Mohammadi et al.
12. Experimental evidence of model justification
Experiment and research show that permanence of heard information is less than the other types of
information. Thus remembering heard information is more difficult than the other types of information.
This difficulty includes using more energy in recalling, or a need for a stronger motivation to intrigue
information-saving cells to receive and recall the information. Based on the mentioned results we placed
the heard information in the lower layer, far from the current layer. Similarly, here is evidence for the
placement of other types of information in their layers. For example, the information received through
experiments and experiences is rarely forgotten. Pictures are remembered faster than heard information.
The information that are actively dealt with or are repeated successively like a story, remain longer and
more precisely in long term memory.
13. Ratio of the model
The third question in this research is: "What is the validity or ratio of the information system model of the
human mind from the viewpoint of the faculty members?" The result of the information analysis showed
that faculty members’ viewpoints were approved the HMIS model with %85.538 validity.
Table 1: Answer sheet information of sample group according to the ratio degree of the model
Main elements Completely
agree
Agree No
Comment
Opposite Ratio
Model's Philosophy %56 %38 %5 %2 %87.62
Model's Objectives %68 %21 %8 %3 %89.1
Model's Theoretical
Foundations
%63 %29 %7 %1 %86.09
Model's Potential of Answering and
Generalizing
%71 %23 %5 %1 %89.06
Model's potential of Adaptation to Experience
Facts
%61 %28 %9 %2 %84.91
Total View %85.538
Table 2: Descriptive Information of Model Ratio Degree
Total Sample
Model
Man Woman
Mean of Percentage Number Mean of Percentage Number Mean of Percentage Number
Ratio
Ratio
Ratio
85.538 %100 97 81.132 %52.6 51 90.044 %47.4 46
14. Discussion and conclusion
In order to understand the performance of human mind's information system in memorizing and
remembering information, a conceptual model is presented. In this model, the results of previous studies
and researches on the performance of the mind, including neuroanatomy, neuropsychology, physiology,
learning psychology, and processing the system of information in the field of metacognitive were used.
This model is approved by a group of 97 faculty members of education and neuropsychology that were
randomly selected with the ratio of 85.538.
This model shows the structure of information types and the way of locating and saving them in the mind.
It also shows the reason for forgetting heard information among physically and mentally healthy people.
Indent The reason is the form of recognition of heard information in relation to other types of information.
The size and capacity for saving heard information on the one hand and the low speed of remembering
and recalling them from memory on the other hand cause 75 percent of heard information to be forgotten
after 24 hours. This result is compatible with the results of Bach-and-Rita, Zametkin, Raven, and
Raritan's researches. This model also shows how using different senses in learning lead to deeper
saving of information and faster remembering them. Furthermore, this model makes it possible to change
information to other form that can be recognized and remembered simply. This result is also compatible
with Sharma, Orton and Kolb researches result. Also this model can help us to find out the Process of
Production and Reparation of Knowledge.
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Acknowledgement
Fatemeh Mohammadi et al.
I would like to convey my gratitude to the editor of this article, Maryam Nasseri and my dear family.
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316

Copyright Protection for GIS Vector Map Based on Wavelet
Transform
Amer Sedeeq Mustafa
Al-Mustansiriyah University, Baghdad, Iraq
ahea.aur@gmail.com
Abstract: The copyright of GIS vector map has become an increasingly complex topic. The main technologies which
are used for copyright protection are the copyright marking techniques, and these techniques are delegated by
watermarking. In this paper, a new watermarking algorithm for GIS vector map is presented. The magnitude of the
DWT coefficients of vertices extracted from the map is altered to embed the watermark. The selection of the hiding
coefficients will be depended on the threshold value; and a key used to select the exact locations which embed the
watermark. The watermark bits are embedded in coefficients which should satisfy certain conditions. The Insertion of
the watermark in these selected coefficients is done by changing the specific bits of the coefficients like spatial
domain. The watermarks can be blindly detected without the original map and watermark information. The
experimental results demonstrate the high robustness of the proposed algorithm to various attacks like noise
additions etc, and by evaluating the quality of the watermarked map via the WPSNR with respect to the original map,
we show that the watermarked map is very similar to the original map, which indicates that the proposed
watermarking scheme can achieve a better tradeoff between the robustness and the transparency.
Keywords: 2D vector graphics; digital watermarking; wavelet transform; geographic information system (GIS)
1. Introduction
Nowadays, GIS has been widely applied in many fields. The rapid development of computer
communication and the Internet makes it very easy to expediently exchange data via networks. On the
other hand, it also becomes crucial to protect the digital copyright of various digital Medias. GIS data
represents a high material value due to its high cost of acquisition, which is either performed manually or
through analysis of aerial photography Wang (2007), Endoh (2002).
The preparation of maps and services is the first stage involved in the Author module to enable the
display of maps via internet. Each map layer is prepared base on the data and user requirement.
Appropriate symbols and color are assigned to ensure the displaying of the result which fulfils the criteria
and features required. Next, the map layers will be compiled and stored in a service to ease users
accessing to the application server. With the emergence of digital maps, copyright protection of maps
encountered a new challenge. New technology should be developed to solve this problem. Digital
watermarking technology provides a new solution for digital map copyright protection .Despite the fact
that the protection of vector images can be of great importance in many applications; copyright protection
of vector images still drew little attention within the watermarking fields. There are only a few published
works done on watermarking vector images. Indeed, the research on vector map digital watermark has
just started and authenticity of a vector image is becoming a hot research area Busch (2004).
M. Sakamoto et al proposed a watermarking scheme by modifying the location relationship of vertices
Takashima (2000). Ohbuchi et al presented several algorithms for 2D vector map watermarking. In
spatial domain, a scheme based on correlation detection was proposed in Endoh (2002). Micheal Voigt
and Christoph Busch proposed an algorithm which can embed multibit data based on direct sequence
spread spectrum and modified correlation detection Busch (2003). These algorithms of watermarking are
belong to spatial domain. The watermarking algorithm for vector maps in DFT domain was proposed by
N. Nikolaidis, I. Pitas, and V. Solachidis Solachidis (2000), Pitas (2000) they proposed a blind
watermarking scheme which embeds a single bit into a polyline by modifying the discrete Fourier
coefficients of polyline’s coordinate sequence.
2. Digital watermarking
Digital watermarking is the process of embedding information into digital multimedia content such that the
information (which we call the watermark) can later be extracted or detected for a variety of purposes
including copy prevention and control. Digital watermarking has become an active and important area of
research, and development and commercialization of watermarking techniques is being deemed
essential to help address some of the challenges faced by the rapid proliferation of digital content Wang
(2009).
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Amer Sedeeq Mustafa
The detection and analysis of digital information can ensure the integrity and reliability of the digital
information; therefore serve as a means to protect the rights and interests of the author. Robust
watermark refers to the watermark’s ability to resist regular signal process and malicious attacks, it is
mainly used to confirm the author, creator, copyright owner, distributor, and authorized consumer of the
digital media. Fragile watermark is a class of watermark which is less robust. It is mainly used to protect
the authenticity and integrity of the document Solachidis (2000).
3. Wavelet transform
Wavelet analysis has been turned into research hot spot in the signal processing in recent years because
it is a powerful analysis tool. The wavelet theory has good performance and it is been widely applied in
voice signal processing, image analysis, data compression and etc.. Eui (2002). With the wide application
of wavelet technology, watermark technology based on wavelet has gained more and more attention.
Wavelet transform can get image multi-scale details step by step via flexing and parallel moving
operation. As scale becomes smaller, every part gets more accurate, and ultimately all image details can
be focalized accurately. If planar discrete wavelet analysis is made to input image, it will produce three
high frequency parts (HL, LH and HH) and one low frequency part (LL). The low frequency part can
denote optimal approach to original image. The majority of image energy concentrates in here.
4. Vector map
The vector map represents real-world features as strings of x,y pairs representing spatial information
about the features. A point is a single pair of values with an x value representing the longitude of the point
in some coordinate space and a y value representing the latitude of the point. Linear features may consist
of a set of connected points or some mathematical function describing the beginning point of the feature
and the formula that constructs it. Polygon features are closed loop of X-Y coordinate pairs, last pair are
the same. The example of vector map is shown in Figuer 1.
Figure 1: Example of vector map
5. The proposed algorithm
The block diagram of the proposed watermarking algorithm is shown in Figuer 2.
5.1 Vertex extraction and extension
All vertices are extracted from the 2D vector graphics V, where N means the number of vertices. Let {Vk }
be vertex sequence, Vk = (xk , yk ) means vertex coordinates, xk and yk means longitude and latitude
coordinates respectively. The number of vertices may be not in multiples of 32, so extension of vertices in
a minimum scope is proposed. The increased number of vertices can be calculated by:
M = min {x | (N + x) mod 32 = 0} (x =1, 2….) (1)
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Amer Sedeeq Mustafa
Figure 2: Block diagram of the proposed watermarking algorithm
The value of increased vertex coordinates is the same as the final vertex coordinate. After this step, the
extracted vertices will be sorted in vector of one dimension as follow:
V1 V2 ……………………………….. V32
Each vertex Vk is composed of the x and y coordinates, so each group has 64 coordinates, and then
structure 8 × 8 matrix based on these 64 coordinates can be constructed as follow:
5.2 Wavelet transform
x1 y1 x2 y2 x3 y3 x4 y4
..
..
..
..
..
..
.. .. .. .. .. ..
.. .. .. .. .. .. x32 y32
The proposed method for hiding watermark is based on the Discrete Wavelet Transform (DWT). The
wavelet transform is used to generate watermark and decompose the 8 × 8 matrix into regions to help in
selecting the suitable locations to hide the watermark in vector map.
We applied one level discrete wavelet decomposition on the 8 × 8 matrix. The Haar wavelet basis is
chosen due to its simplicity. The 2×2 Haar matrix that is associated with the Haar wavelet is:
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Amer Sedeeq Mustafa
⎡1
1 ⎤
H2= ⎢ ⎥
2)
⎣1
−1⎦
The DWT separates 8 × 8 matrix into a lower resolution (LL) as well as horizontal (HL), vertical (LH) and
diagonal (HH) detail components. The 2×2 Haar matrix is applied in the following way:
G'(i, j)= H2 [G(i, j)] (3)
Where G(i, j) refers to matrix values and will be modified to G′ (i, j) wavelet coefficients matrix after DWT.
5.3 Watermark generation
In this step we will generate watermark bits from wavelet coefficients matrix G ′ (i, j), and generate an 8 ×
8 binary matrix A according to wavelet coefficient matrix G′ . The values of matrix A can be defined as :
⎧ 1 G'(i,
j) > M
⎨
A(i, j)= ⎩ 0 G'(i,
j) ≤ M
(4)
Where M is the mean value of G′ and i,j=1,2…8. Watermark bits are generated as follows:
P= A(1, 1) ⊕ A(2, 1) ⊕ ………….. A(8, 1) (5)
Where ⊕ refers to XOR.
5.4 Watermark embedding
After separates 8 × 8 matrix into four channels LL, HL, LH, and HH. Since LL coefficient modification can
easily lead to major changes in vertex coordinates thereby reducing the transparency of the watermark,
while the HH coefficients are too sensitive, we choose the HL and LH regions of the coefficients. The
hiding coefficients will be selected depending on the threshold value and a secret key. This key is used to
select the exact locations which embed the watermark.
The threshold value is calculated for HL and LH regions by using the following equation Eui (2002):
T=2 (log2max (Ci))-1 (6)
Where Ci represents the largest integer coefficient HL and LH regions. The watermark is embedded only
for the selected coefficients.
The watermark bits are embedded in coefficients that are in HL and LH subbands. The host coefficients
should satisfy the following condition:
|Coefficient Magnitude | > Threshold value.
Inserting the watermark in these selected coefficients is done by changing the specific bit of the
coefficients like spatial domain. We use inverse DWT transform to produce watermarked matrix, and then
transform the matrix into one-dimensional sequence and remove extended vertices to get the
watermarked vertex coordinates. Then get the watermarked map.
5.5 Watermark extraction
Watermark extraction is the inverse process of watermark embedding, only need to know the threshold
value and the secret key. The steps are as follows:
Extract all the vertices of test vector map and then extend to set every group 32 vertices.
8×8 matrix is generated.
Make DWT transform on the matrix.
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Amer Sedeeq Mustafa
Generate an 8 × 8 binary matrix A′ according to this DWT coefficient matrix as in Eq.(4). Extract
watermark bits p′ as follows:
p′ = A′ (1, 1) ⊕ A′ (2, 1) ⊕ ……….. A′ (8, 1).
Calculate threshold value for HL and LH regions as in Eq. (6).
According to the secret key and the threshold value the selected hiding locations where watermark
embedded can be determined and watermark bits W’ can be gotten.
Since we select two middle DWT coefficients (HL and LH) to embed watermark repeatedly, we obtain
W and W . If p′ = W and p′ = W , then this map is copyrighted.
'
1
'
2
'
1
6. Experimental results
'
2
In order to evaluate the proposed watermarking algorithm, two vector maps are used in Figuer 3.
Figure 3: Watermarked vector maps (map1 and map2)
So as to test the robustness of the proposed algorithm, we try to apply different kinds of operation to the
watermarked data, and extract the watermarking information after that. After extracting watermark, we
use similar measurement of the extracted and the referenced watermarks as validation; it can be defined
by the Normalized Correlation (NC). The formula which calculates similarity is defined as:
∑
∑
*
* 2
NC= ( W . W ) / ( W ) , k=1,2,…..L (7)
k
k
k
k
k
*
Where, W and W are referenced and extracted watermarks. L is length of watermark bits.
k
k
Meanwhile, the visual quality of watermarked and attacked images is measured by using the Peak Signal
to Noise Ratio (PSNR). A ’PSNR’ derived from digital image fidelity evaluating is presented in this paper,
which is used as a measure of the map quality:
PSNR( dB)= 10log10
2 ⎡max
⎤
∀(n,
m) f (i, j)
⎢
⎥
⎢⎣
MSE ⎥⎦
Where MSE is the mean square error:
MSE=
∑∀(n, m)
(fw(i,
j) − f(i, j))
nm
2
321
(8)
(9)

Amer Sedeeq Mustafa
where n, m are the dimensions of the input map and f, fw are the original and the watermarked maps.
However, PSNR declines from the perceived subjective quality because the Human Visual System (HVS)
does not correlate well with the square of the error. For this reason, the Weighted Peak Signal to Noise
Ratio (WPSNR) that takes into account the properties of human visual system is also used as follows
Zhang (2009):
WPSNR(dB)=10 log10
2 ⎡max
⎤
∀(n,
m) f (i, j)
⎢
⎥
⎢⎣
MSE * NVF ⎥⎦
2
2
φσ ( i,
j))
σ ( i,
j)
Where Noise Visibility Function NVF (i, j) =1/(1+ x , x denotes the local variance of the
map in a window centered on the vertex with coordinates (i, j).
2
2
θ is a tuning parameter corresponding to the particular map and is given as θ =D/ σ , where σ is
the maximum local variance for a given map and D is an experimental value, range from 50 to 100. Table
1 shows the watermark extracting results of the proposed algorithm.
Table 1: Result of test
Attack
x max
Result table for illustration the performance of watermarking algorithm
Map 1 Map2
PSNR
WPSNR
20% JPEG compression 34.1 36.7 0.9720 27.5 35.2 0.9654
40% JPEG compression 32.2 33.8 0.9684 27.5 35.2 0.9521
Salt and Pepper Noise 27.75 30.3 0.94 27.5 35.1 1.00
Gaussian lowpass filter 44.96 47.9 0.988 41.2 43.8 0.986
1/4 cropping 11.11 13.5 0.862 10.4 18.0 0.861
7. Conclusions
In this paper, we propose a watermarking algorithm which can be used for GIS vector map. Experimental
results show that the degradation by embedding the watermark is too small to be visualized. In addition,
the robustness of this algorithm is strong enough to some attack like noise, compression, and cropping.
Therefore, the proposed watermarking scheme can achieve a better tradeoff between the robustness and
the transparency.
Future work will focus on making the watermarks robust to more attacks and optimizing the algorithms to
provide higher capacity and efficiency.
References
Nikolaidis, N, Pitas, I and Solachidis, V. (2000) “Fourier Descriptors Watermarking of Vector Graphics Images”, Proc.
of the International Conference on Image Processing, vol.3, pp.10-13.
Ohbuchi R, Ueda H, and S. Endoh (2002) “Robust Watermarking of Vector Digital Maps”, Proc. of IEEE International
Conference on Multimedia and Expo (ICME02), Lausanne, Switzerland, pp.577-580.
Qingtang SU, Xianxi LIU, Steve Zhang (2009) ”Quality Evaluation of Digital Image Watermarking”, Fifth International
Conference on Intelligent Information Hiding and Multimedia Signal Processing.
Sakamoato, M, Matsuura, Y and Takashima, Y (2000) “A Scheme Of Digital Watermarking for Geographical Map
Data”, Proc. of the Symposium on Cryptography and Information Security, Okinama, Japan, pp.26-28.
322
NC
PSNR
WPSNR
(10)
x max
NC

Amer Sedeeq Mustafa
Sung. K. Je, Cheol. K. Kim, and Eui (2002). Y. Cha “An Adaptive Watermarking Algorithm Using Wavelet Transform”,
Neural Network and Real-World Applications Lab, Department of Computer Science, Pusan National University,
Gumjung-gu, Pusan 609-735, Korea.
Solachidis, V, Nikolaidis, N and Pitas, I. (2000) “Watermarking Polygonal Lines using Fourier Descriptors”, Proc. of
the IEEE International Conference on Acoustics, Speech and Signal Processing, Istanbul, Turkey, vol. IV,
pp.1955-1958.
Voigt, M and Busch, C. (2003) “Feature-based Watermarking of 2D-vector Data”, Proc. of the SPIE, Security and
Watermarking of Multimedia Content, Santa Clara, USA, vol.5020, pp.359-366.
Voigt, M, Yang, B and Busch, C. (2004) “Reversible Watermarking of 2D-vector Data”, Proc. of the Multimedia and
Security Workshop on Multimedia and Security, Magdeburg, Germany, pp.160-165.
Xia M. Niu, ChengY. Shao, and Xiao T. Wang (2007) “GIS Watermarking: Hiding Data in 2D Vector Maps”, Studies in
Computational Intelligence, vol.58 , pp.123-155.
Zheng, Liangbin, Wang, Yulu Jia, Qun. (2009) “Research on Vector Map Digital Watermarking Technology”, Proc. of
the IEEE Education Technology and Computer Science. ETCS '09. First International Workshop.
323

Evaluation of IT Investment Methods and Proposing a
Decision Making Model
Shirin Nasher, Mehrdad Kalantarian, Ahmad Akbari, Ali Suzangar, Mohammad
Kajbaf and Negar Madani
Infoamn IT Consultancy CO., Tehran, Iran
shirin_nasher@vu.iust.ac.ir
mehrdad_kalantarian@vu.iust.ac.ir
akbari@iust.ac.ir
a.suzangar@infoamn.com
m.kajbaf@infoamn.com
n.madani@infoamn.com
Abstract: Information technology investment decision making is one of the significant issues. Since the IT
investment evaluation is not just based on direct and tangible factors and many other intangible and indirect
qualitative criteria influence this evaluation. Generally, there are two different approaches in evaluation methods with
their own advantages and disadvantages: tangible methods such as Discounted Cash Flow, Net Present Value,
Information Economics, etc. and intangible methods such as Value Analysis, Multi Objective Multi Criteria, Critical
Success Factors, etc. But a more effective and precise road map is to guide decision makers to choose an
appropriate multi criteria model that consider both tangible and intangible factors together. In this paper by literature
review of these mentioned methods, various tangible and intangible factors were determined from different academic
papers and practitioner resources and then were classified in two domains and a number of sub-domains. In order to
obtain complete and applicable criteria, five reduction factors were defined, i.e. clarity, completeness, non–
redundancy and operationality. Then this criteria list was delivered among a number of mangers and information
technology specialists. According to the given answers, a new criteria list was obtained with eliminating nonapplicable
criteria. As a consequence, to assess the importance of each criterion for creating the model, the rating
scores, one to five were defined and added to the new lists. Then these new criteria lists were conducted among
CIO, CEO, CFO and other related specialists in different Iranian companies to customize these criteria according to
their business strategies and requirements. Score one represents not important and five represents very important.
The results are assumed as the minimum level of criteria with maximum coverage in different information technology
projects. In the next step, based on the results, we developed an analytic hierarchy decision making model. The
results of this research indicate that this model is applicable and can be easily expanded by aggregating new sub
criteria to be customized for different IT investment evaluations.
Keywords: IT investment, evaluation of IT project, intangible benefits, decision making model, economic factors,
rational decision making
1. Introduction
Information technology is actively applied in various segments of society that has a strong impact on the
global performance of the businesses. In the past few years, the rapid growth of IT investment is one of
the most incredible issues in different business units and organizations. On the other hand, its adoption is
based on tangible and intangible aspects. But there is a strong persistency to concentrate on tangible
aspects, but the fact is that intangible factors often are the most important one associated to investment.
Indeed, it is not easy for administrations to evaluate the real return of IT investment, so convincing
organization chief managers to allocate their budget to information technology projects is difficult. Even
though organizations are eager to spend considerable amount of time and money to select appropriate IT
project, but they may not include all relevant criteria in evaluating the IT investment (Wu and Ong
2008).Hence even nowadays aligning IT investment strategies with business policies is an important
issue in organizations (Borenstein and Baptista Betencourt 2005), (Goh and Kauffman 2005), (Joseph
Wen, Yen and Lin 1998).
Although there are different methods and tools developed for IT investment evaluation, but the majority
only take easily measured financial aspects into account without any attention to strategic or operational
aspects. Among these methods, the multi criteria multi objective method combines various criteria in
general specific and applied to a unique situation. Hence the existence of a model based on the validated
tangible and intangible criteria, independent from the context related to the specific IT investment seems
very important to support a decision (Chen, Zhang and Lai 2009), (Schniederjans and Hamaker 2003),
(Schniederjans , Hamaker and Schniederjans 2004).
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Shirin Nasher et al.
The main goal of this study is to identify and structure a set of relevant and validated minimal measurable
set of criteria and sub criteria to formulate a hierarchy decision making model for a specific IT investment.
These criteria were raised from different research and practitioner resources and validated through the
evaluation of specialist to support and develop decision makers confidence in the selection of the most
suitable project for a particular case (Goldstein, Katz and Olson 2003), (Mahmood and Szewczak 1999).
In this paper, first in the literature review section, different tangible or intangible IT investment evaluation
methods will be introduced. Then the advantages and disadvantages of these methods will be compared
to each other.
Second, the methodology of this research will be described in the consequence. At last in the conclusion
the benefits of the proposed model will be presented.
2. Literature review
The best IT investments are those which help to maximize the value of the firm. They also contend that to
maximize the value of the firm, IT investment decisions need to be able to maximize IT benefits while
minimize IT risks (Joseph Wen, Yen and Lin 1998).
There are three reasons why being familiar with IT benefits and risks is important. First, some IT benefits
are lost through inappropriate management, while some are lost because they are not recognized by the
management in the early IT planning stage. Second, it is important to identify the benefits to be measured
prior to selecting applicable evaluation methods. This is because some methods are suitable for
evaluating tangible benefits while others are more suitable for intangible benefits. Finally, the recognition
of risk as an important component in IT investment decision making has long been recognized (Epstein
and Rejc 2004-2005), (Joseph Wen, Yen and Lin 1998).
2.1 Information technology benefits and risks
In general, the benefits of IT investments can be classified into five broad classes, the purpose of which
is to (1) increase productivity and operating process performance; (2) facilitate management support; (3)
gain competitive advantages; (4) provide a good framework for business restructure or transformation
and (5) provide clearance of expenditures (Epstein and Rejc 2004-2005).
IT has provided many benefits to corporations over the years. Since we are living in a global information
society with a global economy, which is increasingly dependent on the creation, management and
distribution of information resource. However, investments in information technology are subject to higher
risks than any other capital investments for several reasons. First, their components are comparatively
fragile. Second, information systems are likely to be the target of disgruntled workers, protester, and even
criminals. They can also fall in the hands of the competitors. Finally, the decentralization of information
systems and the use of distributed processing have increased the difficulty of design, development,
management, and protecting information systems. IT risks are classified into two general classes: (1)
physical risks; and (2) managerial risks (Epstein and Rejc 2004-2005).
2.2 Information technology investment evaluation methods
Given countless existing methods, a broader framework for categorizing and understanding evaluation
techniques seems highly desirable. Such a framework by dividing IT evaluation approaches into two
broad categories based upon their underlying assumptions: objective/rational or subjective/political. In the
objective/rational category, they further divided the objective/rational category into two zones: efficiency
i.e., doing things correctly and effectiveness i.e., doing the correct things. The subjective/political
category described as the understanding zone i.e., discovering why things are done (Tuten 2009).
Traditional IT evaluation practice operates from an objective/rational point of view, focusing on the
efficiency and effectiveness of solutions. Such evaluation approaches are grounded in a positivist
epistemology—an epistemology that, when applied to this context, holds that information systems are
inherently objective and rational. Therefore, practitioners should evaluate information systems using
objective/rational methods (Tuten 2009).
Overall, researchers have tended to describe traditional evaluation methods as formal, overt, ritualistic,
mechanistic, quantitative, and/or prescriptive in their efforts to determine the costs, benefits, and risks
associated with IT investments (Tuten 2009).
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Shirin Nasher et al.
Nevertheless, researchers have suggested that formal evaluation frequently fails to be undertaken with
rigor and is completely avoided by practitioners in many cases. In a recent study IT evaluation practices
in European companies, researchers found that only one third of the organizations surveyed conducted
formal evaluations. Yet, when organizations perform IT evaluation, they tend to employ traditional
methods that hold considerable legitimacy with executives and managers. This finding found that
quantitative evaluation methods were widely used by the organizations conducting formal evaluations
(Tuten 2009). Table1 shows these methods based on mentioned categorize.
As Table1 shows, these rational/objective effectiveness methods may be subcategorized into one of
three groups of methods: economic, non-economic, and hybrid.
Table 1: The information technology investment evaluation methods (Tuten 2009)
Economic
Discounted Cash Flow
Cost Benefit Analysis
Payback Period
SEASAME
Return on Management
Return on Investment
Options Theory
Risk/Sensitivity Analysis
Effectiveness Zone
Non-economic
User Information
Satisfaction
Hybrid
Balanced Score Card
Critical Success Factors
Information Economics
Multi-Criteria Approaches
Value Analysis
Efficiency Zone
Simulation
TQM/Software
Metrics
2.2.1 Economic methods
In particular, the researcher discussed each of the following widely cited methods: Discounted Cash Flow
(DCF) techniques, Cost/Benefit Analysis (CBA), payback period, Systems Effectiveness Study and
Management Endorsement (SESAME), Return on Management (ROM), Return on Investment (ROI),
options theory, and risk sensitivity analysis (Tuten 2009).
2.2.2 Non-economic method
In the rational/objective literature stream, techniques for measuring user satisfaction, particularly the User
Information Satisfaction (UIS) method, provide the notable exception (Tuten 2009).
2.2.3 Hybrid methods
Hybrid approaches may utilize financial/economic factors and/or non-economic dimensions to evaluate
information systems. All of the following methods have been associated with the rational/objective stream
of IT evaluation techniques. These approaches vary considerably with respect to their degree of apparent
objectivity, as demonstrated by either their reliance on quantitative measures or empirically observable
outcomes. For example, in practice Information Economics relies heavily on their quantitative enhanced
ROI metric. In contrast, Critical Success Factors (CSF) method utilizes a dialogic approach to uncover
executives’ explicit and implicit goals and objectives. In this sense, the term hybrid provides an apt
description for this group’s diversity of methods and measures. These methods are such as Balanced
Score Card (BSC), Critical Success Factors (CSF), Information Economics (Parker and Besnson 1988)
and etc. (Tuten 2009).
Note that, the focus of this paper is on the effectiveness zone methods, so it has preferred to eliminate
describing other zone. Since there are differences between these more applicable methods, Table2 has
summarized the previous discussions based on methods attributes.
In Table2, the IT benefit factors column shows that which of the mentioned above methods concentration
is on tangible or intangible criteria. Therefore these benefit factors can determine the criteria that are
required for IT investment evaluation and decision making lastly.
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Shirin Nasher et al.
Table 2: Differences among information technology investment evaluation methods (Joseph Wen, Yen
and Lin 1998)
Evaluation
category
ROI
Model/procedure
examples
NPV, DCF, pay-back
period formulas
Measures of IT
benefits factors
tangible
Measures of
IT risks
discount
rates,
surrogate
measures
CBA cost/benefits formulas tangible factors same as ROI
ROM
IE
MOMC
VA
CSF
Productivity based
formulas
same as ROI
supplemented with
ranking and scoring
math models and
multistage iterative
processes
multistage, evolutionary
process
multistage,
evolutionary process
RO Multistage process
PA Financial models
Delphi
approach
3. Methodology
multistage,
evolutionary process
tangible, labor
value-added as
intangible
tangible and
some intangible
tangible and
intangible
tangible factors
user’s surrogate
measures
tangible and
intangible
factors
measures for
cost
savings
user’s surrogate
measures
Not
addressed
surrogate
measures,
risks with
ranking and
scoring
several
measures
of utility and
risks
not
addressed
user’s
surrogate
measures
surrogate
measures
for risks
and costs
direct
measures
of risks
user’s
surrogate
measures
Major
advantages
mainly
quantitative
focus on
efficiency
mainly
quantitative
focus on
effectiveness
mostly qualitative
measures of
efficiency
qualitative and
quantitative
measures
mainly
quantitative,
multiple and
conflicting
objectives
tangible factors
intangible
factors,
centered on
effectiveness
many intangible,
centered
on effectiveness
higher efficiency
tangible and
intangible
factors
Major limitations
no intangible,
reliance
on accounting
data
surrogate
measures
for intangible
factors
limited
quantitative
measures,
assumptions
hard to meet
major
simplifying
assumptions
and
models
relatively new
in MIS, still in
development
prototyping,
need
several
revisions to
final results
highly
qualitative
process
highly
subjective and
qualitative
mainly
quantitative
highly
qualitative
In this paper, IT investment decision making problem has been presented. The methodology of problem
solving with the purpose of building the model to evaluate IT investments would be described here. This
methodology has three steps that would be explained as follows:
Gathering and reducing criteria
Weighting
Proposing model
3.1 Gathering and reducing criteria
This stage has comprised of two steps. At first by reviewing pervious research studies concerning IT
investment evaluation, many of the criteria and sub criteria were identified (Renkema and Berghoutb
1997), (Kraemer and Dedrick 1994), (Joseph Wen, Yen and Lin 1998), (Henderson and Venkatraman
1990). More than 250 criteria were enlisted in an excel file that were concerned both tangible and
intangible factors. After that these criteria were classified into four domains in the separated excel sheets,
327

Shirin Nasher et al.
i.e., operational, tactical, strategic and risk. Each domain has its own criteria and relative sub criteria. The
definitions and characteristics of the criteria were described in each sheet. The first sheet was considered
for the brief description about this research.
Second, because this raw list has many unrealistic and non-applicable criteria, a reduction process was
conducted to identify clear and operational criteria list. Therefore, reduction factors were defined as
follows: the clarity, completeness, non–redundancy and operationality. In the consequence, these factors
have been added for each criterion in the new columns with check boxes to that excel sheet.
This file has delivered among ten managers and information technology specialists. Based on the
gathered results, these actions were done:
1. If the most specialists had voted that the criterion is not clear, it must be defined clear.
2. If the most specialists had voted that the criterion is not complete, it must be completed.
3. If the most specialists had voted that the criterion is redundant, it must be eliminated.
4. If the most specialists had voted that the criterion is not operational, it must be changed or at last
eliminated.
After applying reduction factors to the set of 250 criteria and these actions, several criteria were
eliminated and several were changed or completed. At last the new minimal measurable list of criteria
was obtained. This new list has two domains, i.e. “strategic” and “operational and tactical” with eleven
criteria and forty two sub criteria. A brief description of each eleven criteria is as follows:
1. Strategic alignment: This criterion is related to this crucial point that which investment can align
with organizational strategy and also the possibility of IT providing opportunities for businesses.
2. Competitive advantages: It refers to the organization competitive position among market and
supplier and other related items that mentioned in this criterion.
3. Organizational productivity: It is about the organizational productivity improvement.
4. Market assessment: This criterion deals with the pervious background of the specific IT project
and mentions its former customers and their credit in the market. Also, investigates the ability of
project in the market anticipating.
5. Compliance: It seeks to identify the compliance between proposed investment with the current
internal or external requirements and standards.
6. Quality: It tends to focus on the IT performance characteristics and the impact of it on the services
improvement to support business processes.
7. Security: This criterion and its related items refer to three main aspects (Confidentiality, Integrity
and availability) of security in information systems.
8. Flexibility and compatibility: This criterion and its related items refer to assess program
reliability.
9. Cost: It is related to the different costs associated with a particular investment.
10. Satisfaction: It considers external customers or internal user’s satisfaction about the new
proposed investment.
11. Effects: This criterion tends to focus on the effects of investment on the internal organizational
culture and communications.
The primary model based on these minimal measurable validated criteria was shown in figure1.
3.2 Weighting
In this step to determine domains, criteria and sub criteria importance in order to proposing a model, 5
importance degrees were defined in new lists for each criterion i.e., very important, important, relatively
important, less important and not important. Then these new lists were conducted among twenty of IT
experts with minimum 10 years professional experience in Iran. They determined importance degree for
each criterion based on their own organizational strategies and business requirements. The scores one
to five were defined that score one represents not important and five represents very important. After
answer sheet gathering, first the stability of given answers was calculated by SPSS. It was 91.2 percent
which indicates that IT expert’s answers were at minimum deviation.
328

Shirin Nasher et al.
Figure1: The multi criteria model for IT investment evaluation
3.3 Weighting
In this step to determine domains, criteria and sub criteria importance in order to proposing a model, 5
importance degrees were defined in new lists for each criterion i.e., very important, important, relatively
important, less important and not important. Then these new lists were conducted among twenty of IT
experts with minimum 10 years professional experience in Iran. They determined importance degree for
each criterion based on their own organizational strategies and business requirements. The scores one
to five were defined that score one represents not important and five represents very important. After
answer sheet gathering, first the stability of given answers was calculated by SPSS. It was 91.2 percent
which indicates that IT expert’s answers were at minimum deviation.
Second, the mean value of each criterion and domains were calculated. The cut off value of 3.0 within
values was assumed and those criteria which their mean values are greater or equal 3.0 were identified
and ignored. The 3.0 value is almost moderate importance of each criterion. Based on this assumption,
just one of the sub criteria has been eliminated and excluded from the model. This criterion was
“improvement in organizational communication” from the “effects” criteria. This condition shows that all
these criteria are important and reduction process in the previous step was successful to capture a
minimal set of attributes for IT investment evaluation.
Third, as a consequence based on mean values the entire criterions were ranked. Table3 shows the
gathered results. According to this table, security criteria are the most important and “Improvements
internal and external organizational culture” criterion has less importance within all criteria.
After that, the overall weighting of criteria and domains were calculated with dividing each mean value by
the total sum of its related criteria and sub criteria mean values. This is called prioritizing. By prioritizing
them, the level of each criterion would be determined in its criteria and in an analysis hierarchy model
they would be shown at decreasing level. Figure2 illustrates the hierarchy model based on the
decreasing prioritization.
According to mentioned model, strategic domain has more impact on the investment final decision
making than operational domain. Indeed, nowadays it is the fact organization strategy and IT investment
alignments with strategies are so important for chief managers.
329

Table 3: Evaluation criteria and statistical results
Domain
Strategi
c
0.516
Operati
onal
and
Tactical
0.484
Criteria
Strategic Alignment
0.287
Competitive
Advantages
0.167
Organizational
productivity
0.267
Market Assessment
0.148
Compliance
0.131
Quality
0.217
Security
0.247
Flexibility
and
compatibility
0.133
Cost
0.183
Satisfaction
0.117
Effects
0.103
Shirin Nasher et al.
Sub Criteria
Impact on achieving IT strategic
objectives
Impact on aligning IT with organization
strategy
Organization governance
Improved efficiency of current business
process
Improved efficiency of changed business
process
Improved efficiency of new business
process
Customers
Partners
Suppliers
Competitors
New incoming
Increase organizational productivity
The number and credit of previous
customers
Competitor opinion
Define market
Market anticipating
Internal standards and requirements
External standards and requirements
Response Time
Turnaround Time
Error Rates
Program Code Quality
Quality Assurance
Customization of Outputs
Outputs Format
Comparability of output produced
Easy output format
Security( Confidentiality, Integrity,
Availability)
Flexibility against technological change
compatibility
Ability to customize
Update Feature
Facilitate changes in the code
Buy
Implementation
Human Resources Training
Maintenance
Time
Internal satisfaction
External satisfaction
Improvements internal and external
organizational culture
Importance
Average
4.5
4.65
4.14
4.1
3.72
3.7
4.55
4.35
3.4
4.3
3.1
4.63
3.91
3.55
3.85
3.83
3.11
3.2
4.23
3.90
4.31
3.75
4.05
3.73
3.89
3.18
4.17
4.85
4.25
4.4
4.2
3.68
3.35
4.33
4.6
3.8
4.15
3.95
3.65
3.88
3
Rank
6
2
17
18
30
31
5
8
35
11
40
3
21
34
25
26
39
37
13
22
10
28
19
29
23
38
15
1
12
7
14
32
36
9
4
27
16
20
33
24
41
Weight
0.181
0.184
0.166
0.165
0.150
0.149
0.231
0.221
0.172
0.218
0.157
1
0.258
0.234
0.254
0.253
0.493
0.507
0.120
0.111
0.122
0.107
0.115
0.106
0.110
0.090
0.118
1
0.214
0.221
0.211
0.185
0.168
0.208
0.221
0.182
0.199
0.190
0.483
0.516
The security criteria are the most important criteria and the impact of it on the choosing IT project is much
more. Also, the prioritizing sub criteria can help to have a scale to understand the impact of them on the
investment decision. Note that, the sum of sub criteria weights is one and it shows their overall impacts
are considered on the final investment decision making.
330
1

Figure 2: Analytic hierarchy decision making model
3.4 Proposing model
Shirin Nasher et al.
Since the model wants to illustrate the criteria importance level on the final decision making process,
another hierarchy model was proposed. In this model, two domains were determined on the top of the
model. This model is comprised hierarchical level based on five unit intervals that the mean value of each
criterion determine its own level. By comparing these values, they have been assigned to their
appropriate level as shown in Figure3.
There was an unanimous consensus that this proposed model has improved the decision process in
order to have consistent and complete criteria based on different tangible and intangible factors for IT
investment evaluation. Note that this proposed model is general model and independent from the specific
IT investment to aid investment decision making process.
4. Conclusion
Adoption of the new information technology requires investment justification. Also, IT investment decision
making is based on evaluating tangible and intangible criteria. But the intangible criteria are complex to
evaluate and therefore this action may take a long time and efforts. So many managers prefer to neglect
them and just focus on the financial factors. They think that IT investment affects on their organization
and enhances productivity efficiency in situ. But indeed return on IT investment has a potential latency to
create value just because of these intangible factors. So it shows the importance of these criteria to have
an appropriate investment evaluation. The existence of the pre-defined criteria hierarchy model based on
the consensus of many specialist, can structured the decision making process systematically. Hence this
article proposed criteria list and model can significantly decrease times and efforts for managers and
organizations.
So in this paper, we first determine these tangible and intangible criteria and then categorize them in
different criteria and sub criteria. As a consequence, we give importance rank to them according to the
experiment of chief managers in Iran. Based on these ranking, at last we proposed the hierarchy model in
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order to consider all these tangible and intangible criteria in IT investment evaluation. Note that since
there are many sub criteria and they may be changed from one IT evaluation to another, we try to
consider general criteria to create a generic model. So this proposed model is applicable and can be
easily expanded by aggregating new sub criteria to be customized for different IT investment evaluations.
Figure 3: Final hierarchy decision making model
References
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Renkema, Th. J.W. and Berghoutb, E.W. (1997) “Methodologies for information systems investment evaluation at the
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Making Methodology, World Scientific Publishing Co., London.
Tuten, P. M. (2009) “A Model for the Evaluation of IS/IT Investments”, A dissertation submitted in partial fulfillment of
the requirements for the degree of Doctor of Philosophy in Information Systems, Graduate School of Computer
and Information Sciences Nova Southeastern University, USA.
Wu, L.C. and Ong, C.S. (2008) “Management of information technology investment: A framework based on a Real
Options and Mean–Variance theory perspective”, Technovation Journal, Vol. 28, Issue 3, March, pp. 122-134.
332

Critical Factors in the use of Mobile Learning by “Digital
Natives” on Portuguese Teaching
Mário Carrilho Negas and Paulo Ramos
Universidade Aberta, Portugal
mnegas@univ-ab.pt
rcjp@sapo.pt
Abstract: The purpose of this paper is to discuss the mLearning as a useable resource in formal education (in a
classroom context), in order to improve the learning experience of young people. It is intended to enumerate the
possible success factors that can contribute to the mLearning and to show that, when properly integrated into school
curricula, they could be a valid learning experience for youth. Young people are referred to as the "digital natives"
because of their constant use of digital resources in their day-to-day. Some factors of significant importance are
identified, namely the fact that young people see the mLearning as a valid learning tool, and that they accept its use
in teaching, provided it is not to replicate contents taught in the classroom. This article highlights the important role
that mobile learning can have on academic life, and the factors which underpin its success, such as the widespread
use of mobile devices by young people. The "Digital Natives" use mobile technology with great frequency, particularly
to keep in touch with family and social networks as they see the technology as an essential part of their lives. Mobile
technology solutions may help transforming the way to create, teach and learn; in this sense, mobile phones may
have an important role to play in tomorrow’s school.
Keywords: mobile learning, eLearning, moving learning capabilities; mobile devices; wireless network; digital
natives; teaching
1. Introduction
The constant evolution of the technologies, as it is the case of the mobile technologies and particularly
mobile phones, has made possible a significantly wide set of solutions that help to change the way we
create, teach and learn. The ubiquity of mobile technology in our day-to-day (Green et al, 2001, Katz and
Aakhus, 2002; Levinson, 2004), and this fact has contributed to the emergence of a new educational
paradigm, the mobile learning (mLearning). For Prensky (2001) and Kukulska-Hulme (2005) the concept
of mobile learning was an evolving subject that is no longer associated exclusively with the
characteristics of portability and mobility of the equipment. On the contrary, it must be understood
nowadays as a concept associated with the mobility of the user.
The ancestral human search for knowledge has led to the search for newer and more sophisticated ways
to store, process and transmit information, leading to the evolution of tools which enable that search.
Palfrey, J. and Gasser, U. (2008) state that although several decades of constant technology evolution
and the resulting saturation of the digital technologies in some cultures, there wasn’t yet a generation that
has lived exclusively in the age of the digital technology.
In 2007, the Portuguese government launched a major public initiative – especially given its extent – in
order to distribute laptops with Internet access to children and youth. This helped creating the right
conditions for the use of information and communication technologies (ICT) in education since ICT
learning occurs at a younger age.
In the 60´s, Herbert Marshall McLuhan predicted that the planet would become a teaching room and our
virtual address.
Learning environments have acquired new characteristics; they are more open, more interactive and
flexible. These characteristics may allow combining different learning styles. The use of mLearning in this
context is an excellent opportunity for affirmation of this tool in the context of teaching-learning
environment.
The evolution of mobile devices may enable – if used properly by education agents – the access to new
knowledge and the review of previously acquired knowledge.
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Mário Carrilho Negas and Paulo Ramos
2. The "Digital Natives" and the teaching-learning
Palfrey and Gasser (2008) stated that the first generation of "Digital Natives" is the current youths. In fact,
this generation is the first one that was born and has lived in the digital age since birth. According to the
authors, this will contribute to a major overhaul in the way the world is organized.
The way young people perceive the world will have implications on issues of political, cultural and family
life, which will be changed forever. Students today are questioning the current practice and breaking with
the so-called traditional guidelines (Boyle, 2008), questioning some of the practices of the 20th Century.
In comparison to the "Digital Immigrants" ("Digital Immigrants"), the “Digital Natives” have some
differences in speech, social interaction, and are fluent in using new ICT. It is possible to identify three
generational groups: Baby Boomers (1946-1964), the "Generation X" (1965-1977) and the "Digital
Natives" (1978-1994). The latter, in contrast to previous generations, tend to use information they gather
from various online sources.
The use of mobile technologies by young people tends to overcrowding. It is relevant to know to what
extent the use of mLearning can contribute as a motivational factor in the process of teaching and
learning of young people. In this sense the institutions and teachers are aware of this reality: how young
people react to this technology, how they adopt it, and if the educational programs of schools enable the
use of these tools.
The discussion of new technologies in education is a constant in the adoption of new methodologies;
however, to digital natives this is not an issue, because younger generations begin academic life with no
doubts or fears (Tori, 2010).
Young people tend to identify the use of mLearning as a possible tool for learning. They also tend to
accept the use of mLearning in their courses, as long as that is not only a repetition of educational
content taught in the classroom, and preferably not just an isolated initiative, but rather a practice
supported by several teachers. The learning content to be provided must be diversified, classified
according to the subjects being taught, and adapted to the possibility of using mobile phones at low cost
and to the prevalence of information in audio and video formats instead of text. The fact that the "Digital
Natives" use technology from an early age eases the process of constant adaptation to technological
change that generally occurs. It's with recognized ability that "Digital Natives" the hardware to their goals
of recreation, using the online environment more than any other preceding generation.
According to Tori (2010), the "Digital Immigrants" and "Digital Natives" have points of convergence. Even
though that may be true, the author mentions that the "Digital Immigrants" contributed significantly to the
“Digital Natives” empathy with ICT.
Despite having been taught by the “Digital Immigrants”, the "Digital Natives" began to adopt new
practices in the use of ICT. Generally, for “Digital Natives”, a day’s time is divided between online and
offline interaction, "nick name" and name, virtual friendships on social networks and real life friendships.
Even though this quick change in reality may be confusing for those who are not "Digital Natives", it is
something intrinsic to the present reality for those who belong to that group. When entering the job
market, this generation carries the practices associated with the digital world. This young generation has
a significant set of distinctive skills in comparison with the current generation, the Generation X.
Virtual social networks are far superior in dimension than the neighborhood, academic or working social
networks, and may also be viable sources of information to be used in collaborative learning
environments: they cover very different subjects, are very heterogeneous and culturally diverse, which
allows the obtainment of diversified and relevant information. However it is also questioned if their
contribution as an educational resource in teaching-learning process may constitute a source of
distraction and waste of time, taking into account the objectives of educational programs (Economist
debates: Social networking ", 2008).
Boyle, L. and Stanford, J. (2008) sustain that “digital natives” are native speakers of technology, fluent in
the digital language of computers, video games and the Internet. They also state that the students, as
digital natives, will continue to evolve and change so rapidly that they will have, in general, a much better
idea of what the future will bring. Since the natives are already busy adopting new systems for
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communications (instant messaging), sharing (blogs), buying and selling (eBay), exchanging (peer-topeer
technology), creating (Flash), meeting (3D worlds), collecting (downloads), coordinating (wikis),
evaluating (reputation systems), searching (Google), analyzing (SETI), reporting (camera phones),
programming (modding), socializing (chat rooms) and even learning (Web surfing), they have a better
understanding of their surroundings than previous generations.
3. The mobile learning in distant teaching
Pachl et al. (2009) examined the characteristics identified as important for mobile devices in order to
make them so attractive to users in the education field. Portability is one of those factors, as the use of
portable equipment in various life situations became socially acceptable, and naturally they have a vast
potential for providing access to culture, content and features, such as the possibility to record
information in audio, video or text. Another very interesting factor is the number of applications or
services that are can be accessed through a mobile device, some of which being accessible also through
the Internet.
The mobile learning (mLearning) is presented as one of the possible tools of distance learning,
specifically in eLearning. Pachl et al. (2010) state that learning with the use of mobile devices is an
emerging and growing field of research due to the increasing use of mobile equipment in schools,
universities and workplaces. The use of mobile networks is gaining greater importance in unconventional
places. These and other factors have contributed to the growing interest of researchers, particularly in the
area of educational research.
Mobile Learning is an educational perspective, a new dimension in education that could meet immediate
learning needs with great flexibility and interactivity.
Undoubtedly, one of the great advantages of mobile devices is their accessibility, which allows constant
contact with other users (either because the device can always go with the user, or because of the instant
access it allows to the communication network or information requested).
Being easily carried and used in periods of dead time (such as travel or waiting periods), these
applications become an excellent way to access learning content and information in general.
The lifelong learning is increasingly seen as a constant practice. Therefore, there is a great expectation
about whether mobile technologies have the potential and feasibility to be used in lifelong learning
systems in a large scale.
4. The role of mobile technologies in the increase of the sustainability of
distance teaching
When it was created, the cell phone was meant to keep people in touch. Now it has become a true all-inone
device. It enables us to connect to the Internet, e-mail, listening to music, watching TV or even
checking our bank accounts online. Wireless mobile networks have suffered quick qualitative changes
throughout times, since the first analogic generation (1G) became digital (2G). It became a massive
service by the third generation (3G), which integrated wireless digital transactions and services that were
traditionally available in landlines (Harte, Levine & Kikta, 2002), and included better control of information
packages, connections speeds of up to 2 Mbps, multiple radio channels, among other features.
The Long Term Evolution technology (LTE), commonly named 4G, will be the future tendency to fulfill the
requirements of the Digital Natives, and will enable faster connections, with maximum debits of 100/150
Mb on downloads and 50 Mb on uploads. LTE presents a greater efficiency in using the radioelectric
space, and a larger mobile networking capacity than the current 3G, which presents maximum download
speeds of 7,2 Mb and upload speeds of 384 Mb.
It is expected for LTE to be available in 2011, progressively in FDD mode on Europe. Greater speed and
efficiency will also serve as a countermeasure against the expected increase in data traffic. Teachers
may include the technologies available in their teaching methodologies, so that they can provide an
enriching experience to their students (Guy, 2009).
Logistically speaking, LTE may sustain the academic experiences, since it keeps up several bandwidths,
which has special importance in a time when mobile broadband has been growing exponentially. LTE will
also enable the opening of new possibilities, such as services and functionalities that require high
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transmission debits, like the advanced diffusion of television via internet, online games and web
conferences, whether there is a high or low mobility associated.
The hardware, software and networking quality are critical factors. A recent study (Guy, 2009) by
Schmidt, Hodge, Dickerson, and Ellis (2008) reveals that students often enroll in online courses due to
the schedule flexibility, the information available and its formats (audio, video, among others), instead of
conventional classes, even when the universities and academic campus are geographically close.
As there is an increase in the amount and virtual space of the information that is transacted online,
devices and networks need to adjust to the Digital Natives’ impatience – who want it all on the spot
without waiting. The development of new technologies (hardware, software, telecommunications,
networks and Internet) happens at a frantic rate and the lifestyle of the Digital Natives in their schools and
surrounding social environments has also been acquiring an increasingly accelerated pace. Mobile
technology is more present in our day-to-day academic or professional life (Guy, 2009) with the huge
advantage of not needing a conventional physical space, electricity connection of cable connection to the
Internet. The sales of informatics equipment – notably laptops – have ascended to the 88,3 millions on
the first trimester of the current year worldwide, according to the news, which means that a computer
went from being a superfluous item to become a first necessity tool.
5. Opportunities and challenges of mobile learning in Portugal
Studies about the young users of the technologies of communication and information began in 2006
(Cardoso et al., 2007), with the study entitled “E-Generation - The Uses of Media for Children and Youth
in Portugal”. The methodology used by that study was the application of an online inquiry to young
Internet users. This inquiry was completed 1377 times during the month it was online, from which 1353
entries were considered valid, allowing a characterization of young Portuguese Internet users and their
relationship with technologies and the means of communication. In 2008 this study was conducted again
to deepen the knowledge and the comprehension of the data previously obtained in 2006. The study
highlighted several behavioural characteristics common to children and youths, namely the fact that the
socialization space is now online, in chats, blogs, and social networks. While trying to strengthen their
social networks, cell phones have played an important role as a mean of socialization, but also as an
agent of personal education. According to these studies, most of the young people inquired began using
the Internet at an early age, between 10 and 12 years old, and it is expectable that they tend to do it
increasingly early (Cardoso, et al, 2007, 395). Therefore, young people develop more and more early a
mentality focused on the use of the technologies of information and communication, as well as a range of
skills centered on multitasking (McMahon and Pospisil, 2005, p. 421). The technology and the means that
young people use to communicate during their school years tend to influence the way they relate to the
information and consequently the method by which they prefer to learn. Several authors attribute to these
young people the ability to stay in contact through SMS and watch television, whilst simultaneously
playing computer games and listening to music (Frand, 2000, p. 18; Oblinger, 2003; Rickard and
Oblinger, 2003). The study entitled E-Generation, 2006 (Cardoso et al., 2007) points out that 96,6% of
people between eight and eighteen years old (with a sampling universe of 1353 inquiries) has a cell
phone, which reveals its high utilization rate. In Portugal, the average age at which the inquired people
acquired a cell phone is of 11,8 years old. It is, without a doubt, important for Portugal, but only the near
future will reveal if this fact has contributed to the enhancement of young people’s skills in a more
generalized way. A study conducted by Pew internet & American Life Project reveals that 55% of the
American young Internet users between the age of 12 and 17 are registered on social networks. (Lenhart
e Madden, 2007). Valkenburg, Peter and Schouten (2006) also refer that in Holland about a quarter of
teenagers is currently a member of one or more social networking websites. By analyzing the Top 5 of
the most researched expressions on the Internet in Portugal in 2003, 2005 and 2007, we find, in
decreasing order of hits, in 2003: Portugal; Download; Lisbon; Free; Oporto; in 2005: Sex; Emule; Google
earth Sapo; Benfica; in 2007: Youtube; HI5; Gmail; Wikipedia; Games. It is possible to verify that the
most researched expressions on the Internet in Portugal in 2007 include 5 communication-related
expressions. A study entitled e-Generation 2008 (Cardoso et al., 2008), focused specifically on youth,
from 8 to 18 years old, (with the sampling universe composed of 489 validated inquiries), yielded the
following results: 78,8% of the people who were inquired use e-mail; 70,5% use the IM network; 63,3%
use social networking sites; 43,1% send SMS through the Internet, and 12,4% of the inquired make
phone calls through the Internet. Although the Internet is more and more used by young people for
communication purposes, the mobile phone remains the most used equipment, followed by the TV, and
only then the Internet. In voice communication the mobile phone remains the most widely used
equipment by young people to maintain their social contacts, and it is also the most used to keep them in
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touch with family members, and as a way to organize tasks and daily meetings (using SMS and phone
calls).
6. The "e-escolinha" and "e-escola" as a driver of mobile learning in Portugal
Guy (2010) affirms in his book that the overall trends in mobile learning technology are becoming clear,
and that devices will continue to have greater processing capacity, greater storage capacity, faster
network access, and will be carried and accessed more and more frequently due to the students’
necessity for research capabilities. Although Portugal is a developing country on many levels, there have
been many physical, logistical and behavioural advances in what refers to the ICT, allowing the country to
minimize or even dissolve the distance to some other more developed countries on this subject. With this
goal in mind, it was created a program to distribute laptops “Classmate PC” at reduced cost for school
children. These laptops were called Magalhães (Magellan) and were manufactured in Portugal with an
Intel processer.
The Program was created to promote the access to the Information Society and to foster info-inclusion,
through the availability of laptops and internet broadband connections, and it has registered an adhesion
of 1 million people in the first two years.
The Program is divided into three parts: e-schools for children from the 5th to the 12th year, and small
schools for children in the first year of school. The Technological Plan for Education has provided
students (especially the most financially needy) with the opportunity to possess a computer, allowing
them to heuristic development, autonomy, and to serve as a complement to their personal development.
This initiative was launched in July 2007 in partnership with the major Portuguese telecommunication
operators, such as Optimus, Vodafone and TMN, including students from the 1st to the 12th grade,
teachers and adult students as well. Several protocols were also signed with software and hardware
designers, to enable the creation of a richer educational experience.
Consequently, the Program was recognized by its effort and awarded on November 2007 with the “Best
European Project Award” by Toshiba Europe, represented by the president of the company Noriaki
Hasimoto. In January 2009, in London, Microsoft indicated the Program e-escolas as an example to be
followed by other governments.
The final results of these plans can be seen as an improvement in the students performance and facilitate
the access to reasonable hardware and Internet access. Overall, this project intends to achieve several
objectives, namely: giving opportunities to children and youth from the 5th to the 12th year, younger
students aged 6-10, and developing the technology and the software industries. It should be noted that,
in recent years, Portugal has taken measures to develop these industries, such as the case of mobile
software. Several measures were developed to create a larger offer of Internet services, according to the
2010 annual report from Bareme Internet. Besides this increase, the Portuguese municipal facilities often
include free internet services in libraries and other public areas. In what concerns the private sector, there
is an emergence of internet cafés in which Wi-Fi services offer convenient and inexpensive access to the
internet. There are also conditions for the students to reduce mobile internet monthly payments.
7. Use of mobile learning on Portuguese teaching
Distance learning or distance education (EaD) in Portugal has existed for several years (Cardoso and
Machado, 2001). Currently, resorting to the ICT, the use of the ELearning has become a teaching tool
that can be adapted to the agitated daily life of our time, and that represents a solution for students that
are geographically distant from education institutions or have mobility problems.
According to Leal and Amaral (2004), with the dawn of the 90’s appeared different teaching-learning
practices, supported by the Mobile Learning technologies, that allowed the online participation of each
student/teacher in either synchronous or asynchronous mode. Since then, the Internet utilization rate has
grown exponentially (in Tek, 13 de Outubro de 2010), as well as the number of users. In fourteen years,
the penetration rate grew by 920 per cent, an average of 20 per cent a year. In the present year, 57,1 %
(4 749 million) of the Portuguese periodically access the Internet. Judging by these numbers, it is
possible to perceive the importance of this technology to research information.
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Figure 1: Number of internet users in Portugal (source: Marktest - Bareme Internet (2010))
Young internauts with ages from 15 to 17 are the group more often connected to the Internet (99,2%) (
Marktest - Bareme Internet, 2010).
The project “mLearning – The role of mobile learning in European Education” developed by TecMinho,
Minho University, in association with other institutions from northern Europe, is a reference in the
implementation and development of mobile learning. This project is managed by Ericsson (from Ireland)
and is inserted in the Program Sócrates of the European Union, which has been financing mLearning
activities in Portugal. The main outcome of this program will be:
The development of a document that may serve as guideline for politics about the role of mLearning.
The analysis of the initiatives and the role that mLearning currently plays on the 25 members of the
EU;
The study of good practices and current projects concerning mLearning worldwide.
Analysis of the pedagogic aspects of mLearning;
Adaptation of existing learning contents to mLearning;
Development of several formation courses in mLearning by the partner entities involved in the
project;
A scientific analysis of the advantages of mLearning for handicapped people and of the strategies for
presenting learning contents to these students.
According to Junior and Coutinho (2008), of the 1166 individuals who answered the electronic enquiry,
88% claimed to use a mobile phone and 11% stated they also had a PDS or a Smartphone besides their
mobile phone. However, when enquired about mLearning, more than a half of the people didn’t know this
concept of learning, and only 39% said that they recognized the concept applied to teaching and learning
activities. However, 25% had used mobile phone, 15% the tablet computer, 7% the pocket PC and 5%
the Palm or PDA, and the great majority, 48%, revealed they never used any kind of device.
As stated by the study “E-Generation - The Uses of Media for Children and Youth in Portugal”, only a
small minority of young people (5,3%) possesses a laptop and also a minority (6,9%) uses internet
through wireless devices, like the the mobile phone or a laptop (Cardoso et al., 2007).
In spite of being a part of young people’s daily lives, even in the classroom, the eventual potential of
mobile technologies has yet to be explored in eLearning environment.
8. Conclusions
It may be said that the cell phone is a piece of technology which is relatively inexpensive to the average
citizen when compared with other mobile devices. Additionally it is easy to use and is very widespread
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nowadays. Young people constitute a large group of cell phone users, and they use it in several activities
during the day, for various social and family contacts and for schedule management. In this sense the
utilization of mobile learning as an aid for teaching-learning is a strategy that is gaining supporters as
mobile devices evolve. However, it is known that the “Digital Native” community doesn’t easily accept
mobile learning as a learning tool if it only duplicates the contents that are taught in the classroom. As far
as “Digital Natives” are concerned, mobile learning should be a complement to the classroom learning, in
order to make the learning experience more interactive. Mobile learning allows the enrichment of the
pedagogic offer in a way that fits the students experience outside the classroom, making it faster, easier
and more flexible to access and share information. Even so, there are some difficulties to implement the
mobile learning, namely the fact that the young public is by nature eager to know new things: through the
utilization of the resources already available in the Web 2.0, they acquire innovative and enriching
experiences that may drive them to place their expectations higher than it is possible for teachers and
education institutes to keep up with. If it is accepted that “Digital Natives” have access to technology and
are acquainted with mobile learning, using it constantly, it must be considered, on the other hand, the
teachers’ necessity to also acquire the necessary competences to enable them to provide systematic
answers to the various challenges, namely the creativity, cooperation, communication and involvement
that the mLearning requires (Oblinger, G. (2003). According to Facer, Faux, and McFarlane (2005) the
deficit of technical preparation and the lack of confidence and practice of mLearning that is common to
teachers can have a negative effect on the involvement and pedagogic use of this resource by the
“Digital Natives”. In this sense, Sharples, Taylor and Vavoula (2005, p. 4) identify some of the pedagogic
difficulties concerning mLearning, namely the fact that the pedagogic practices in a classroom are
different and it is intended to cover both formal and informal components of teaching and learning. For
Bryant (2006) and Thomas (2005), the involvement of the “Digital Natives” in the preparation of
pedagogic contents in a cooperative way, “user-led-education”, may be stimulating for the students. Over
the past few years, Portugal has been undertaking efforts to broaden the use of the ICT by young people.
However, the teacher’s instruction and the allocation of funds to support the development and application
of the mLearning on Portuguese schools has been very insufficient. The fact that thousands of laptops
“Classmate PC” have been distributed to children and youth from the 5 th to the 12th grade and also in
elementary schools for children in the first grade, combined with the decreasing costs of mobile
communications, constitutes an important measure, if associated with the high penetration rate of mobile
devices near young people.
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A Framework for Information Systems Innovation: A Case of
Competitive Intelligence in Organisations
Phathutshedzo Nemutanzhela and Tiko Iyamu
Tshwane University of Technology, South Africa
phathuts@gmail.com
iyamut@tut.ac.za
Abstract: Knowledge is used as a focal factor for competitive advantage, through effective and efficient
performances by employees in many organisations. As a result, knowledgeable employees are expected to share
their knowledge with others to increase innovation within the organisation. Unfortunately, this is not always the case.
Generally, employees behave differently within an organisation. No organisation has total control of its employees’
behaviour and actions. The behaviour and action, which has impact on how knowledge is shared is influenced by
many factors such as fear of losing jobs, power to negotiate personal interest. These factors influence the
deployment of CI were found and interpreted and conclusion was made from those interpretations. The study aimed
at establishing the impact of Competitive Intelligence (CI) on Information systems (IS) innovation products and
services in organisation. A case study was conducted, using a financial organisation. Innovation-decision process
was applied in the data analysis.
Keywords: competitive intelligence (CI), diffusion of innovation (DoI), Information systems (IS), innovation
1. Introduction
Companies keep competing against each other using products and services, making competitive
intelligence (CI) an important tool in the development of strategy in the organisations. The importance of
competitive intelligence is attributed to its contribution to technological knowledge and intelligence, and it
use for the analysis of information systems innovation in organisations. It should be pointed out early that
innovation and technology are often taken in a similar light as asserted by Rogers (2003: p12) that ‘we
often use the word “innovation” and “technology” as synonyms.’ And as such CI is primarily intended to
be used for the state of art, technological trends and challenges, with a strategic vision on
competitiveness and customers (Ashton & Klavans, 1997; Fleisher & Bensoussan, 2003). Competitive
intelligence therefore can be considered as a tool for innovation process, observation of market, analysis
of strategic behaviors of both competitors and customers, including their values, expectations and needs
(Krücken-pereira et al., 2001).
An innovation according to Rogers (2003: p12) will be considered as ‘an idea, practice, or object that is
perceived as new by an individual or other unit of adoption.’ A unit of adoption in this case could be the
organisation, a society and also a target market.
Competitive Intelligence offers a real strategic advantage for many businesses (Stephen, 2006). Gilad
(2000) argues that some of the largest corporate organizations have a dedicated CI department, while
smaller businesses often practice CI on an ad hoc basis. This they do so by informally collecting
information from a variety of internal and external sources, such as the Internet, trade shows conferences
and networking meetings. Competitive Intelligence is of importance to many businesses mainly because
it helps to formulate strategy, as well as make informed decisions.
The CI is deployed with the intention to better, coordinate internal processes and activities of
organizations, primarily, to reach market more effectively. Gathering people, the logic and the physical
architecture around common purposes provide individuals with the information they need to expand their
own knowledge (Malhotra, 2000; Hoven, 2001). This approach help to build high performance teams in
the organisation. This indeed, is the foundation of the integrated organisation, where the information
technology is capacitating technological innovation.
2. Research methodology
The main focus of the study was to investigate and understand the impact of competitive intelligence on
information systems innovation products and services in organisations. The approaches and methods
employed in the study include the case study, qualitative research method, and semi-structured interview
approach. The data was analysed, using the Innovation-decision process from the perspective of DoI
theory
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The case study was adopted primarily because it is an approach that assists to achieve a deep
understanding of a specific phenomenon. According to Cooper and Schindler (2006), the case study is an
approach which combines individual and (sometimes) group interviews with record analysis and
observation; used to understand events and their ramifications and processes. Hofstee (2006) argued
that the case study approach is useful when detailed knowledge is required of any particular case. A
pseudonym name, “Divhetsheleni” was used to represent the case, the organisation used in the study.
The participants were codified from DV_LA001 to DV_LA012 to adhere to the ethical consideration as
agreed with the organisation and the university.
The qualitative research method was selected because of the nature of the study. The qualitative study
allows data to be gathered from multiple sources (Yin, 2009). In other words it is not limited to one source
of information.
The research followed a structured interview schedule so that the process does not lose focus. Wellman
and Kruger (2001: 160) assert that “In a structured interview, the interviewer puts a collection of
questions from a previously compiled questionnaire to a respondent face to face”. This was
advantageous for data collection because it made it possible to explain the questions that were not
understood by the respondent and there was chance to further probe responses.
2.1 Diffusion of Innovation (DoI)
The Innovation-decision process from the perspective of DoI theory was employed in the data analysis. In
DoI theory, technological Innovation is communicated through particular channels, over time, among the
members of a social system (Rogers, 2003). The theory is concerned with the manner in which a new
technological idea, artefact or technique, or a new use of an old one, migrates from creation to use.
According to Rogers (2003), the Innovation-decision process involves five steps. As shown in Figure 1
below, the process include: (1) knowledge, (2) persuasion, (3) decision, (4) implementation, and (5)
confirmation. These stages typically follow each other in a time-ordered manner. The stages are briefly
described below.
Figure 1: Diffusion of Innovations (Rogers, 2003)
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The Innovation decision process characterized as a process that occurs while individuals participate in a
series of actions related to decisions (Rogers, 1995). Knowledge occurs when individuals are aware of
the Innovation and gain understanding of its functions. Persuasion is when individuals or decision-making
units exhibit favourable or unfavourable behaviour toward the Innovation. Decision indicates when the
individual or unit decides to adopt or reject the Innovation. Implementation occurs when the individual or
unit decides to use the Innovation. Confirmation occurs when decision makers confirm or reject their
decision to adopt the Innovation (Rogers, 1995).
3. Data analysis
Using the Innovation-Decision Process (Rogers, 2003), the analysis of the data is presented as follows:
3.1 Knowledge
Knowledge involves management efforts - from identifying needs to delivering intelligence products and
services to consumers and clients. Similarly, innovations are evaluated, monitored and controlled using
knowledge. In the organisation, knowledge was applied in the development of innovation, which was
supported by policy, and generated new requirements. Through knowledge the organisation could
innovate, as well as plan how to utilise the products and services from innovation. According to
DV_LA003 (p4:30-31), Knowledge in the organisation is assessed by questions, and, they are
categorised into needs, such as intelligence problem, decisions, risk metrics (risk tolerance level) and
measurement methods. The organisation was challenged by the knowledge to innovate, primarily, for
competitive advantage.
The organisation focuses on the innovations of security tools and approaches. DV_LA004 (p13:100-101)
explained that there is a growing use of Competitive Intelligence in the financial services sector and
mentioned that the organisation has spent considerable resources to protect their businesses from
infiltration of their systems by other forces.
According to DV_LA003 (p7:45-46), Knowledge is a vital tool, as such, and the organisation conducts
surveys to assess employees' knowledge on the deployment of CI. The organisation worked hard on
communicating with staff, ensuring strategies were clear, addressing performance and remuneration
issues and motivating people. A number of employees, within the organisation, did not have the
knowledge regarding some of their Information Systems innovation Product and Service offerings. This
was attributed to factors such as inadequate skills; no clear consequences of not meeting performance
standards; lack of alignment with strategy and a reward system that fails to motivate properly.
If employees are not informed, or are knowledgeable about products and services it creates risk to both
individuals and the organisation. DV_L003 (p7:62-63) explained that everyone in the organisation are
aware of the strategy and possesses knowledge of the products and services which are deployed in the
organisation.
3.2 Persuasion
At the Persuasion stage, a person’s main type of thinking is affected by, or related to, feelings. Some
employees in the organisation develop an attitude towards certain Innovation and are psychologically
involved with Information Systems Products and Services. According to DV_LA002 (p5:55-56), there is a
marketing team which responsible innovation, and persuades the Board of Directors for approval. Post
approval, the rest of the employees is persuaded on implementation and use of the innovation.
Organisations use incentives and bonuses as tools to persuade employees to perform their tasks, and
align with the organisational innovative strategy. An employee stated that when I am working on any
project, I know that I should do my ultimate best to make sure the project becomes a success. The lack of
some knowledge, on my part, in being able to deliver successfully on the project, affects my incentives
and can, sometimes, also affect everyone involved on the project. DV_LA006 (p16:172-173).
Some employees felt that only using the marketing team is exploitative because of the rest of the team’s
limited perception of the innovation, and reality. Not having a say in the matter may serve as an indicator
of the message’s influence on this stage. However, DV_LA001 (p2:14-15) believes that, by having one
team focusing on finding new ideas to innovate, it eliminates time waste and also cuts cost; inevitably
speeding up the delivery process. DV_LA004 (p8:83-84), commented that there is a perception that
people who work in the field might have first information of latest innovation, but often choose to remain
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silent because it’s not their place to come up with new ideas. The employee added that it then becomes
more difficult or easier to persuade these people to adopt innovation in the organisation, as they already
know more about it. This depended on the type of findings they have about the innovation, as a result of
their interaction with clients.
Another interviewee, DV_LA005 (p9:148-149) commented that Key Performance Indicators (KPIs) is
good approach to periodically assess the performance of the individuals, business units and the
organisation at large. The employees further explained that in the organisation, KPIs is defined in a way
that is understandable, meaningful, and measurable. They are rarely defined in such a way such that
their fulfilment would be hampered by factors seen as non-controllable by the organisations or individuals
responsible. The KPI ensure that each employee knows the organisation’s expectations, as well as the
output required by the customers.
3.3 Decision
Many of the individuals in an organisation do not adopt innovated Information Systems Products and
Services without proper testing and evaluation. The latter was carried out in relation to the usefulness
and fit in the organisation’s environment. Some individuals used partial trial to gain better understanding
of innovation and deployment of products and services in the organisations.
One of the interviewees, DV_LA008 (p6:17-18) provided the following explanation; some employees in
the organisation are policy decision-makers and initiate requirements for CI products and services. These
decision-makers are the recipients of the end Products and Services of CI through Information Systems
Innovation. The decisions are based on information and knowledge, and sometimes lead to the levying of
more requirements; thus triggering the Intelligence Cycle. After finishing a cycle, a new set, or improved
set, of template will be produced that will be used in monitoring and identifying risk.
According to a Director, DV_LA002 (p5:43-44), It is common to find deployments filled with projects that
have attractive returns on investment but do not move the needle on performance parameters that matter
in the marketplace. In selecting Products and Services to innovate and build a portfolio of improvement
initiatives, clear linkage to strategic priorities needs to be established; not just at the outset, but on an ongoing
basis. When making decisions, one of the most seductive pitfalls is to become comfortable with
embracing innovations that are, in themselves, attractive without paying sufficient attention to overall
optimization.
Although finance could be viewed as the artery of a firm and an important indicator of management
direction, management mindset encompasses more variables than only financial decisions. The
organisation’s brand, strategy, employees and customers play a major role when making a decision to
innovate. The brand has to define the organisation through the innovation. The innovation has to align
with strategy, the employees’ need for knowledge and skills to deploy the CI innovation, and the
customer has to get the best Product and Services that will help solve their problems. DV_LA001 (p3:19-
20).
3.4 Implementation
Each division at Divhetsheleni has its own strategic team that deals with implementing the strategy of the
division, making sure it aligns with the organisational strategy. All CI implementation is defined by the
same vision and goals in order to improve innovation, as well as to create a competitive brand. The
strategy team ensures that Information Systems Innovation aligns with the organisation’s strategy.
However, the organisation had a Marketing Department, which was responsible for innovations that
needed to be implemented in all the various divisions of the organisation. According to one of the
employees, (DV_LA001 p2:18-19), Implementation of a new innovation was about being prepared to
measure the organisation's performance consistently, constantly, to recognise weaknesses and, indeed,
be willing to address those weaknesses. This begins with initial measurement, which serves as an
indication of where the organisation is, so that it can determine where it wants to be. The organisation still
follows old traditional ways of implementation, while Information Systems Innovation challenges the
employees to acquire more knowledge, and understanding, of the products and services they deploy.
The organisation readiness to implement becomes a challenge during the innovative process.
A forward–looking organisation seeks to provide value-added offerings, through Information Systems
Innovation, at every stage of its life in order to improve the culture of the organisation. The organisation’s
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high-performance culture was characterised by openness and trust, with clear accountability for
execution, and the freedom to take calculated risks; thereby constantly raising individual and
organisational performance. This was expressed by DV_LA005 (p15:204-205).
According to DV_LA002 (p6:64-65), most of the organisation’s successful implementations of a
remuneration strategy, and the alignment of benefits across all staff, are based on job function rather
than grades.
The employee further expressed that, Performance scorecards reflect an integrated approach to
sustainability and are balanced across economic, environmental, social, transformational and cultural
elements. Our commitment to driving high performance is evident in our new organisational structure,
with the separation of support structures from the client-facing clusters to ensure that the business is able
to focus on improving economic performance regardless of economic conditions.
3.5 Confirmation
Confirmation was the recognition, by the organisation, of the benefits of using Information Systems
Innovation; its integration into the organisation’s on-going routine, or promotion of the innovation to
others; as well as the identification of Products and Services to be deployed. This gives the organisation
an opportunity to provide feedback immediately when decisions for tomorrow’s solutions are being made.
According to one of the employees, we establish a team work with our clients from the beginning of the
deployment, DV_LA006 (p18:248-249). This team work between the organisation and the customers
made it possible to test and confirm the proposed innovation.
In addition, another employer, DV_LA001 (p3:29-30) commented that in cases whereby many solutions
required testing, the customer gave the organisation access to people who were experts on the
applications. The collaboration between hardware and software providers, at this early stage, eliminated
the risk normally associated with new technology deployment.
4. Findings
There were some findings from the above analysis of the data. The findings are discussed as follows:
Culture
When an organisation is operating globally, culture always becomes a challenge. The organisation’s
high-performance culture is characterised by openness and trust, with clear accountability for execution,
and the freedom to take calculated risks; thereby constantly raising individual and organisational
performance. For the organisation to deliver on its high performance culture, it must have created an
environment where information is shared openly, whereby its’ people are reward for their skills. In
addition, trust must be created to ensure that employees do not feel used.
Each innovation has performance scorecards that reflect an integrated approach to sustainability. These
are balanced across economic, environmental, social, transformational and cultural elements. In addition,
these innovation performance scorecards assist in building a new organisational structure; separating
support structures from client-facing clusters.
Knowledge Sharing
One of the challenges of an organisation is that of getting people to share their knowledge. In today's
organisation, where so much depends on teamwork and collective knowledge, it is only a handful of
people who have the kind of knowledge with which they can hold their peers (including bosses) to
ransom. Such individuals were Directors or Managers, who were careful and caution of losing trade
secrets. It may be a particular Specialist who has been in the organisation for many years and has built
up his, or her, own unique way of achieving success without perhaps even understanding the deep tacit
knowledge of how they do it. All these poses threat to organisation, when they want to innovate, because
such individuals holds on to the expertise that they have.
Organisation is intended to create a commitment to culture, change, challenge, competition and
cooperation. If, as is often the case, time pressure leads to poor knowledge sharing, then there must be a
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commitment to allow time for it to happen. Commitment to knowledge sharing must be demonstrated
throughout the organisation.
Repositioning of Brand
The organisation shifts its focus from repositioning its brand to building the brand and the brand promise.
When an organisation innovates, the brand needs to sell the idea. Therefore, the customer has to start
seeing the innovation from brand perspective.
The organisation continues to inspire, motivate and challenge people to make a difference, whilst striving
to become a leader in client-employee understanding and care; across all market segments. The
introduction of a new brand expression, accentuates the intensified, and increased, nationwide above
and below-the-line advertising campaigns to position the organisation’s brand in a more relevant and
approachable manner.
Education and Awareness
Education and Awareness in the organisation encourages and enhances people's participation in
activities aimed at conservation, protection and management of the environment; essential for achieving
sustainable development. The organisation seems to ignore the importance of educating their staff about
Information Systems Product and Services and the path taken by the organisation to deploy Competitive
Intelligence. There appears to be the assumption that seems that all employees are aware of the
deployment process. Employees who were not aware of the innovations which were taking place in the
organisation, could be considered and classified more as expense, than an asset. Their inability to
transfer, or acquire skills, from one other is evident since they are not cognisant of the innovation taking
place within their organisation. Spending the necessary time to educate employees, and making them
aware of CI, will cut organisation costs and reduce time spent doing feasibility studies on the process of
adopting and implementing innovation by an outside partner.
Improve Innovation
The organisation improves innovation across all business clusters in order to create a single view of its
client base. It enables a closer relationship with clients, and it facilitates better co-ordination all actions.
The organisation strives to provide more transactional service offerings, and the driving of primary
investor status, by focusing on further enhancements.
Some divisions, however, were planning on introducing a number of new products, services and business
ventures. A dedicated unit, focused on driving innovative products, has been established. The
organisation will be building on the innovative products that they launch every year; aiming to have
improved its innovation delivery capability significantly.
Inclusiveness
Some of the innovation for process improvement lies with the process owners. This is not a new concept,
but it bears emphasising; as organisations are still not taking this aspect seriously when innovating.
Frequently, process owners are frontline people who do not have the chance to participate in
improvement efforts. While they may not be formally trained in quality tools, their closeness to the
process is a vantage point second to none. The organisation uses their marketing team to come up with
innovation. The same team runs the marketing campaigns and interacts with the customer, forgetting the
very people who actually deploy the process.
Prioritization
One of the most seductive pitfalls is for an organisation to become comfortable with doing Information
Systems innovation projects that are in themselves attractive, without paying sufficient attention to overall
optimisation. It is common to find deployments filled with Information Systems innovation projects that
have attractive returns on investment, but do not move the needle on performance parameters that
matter in the marketplace. In selecting Information Systems innovation projects and building a portfolio of
improvement initiatives, clear linkage to strategic priorities needs to be established, not just at the outset
but on an on-going basis.
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Creativity is not generally associated with defining the portfolio of Information Systems innovation
projects; however, ongoing re-evaluation can uncover opportunities for innovation. The sum, or where
time and attention is placed, defines an organisation's strategic direction.
The next section presents the interpretation of the findings from the case study.
4.1 Interpretation of the findings
The findings from the analysis are regarded as the factors which influence the Innovation of Competitive
Intelligence (CI) within the Information Systems environment. The Products and Services of CI manifest
into many other components, as depicted in Figure 2 below. The discussion that follows explains each of
the components.
Figure 2: Factors influencing competitive intelligence on information systems innovation
Accessibility – This refers to the organisation’s ability to access information needed for the making of
public decisions as well as its ability to share the economic status of the organisation with its
employees. It also speaks to the sharing of knowledge and expertise by employees, with their peers,
without hiding any information for fear of any threat that might arise.
Power - This is often a cop out by managers, or change agents, who are not adequately addressing
the human factors or motivational aspects. In today's organisation, where so much depends on
teamwork and collective knowledge, it is only a handful of people who have knowledge for which they
can hold their peers (and bosses) to ransom. It might be the owner or manager of a small
organisation not wanting to lose trade secrets; it may be a particular specialist who has been in the
organisation, many years, and built up his or her own unique way of achieving success without
properly understanding the deep tacit knowledge of how they do it.
Enrolment - An individual may have knowledge used in one situation but be unaware that other
people, at other times and places, might face similar situations. Additionally, knowledge derived for
one purpose may be helpful in totally different contexts; or it may be a triggered for innovation. Many
innovative developments come from making knowledge connections across different disciplines and
organisational boundaries.
Management - There is pressure on productivity, on deadlines, and it's a general rule that the more
knowledgeable you are, the more there are people waiting to collar you for the next task.
Management ensures that lessons learnt by individuals and groups are captured into the knowledge
database for sharing. .
Competitive Advantage – This is the strategic advantage one organisation entity has over its rival
entities within its competitive industry. Achieving Competitive Advantage strengthens and positions
an organisation better within the business environment.
In order for an organisation to develop a competitive advantage it must have resources and capabilities
that are superior to those of its competitors. Without this superiority the competitors can simply replicate
what the organisation was doing, and any advantage disappears quickly.
Framework for Information Systems Innovation
From the analysis and findings, the case study provides insight to the different characteristics of
Competitive Intelligence (CI) Products and Services Innovations within the Information Systems
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environment. This is illustrated in Figure 3. To have a full understanding, the discussion that follows
should be read with the figure 3.
Figure 3: Competitive intelligence products and services innovations within the information systems
environment
Information Systems innovation begins with the organisational environment, whereby there is top-down
support for project management practices and investment, by the organisation, in the innovation process.
In rolling out Products and Services, implementation by the organisation focuses on doing so correctly,
rather than simply doing what it takes to complete the CI deployment as quickly as possible, at a
minimum cost.
Organisations that are strong in Adaptability and Involvement have an edge in innovation and creativity,
while organisations excelling in Mission and Consistency have a high measure of stability, return on
investment and return on sales. Organisations measuring high in all components have a dramatic
financial advantage over organisations that are weak in these areas. Organisations at the bottom perform
just as one would expect: They are sluggish, wasteful and out of touch with their customers.
There is reliance, by the organisation, on the Key Performance Indicators (KPI’s) to identify or measure
the acceptance of innovation by a client. KPI, for an organisation, is a tool that persuades decision
makers as a result of the reaction of the customer towards the organisation’s innovation. It also measures
an employee’s performance on certain tasks related to the innovation.
If successful implementation of Products and Services contributes directly to strategic objectives and the
bottom line, Information Systems Innovation should lead to organisational success. Innovation requires
an investment in resources, therefore responsibility lies with senior management to ensure that
investments are made wisely and add value to the organisation as a whole. Unsuccessful CI
deployments translate into poor investment and, ultimately, senior management is accountable for
projects not reaching the objectives of the organisation.
In conclusion, the brand of an organisation brand is a key intangible attribute by which they compete. Its
main objective is to support differentiators; and reposition the company as being significantly different
from any other financial organisation. In so doing, potential clients are drawn to the brand which,
ultimately, encourages them to choose their organisation above that of their competitors. The role of
competitive intelligence on information systems innovation is widely revealed. It was better understood
that while competitive intelligence is overemphasized as revolutionary customers focused, information
systems products and services still remain challenging. It was also understood that not all organisations
that deploy competitive intelligence are responsible for the innovation. Lack of knowledge sharing and the
organisational culture were found to be important factors for the deployment of competitive intelligence
products and services in the organisations.
From the findings and interpretation of the case study on the impact of Competitive Intelligence on
Information Systems products and services innovations in organisations, a Framework was developed,
Figure 4. The Framework is aimed at providing direction for organisations during Information Systems
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innovation, the stages on the Framework encompasses the activities involved in Information Systems
innovation.
Figure 4: Framework for information systems innovation
The Information Systems it’s composed of five different stages that organisations need to follow for
deployment of CI products and services. Each Stage has columns that are categories by different
aspects of innovation on a row level. All innovation stages or phases actives, roles and responsibilities,
requirements and information systems inputs for the deployment of a successful competitive intelligence
products and services has been illustrated in this framework.
5. Conclusion
Knowledge sharing is critical to Information System Innovation in the organisation that deploys it, making
it very useful for competitive advantage. The study helps managers to gain better understanding of how
knowledge sharing influences products and services in the organisations.
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customers’ demands. Regardless of how knowledge is acquired, Competitive Intelligence deployment
relies on the knowledge individuals and group have about the information Systems products and
services.
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Haag Stephen, (2006). Management Information Systems for the Information Age. Third Edition. McGraw-Hill
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350

RFID: A Review of its Relevance and Application in South
African Retailing Systems
Jonathan Oni, Edward Dakora and Vesper Owei
Cape Peninsula University of Technology, Cape Town, South Africa
jo45ng@yahoo.com
naadakora@gmail.com
OweiV@cput.ac.za
Abstract: The advent of Radio Frequency Identification (RFID) has enabled identifying an object using a radio
signal. RFID has become the talk of the day when world retail giants including Wal-Mart, Tesco, Target, and
Albertsons announced their implementation of the technology to ensure efficient supply chain management, and,
naturally, demanded that their suppliers meet RFID requirements. Today, these retailers boast some of the best
supply chain systems and management in the industry worldwide. The increase in adoption and application of RFID,
therefore, seems inevitable. It has been envisaged that the near future will see almost all new products sold to
consumers having an RFID tag that can allow them to be remotely and uniquely identified and tracked. The potential
impact of RFID on the South African retail industry is significant. This technology is mostly employed in supply chain
management and customer relationship management. In supply chain management, RFID can benefit retailers in
many ways apart from the mere identification of products and suppliers, such as monitoring the production process
and the sequence of activities from the material production to delivery of the final products. Preliminary studies reveal
that while South African retailers are aware of RFID and are interested in its adoption, few are actively engaged in
pilot tests or planned implementations. Although, they are aware of its benefits, the relevance and its application in
the South African retail sector is still limited. This paper reviews the relevance of RFID and the application in South
African retail system.
Keywords: RFID, RFID relevance, RFID application, South Africa, retail system
1. Introduction
RFID have led to benefits such as cost reduction, low shrinkage, and increase in value and quality of
products. Fitzek (2003) noted that the benefits of RFID may manifest throughout the supply chain, the
primary benefits are evident at the retail end, including marketing and customer service provision.
Although, the South African retail system is experiencing a slow pace in adoption and application, the
benefits of RFID is enormous.
This paper reviews the relevance of RFID and the application in South African retail system. The paper
further explores in greater depth the factors that influence the application of RFID in the South African
retail system. The findings and their implications will be discussed, and the limitations and ideas for future
research will be outlined. The paper concludes with a discussion on the application of RFID and its
relevance to the South Africa retail system. The rest of the paper is structured as follows: The next
section is a literature review of RFID global perspective and adoption in South Africa. This is followed by
the research method in section 3. Section 4 discusses the analysis and findings of the research method.
The discussions and limitations of the research are presented in section 5. The paper concludes in
section 6 with a summary of the paper and some positive thoughts on the way forward for a successful
application of RFID in the retailing sector of South Africa.
2. Literature review
2.1 ICT in emerging economies
The ICT economy report hailed this technology as what fuelled the “strong wave of innovation that
transformed the global economy during the last quarter of the 20 th century” (UNCTAD, 2007). The
Internet and World Wide Web as part of ICTs are being used by businesses of all kind around the world
in the management of their day-to-day operations and transactions, and, therefore, forms an integral part
of their marketing strategies (Sagi, Carayannis, Dasgupta & Thomas, 2004). The growth of the ICT sector
has transformed many economies around the world, making the drivers of growth to be more information
and knowledge based rather than the traditional natural resource dependency (ITU, 2007). However, the
said report also acknowledges the disadvantages of developing countries including limited infrastructure,
human capital, policy incentives, investments and high cost of services which hamper their growth in
ICTs.
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Yet, it has been argued that the arrival of ICT revolution in Africa represents one aspect of globalisation
on the continent (Carmody, 2009). Among ICTs, mobile phones have been the most accepted and
adopted on the continent, with growth and penetration rates reaching alarming proportions, although this
rate may vary from country to country. The high penetration rate of mobile technology and mobile phones
in African countries represent a significant contribution to economic development, and poverty reduction.
The global IT report (Geiger & Mia, 2009) affirms the positive impact of Mobile phones penetration on
economic growth, and its potential to reduce poverty and bridge the digital divide. Moreover, the
completion of the SEACOM’s fibre optic cable system, connecting Africa to the rest of the world and
providing faster internet connectivity is a major boost to the development of ICTs on the continent.
However, there is still a limitation on individual ownership of ICTs equipment and Internet connectivity in
developing economies, and, therefore, ICTs supported business model that are proven to be successful
the developed world may not be readily application in the developing world situation (Roztocki &
Weistroffer, 2009). ICT based innovations that are relevant to the developing market situation might be
necessary. For example, in the case of RFID technology and its application retailing, the passive RFID as
will be discussed later, might be more user friendly to retailers in developing country markets like South
Africa. In South Africa, retailers are seeking more efficiency in the mist of the economic downturn by
implementing new ICTs including Web-based portals, messaging platforms and wireless technologies in
their operations (Dos Santos & Baccialoni, 2009).
2.2 Global adoption of RFID
With the hype of RFID, Chen (2004); Riggins and Slaughter (2006) suggest that the market is predicted
to grow by round about 20% each year and will reach 2-3 billion US dollar in 2008.Though, after many
years of hyping the technology, the actual adoption lags behind the optimistic expectations. According to
Matta and Moberg (2006), besides all attention which has been paid to the RFID technology, the pace of
actual or planned RFID adoptions by companies in their supply chains remain low to moderate. Various
and recent studies have reported adoption rates only between 7-15% (Brown & Bakhru, 2007);
(Leimeister & Knebel, 2007); (Matta & Moberg, 2006).
It has been envisaged that the near future will see almost new products sold to consumers having an
RFID tag that can allow them to be remotely and uniquely identified and tracked (Cazier, Jensen & Dave,
2008). RFID tags are said in Cazier’s et al. work to bear products information including but not limited to
product type, price, place of origin, and place of purchase. This information can be read using any
appropriate scanner. Two types of RFID tags exist according to Angeles, (2005); Cazier et al.:
Active tags rely on a power source (battery) to function, and this power source makes it possible for
the tags to broadcasts “their own signal over varying distances, depending on the potency of their
power source and range of frequency.” Nevertheless, active tags are said to be very expensive and
are therefore, not popular in business environments; their applications are more prominent in military
and other such environments.
Passive tags use no battery, “sit idle until passed near a reader that emits radio waves” (Haag, 2007)
and are economical to produce. They are not capable of broadcasting their signal due to their lack of
power source; they are common with consumer goods.
Figure 1: A typical RFID system (Robert, 2006)
Since the biggest benefits of RFID can be seen in the supply chain sector (Curtin et al., 2006), it is logical
to study its adoption from an organizational perspective as opposed to individual adoption. Applying
various database, Schmitt and Michahelles (2009) presented a result of studies conducted on the
adoption of RFID. The reviews were adapted and summarized in Figure 2. The first column indicates the
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author(s) followed by the research topic. The third column shows the used research methodology while
the fourth column summarizes the results of the study especially the identified adoption factors.
Figure 2: RFID adoption studies adapted from Schmitt and Michahelles (2009)
2.3 The South Africa retailing system
South Africa appears to have the oldest formal retailing system in Africa, with an early experience of the
supermarket revolution in the developing world, the first wave in the 1990s. This system has advanced
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over the years, with a lot of takeovers, mergers and acquisitions, conglomerations and expansions. To
date, the country has retail companies grown into chains and groups, and become regional giants. For
example, Shoprite has grown to become the largest food retailer in the continent over the past decade,
due to its Africa-wide expansion drive.
Moreover, the South African retail system also meets international standards, and, in a few instances,
South African retailers have won internal awards for innovation. Woolworths (SA) has won twice in a roll,
the coveted award as the worlds “Responsible Retailer of the Year” at the World Retail Congress 2010;
beating Cargills Food City, Kingfisher, New Look, 0 Boncario and Teknosa to it this year (The Word Retail
Congress, 2010). This is due to Woolworths “Good Business Journey” initiative, for sustainable farming
and organic food production, locally. At the same event, Truworths International (SA) won the Emerging
Market Retailer of the Year. All these retailers have employed numerous technologies and innovative
strategies from, customer relationship management to supply chain management. Most of the clothing
retailers like Truworths and the Foschini have credit account facilities allowing customers to shop now
and pay later, in some cases it take just an SMS to open such an account. There are substantial use of
scanning systems and devices at the stores and distribution centres some of which would be RFID.
However, it appears the use adoption and use of RFID scanning systems for tracking products through
the supply chain to stores is limited in the South African retail system. The annual reports of the major
retailers make mention of the use of sophisticated computers systems and supply chain management
systems, especially in the case of the supermarket chains, but they are silent on the specific use of RFID.
2.4 Relevance of RFID to South African retailing
The potential impact of RFID on the retail industry is significant. This technology is mostly employed in
supply chain management and customer relationship management. In supply chain management, RFID
can benefit retailers in many ways apart from the mere identification products and suppliers, such as
monitoring the production process and the sequence of activities from the material production to delivery
of the final products (Chang, Hung, Yen & Chen, 2008). Chang et al. also point out that retailers in
developed countries such as America and Japan have employed some unique characteristics of RFID to
enhance their global supply chain management and efficiency. This also leads to other benefits such as
cost reduction, and increase in value and quality of products, Chang et al. indicates.
With South Africa’s already sophisticated retail system, and their drive to expand into the rest of the
African continent, the management and movement of products to stores in different countries have a
critical issue. RFID appear to be the technology needed to help trace, manage the handling of products
all the way from the manufacturer to the point of sale in retail store. Despite the potential usefulness of
RFID, the adoption and application of this technology among South African retailers seem very limited.
Brown and Russell (2007) in their study of RFID adoption in South African retailers found no traces of its
adoption; the most progressive retailer had only began talking about it for possible future exploration. To
date, the Annual reports of the major retailers in South Africa are still silent on the adoption and
application of RFID.
Moreover, the benefits of RFIDs are not limited to supply chain, but are enjoyed by other parts of
retailing, including marketing and customer service provision. In this line of thinking, Eckfeldt (2005) and
Uhrich et al., (2008) identified some three ways in which RFID can provide value to consumers including
convenience, improved service, and increased customer satisfaction, which together can result in
competitive advantage and stimulate demand.
Figure 3 illustrates a typical produce supply chain, and with the application RFID, the retail at the store at
can track the goods right from the point of production through to the final consumer, even after purchase.
3. Research methodology
The character of this paper calls for the participation of different stakeholders within the South African
retail sector. This starting point directs the research primarily towards the use of a qualitative research
method to be applied. An accurate description of qualitative research is that it is concerned with analysing
human action in terms of meanings (Ezzy, 2002). Qualitative research is noted by the significance of
producing detailed or thick descriptions of the social settings being investigated. Neuman (2000) agrees
with Myers (1997) that qualitative data are in the form of text, written words, phrases, or symbols
describing or representing people, actions, and events in social life. In line also with the various
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description of qualitative research, Blaikie (2000 p.251) assert that qualitative researchers “give a great
deal of attention to describing what might appear to be minute and trivial details of social activity. It is
argued that this is necessary to provide a backdrop within which actions and interactions can be
understood”.
Figure 3: Produce supply chain (source: GS1 (2009:8))
In this paper, the semi-structured interview approach was employed. This involves commencing
interaction as an unstructured interview by presenting the primary overall question, and then using certain
questions to elicit information. The interview questions are designed to provide the in-depth analysis
required and also to allow the authors to probe for further information. One advantage of interviews as
data collection techniques is that they allow the researcher the opportunity to use individual quotes and
refer to specific situation as implied by the interviewee.
3.1 Document analysis
Extensive academic literatures on RFID adoption and implementation were reviewed (see figure 1.2);
including journals on previous related research, as well as white papers. The articles were reviewed and
analyzed and the gaps identified. The aim being to ascertain to what extent RFID is being applied to the
South African retailing sector and its relevance.
3.2 Interviews
The interviewed managers were asked about the relevance of RFID and their application across different
chain stores. They were also asked about their experiences with RFID application in the retail sector of
South Africa. Specifically, they were asked factors that influence the application across various retail
outlets as well as challenges being faced.
The study targeted some retail industry, namely the fast moving consumer goods (FMCG) retailers in
South Africa. The first series of interviews was conducted with Four (4) retail and store managers. Three
(3) additional IT Consultants’ with several years of network technologies and application experience were
interviewed. The interviews were conducted between September and November 2010. Although, two of
the consultants could not be reached for a face-to-face interview due to time constraints, they were
however asked to complete the interview questions at their private time and return their response via
email. To ensure participants of their anonymity, each participant was provided with an informed consent
form outlining the aims of the paper and stating that they will remain anonymous at all times.
The authors were aware of shortcomings of the interview technique such as interview bias, interviewer
effect, and the potential impact of the interviewer characteristics. The interview commenced only after
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they agreed to participate. Information gained in the interviews were recorded, transcribed and analysed
afterwards.
4. Analysis of findings
Our findings identified several factors that influence the application of RFID across South African retail
sector. The relevance RFID was also outline by the various respondents in the interview. The response of
the interviews are presented and discussed below.
4.1 Cost
Although there are compelling reasons to adopt RFID to replace barcodes as noted by several
respondents, issues of cost have been identified. The ever changing technological know-how brings new
challenges. The software cost, integration and implementations, and supporting infrastructure costs are
very high. The additional cost of ongoing training of staff coupled with the risk involved in loosing these
staff makes the adoption and application less attractive. With the slow pace in buying power of
customers, investing on RFID is considered ‘suicidal’ as noted by one of the respondent.
Cost concerns are consistent with various literatures (Brown & Russel, 2007); (Huber et al., 2007).
Thus, this supports the respondents’ view that costs associated with RFID negatively influence its
adoption and application.
4.2 Technology
The pace of technology adoption in Africa is considered limited due to the cost involved. Although,
innovative organizations encourage adoption of new technologies, the fear of perceived benefits
discourages some, whether they are from within or outside of the organization. In line with this, Asif and
Mandviwalla (2005), states that technology can add to value by reducing costs or enhancing quality. The
technological environment of most retailing sector in South Africa does not encourage the adoption of
RFID. One respondent noted the following, “We do not have the basic tools that will encourage the
application of RFID, even if we are able to afford it, we still do not have the man-power to implement it”.
Other respondent also feel that RFID technology can not be compatible will their organizational
structures. The uncertainties that surround future Government policies regarding storage and use of
information among retailers also hinder the application of RFID.
4.3 RFID readiness - environment
Most of the responders draw attention to the environmental conditions which have impacted on adoption.
The readiness to adopt and implement RFID will greatly depend on the business environment. Real
advantage of RFID can only be gained in the supply chain when suppliers and customers collaborate.
This implies that willingness of both parties to improve their environment and business processes might
facilitate the adoption of a technology that will bring benefits to both of them (Fawcett et al., 2006).
One respondent cited “external forces, internal resources, technical and behavioural issues” as some of
the potential factors influencing RFID application in the retail sector. It can thus be implied that the
relevance of RFID is seen among the different retails outlets but the enabling environment has imparted
negative on its full application.
4.4 IT skills
In South Africa, skills shortage across a range of market sectors especially in information technology and
engineering is a pressing issue (Anderson, 2008; Mulder, 2007). Hence, the non-availability of necessary
IT skills to implement, integrate and maintain RFID greatly impacts on his adoption and application. One
respondent noted “…we can only implement this technology (RFID) if we can boost of the necessary IT
skills, which at the moment, we can no”. Another respondent said “Our head office will already short staff
in the IT department; embracing RFID will compound our already existing problem of lack of skills and
staff”. As reported by Dainty et al. (2005), effort to create sustainable future supply of indigenous skills
must begin with a robust campaign to promote the industry, its occupations and its careers. This process
will help in building and maintaining a talent pipeline through job experience that is not only confined to
home market but also to the global market (Hall & Sandelands, 2009).
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4.5 Improved delivery and reliability
Jonathan Oni et al.
The respondents’ acknowledge that RFID has enabled substitution of manual processes into an
electronic means. This in turn has resulted in enhanced delivery of goods and services with accuracy and
faster processing capability. Another area of its relevance is the complete acquisition of outgoing
shipments both within the organisation and outside correspondence. One respondent noted that “this
technology has enabled them to trace missing materials from warehouse to the retail outlets”. Perhaps,
this improved delivery and reliability would be apparent with Wal-Mart’s bid to take over Massmart in
South Africa; presenting some retailers an opportunity for RFID to be introduce in a significant way in the
South African retailing system, if, of course, the takeover goes through successfully.
4.6 Increased efficiency in the supply chain
The goal of cost efficiency and fast handling of stocks with the supply chain has been enhanced with
RFID. As large volumes of goods are handled, savings in time in handling these goods become an
important advantage. For example, it has been noted that expediting the loading and unloading of trucks,
reduces the risks of contamination of goods (Shulman, 2001). One respondent agrees that “increased
efficiency in the supply chain using RFID has also enabled them to track products not purchased before
their sell-by date”. This agrees with reports stating that in the European grocery sector, products that are
not purchased before their sell-by date are estimated to cause yearly costs of billions of dollars (Leicester
University & Cranfield University, 2001).
4.7 Improved service
Some South African retails stores are already beginning to weigh how RFID-based systems might
improve the overall customer-service and consumer shopping and -spending experience. This for
example can be seen in Prada’s experimenting with high-tech futuristic stores that provide real-time
inventory to sales associates, on-demand multimedia displays of sexy fashions, and dressing rooms
showing customers runway images of models wearing the clothes they’re trying on (Eckfeldt, 2005).
Airlines in South Africa like their counter parts, including Delta Air Lines, are beginning to use RFID
tracking systems to ensure that baggage arrives on time at the correct, specified destinations. These
show that there is improved service satisfaction on both the organisation implementing RFID and its
customers.
5. Conclusion
Although there is substantial interest in the adoption and application of RFID technology by major
retailers around the world, this interest appear comparatively limited in the South African retail system
due to several constraints as discussed earlier. But the situation is not unique to South Africa as most
developing economies have general ICT related issues.
This study has shown that cost, technology, RFID environment readiness, IT skills are factors influencing
the full application of RFID in South African retailing sector. It has also identified that RFID is being
utilized in various sectors to improve delivery and reliability, increase efficiency in the supply chain, and
improve service among organisations and customers especially in the case of global retail chains like
Wal-Mart. As RFID technology progresses in its development, and application and becomes readily
available in the near future, there will be vast opportunities for different organisations to not only embrace
the technology, but also to examine its implications and benefits in a larger scale. Hence, this study might
be useful in promoting the relevance and application of RFID not only in the retail sector of South Africa
but also in other sectors. The information gathered will assist organisations that want to implement this
technology.
To successfully adopt and implement RFID in the retail sector of South Africa, enterprises will have to
resolve issues of cost, technology development, IT skills and environment readiness. As these issues are
addressed, it is certain that RFID will continue to innovate and diffuse, and it will quickly be assimilated
into our daily lives. Though, limited South African firms are employing RFID to improve the efficiency of
their operations and to gain a competitive advantage, it is believed that the near future will see an
increase in this.
6. Limitations
The issues covered in this research are a reflection of the different interviews conducted with various
retail and store managers as well as IT consultants. Consequently, some of these issues may differ from
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one organisation to another and may not directly reflect a particular RFID adoption and application
approach. A wider and more quantitative study might be necessary in the future to allow for
generalisation.
7. Contribution
The experience gathered from this study will be applied to programs focused on RFID adoption and
application as well as relevance in the South African context. It will assist decision makers in identifying
potential factors that could influence RFID adoption. It is hope that by sharing this research study, it can
stimulate the use of RFID as a tool to improve and gain competitive advantage in the retail sector. This
study has not included all the factors that could influence RFID application or its relevance to the South
African context such as organisation perception, competitive pressure, industry and trade, etc. Thus, this
can be an area for future research.
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359

Towards a Comprehensive Evaluation Framework for ICT for
Development Evaluation – an Analysis of Evaluation
Frameworks
Caroline Pade-Khene and Dave Sewry
Rhodes University, Grahamstown, South Africa
c.khene@ru.ac.za
d.sewry@ru.ac.za
Abstract: Information and communication technologies (ICT) can support rural development activities through
providing supportive information and knowledge, and creating essential interconnectivities between rural areas and
more developed regions. However, rural ICT for development (ICT4D) is still at best a ‘working hypothesis’, faced
with barriers and challenges associated with implementation and use in the rural environment; which threaten the
success, sustainability or relevance of ICT interventions in developing countries. The evaluation of rural ICT projects
is indispensable as it determines the need, effectiveness, impact, sustainability and extent of the awareness of the
contribution such projects or programmes can make in poverty alleviation and development. Even so, existing ICT for
development evaluations are confronted with shortcomings and challenges which influence the reliability of
evaluation conclusions. These shortcomings highlight the need to embark on a more comprehensive evaluation
approach, sensitive to the rural environment. The paper adopts a theoretical multi-method approach to determine the
multiple variables and components associated with rural ICT evaluation, and then to determine how these variables
interrelate. The approach is founded on programme evaluation, ICT for development evaluation, and information
systems evaluation. Programme evaluation informs this research study of the fundamental domains of evaluation
and the structure that shapes an evaluation. An analysis of ICT for development evaluation frameworks and
information systems frameworks compares and contrasts key characteristics that form the structure of a
comprehensive evaluation that can be applied in ICT for development projects. The analysis and a review of
programme evaluation enables the development of a Rural ICT Comprehensive Evaluation Framework (RICT-CEF)
that encompasses the key components essential for a comprehensive evaluation of rural ICT projects. The
theoretical framework aims to inform ICT intervention to improve and support rural development, through the
application of fundamental and interconnected evaluation domains sensitive to the rural environment, throughout the
project’s lifecycle.
Keywords: ICT for development, information systems evaluation, rural development, programme evaluation
1. Introduction
Rural development is a significant focus for developing countries toward reaching their goals in
development and poverty alleviation. ICTs are known to be key tools that have the potential to enhance
rural development activities, as the availability of information and knowledge can support the operation
and effectiveness of rural development activities. However, the growing establishment of ICT projects in
rural areas signifies the need for accountability and an evaluation of the effectiveness, impact, and
sustainability of such projects. There are cases where ICTs are known to have social and economic
benefits in communities, but there are also cases where the implementation of ICT projects has actually
not made a difference, or the effects have been harmful in communities (Tacchi, Slater and Lewis 2003).
ICT4D actors need to understand that ICT4D is, at best, a “working hypothesis” where many key
questions remain largely unanswered, with no concrete or credible data to support a wide range of claims
concerning the use of ICT for development (Wagner, Day, James, Kozma, Miller, and Unwin 2005;
Moodley 2005). Therefore, the evaluation of ICT4D initiatives is essential. Nevertheless, Pade and Sewry
(2009) illustrate that current ICT4D evaluations are confronted with shortcomings and challenges which
influence the reliability of evaluation conclusions. Embarking on a multi-method approach of evaluation
theory can provide a foundation and guideline for developing a more comprehensive framework that
addresses and considers the shortcomings and challenges of current ICT4D evaluation.This research
paper introduces programme evaluation as a foundation for defining evaluation. A summary of key
aspects that are considered across all the evaluation frameworks are explored as part of the process of
constructing a comprehensive evaluation framework which is sensitive to rural ICT environments.
Subsequently, a skeleton view of the Rural ICT Comprehensive Evaluation Framework (RICT-CEF) is
presented. It is concluded that in order to obtain a better understanding and application of the RICT-CEF,
a real-life case study investigation can reveal the lessons learned (shortcomings and suitability) from
applying such a framework in a rural environment.
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2. The foundation of programme evaluation
Programme evaluation can be defined as (Rossi et al. 2004): “The use of social research methods to
systematically investigate the effectiveness of social intervention programs in ways that are adapted to
their political and organisational environments and are designed to inform social action to improve social
conditions”. In contrast to basic research, the main objective of programme evaluation is not necessarily
the discovery of new knowledge, but rather the “study of the effectiveness with which existing knowledge
is used to inform and guide practical action” (Clarke 1999). This research study adopts Rossi et al.’s
(2004) defined domains of programme evaluation, which include: Needs Assessment, Programme
Theory Assessment, Process Assessment, Outcome Assessment, Impact Assessment, and Efficiency
Assessment. The purpose and goals specific to a domain of evaluation attach a unique evaluation
structure for each domain.
3. A comprehensive evaluation
Customarily, most researchers define the evaluation of a programme around assessing the impact it has
on the target population. However, other aspects need to be considered when determining the
effectiveness of a programme, which are related and build on each other to produce a more profound
evaluation. Each evaluation domain applies a different approach to analyse an aspect of a programme,
developing results that may build onto other evaluation types. In this case, a comprehensive evaluation,
which is the ideal, becomes essential. Rossi et al. (2004) indicates that a comprehensive evaluation
constitutes a process evaluation, which builds into an impact evaluation. On the other hand, Babbie and
Mouton (2001) provide a more broad definition, where a comprehensive evaluation includes the
application of all five domains of evaluation to assess the effectiveness of a programme. The
development of an evaluation framework to apply to a particular programme intervention requires that
there be a frame of reference (theory or model), that provides a base to understand the programme’s
goals and context in which it operates (Babbie and Mouton 2001). Analytical frames of reference, such as
theories and models, fulfil the following important functions: provide definitions of key concepts, guide
data-collection and analysis, and provide an explanatory (causal) framework for the interpretation of
empirical findings (Babbie and Mouton 2001). Consequently, the development of a comprehensive
evaluation framework for rural ICT projects requires a collective analysis of the various theories, models,
and aspects that may constitute the evaluation of a rural ICT project.
4. An analysis of evaluation frameworks
The factors associated with ICT project implementation in rural areas suggest the need to embark on a
multi-method approach to determine the common multiple variables associated with rural ICT evaluation,
and then to determine how these variables interrelate (Lannon 2007; Hudson 2001b). Two evaluation
areas provide useful insight for the development of a comprehensive evaluation framework: the
evaluation of ICT for development, and Information systems evaluation. ICT4D evaluation frameworks
point out essential factors that should be built into evaluation based on the experience and lessons
learned that have been applied to develop and design such frameworks. An analysis of IS evaluation
frameworks also provide an outlook of aspects that can be applied in ICT4D projects to assess its value
and usefulness, in volatile rural environments. A template based on foundational literature on programme
evaluation, the need for ICT4D evaluation, and the shortcomings and challenges of current ICT4D
evaluation was applied to each evaluation framework to provide a comparative analysis. The evaluation
template produces a review of key frameworks that can contribute to the development of a
comprehensive framework. The ICT4D evaluation frameworks selected are listed in Figure 1 and the IS
evaluation frameworks selected are listed in Figure 2.
A summary of an exploration of key aspects across the evaluation frameworks is discussed below. The
review focuses on fundamental characteristics and approaches that can contribute to the development of
a comprehensive evaluation framework for ICT4D evaluation.
4.1 The project lifecycle stage at which the evaluation is conducted
Lifecycle stages differ in five common ways:
Pilot stage and/or proposal stage (frameworks 1 & 14): Essential to determine whether the ICTD pilot
project is relevant or worth being taken to scale.
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Annually (framework 2): A less time consuming and costly approach to evaluation, and allows a
comparison to be made throughout the years of implementation and operation of the ICTD project.
However, it is still important to regard the lifecycle stage
Figure 1: List of ICT4D evaluation frameworks analysed
Figure 2: List of IS evaluation frameworks analysed
Only implementation and post-implementation stages (frameworks 6, 9, 12 & 13): Evaluation aimed
at applying formative (process improvement) and summative (impact) evaluation. Lessons learned
indicate that such frameworks expand their approach to evaluating other project stages. When ICT4D
evaluation occurs during post-implementation, the aim is not to close the project. Rather, a project’s
process/implementation will be assessed to learn lessons and improve or enhance the approach to
implementing similar projects in other rural areas, once a successful or failed project has been fully
implemented.
Post implementation (framework 5): A typical stage conducted in ICTD evaluation. Impact
assessment timing is crucial, and it is infeasible and unrealistic to assume that an ICT initiative can
impact a community over a short period of time. A possible solution is to apply an iterative approach
to impact assessment (as part of a comprehensive framework); identifying impacts that result and
build up over time (Hudson 2001b; Pade and Sewry 2009).
Throughout the life of the project (framework 3, 4, 7, 8, 14, & 15): Common evaluation domains
associated with this approach include a needs assessment, process assessment and impact
assessment across the lifecycle stages of the project. Some frameworks additionally consider
efficiency assessment or programme theory assessment. Frameworks that appear to be or state they
are applied throughout the life of the project, does not guarantee the evaluation is comprehensive. All
domains of evaluation need to be applied throughout the project life cycle.
4.2 The project environment
The environments that most ICT projects target are rural, remote or marginalized areas in developing
countries. An evaluation, like a project (Schwalbe 2006), cannot operate in isolation and needs to be
sensitive to the complexities and factors of their environments. The project environment for an
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information systems evaluation is usually not specified. However, in two particular frameworks (12 &15),
the project environment is indicated, as the authors view evaluation as being partly shaped by the
environment in which it is applied. Evaluation is seen as a continuous learning process as the operation
and use of the system is sensitized to needs of its environment, through improvements applied and
suggested from preceding evaluations (framework 12; framework 15).
4.3 Domains of evaluation
The evaluation domains (related to programme evaluation) include:
Needs Assessment: Only four ICTD frameworks (frameworks 3, 4, 5 and 10) and two IS evaluation
frameworks (frameworks 14 & 15). It aims to understand and set the desired priorities of the rural
community and propose solutions that can be supported by ICT. The assessment should also
accommodate demand driven needs that emerge over-time. IS evaluation suggests that a needs
assessment should explore the project’s contribution and alignment with business strategy (rural
development strategy). Furthermore, the assessment should be based on 1) the need for a
development solution, and 2) an awareness of potentially new ICT initiatives relevant to the rural
context.
Programme Theory Assessment (framework 14): This domain specifically assesses whether the
conception of an ICT4D project is actually designed to support rural development programmes.
Where an assessment reveals the programme theory is flawed, responsible stakeholders need to
redesign the programme. The domain is not applied or considered across the ICT4D evaluation
frameworks and only in one IS framework; yet it is a crucial evaluation domain in such projects. The
evaluation exercise described in framework 14 initially focuses on the project proposal stage, where a
decision has to be made on whether to go ahead with the IS project or not. The types of theory
assessed, relate to some of the tasks of the framework, e.g. implementability, risk, analysis of
benefits, etc.
Process Assessment: commonly applied across most of the evaluation frameworks analysed
(frameworks 1, 2, 5, 7, 8 and 15). Aspects evaluated include project objectives, output and planning,
sustainable ICT characteristics; all targeted at stakeholders involved in managing a project locally.
Process assessment is generally seen as a procedure that results in suggested improvements to a
project’s implementation, but most importantly, it should be seen as a continuous learning process (or
iterative), given the complexity of rural environments.
Impact and Outcome Assessment: a popular evaluation domain which all the evaluation frameworks
apply. They are to an extent interchangeable, as most evaluation frameworks tend to describe them
as similar aspects; however, Rossi et al. (2004), define them as separate domains. Some
frameworks describe their specific outcome/impact assessment goals or approaches and provide
useful concepts that should be included in the assessment of ICT for development projects, e.g.
strengthening existing social and organisational community structures, gender sensitivity, etc. Impact
assessment can be applied in two ways, i.e. 1) comparing before implementation and after
implementation data, 2) assessment only post-implementation using retrospection, and ‘contrary to
the fact questions (framework 8). Framework 14 sites that two elements need to be recognised in the
assessment of outcome, that is, firstly the two stage benefits realization process (short-term
(outcome) & long-term (impact)), and secondly, when developing impact theory, to make realistic
assumptions concerning the project’s impact.
Efficiency Assessment (frameworks 2, 11 and 14): Usually consists of a cost-benefits analysis and a
cost-effectiveness analysis. This adds rigour to an impact assessment, and should be considered as
part of a more comprehensive evaluation, rather than an isolated evaluation approach. A variety of
costs for ICT4D can be determined, and the literature presents a variety of perspectives or
approaches to financial assessment for cost benefit analysis (Heeks and Molla 2008).
Additional evaluation domains identified include:
A Baseline Study (frameworks 4 and 8): Serves to inform external stakeholders of the social, cultural,
economic, political and technological (readiness) status of a community, as well as introduce
community members to the project. It also acts as a foundation for a needs assessment and adds
value to an impact assessment (comparing the before and after status of community).
Flexibility Assessment (framework 14): An important domain in the context of rural ICT projects,
whose environment is unpredictable at times (demand driven needs also emerge). Two aspects that
should be considered in assessing flexibility include: 1) Examine the future changes that the ICT
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project may be subjected to in the rural environment, and then ensure that these changes can be
easily accommodated, and 2) an assessment needs to be done to determine whether the proposed
ICT4D project is building in constraints to flexibility (for example, the project should be viewed
holistically, considering how other traditional information flows (word of mouth, community meetings
etc.) may be affected negatively or positively by the project).
Scalability Assessment (framework 1): Determines whether a pilot project should be brought to scale.
It assesses the conditions that are needed to replicate or scale up the project, and what might be the
result of large scale application. ICT projects should begin at pilot level, to observe their success or
potential sustainability.
4.4 The evaluation model/approach/process
The approach/model applied in each framework is characterised by the purpose of the evaluation, the
project’s environment, and in some cases, the evaluation domain. The approaches applied can be
categorized into:
A process approach (frameworks 1, 3, 7, 10, 11, 12 and 13): This is the most common approach
applied across the evaluation frameworks. This approach describes the step by step procedure to
conduct an evaluation. It is not necessarily dependent on the lifecycle stage of a project, like an
evaluation lifecycle approach, but rather focuses on the process or procedure to conduct an
evaluation of any particular domain. In this case, a generic procedure is applied, which can be
applied to assess various domains on which the evaluation framework intends to focus.
A dimension focused approach (frameworks 2, 9 and 14). Evaluation tasks or elements that shape
the process to conduct an evaluation are applied. There is not necessarily a standard sequence for
the tasks/elements stated to carry out the evaluation, but some logic is required to determine an
appropriate sequence to carry out the evaluation of particular projects. The evaluation tasks may
therefore occur simultaneously, independently, or sequentially.
An evaluation lifecycle approach (frameworks 4, 8 and 15): This approach applies the stages of an
evaluation, based on the domains of evaluation. These domains are conducted in sequential order,
depending on the lifecycle stage the project is on.
A case study approach (framework 5 and 6): This evaluation process is a simplistic approach, made
up of qualitative or quantitative methodologies and procedures used to collect the data, and the
results reported. Other aspects of the frameworks (evaluation questions, data collection instruments,
etc.) provide useful insight for ICT4D evaluation.
4.5 Structure of the evaluation
4.5.1 Evaluation questions and indicators
The types of evaluation questions vary, depending on the purpose of the evaluation. Not all the
frameworks specify their evaluation questions, specifically framework 11, 14 and 15. Here, evaluation
questions can be proposed based on their evaluation goals. The questions from the frameworks provide
a useful guideline for the kind of questions that can be asked under each evaluation domain, but are not
necessarily the standard exhaustive list. Some questions may be generic and applicable to any ICT4D
project, but some are for specific types of projects such as education, e-governance, etc. Therefore,
generic questions identified under each domain of evaluation can be used across different ICT4D project
evaluations.
4.5.2 Nature of the evaluator-stakeholder relationship
Of the evaluation frameworks analysed, there is an almost equal distribution of independent,
participatory, and empowerment evaluation:
Independent evaluation (frameworks 1, 2, 5, 6, 9 and 11). An independent evaluator is chosen to plan
or design the evaluation, conduct the evaluation, and disseminate results; often stipulated by the
evaluation sponsor. It is assumed that community (end-user) involvement is made adequate through
the application of data collection methodologies to communicate their views, for instance, focus
groups discussions and interviews. The nature of the evaluator-stakeholder relationship may depend
on the domain of evaluation conducted, e.g. a cost-benefit analysis may need to be conducted by an
evaluator experienced in financial modelling & analysis.
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Participatory or Collaborative Evaluation (frameworks 4, 7, 8, 12, 13 and 15): The evaluator
collaborates with participating stakeholders to plan, conduct and analyse the evaluation. Participatory
research is applied, placing communities at the centre of the evaluation, through understanding the
community’s existing social institutions, processes, and information ecology. For example, local
stakeholders can participate in questionnaire design, specifying topics of local importance,
suggesting culturally acceptable questions for ascertaining age and income levels, and identifying
potential user groups to be included in the sampling frame and focus groups (framework 8). It aims to
produce results for key stakeholders such as practitioners, funders and local participants or endusers.
Empowerment Evaluation (frameworks 3, 8, 10 and 14): Occurs when participatory or collaborative
evaluation additionally focuses on developing the capabilities of participatory stakeholders to conduct
the evaluation. This contributes to an evaluation that is informed by local knowledge, develops local
skill, encourages local ownership, builds demand for ICT services through the community incitement
by local MCT staff, and promotes local sustainability (Scharffenberger 1999; Hudson 2001a). Target
groups in a rural community, who have the potential to engage in and use ICTs to support their rural
livelihood activities, can be selected and trained (empowered) to conduct the evaluation. The leading
evaluator is not necessarily absent in conducting the evaluation when an empowerment approach is
used, but plays a key role in supervising and guiding local stakeholders in the process.
4.5.3 Methods and procedure applied
Most frameworks apply a mixture of methodological approaches, that is, qualitative or quantitative, rather
than focusing on one. Although there is no standard methodology or procedure across the frameworks,
common methodologies can be identified which are assumed to be more effective for research in rural or
marginalized environments. The mix and match of qualitative and quantitative approaches provides a
deeper analysis of evaluation findings from different stakeholder or project perspectives. The Acacia
Evaluation and Learning System framework (framework 8), suggests a useful procedure for mixing and
matching different methodological approaches, called the ‘Rolling Design’ approach (action research),
which integrates multiple data collection instruments that are sequentially implemented to obtain relevant
data from a wide range of perspectives (Hudson 2001a). Examples of the various quantitative
methodologies used include: questionnaires, quantitative data on technology, log sheets/records, and
cost benefit analysis methodologies. Examples of the various qualitative methodologies used include:
tracer studies, participatory appraisals, most significant change, interviews, photography, audio recording
and video, focus groups, workshops, observation and participant observation, and document analysis.
5. A comprehensive evaluation framework for rural ICT projects in developing
countries
An analysis of ICT4D frameworks and Information Systems frameworks, in addition to the concepts of
programme evaluation, provides the fundamental elements necessary to shape and design a
comprehensive evaluation framework for ICT4D projects. A high level (skeleton) illustration of the Rural
ICT Comprehensive Evaluation Framework (RICT-CEF) is presented in this section.
5.1 Defining comprehensive evaluation for rural ICT projects
The comprehensive nature of a rural ICT evaluation is determined by the various domains applied to
evaluate a project, as well as the key aspects that structure the evaluation process. Each evaluation
domain applies a different approach to analyse an aspect of a project, developing results that may build
onto other evaluation domains. Essentially, these different domains which are all key to the evaluation of
a programme are interlinked, and where they are all applied interdependently, they contribute to a
comprehensive evaluation of a rural ICT project (Babbie and Mouton 2001; Rossi, et al. 2004).
Evaluation, in this case, is performed throughout the life of the rural ICT project, from Project Idea
Generation to Post-implementation Review (in reference to the Rural ICT Project Life Cycle (RICT-PLC)
proposed by Pade, Mallinson and Sewry (2008)). Therefore, comprehensive rural ICT evaluation is a
continuous endeavour encapsulating different stages of ICT utilisation by target groups and individuals in
rural communities. Comprehensive evaluation throughout the life of the project requires the evaluator to
be sensitive to the rural environment, and especially aware of any social, political, cultural, or economic
factors that can influence the evaluation form and scope at different stages of the rural ICT project.
Accordingly, the evaluation approach should be multidisciplinary, comparative, participatory and
multicultural to contribute to research on different elements associated with the contribution of ICTs to
rural development. In this research, comprehensive rural ICT evaluation is therefore defined as: The
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comprehensive application of all appropriate domains of evaluation throughout the life of a rural ICT
project, in ways that are adapted to the social, political, cultural, and economic rural environment, and
designed to inform ICT interventions to improve and support rural development.
5.2 The structure of the Rural ICT Comprehensive Evaluation Framework (RICT-CEF)
The RICT-CEF, depicted in Figure 3, is structured around three key components that guide the
comprehensive evaluation of a rural ICT project or programme. The components include the overall
evaluation plan, the comprehensive evaluation lifecycle, and the iterative design of the framework.
Figure 3: The Rural ICT Comprehensive Evaluation Framework (RICT-CEF)
5.2.1 The overall evaluation plan
The Overall Evaluation Plan is applied to the overall evaluation process to guide the various evaluation
domains. Providing a high level view of the evaluation plan, it comprises the key attributes that need to be
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taken into account for planning the overall evaluation (considering the triple constraint of scope, time, and
cost by Schwalbe (2006), and guidelines that should be applied across all the domains of evaluation
(Clarke 1999; Hudson 2001a; APC 2008, Scharffenberger, 1999; Rossi et al. 2004; Wagner et al. 2005;
Dymoke-Bradshaw and Cox 2003; Hedman and Borell 2005). However, each evaluation domain has its
own local level evaluation plan that is specific to meeting the requirements and purpose of that particular
domain. The overall evaluation plan provides a sketch and guideline for the whole comprehensive
evaluation process, and acts as the initiation stage of the comprehensive evaluation framework.
5.2.2 The evaluation lifecycle
The Evaluation Lifecycle forms the central component of the framework, which describes the process and
domains that a rural ICT comprehensive evaluation should go through. The lifecycle has domains that
connect from the beginning to the end of the overall evaluation, and hence provide a gauge of the
evaluation’s progress towards contributing to a comprehensive evaluation of the ICT intervention
(Schwalbe 2006). The domains that make up the comprehensive evaluation cycle are:
1. The Baseline Study: assesses the existing status (socio-economic and readiness) of the rural
community. (frameworks 4 and 8)
2. Needs Assessment: assesses the desired priorities and information needs for rural development,
so as to propose appropriate solutions that can be supported by ICT. (frameworks 3, 4, 5, 6, 10, 13
and 15)
3. Programme Theory Assessment: assesses the conceptual design of the ICT project to support
rural development programmes. (Rossi et al. 2004)
4. Process Assessment: assesses how well the project is operating to implement its intended
functions, as stipulated in the project plan. It also assesses the flexibility of the project. (frameworks
1, 3, 4, 7, 8, 14 and 15)
5. Outcome and Impact Assessment: assesses the intended and unintended outcomes or effects of
the ICT project on the conditions of the targeted population. (frameworks 1, 2, 3, 4, 5, 10 and 14)
6. Efficiency Assessment: assesses ICT intervention costs associated with project effects or impact.
(frameworks 1 and 11)
7. Scalability Assessment: assesses whether a rural ICT pilot project should be taken to scale.
Therefore, this domain is only applied to ICT pilot projects. (frameworks 1 and 12)
Each domain is described according to the following structure:
a).The Purpose of the evaluation
b).The Domain Process: The domain process either adapts one particular process from the
frameworks analysed, or a combination of key processes and practices from different frameworks,
that suit the requirements and purpose of the domain.
c).The Evaluation Plan: Guides the evaluation domain process. It is tailored around three features,
adopted from the evaluation structure of Rossi et al., (2004): 1) The Evaluation Questions, 2) The
Methods and Procedures, and 3) The Nature of the Evaluator-Stakeholder Relationship. The
framework provides examples of commonly used questions or methods that have been applied in
other frameworks or ICT projects, which an evaluator may possibly choose from or adapt for other
ICT4D project evaluations. The nature of the evaluator-stakeholder relationship, conversely, is the
recommended approach for the particular evaluation domain.
d) Pilot Project Aspects: Highlights additional aspects or factors that should be considered when
evaluating a pilot project.
e) Expected Outputs: The expected outputs of the particular domain.
f) The Dissemination of Results: Specifies the target audience for evaluation results and the
approach for documenting and presenting the results.
g) Application Stage of the RICT-PLC: The evaluation framework makes use of the RICT-PLC
proposed by Pade, Mallinson and Sewry (2008) to associate the different evaluation domains with the
rural ICT project phases that may directly use the results of the different evaluations. Every ICT4D
project lifecycle is unique. Even though various ICT projects may have different lifecycles or
associated phases, the RICT-PLC provides a general picture for stakeholders of various ICT projects
interventions to determine where best to apply a particular evaluation domain within their projects.
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Nevertheless, the comprehensive evaluation of the project may initiate during the ongoing
implementation of the project, and not from the inception of the project. In this case, the different
evaluation domain results still serve to improve different aspects of the project that can be revised.
h) Domain Dependence: Each domain of evaluation is interlinked to preceding or subsequent
domains within the evaluation lifecycle (see Figure 3). This section explains the interdependent
relationship between the domains.
5.2.3 The iterative design of the framework
This Iterative Design reflects the iterative nature of rural ICT projects, which adapt over time due to the
progressive integration of technology in rural livelihoods, and the changing nature of the rural
environment, as a result of development activities. In this case, particular evaluation domains are
repeated over-time, building and developing the scope of the evaluation as the project’s intervention and
impact progresses in the rural community (frameworks 12, 15 and 8). This is particularly essential to
address the time-dependent nature of rural ICT projects, as many changes or impacts brought about by
ICT initiatives are long-term and often indirect. ICT4D initiatives are a form of human development
infrastructure which is highly time-dependent. The comprehensive evaluation lifecycle should be
incorporated into the rural ICT project lifecycle, where evaluation results continuously contribute to
improving and guiding the iterative (progressive) development of the ICT project. Within the iterative
design of the evaluation framework, evaluators should document changes and identify evaluation aspects
(needs, process (service utilisation), impact, etc.), that result over time, and also consider barriers that
could hinder long-term impacts. Each iteration (iteration0, iteration1…) is initiated and driven by the
changing needs of the community. The subsequent domains of evaluation are therefore influenced by
changing needs, as the results of the needs assessment build into the evaluation of other aspects of the
rural ICT project, such as, the process, outcome, impact and efficiency (see Figure 3).
Iteration0 is associated with assessing a pilot project, and hence the scalability of the project to determine
whether or not it should be taken to scale. The subsequent iterations (which comprise of only needs
assessment through to efficiency assessment) contribute to evaluating the progressive development of
the rural ICT project over-time. The duration or life of the ICT intervention is not always obvious, and in a
number of cases, they are not sustainable in developing countries. Therefore, the iterative evaluation
design may be appropriate for sustainable on-going ICT projects, but in cases where the ICT services are
not being developed further or new ICT initiatives are no longer being introduced to the rural community,
the evaluation design changes. In this case, the evaluation design in the long-term is centred only on
assessing the impact of the project over time.
6. Conclusion
The evaluation of ICT4D projects is essential to determine their value in supporting a change in social
conditions, and identifying ways to enhance or improve the project. Programme evaluation provides a
foundation to understand the concept of evaluation for social development programmes. The types of
domains of evaluation vary at different stages of a programme’s life cycle. An evaluation framework that
applies all five domains in the evaluation of a programme is considered a comprehensive evaluation
framework. Embarking on a multi-method evaluation approach is essential to develop an appropriate
framework which is sensitive to the various factors associated with rural ICT project implementation. The
results of the framework analysis and a review of programme evaluation highlighted the fundamental
elements necessary to shape and design a comprehensive evaluation framework for ICT4D projects. A
skeleton presentation of the RICT-CEF illustrates the overall evaluation plan, evaluation lifecycle, and
iterative design fundamental for the comprehensive evaluation of rural ICT projects in developing
countries. In order to obtain a better understanding and application of the RICT-CEF, a real-life case
study investigation can reveal the lessons learned (shortcomings and suitability) from applying such a
framework in a rural environment.
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369

User Adoption of the New Health Information System -
Individual and Organizational Determinants
Bahlol Rahimi
Urmia University of Medical Sciences, Iran
bahlol.rahimi@umsu.ac.ir
Abstract: The computer has become an integral part of healthcare delivery by providing tools for improvements in
the quality of care. However, the failure rate for information systems implementation in healthcare organizations will
pose a great challenge in the area. In this paper, we aim to discuss user adoption of the new health information
system in healthcare organization. In this study, we review the literature in order to illustrate previous studies that
present failures in implementing new IT-based systems in healthcare settings. Next, we discuss and apply theory to
interpret the results. The results demonstrate some important aspects in the implementation of new health
information system such as considering user involvement in the design and implementation phase of the system,
taking into consideration and differentiating the different professional needs when developing the system, user
training methods, and to consider work routine changes due to implementation of the new system. Our findings show
that evaluations of health IT-based systems seem to have not been successfully implemented in a number of cases,
and have failed to demonstrate improvements in patient care, operating costs savings, and improvements in
productivity. This study shows that, in fact, we have not learned from the past. It can be concluded that the
application of a participatory design approach in health IT-based systems may be fruitful for the organization. The
involvement of the end users in the design and implementation process will allow for the collection of their ideas, thus
benefiting the developing system.
Keywords: user adoption, health information system, user involvement, participatory design
1. Introduction
The computer has become an integral part of healthcare delivery by accelerating organizational and
provider-patient communication as well as providing tools for improvements in the quality of care (Rahimi
& Vimarlund 2007). However, the failure rate for information systems implementation in healthcare
organizations will pose a great challenge in the area (Kaplan 2000). This is in part because the big efforts
that policy and decision makers do for implementation of those system such as huge investment (Poon et
al 2004). In particular, the majority of attempts to introduce information systems initiatives into both the
private and public sectors, including healthcare information systems that require data entry by healthcare
practitioners, have been unsuccessful (Van Der Meijden et al 2003; Adi 2000).
However, it cannot be ignored that a characteristic of many public sector reforms is that they are
introduced into organizations that are not willing to accept the reform, have the technical ability to
understand and implement the change, or possess the ability to maintain the change once it has been
introduced. As a result, the reforms are often severely delayed or create distortions that have damaging
effects, leading to changes that are often ultimately abandoned (Diamond & Khemani 2005).
In light of the abundant experience available, it is difficult to understand why the frequency of
implementation failures is so high. For example, it has been determined that half of all computerized
information systems fail largely due to user resistance (Anderson 1997). Likewise, Paré et al (1998)
showed that many healthcare organizations have devoted significant amounts of money and frustrated
countless people in wasted efforts to introduce new information systems.
These failures are alarming, since the introduction of new, large healthcare information systems require a
major investment (Adi 2005). In order to have successful and sustainable information technology in a
healthcare setting, many factors need to be considered when introducing the new technology. One factor
that has been indicated as crucial for success is the involvement of clinicians and other staff who will use
the healthcare information systems throughout the planning and preparation stages of the design
(Sengstack & Gugerty 2004; Birkmann et al 2006; Nykänen & Karimaa 2006). In general, regular and
open communication between designers and users allows for the understanding of user preferences,
their needs, their problems, and confusions. Recently, participatory design has been employed in
different fields (Joyes & Chen 2007); however, as for health informatics, which is a more recently
developed field, the use of participatory design has a shorter history (Pilemalm & Timpka 2007). Due to
obvious problems in introducing integrated computer-based health applications, utilizing new approaches
such as participatory design can make a difference where traditional methods have failed, in particular,
with regards to the social factors that are of importance for the successful implementation of an
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information system (Pilemalm & Timpka 2007). Participatory design, which explicitly advocates active
user participation throughout the design process, is a proactive design method.
In this paper we aim to discuss the underlying factors, mostly individual and organizational, for user
adoption of new health information systems in healthcare organization.
2. Theoretical background
2.1 Participatory design
The participatory design approach was introduced in Scandinavia in the 1970s (Schuler & Namioka
1993). It started in the field of computer software design, but similar approaches have been used in other
fields as well (Sjöberg & Timpka 1998). Various studies have found that involving users in the system
development process is an effective way to increase their adoption of the system (Faber 2003). In this
respect, participatory design can be an appropriate approach for promoting user involvement.
Participatory design was initiated as a resource to empowering system users by involving them in the
design of an important part of their work setting. By involving of healthcare staff in the design and
development processes of health information systems, it is said that the usability of the systems as well
as their success increase (Van der Meijden et al 2001). Furthermore, it is important to consider the
attitude of end-users -instead of one single viewpoint on a system’s requirements- in the process of
development in order to increase final acceptance (Vimarlund & Timpka 1998).
In addition, users are able to redesign and evaluate their work routines by applying the experience
obtained during the participation process, and are even provided with the opportunity to improve their
understanding of computers (Vimarlund & Timpka 1998). However, another objective for participating in
the process of participatory design is based on recognizing the fact that it gives designers new and better
ways of gaining an understanding of the users’ everyday working practices. Additionally, users are
expected to be more willing to accept the final system once it is introduced, when they have assisted
developers to arrive at a more accurate and realistic model, and reduces their aversion to the new
system. The final overall effect of this participation can be considered to be the main incentive for
improving work efficiency and productivity. It is argued that participation helps users to enhance their
skills, thereby increasing the quality of services provided.
To have an effective and credible health information system, user involvement in the design and
development processes influences the perception, reception, and ultimately, the success of the new
system (Wild et al 2004).
2.2 Social capital
The political scientist Robert D. Putman (1993) explained social capital as a theory about the
complexities of trust and participation (Putman 1993a). The concept refers to features of social
organization such as norms and networks that can improve the efficiency of society by facilitating
coordinated actions (Putman 1993b). The social capital vocabulary has expanded, and today it
addresses broadly the value of social networks both between similar and different groups of people by
norms of reciprocity. The narrowest concept of social capital however, is still associated with Putman
(Putman 1993a, 1993b). He views it as a set of “horizontal associations between people”, and argues
that social capital encourages the formation of social networks and associated norms that have an effect
on the productivity of the community and it facilitate the coordinated cooperation for the mutual benefit of
the members of this “association” (Putman 1993a). Prior to Putman’s study, the concept of social capital
had been used in community studies to describe relational resources embedded in personal ties within a
community (Cohen & Prusak 2001). Nowadays, it is being applied in a wide range of studies in different
disciplines, from anthropology and economy to information systems. However, despite the variety of
definitions available for social capital, there is a consensus about the fact that social capital consists of
those specific processes among people and organizations, which arise from working collaboratively in an
atmosphere of trust, leading to the accomplishment of a goal with mutually shared benefits (Putman
1993b). The benefits of social capital have, however, been identified and considered as “optimal” when
social capital is created by individuals who learn to trust one another so that they are able to make
credible commitments and rely on generalized forms of reciprocity, contributing to an increase in society’s
productive potential (Ostrom 2000).
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To summarize, social capital consists of individuals forming and utilizing social networks in communities.
Like financial capital, social capital is a resource that helps to sustain a community and encourages the
collaboration and cooperation between members of groups for mutual benefits (Preece 2002).
Introducing a new, healthcare information systems in which all users are involved and where networks
are used for collaboration at different levels of the healthcare setting environment, are examples of such
assets. Furthermore, the networks are usually groupings of people with common interests.
2.3 Human capital
Human capital is defined as “the skills, knowledge, and experience possessed by an individual or
population, viewed in terms of their value or cost to an organization or country” (McKean 2005) and “the
skills, general or specific, acquired by an individual in the course of training and work experience”
(Smullen & Hand 2005). The main components of human capital, as stated in the literature include
qualifications and knowledge acquired through formal education as well as skills, competencies, and
expertise acquired through on-the-job training. Several authors have recognized the importance of
human capital as a firm’s only appreciable asset due to the fact that the individuals’ productivity improves
with literacy. It is said that workers may increase their productivity at the workplace by learning new skills
and improving old ones (Vimarlund & Timpka 1998). The introduction of new technologies is likely to
require the employment of a highly educated and skilled staff. There is, however, substantial evidence
that education and training have strong positive effects on the accumulation of physical capital (Blundell
et al 1999). In the case of implementing an healthcare information systems, acquiring knowledge and
experience through formal and informal training becomes important and any shortfalls in the program
raise many problems such as users’ complaints and resistance against the system.
3. Methods
In this study, I first review the literature in order to illustrate previous studies that present failures in
implementing new IT-based systems in healthcare settings. Next, I discuss and apply the concepts just
discussed to interpret the results.
A literature review of published evaluation studies of IT-based systems in healthcare during the last five
years (from 2003 to 2007) was performed. Linköping University’s database was used to gain access to
articles on this subject. The keywords used in the search were: patient records, medical records, health
records, information technology, medical informatics, healthcare information, health informatics, hospital
information system, patient care information system, information system/technology, and evaluation
study. I included papers that demonstrated a failure in implementing IT-based systems as well as some
studies that discussed success and failure factors affecting the systems.
4. Context of the study
Study context of the papers including in this study has been mostly the Östergötland County council in
Sweden, where tax-financed healthcare services are provided to the residents by the county council.
Sweden has a decentralized healthcare system, with 20 county councils and 290 municipal councils as
principals and care providers. Their responsibility as principals includes the provision of adequate care
services and the requirement to develop, finance, and assure quality of all care activities. Implementation
of a new integrated computerized patient record system was initiated in 2007 as a pilot project at a
healthcare centre in the west part of the county, Motala. The implementation process continued from the
west part (Motala) to the east part (Norrköping) of the county and was finished by the end of 2008. This
new integrated system, developed commercially, provides a comprehensive overview of the patient’s
health conditions and care. The system provides an infrastructure for sharing patient data between all
healthcare care providers within the county council.
5. Results
A literature review was performed for evaluation studies of IT-based systems in healthcare. In our review
we found that during the period 2003– 2008, most of the evaluation studies aimed to include issues such
as the effectiveness of the systems, the quality of care, user and patient satisfaction, and the system’s
usability. Based on the review literature, introduction and use of the computerized patient record systems
was found to have positive effects such as economic benefits, high acceptance score and satisfaction
among the users in the implemented sites and also improvements in management and work process.
Moreover, introducing the telemedicine systems was found to have positive effects such as reducing
spent time per patient during the visiting by clinical staff, economic benefits, and also quality of care.
Regarding to the decision support system’s studies, it can be seen that introducing a clinical decision
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support systems in healthcare organizations had positive effects such as improved quality of care,
satisfaction among users in the implemented sites, and also improvements in management and work
process.
The data captured in this study to show importance of evidence-based information system
implementation in healthcare, an explorative case study design based on a single case was used for data
collection and analysis. In this study the data were collected during a period of four months through
interviews and document analyses. In the first step, representatives from all professional categories
(physician, nurse, social worker, administrator, and pharmacist) using the new integrated computerized
patient record system were interviewed by a member of the studied county council. Then 34 interviews
conducted to validate our first results. Each interview session lasted about two hours. All documents
published by the county council and the local magazines and newspapers that mentioned the system
were also reviewed.
In this study, different actors’ perspectives were considered when collecting data and analyzing them. We
have used physicians, pharmacist, and nurses and other healthcare staff’s perspectives for our analysis.
Considering different actors’ perspectives are needed to study in order to understand the likely
accomplishment of new ICT goals in which it built in the area of health informatics. We categorized our
finding into three groups that are: informatics skills, design interaction, and expectation.
5.1 Informatics skills
The data showed the nurses and other non-physician staffs were particularly unsatisfied, because they
felt that the training sessions were based mostly on physicians’ needs. It was found that a failure to give
all groups of users’ adequate training in using the integrated computerized patient record system
negatively impacted the outcome of the implementation process. For instance, because the nurses had
not learned to use the system functions properly, they found that the new practice routine was time
consuming. Once the system was implemented, ongoing support was reported to be crucial for the
success of the newly implemented system. They asked for the option of further training in order to
overcome day-to-day problems.
5.2 Interaction design
The first technical problem was that logging on to the integrated system was perceived as consuming too
much time. Then, after logging on to the system, several functions were found to be unintuitive and not
user-friendly, causing dissatisfaction and disappointment. With the new system, calling up a specific file
consumed more time than the previous system. The integrated system also required use of new terms
and concepts, and the users emphasized that learning these took time.
5.3 Expectation
In the case study setting, the users expressed that more user participation in the design and
implementation phase of the system would have provided a better fit into workflows and work practices.
There was a general unwillingness to adapt clinical routines to the new system. The main adjustment of
the implementation process that the users – especially physicians – asked for was “more involvement in
the decision procedures”. More user involvement would both have helped define the system
requirements in more detail and revise work practices to better integrate the new system. The
respondents also made complaints about the timing of the implementation at the pilot site. They felt that
the policy-makers had decided to implement the system in too short a time period, causing problems with
adjustments, mainly in learning terms and navigation routines.
5.4 What do end-users say is missing?
The consequences of this trial seem to indicate that medical informaticians must learn from the past in
order to communicate and adapt their own practices according to experience and research. The results
demonstrate the lack of some important aspects in the implementation of a new system:
1. User involvement in the design and implementation phase of the system would provide better
insight into existing workflows and work practices. From the users’ point of view, to better integrate
the new system, involving users in the system design and implementation phase would have avoided
some human-computer interaction problems as well as training problems.
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2. In fact, perhaps the most important question is concerned with the way in which the
implementation process can be adapted to different professional needs. It is clear that different staff
members in the hierarchy of a healthcare organization demand different interfaces and modules. For
example, taking into consideration and differentiating the nurses’ needs from the physicians’ needs,
when developing the system, become important in order to achieve a good adoption rate for the new
system. To understand how the implementation of a new system can be adapted to a large variety of
user needs and expectations seems to be an important step towards facilitating user adoption of
ICPRs.
3. Staff complained that the training provided was not based on their need.
4. The changes made to the current work routine due to the new system were also a source of
resistance against the adoption of the system.
5. Additionally, the results show that one of the important factors influencing the outcome of health ITbased
systems implementation is the design of the user-training programs. Users’ inability to
effectively interact with the new system caused secondary issues, leading to opinion that the health
IT-based systems were not appropriately designed.
6. Discussion
In this study we found that, most of the evaluation studies aimed to include issues such as the
effectiveness of the systems, the quality of care, user and patient satisfaction, and the system’s usability.
A key requirement for analytical work is a clear definition of what constitutes an IT-based application.
Today there are different terminologies relating to similar systems. Analysis of the effects has
predominantly taken place at an organizational level. However, this does not take account of the
differences in the settings in which analysis is taking place.
It has been difficult to find generalized models and methods to evaluate IT-based applications in clinical
settings that cover all such aspects as economic and both inter-organizational and intra-organizational
approaches. The review reported in this study found that no standard framework exists for evaluating or
developing evaluations and obtaining clearer and more exact feedback about the implemented systems’
effects, or about the outputs of implementation and the use of ICT in healthcare settings. It also found
that no previous studies have explored the impact of ICT on the healthcare systems’ productivity and
effectiveness.
A significant barrier to investment in ICT in healthcare is the widely recognized fact that any cost saving
resulting from technology changes is not always seen by the implementer, but is rather passed on to a
third party. In essence, benefits appear at one site and in one budget, while a large share of the cost
commitments appear at another site and in another budget. To our best knowledge, the evaluation
studies performed do not include any discussion about this important issue, or how lack of incentive to
adopt systems can influence the organization and its personnel. Further, the potential effects of the
implementation of IT-based applications are identified without analyzing them from an inter-organizational
and economic perspective (Nykänen & Karimaa 2006).
The case study comparisons with the literature review found both a recurrence of previously reported
implementation problems and the development of new issues specific to the integrated system context.
Possibly, the most important challenge in the case study setting concerned the way in which the
integrated computerized patient record system implementation process could be adapted to the needs of
different user groups. The second important challenge associated with it was the human-computer
interaction consequences of the large-scale technical integration of sub-systems into a homogenous
infrastructure. In this study re-experiences of known implementation problems were found. The fact that
users’ training were based on physicians’ needs and not adjusted to nurses and other non-clinicians was
a major source of complaints. From the case study setting, requests were expressed for user involvement
in the design and implementation phase of the system, in order to provide better insights into existing
workflows and work practices (Joyes & Chen 2007).
A HIS system with integrated clinical decision support can be an advantage for the busy clinician who
must combine and manage an increasing body of clinical knowledge. However, such support will not be
optimal if clinicians begin to trust these systems without questioning the assistance (Pilemalm & Timpka
2007). Recent research on safety in man-machine interaction suggests that the presence of
environmental cues reflecting hazards increases alertness among decision-makers and reduces the risk
of mistakes. From this perspective, it is positive that the system users had doubts about the reliability and
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completeness of the support provided by the system. Alertness is particularly important in light of the
results of several previous studies that reported that HIS systems led to a number of errors and adverse
drug events.
Our findings show that evaluations of health IT-based systems seem to have not been successfully
implemented in a number of cases, and have failed to demonstrate improvements in patient care,
operating costs savings, and improvements in productivity. This study shows that, in fact, we have not
learned from the past. Weng et al. (2006), in their paper aiming to apply participatory design for the
creation of a highly usable collaborative protocol writing system for a national cancer clinical trial protocol
authoring organization, show that after applying participatory design, users liked the system design. The
users also liked the fact that some features of the system could speed up the reviewing process, the
interoperability between the new system and the old tools, the integration, and the “all-in-one” design.
The system’s usability was demonstrated in their results. Their study concluded that they could reduce
usability errors of healthcare information systems with concrete approaches to participatory design.
Therefore, before draining further the scarce resources available to healthcare organizations, it is
necessary to develop strategies that will involve the end-users of the new system and ask for their
assistance in accelerating the organizational change as well as work routines. Vimarlund et al (2001), in
their paper discuss the economic impacts from the use of participatory design for the development of
public-health information systems. They argue for the need of a method that minimizes the information
asymmetry in the development process, thus avoiding market failures. They conclude that participatory
design is beneficial for the public-health organizations involved in information system development
processes by avoiding the risk of rejection of the final system, while increasing knowledge, decreasing
information asymmetry, updating habits and work routines in a “natural manner”, avoiding unnecessary
sunk-costs, and contributing to the efficient use of human and economic resources (Weng et al 2007).
The challenges we have described first and foremost highlight a lack of collaborative approaches in the
implementation of HISs. For instance, many of the most significant failures emerge from the absence of
feedback from end users to developers during the development process. The logical conclusion is to
increase the involvement of end users in the implementation process in order to provide:
Designers with new and better ways of gaining an understanding of users’ everyday work practices.
Users with the opportunity to redesign and evaluate their work routines by applying experience
obtained during the participation process
Users with the opportunity to appreciate the HIS as a useful tool in their everyday working life
In fact, what is needed is the use of an implementation methodology that minimizes the information
asymmetry in the implementation process, and allows the accumulation of the knowledge needed to
prevent rejection of the final system. To compare with another field, a participatory design approach has
recently been used in individual education, particularly with an increasing interest in experiential- and
learner-centered education; users take responsibility for their own learning. In other words, there has
been some recognition that learners as well as teachers should participate in deciding what and how the
teachers are expected to teach (Joyes & Chen 2007).
Failure in information systems implementation may originate from different sources, such as development
failures and information system usage problems. User participation, better modeling tools, and better
management of the developing project are means that could be used to reduce these risks in information
systems projects. When user participation was emphasized during the design process, this showed to be
a factor for a successful design and resulted in positive user satisfaction (Nykänen & Karimaa 2006).
Using a participatory design approach in health IT-based systems design and implementation allows for a
group of people with a common interest to exchange ideas and experiences within the group. It seems
that during their collaboration and exchange of experiences and skills, the staff members widen their
knowledge, or, in other words, increase the human capital. The participatory design approach, through
the involvement of end-users in the design and implementation processes, provides them the opportunity
to learn how to work and collaborate with one another in a new and common subject. They learn how to
use each other’s ideas and viewpoints to improve the quality of work. Moreover, by exchanging their
experiences with each other, they obtain new experiences. In a broader context, they might employ this
new experience and knowledge in their future work in the organization. It can be claimed that in this way
the human capital is increased.
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From another perspective, despite the importance of information and communication technologies for
knowledge sharing, it has been known for a long time that the creation and diffusion of knowledge within
organizations relies on the development of social networks, a shared system of meanings, and cultivation
of shared values and norms. As part of this emphasis on the social aspects of knowledge creation and
sharing, considerable attention has recently been directed toward the role played by social capital
(Vimarlund et al 2001; Spender 1996). In fact, users may not have the time to exchange information
during the ordinary work life, yet this kind of involvement brings the users together and creates the
possibility for building a network. From a social capital perspective, the individuals’ involvement in the
development process can become more important because such a system allows on-the-job IT-training
as well as the creation of a new social network, thereby incorporating new knowledge and skills or
improving old ones, while working. This harbors both, present and future organizational benefits, from the
experience and specialization of employees (Vimarlund & Timpka 1998).
The benefits of social capital has, however, been identified and considered as “optimal” when it is created
by individuals who learn to trust one another so that they are able to make credible commitments and rely
on generalized forms of reciprocity, contributing to an increase in a society’s productive potential. In our
case, social capital is obtained through mutual relationships that are used to accomplish different joint
activities. Like financial capital, social capital is a resource that helps to sustain a community and
encourages collaboration and cooperation between members of groups for their mutual benefits
(Huysman & Wulf 2004). To summarize, the introduction of a new health information systems in which all
users are involved and where networks are used for collaboration at different levels of the healthcare
setting environment, are examples of such assets. Further, the networks are usually groups of people
with common interests. We believe there is a particular need to involve users and other experts in the
early concept phase, where important decisions are made. It can be concluded that using a participatory
design approach to involve end-users in the design of their own system or program, benefit both the
individual and the organization. It can be concluded that the application of a participatory design
approach in health IT-based systems may be fruitful for the organization. The involvement of the endusers
in the design and implementation process will allow for the collection of their ideas, thus benefitting
the developing system as well as the development of the work routines. In addition, a feeling of
ownership could be reached through their participation in the design and implementation of the system.
7. Conclusion
The study was related to the topic of factors that influence the implementation and use of integrated
HISs. The reason to focus on this topic was that though there had been a strong increase in
implementation and use of information systems in healthcare setting, issues such as adoption, HISs
effects, and factors influencing the implementation and use of integrated HISs still need to receive more
attention and publication of such studies contribute to the emergence of an evidence-based health
informatics which can be used as a platform for decisions by policy makers, executives, and clinicians
Based on the result, it can be concluded that there is an increasing need to share knowledge and to find
methods for evaluating the impact of investments and formulating indicators for success. It is therefore
interesting to develop or extend evaluation methods that can be applied to this area with a multi-actor
perspective in order to understand the effects, consequences, and prerequisites for the successful
implementation and use of IT in healthcare.
It can also be concluded that HISs be introduced to fulfil a high number of organizational, individualbased,
and socio-technical goals at different levels. It is therefore necessary to link the objectives that
these systems are designed to achieve with organizations’ short-term, middle-term, and long-term
strategic goals. Another conclusion is that implementers and vendors have to direct more attention to
what has been published in the area to avoid more failures in the future. The other conclusion is that if we
want more evidence-based practice, we need more practice-based evidence.
Acknowledgements
I wish to thank Toomas Timpka, Vivian Vimarlund and Anna Möberg for their valuable help to conduct
this study.
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377

Relationship Between Organizational Factors and RFID
Adoption in Iranian Gas Company Central Warehouses
Farnaz Rahimi 1, 2 and Gholamabas Arabshahi 2
1 Alzahra University, Tehran, Iran
2 Gas company, Mashhad, Iran
farnaz12200@yahoo.com
a_arabshahi@ent.ut.ac.ir
Abstract: This paper examined organizational factors that influence adoption of RFID (Radio Frequency
Identification) technology in IRAN Gas company central warehouses. RFID has the distinct advantage of collecting
data at some distance from the actual product, with no direct line of sight and without labor. Such a data automation
system for real-time tracking, safety monitoring and overall warehouse operation leads to real-time visibility and
tracking of assets and inventory that is necessary for a warehouse. In this paper we examine organizational factors
(Structural: Size and resources and Centralization and Cultural: Innovativeness) associated with the adoption of
RFID in gas company warehouses. Using a survey questionnaire we collected data from all 30 Gas company central
warehouses employees(our unit of analyses) in IRAN .We found that organizational size do not show any
relationship With RFID adoption and Centralization finantional recourses and Innovativeness are positively and
significantly associated with the adoption of RFID . The implications of these and other findings are discussed.
Keywords: organizational factors, warehouse, RFID
1. Introduction
Using radio waves, RFID technology can automatically identify objects. With RFID tags, objects can be
tracked automatically by radio readers providing greater inventory visibility and improved business and
control processes (Ngai et al.2007 Nystrom et al.2006) RFID’s main ability is to capture more data
automatically without human intervention, in almost real time, so it can provide a more dynamic control
environment for an organization.
While RFID has been discussed in the literature as a technology that can provide several advantages:
enhanced warehouse operations efficiency , better of inventory control and monitoring (McFarlane and
sheffi 2003, Higgins,2006) , reduced labor costs (Kinsella,2003) , inventory obsolescence material
handling costs reduction (McFarlane and sheffi 2003), quality control (Hoffman,2006), reductions in outof-stock
and delivery safety stock (Kinsella,2003)uncertainty of product availability reduction (Asif and
Mandviwalla 2005), to its adopters ,the RFID adoption rate is not growing as fast as expected (Nystrom et
al.2006. Boucher 2007).This suggests more effort is necessary to understand the process of adoption of
the technology and to identify factors affecting the RFID adoption decision (Ngai et al2008).
According to Rogers et al. (1996) companies that used more warehousing information technologies had
better performance in the areas of quality and productivity improvements and cycle time reductions than
the low user group. Past researches show that, organizational factors often have significant influence on
the process of technology adoption.(Ko et al.2000; Lefebvre et al. ,1991 ; Masters et al. ,1992
;O'Callaghan et al. ,1992 ;Sullivan ,1990; Premkumar et al .1997).
In this paper we study the relationships between organizational factors (size, financial resources and
centralization) as structural characteristic and (organizational culture) and RFID adoption in the Gas
company warehouses.
The rest of the paper is organized as follows: Section 2 introduces RFID, and the literature review of
RFID adoption studies .In Section3, we present the research model and hypotheses. This is followed by
the description of the research methods used in data collection. Section 5 the findings will be presented.
2. Literature review
2.1 RFID
RFID is a common term for technologies and systems that use radio waves to automatically identify
people or objects.
378

Farnaz Rahimi and Gholamabas Arabshahi
RFID typically consists of three basic components: tags (transponders), readers, and middleware (Asif et
al.2005 ; Preradovic.2007).
A tag usually containing a microchip and an antenna that are attached to or embedded in an object
(Curtin 2007) The microchip contains identification information and may have other application data (e.g.
price, cost, location, and manufacture date, etc.)(Chao 2005)
A reader (also known as an interrogator) sends out a radio signal and abets the tag to broadcast the data
contained on its chip. The reader then change the radio waves returned from the tag into digital data and
forward them to a computer system (High jump Software, 2004; Zebra Tech- neologies, 2004).
2.2 Reviews of related studies
Earlier studies on RFID adoption have focused on a variety of factors associated in adoption process:
Hoske (2004) study the cost factor .Jones, Clarke-Hill, Shears, Hillier, and Comfort (2004b) looked at
privacy and public policy with regards to RFID.
Adam (2004) investigated benefits, costs, standards, and environment; four main factors associated
RFID adoption.
Jones M .et al. (2005) identified benefits, costs, standards, privacy, and the power of retailers as factors.
In their study to identify the factors may influence RFID adoption in South African retail organizations,
Brown and Russell (2007) found that the RFID adoption intention was explained by technological factors
(i.e., relative advantage ,compatibility complexity ,and cost) ,organizational factors (i.e., top management
attitude ,information technology expertise, organization size organizational readiness), and external
factors(i.e., competitive pressure, external support, and existence of change agents.)
Reviewed prior studies, Schmitt et al. (2007) categorized 25 adoption factors in the technology,
organizational, and environment groups. They concluded five most important factors affecting RFID
adoption and diffusion in the automotive industry: compatibility, costs, complexity, performance, and top
management support. Most of these factors belong to the technology characteristics group.
Based on previous literature, there are variety of factors related to technology adoption that we can
categorize them into four groups: environmental, technological, inter-organizational and organizational.
Each group contains different variables in different studies.
In this research we analyze organizational factors comprising four variables discussed below:
3. Research model and hypotheses
3.1 Organizational size
Organizational size has an important impact on the adoption of technological adoption (Kimberly and
Evanisko, 1981; Fama and Jensen, 1983; Kennedy, 1983; Damanpour,1992)
In some studies a positive relationship between firm size and adoption has been concluded (Tornatzky,
1990;Grover, 1993;Premkumar1999; Damanpour, 1992; Moon and Bretschneider 1997).Because of the
cost of RFID tags and other related equipments ,only large companies have the financial resources to
invest in RFID(Wang et al,.2006.) In addition, greater formalization (Pugh et al 1969), greater task
specialization (Blau1970), and more complex forms of communications (Haveman 1993) are
characteristics; help larger organization adopt new technologies.
Although counterarguments exist that smaller organizations have more flexibility due to fewer levels of
bureaucracy, thus increasing their ability to adopt technology more quickly (Patterson et al 2003), few
empirical results have shown that smaller firms tend to be more innovative (Salavou, et al. 2004)
In this study, organizational size is defined as work force size (number of employees) (Kimberly and
Evanisko 1981;Teo and Tan ,1998) and the number of items categorized in each warehouse.
We expect that organization size will have a positive influence on RFID adoption:
379

Farnaz Rahimi and Gholamabas Arabshahi
H1: There is a positive relationship between size of organization in terms of number of employees and
number of items in each warehouse and RFID adoption.
3.2 Financial resources
Financial resources of an organization are another predictors of innovation (Hage and Aiken 1967; Hurley
and Hult 1998).
Financial resources facilitate the adoption of technology and provide organizations with the capacity to
accept risk inherent in investing in new technology (Grover and Goslar 1993).
The measure we used in this study is the budget allocated for new technology acquisition.
H2: There is a positive relationship between the amount of financial resources and RFID adoption.
3.3 Centralization
Centralization has been defined as the degree that power is distributed among all the positions within an
organization (Hage and Aiken 1967; Schminke et al.2000).
It consists of two dimensions :(Hage and Aiken 1967; Schminke, et al.2000)
1)Participation in decision making which shows how much members of the organization, participate in
organizational decisions(Hage and Aiken 1967), and 2) Authority hierarchy which refers to" the amount of
autonomy employees have in relation to deferring to superiors when making decisions about day to day
tasks" (Tata and Prasad 2004, p. 251)
Rogers (1995) suggested that centralization is negatively associated with organizational adoption. This is
empirically supported by prior studies (e.g Hage, 1969; Moch and Morse, 1977; Kimberly and Evanisko,
1981; Pierce and Delbecq, 1977;Grover 1993; Grover and Goslar 1993)
A reason for this relationship is that in a centralized structure, top management is not aware of
operational- level problems and con not suggests relevant innovations to meet their needs. Another
reason is that the more power is concentrated at the top by a few strong leaders, the more new ideas and
innovations are restricted .( Yoon,2009)
However, some researchers found a positive relationship between centralization and technology adoption
.(Ettlie et al. 1984).They found that centralized decision making would facilitate faster and more efficient
adoption because lower level management resistance would not impede top management support.
Evidence has also supported that decentralized organizations are more likely to adopt technological
innovations.
In this study we ask the respondents to state how much they are interfered to every day decision making
and how much their boss intervene to their tasks.
Based on these arguments and previous findings, the following hypothesis is proposed in this research:
H3: There is a negative relationship between the degree of centralization of the organization and
adoption of RFID.
3.4 Organizational culture
There are over 54 definitions of organizational culture in literature. Verbeke et a l.(1998). “A system of
shared norms and behaviors that are learned by members of the organization and shape their way of
doing” (p. 313). Sutherland and Morieux (1988) defined organizational culture as “a set of emotional
conditions, views of the past and standards of behavior belonging collectively to an organization (p. 43).
Organizational culture can explain why some organizations adopt new technology quicker than their
competitors. (Glisson and James 2002).
380

Farnaz Rahimi and Gholamabas Arabshahi
We ask the respondents about management’s attitude towards innovations and new ideas and also
respondent willingness to search and seek innovations. (Hurley and Hult1998)
H4: There is a positive relationship between innovative organizational culture and adoption of RFID.
4. Research design
The propositions in last Section formed the basis for carrying out the investigation. This study is an
applicable-descriptive research. We use questionnaire which developed by adopting measures from
several sources (Hurley and Hult 1998;Hage and Aiken 1967; Jaworski and Kohli1993; Matsuno et al.
2002; Kimberly and Evanisko1981).
A5-point Likert scale was used for each item, anchored by Strongly Agree at one end to Strongly
Disagree at the other. The target population for this study was Gas company central warehouses
employees in all the states in IRAN. Due to resource constraints, we chose a sample, using random
sampling and mail the questioners to 145 respondents.120 questioner were returned and used for our
analysis.
4.1 Reliability
Cronbach’s Coefficient Alpha in a small sample size was 0/93 which means the questioner has a high
degree of reliability.
5. Data analysis
Using SPSS software, we specify Correlation Coefficient between RFID Adoption and other factors
(organizational size, centralization, financial resources, and innovative culture) as follows:
Table 1: Results of analyzed data
RFID Adoptionorganizational
size
RFID Adoption -
centralization
RFID Adoption –
financial resources
RFID Adoption –
innovative culture
sample
size
120
120
120
120
Correlation
Coefficient
-0.069
0.461
0.208
0.599
Statistic
0.75
5.64
2.31
8.13
6. Findings
As mentioned in the table, the results are as followed:
P-value
0.452
0/000
0.023
0.000
α
0.05
0.05
0.05
0.05
result
there is no
relation between
RFID Adoptionorganizational
size
there is a positive
relationship
between RFID
Adoptionorganizational
size
there is a positive
relationship
between RFID
Adoptionorganizational
size
there is a positive
relationship
between RFID
Adoptionorganizational
size
Organizational size does not have impact on RFID adoption. All other structural variables (finantional
resources, centralization) and also innovative culture of the organization have a positive relationship with
RFID adoption. So the propositions number 2 and 4 (financial resources and innovative culture) are
proved and the other 2 hypothesis (size and centralization) rejected.
These findings can guide the decision makers. It shows that consideration of innovativeness and
allocating financial recourses to new technology can speed up the rate of adoption. Because Gas
381

Farnaz Rahimi and Gholamabas Arabshahi
Company is governmental in Iran, centralization is unavoidable. In such situations, decision makers
should concern financial resources and innovative culture more.
Acknowledgements
We highly appreciate Khorasan Razavi Gas Co for their technical and financial support of this research.
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383

Business Intelligence as Decision Support in Business
Processes: An Empirical Investigation
Ari Riabacke 1 , Aron Larsson 1,2 and Mats Danielson 1
1
Stockholm University, Kista, Sweden
2
Mid Sweden University, Sundsvall, Sweden
ariria@dsv.su.se
aron.larsson@miun.se
mad@dsv.su.se
Abstract: Our concern in this paper is the role of business intelligence systems and the perceived business value of
implemented systems and their contribution to facilitate the fulfilment of organizational goals. The study builds upon a
survey answered by 43 respondents from different large companies in Scandinavia. The survey used questions on
how visions, objectives, strategies are supported by BI systems, on how business values are derived from such
systems, and on how design and implementation issues affect the solutions. The overall conclusion of the study is
that there are markedly different levels of problems in the areas, most problems being found in integration of BI
information and decision processes, and that there is room for large improvements and further work within everything
from implementation to requirements engineering for business intelligence decision support systems.
Keywords: business intelligence, decision support, business value, empirical study
1. Introduction
During the latter decades organizational decision making has become increasingly complex due to the
amount of accessible information that managers wish to incorporate in decision making activities has
increased dramatically. Given the integration of information systems into business processes,
organizational decision making may often experience a substantial amount of environmental pressure
due to, for instance, information overload and sharper time constraints (Rasmussen 2000, Speier and
Morris 2000). At present, one popular approach to deal with the increasing amount of data in
organizations is to build data warehouses and BI-systems.
Systems or methods for supporting decisions come in many forms. For example, decision analytical
systems, focusing on supporting problem structuring and evaluations of alternative courses of action,
optimization tools focusing on finding an optimal solution for a well-defined system of constrained
variables, or business intelligence systems (BI) aiding in the gathering and analysis of business
information. See (Turban et al. 2010) for a comprehensive treatment of business intelligence. In this
respect, business intelligence systems may be viewed as information systems with special focus on
providing accessible business data, i.e., they can be viewed as type of decision support system with the
capability of (easily and quickly) providing reliable and up-to-date information or key figures about the
organization.
Since the 1990s, such BI systems typically employ three different technologies for supporting decision
making in an organization: data warehouses (DW) for the gathering of business data, data mining (DM),
and on-line analytical processing (OLAP) for data analysis (Shim et al. 2002). The benefits of a decision
support system may further vary. Already in 1981, Keen summarized the potential benefits of a decision
support system (DSS) as they enable the following: facilitate a more rational treatment of decisions
problems; yield a better understanding of the business; yield faster response to unexpected situations;
facilitate ad-hoc analyses; yield new insights and learning; improve communication; enhance control;
enhance team work; reduce time spent on planning; and better use of resources (Keen 1981). This
basically remains true even today. However, the decision support function enabling better decision
making and other more advanced uses of a BI system such as facilitating business strategies is hard to
measure (Watson and Wixom 2007). The results of a previous study presented in (Stenfors et al. 2007),
according to managers the strongest incentives for investing in a DSS are to increase the effectiveness of
operational processes and to support strategic work and decision making. These benefits are indeed of a
more qualitative kind, and the decision to invest in a DSS is therefore often based rather on estimated or
perceived values than on actual costs. Further, the results from the abovementioned study indicate that
managers view DSS and BI systems as support instruments to business process management. However
enabling this support does call for the BI system to be systematically aligned or integrated with business
processes to a greater extent (Bogdana et al. 2009). The more recent and wider concept of BPM
(business performance management) is related to business intelligence as the utilization of BI systems
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Ari Riabacke et al.
can be viewed as an element of BPM, but where the use is supposed to be aligned with organizational
strategy and determined by a program for how to implement this strategy (Frolich and Ariyachandra
2006).
But how does this need for a DSS manifest itself? Recent years have witnessed a remarkable increase of
companies investing in BI systems, see (Hannula and Pirttimäki 2003). This makes it interesting to study
the use and knowledge of the effects on the businesses of the companies utilizing, or having the ability to
utilize, such systems. Further, studies of BI systems as a support for organizational decision making are
relatively scarce. With respect to information systems in general, several studies have been carried out in
order to identify factors behind a widespread use and end-user acceptance of a system within an
organization. These factors are often user-related, such as user attitudes, their previous experiences, and
user participation in development, but also context-related, such as top management support and
conditions facilitating the use of information systems; see (Bajaj and Nidumolu 1998, Sabherwal et al.
2006, Riabacke 2006).
It is well-known that up to 50%, some say even 70%, of all BI implementations fail in one or more
respects, not delivering the value-for-investment expected at the outset. While there are studies on the
pitfalls of developing and realizing BI systems, this study focuses on systems already in operation, their
organisational context, and hurdles on the path to efficient and effective use of BI information. We will, in
the paper conform to the common use of the concept of system, denoting the technical part of a BI effort.
From a systems science perspective, the system boundaries are indeed much wider, encompassing the
organisation and its control mechanisms. Not to interfere with colloquial interpretations of the system
concept, we will refer to this wider concept as the BI scope.
BI is not about technology, it is much more. It is about providing an organisation with support for better
decision making. Our hypothesis, from literature and interviews, is that far too much focus in the
development and implementation of BI solutions in organizations is put on the technical parts of the
system. Much of the effort is thus on the right hand side of the model shown in Figure 1, i.e. on the
design and building of data warehouses, and on creating different types of reports. In comparison less
effort seems to be put on structuring and understanding business processes and gaining insights into the
decision making activities involved in these processes that are to benefit from the BI systems. In other
words, the level of integration of BI systems into business processes could be much higher, yielding a
better business value of the investments made in the system.
Figure 1: Objects of interaction in the use of BI applications and systems
Thus, the main area of concern in this paper is to what extent this view is supported by studying the
perceived values of BI systems use and the views on system design and implementation.
2. Study outline and method
The study was conducted using a quantitative method based upon a questionnaire. Of 1085 persons
considered for the survey and accessible through a large and collaborative consultancy firm, 105 were
selected for participation. Of these 105, 43 completed the questionnaire, yielding an effective completion
response rate of 41%. Thus, 43 respondents from different large Scandinavian companies employing BI
systems for decision making support, having a leading role in these, fully answered the questionnaire in
which they had to estimate how well different statements regarding their BI solutions corresponded to
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Ari Riabacke et al.
their own perception of the reality in their own business. The respondents came from various business
segments according to Table 1.
Table 1: Respondents’ business segments
Business segments Count
IT 5
Logistics 4
Banking and insurance 15
Real estate and construction 1
Consumer products 2
Energy 3
Pharma and health care 1
Industry 6
Public sector 4
Other 2
TOTAL 43
Table 2: Respondent’s role (some have more than one role)
Role Count
CEO 3
CIO 3
CFO 6
Other management 3
Head of Business Segment 4
IT Management 7
System owner 1
Requirements officer 3
System architect 4
Developer 4
Other 10
Total 48
The questions were divided into six categories 1 to 6, each comprising of six questions. The categories
are:
1: Visions, objectives, and strategies
2: Business values from BI systems
3: Requirements analysis and needs
4: Change management
5: Technical solutions
6: Decision making support
Thus, each category consists of 6 statements which the respondents were asked to assess. The
respondents indicated how much they agreed with each statement on a 1-to-7 Likert scale, where 1 was
strongly disagreeing and 7 was strongly agreeing. The statements were designed so that a higher value
indicated better integration of BI into the business processes. One example of a statement in category 1
is “BI has a role in our strategic processes”. See the appendix for the complete set of statements. For
each category, the aggregated results (modal scores) of all respondents are shown in two spider
diagrams (one for each category cluster). Thus, the area in the diagram represents the degree of BI
integration in the category according to the responses.
386

3. Results
Ari Riabacke et al.
The results are presented in two formats. The first format compares, for each category and question, the
number of respondents who assessed a score of below 4 (the neutral score) to the number of
respondents who assessed a score of above 4. These results are presented in three bar chart diagrams,
one for each pair of categories. The other format is in the form of spider diagrams showing the modal
score of each question, i.e. the most common assessment for each question. As there were more than
one mode for some questions, the darker areas represent the result obtained from minimum modal
scores and the brighter areas the maximum.
3.1 Below neutral score vs. above neutral score
2
2
1
1
5
0
Figure 2: Number of responds below (red) and above (green) the neutral score of 4 for categories 1-2
30
25
20
15
10
5
0
3.1 3.2 3.3 3.4 3.5 3.6 4.1 4.2 4.3 4.4 4.5 4.6
Below 4
Above 4
Figure 3: Number of responds below (red) and above (green) the neutral score of 4 for categories 3-4
35
30
25
20
15
10
5
0
1. 1. 1. 1. 1. 1. 2. 2. 2. 2. 2. 2.
5.1 5.2 5.3 5.4 5.5 5.6 6.1 6.2 6.3 6.4 6.5 6.6
Below 4
Above 4
Figure 4: Number of responds below (red) and above (green) the neutral score of 4 for categories 5-6
387
Below
Above

3.2 Modal scores
Ari Riabacke et al.
1.1
7
6
5
4
3
2
1
0
Figure 5: Spider diagram of modal scores for categories 1-2
2.4
2.5
2.3
2.6
2.2
2.1
3.1
7
6
5
4
3
2
1
0
Figure 6: Spider diagram of modal scores for categories 3-4
4.4
4.5
4.3
4.6
4.2
4.1
5.1
7
6
5
4
3
2
1
0
Figure 7: Spider diagram of modal scores for categories 5-6.
6.4
6.5
6.3
6.6
6.2
6.1
388
1.2
1.6
3.2
3.6
5.2
5.6
1.3
1.5
3.3
3.5
1.4
3.4
5.3
5.5
5.4

4. Analysis
Ari Riabacke et al.
The results differ markedly between categories of statements. In category 1, Visions, objectives, and
strategies, there is good agreement for all except two statements. There seems to be a fairly good
grounding of BI systems in the organisations’ control documents and visions, showing a conceptual
integration of BI as decision support and with an understanding of how the system may provide support.
1.2 and 1.6 did indicate the opposite, these two having modal scores of 3 and 2 respectively. Those two
latter statements referred to specific management issues which were perceived to be less integrated with
BI visions.
In category 2, Business values from BI systems, there was also a good agreement with the statements in
general. There is a clear indication that the needs are being catered for and that perceived business
values are derived from business intelligence information. The only exception here is statement 2.3 which
deals with the source of promotion for BI solutions, indicating that the need of a BI system is not primarily
perceived by the benefiting organisation but rather promoted by external sources.
In category 3, Requirements analysis and needs, all indicators show that there was good agreement with
the statements. This implies that the most businesses indeed have a fairly good control over the design
and implementation of BI systems from an organisational perspective.
In category 4, Change management, there was much less agreement with the statements. In particular,
statements 4.1 – 4.3 indicated stronger disagreement with the statements, implying problems with
integrating the information in decision making processes. The result for statement 4.5 is clearly positive,
dealing with user involvement in general, whereas 4.4 and 4.6 indicate a neutral to agreeing position with
the statements. The latter three are statements more typical to information systems in general.
In category 5, Technical solutions, most statements are agreeable for a majority of respondents. This
category deals with technical issues on implementation as opposed to category 3 which deals with
organisational issues. Like category 3, this is not overly complicated to deal with for accomplished
organisations. There is, however, strong disagreement regarding statement 5.3, again dealing with top
management. On the other hand, there is also disagreement among researchers on the involvement of
top management in these issues in contrast with involvement in organisational issues which are
considered much more pivotal to success.
Finally, in category 6, Decision making support, we find the strongest area of disagreement, with all six
indicators being disagreed with on an aggregate level. This clearly implies that the largest set of problems
with BI systems lies in integrating them with decision making processes in the businesses, indicating
problems with BI scope rather than the BI systems themselves.
The same picture is painted by the modal scores, see Figures 5-7.
5. Conclusion
Of the six problem areas studied in this paper, clearly Change management and Decision making support
are those that contribute most to BI systems not being as efficiently functional in an organisational sense
as anticipated. The area Visions, objectives, strategies is mixed, with some problems, and Technical
solutions, Business values from BI systems and Requirements analysis and needs are less problematic
than the others. This indicates that the perceived value from a BI system does not lie in its decision
support function and that there is little understanding in how to use it as decision support, i.e. a problem
within the wider concept of BI scope.
In other words, when looking back at the triangle in Figure 1, we have found that most efforts done
towards the integration of business intelligence systems in organizations focuses on the right hand side
of the triangle in Figure 1, i.e. on the technical parts of the BI solution.
6. Discussion and outlook
While almost every for-profit organization builds business cases or similar around new investments in
general, this is much more seldom done for BI systems, where the inability to measure its impact renders
standard measurement models unusable. There is of course a reason for BI systems winding up in the
state they are. One hypothesis that need to be further examined in a more qualitative investigation is that
this is a result of that BI systems are treated as just another kind of traditional information systems. In
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Ari Riabacke et al.
contrast to operational information systems which directly support operational processes that often are
rather well defined, BI systems have the capability to support follow-up and decision making processes
which typically are less defined in an enterprise. Hence, for an organization, a BI system is
complementary to an operational information system, serving as a support for managing the business at
several different levels. Surely, decision processes could also be modelled using process modelling
techniques, but not the same as operational business processes. However, when lacking another
approach, it is understandable that BI systems are treated as “just the next information system” when it is
being designed, implemented, and maintained. At present, the main objective when implementing a BI
system seems to be that of simply getting it to operate, with too little emphasis on actually getting it to
work within its context and thus provide value. This also supports the statement that the practice of BPM
concepts is not widespread or mature in the responding organizations, or that the BI system is neglected
in this practice. Therefore, too many organizations nowadays express a neutral or unhappy view on their
BI systems. Avoiding this calls for another approach in the design phase, approaches stimulating how the
information is going to be used and by whom, as opposed to approaches focusing on simply getting it
implemented and usable.
In order to develop good BI solutions that support organizations in reaching their overall goals, we must
strive for a more holistic view on the implementation of BI systems, for instance by not implementing BI
systems without having a proper treatment and understanding of the business processes and the related
decision making activities. This means that the solutions must be based on knowledge from a number of
areas in addition to database management and computer engineering, i.e. the balance between decisionmakers,
business models and the technical support system must be better managed. In most current BI
solutions there is a lack of balance in terms of focus on the different corners in the triangle. This calls for
requirements specification and design processes focusing on and identifying the business and decision
processes that are to benefit from the information provided through the system as well as the
organizations overall strategy.
7. Appendix
7.1 The questionnaire
The following three sub-sections show the statements in the questionnaire as they appear in the results
section. They have been grouped into three clusters for presentational purposes.
7.1.1 Categories 1-2
1.1 The BI-systems support the work towards fulfilling the organizations objectives, strategies, and
visions.
1.2 The BI strategy is well established at the organization’s top management.
1.3 BI is an important part of the organization’s strategy process.
1.4 We have a clear understanding of how the BI systems will aid us in reaching stipulated
objectives.
1.5 We ensure that the technical solution, the organization, and the business objectives are
consistent in our solution for BI.
1.6 BI and BI-related questions are a common issue on the regular management meetings.
2.1 The BI systems are tied to the needs of the organization.
2.2 The BI systems provide information relevant to the different business units and their needs.
2.3 It is clear who promote the needs for BI systems.
2.4 The BI systems support the organization’s core processes.
2.5 The development of our BI systems is solely driven by our business needs.
2.6 We always create a “business case” prior to investments in BI systems.
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7.1.2 Categories 3-4
Ari Riabacke et al.
3.1 Our BI systems provide information that is easy to understand and use in decision making,
3.2 The BI systems support the organization in reaching its overall business objectives.
3.3 We have a clear distribution of roles and responsibilities when designing our BI systems.
3.4 We have a clear distribution of roles and responsibilities when implementing our BI systems.
3.5 The ownership of BI system implementation projects lies on the using part of the organization.
3.6 Technical experts, users, and management are always involved in the design and implementation
of BI systems.
4.1 We secure that the foreseen users utilize the information provided by the BI systems.
4.2 We have well established routines for how to prepare the organization and its users to use new
technology and new information.
4.3 We have clear ideas on how new available information will fit with existing decision processes.
4.4 We allocate funds for education of personnel when investing in BI systems.
4.5 We secure that the users are involved in development and implementation of BI systems.
4.6 We secure that the organization and its individuals know how and why they are to use the BI
systems and the information they provide.
7.1.3 Categories 5-6
5.1 We secure that the technical parts of the BI systems support stipulated business objectives.
5.2 The business put clear requirements on what is desired from the technical parts of the BI
systems.
5.3 Corporate management is an active part in the technical requirements specification process for
the BI systems.
5.4 The users are an active part in the requirements specification process for the BI systems.
5.5 There is a clear and structured user representation in the selection of technical solutions for our
BI systems.
5.6 The users of our BI systems is an active part when deciding on presentation formats of the
information provided by the systems.
6.1 We measure the business value generated by our BI systems in a quantitative fashion.
6.2 There are clear processes for how the information provided by BI systems are be used in
operational decision making.
6.3 We use essentially all information accessible from our BI systems.
6.4 There are clear guidelines and processes for how to cope with information anomalies or
deviations from expectations.
6.5 We utilize the information provided from our BI systems in a majority of the business decisions
made in our company.
6.6 We continuously secure that our BI systems provide relevant information for our business units.
391

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392

Assessing Future Value of Investments in Security-Related IT
Governance Control Objectives – Surveying IT Professionals
Waldo Rocha Flores, Teodor Sommestad, Hannes Holm and Mathias Ekstedt
Royal Institute of Technology, Stockholm, Sweden
waldorf@ics.kth.se
teodors@ics.kth.se
hannes.holm@ics.kth.se
mathiase@ics.kth.se
Abstract: Optimizing investments in IT governance towards a better information security is an understudied topic in
the academic literature. Further, collecting empirical evidence by surveying IT professionals on their relative opinion
in this matter has not yet been explored to its full potential. This paper has tried to somewhat overcome this gap by
surveying IT professionals on the expected future value from investments in security-related IT governance controls
objectives. The paper has further investigated if there are any control objectives that provide more value than others
and are therefore more beneficial to invest in. The Net Present Value (NPV) technique has been used to assess the
IT professionals relative opinion on the generated future value of investments in 19 control objectives. The empirical
data was collected through a survey distributed to professionals from the IT security, governance and/or assurance
domain and analyzed using standard statistical tools. The results indicate that the vast majority of investments in
control objectives is expected to yield a positive NPV, and are beneficial to an organization. This result implies that
investments in control objectives are expected to yield positive Net Present Value for the firm, which is an important
finding since many of the benefits from an investment are indirectly related an may occur well into the future. The
paper moreover contributes in strengthening the link between IT governance and information security.
Keywords: IT governance, control objectives, Information security, net present value
1. Introduction
Contemporary enterprises are largely dependent on Information Technology (IT) as it supports many
critical business and administrative functions. This dependency has unfortunately led to an increase in
potential threats to the enterprise and its information assets. Enterprises are therefore compelled to
invest in information security to protect information assets, to avoid negative consequences that poor
information security can lead to, and create value for their shareholders. Value for an enterprise’s
shareholders is created by making beneficial real investment decisions. The meaning of real investments
is expenditures that generate cash in the future and, as opposed to financial investments, like stocks and
bonds, are not financial instruments that are traded in the financial markets (Grinblatt and Titman 1998).
To aid a decision maker in determining whether an security investment create value for the shareholder a
responsible manager need to argue and communicate the rational with the choice of the investment
alternative (Johnson 2006). By focusing on communicating security issues concerning business issues
and providing related business benefits, risks and benchmarks, the importance of a security investment
can be heightened. Financial metrics such as net present value (NPV) improves the effectiveness of the
communication and can therefore be used to evaluate different security investment alternatives so that
the most beneficial investment alternative is identified (Theo, Renkemaa and Berghoutb 1997). The use
of NPV, explicitly, as an evaluation tool for security investments at the proposal stage has also been
suggested by (Gordon and Loes 2002).
IT governance provides value by harmonizing decisions about the management and use of IT with
desired business behaviors. This implies that IT governance investments pay off (Van Grembergen and
De Haes 2008) (Weill and Ross 2004) (Simonsson, Johnson and Ekstedt 2010). A core objective for IT
governance is information security (Calder and Watkins 2008), and it is therefore reasonable to believe
that investments in IT governance also are beneficial for an organizations information security. A problem
is, however, that benefits to the organization are often indirectly related to the investment and may occur
well into the future. It may therefore be difficult for managers in an organization to demonstrate the
expected future value of investing in control objectives. And to effectively direct investments endeavors, a
crucial question is if there exist any differences in how effective these investments are in generating
value. The need for decision support regarding investment opportunities in security is therefore needed.
In this article we have investigated the value in terms of reduced negative consequences from security
incidents generated from investments in IT governance control objectives (time, people or money etc.).
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Waldo Rocha Flores et al.
To answer this question we have surveyed IT professionals in the security, governance and/or assurance
domain and asked them on their opinion regarding the value of investments in IT governance control
objectives. The Net Present Value (NPV) technique was used in order to assess the IT professional’s
relative opinion on the value these investments is expected to provide.
The structure of the paper is outlined as follows. Section 2 presents some related work to motivate our
contribution in respect to previous research. In section 3 the control objectives from COBIT Security
Baseline and the Net Present Value technique is presented. Section 4 presents the methodology used in
the study. Section 5 presents and analyses the results. Section 6 discusses the results and finally,
section 7 concludes the paper.
2. Related works
In the IT governance field there exists several studies on the impact of different components on overall
goals. COBIT (ISACA 2007a) describes what processes that are primarily and secondarily related to
several information criteria in its appendices. (Simonsson, Johnson and Ekstedt 2010) have assessed the
impact of IT governance maturity on the external quality of delivered IT services experienced by the
business. The authors further also investigated the relative importance of different IT governance
processes. In addition, (Debreceny and Gray 2009) assessed the IT governance maturity of
organizations with respect to predefined IT governance maturity attributes.
The use of an information security standard as an IT governance framework has been proposed in
(Calder and Watkins 2008). In this work, the authors discussed the relevance of the information security
standard management standard ISO 27000 as a framework for fulfilling general objectives with IT
governance.
This study examines how control objectives associated with IT governance support information security
and generate future value in terms of reducing negative consequences from security incidents. There are
several studies that assess the importance of different security goals, for instance (Bartolini and Sallé
2004) (Su, Bolzoni and Eck 2007) (Neubauer, Klemen and Biffl 2005). These authors have assessed the
priority or impact of security objectives on information security. This article, however, assess the impact
of investment in IT governance objectives on security.
The impact of objectives related to security can be assessed in a number of ways. Economic methods
are often used to evaluate different security strategies. For example, (Gordon and Loes 2002) (Mercuri
2003) (Sonnenreich, Albanese and Stout 2006) have described methods where economic variables were
used to evaluate security alternatives regarding the cost of investments and the value they provide.
Security per se does not provide business value. The benefit of security investments are instead
assessed in terms of the reduced cost from security incidents. Therefore, economic techniques such as
the NPV or return on investment (relabeled as return on security investment) have been suggested by
(Gordon and Loes 2002) (Sonnenreich, Albanese and Stout 2006).
In the present paper, NPV technique is used to empirically assess the relative value investments in 19 IT
governance control objectives are expected to provide. To the authors knowledge this has not yet been
presented in the academic literature.
3. COBIT security baseline and the Net Present Value
This section describes the best-practice guideline that served as a basis for the survey and the evaluation
technique used to evaluate generated future value of investment in control objectives.
Control Objectives for Information and related Technology Standards (COBIT) is currently the most wellestablished
best-practice guideline for IT governance. It outlines 34 IT processes, their purpose and the
controls that should be used to govern them (ISACA 2007a)(Debreceny and Gray 2009) (Simonsson,
Johnson and Ekstedt 2010). A core part of COBIT concerns information security and the 19 most
essential IT governance control objectives toward better information security has therefore been
extracted from COBIT and presented in COBIT Security Baseline (ISACA 2007b). In this paper COBIT
security baseline (ISACA 2007b) was used as the basis for developing the survey used for collecting
data.
COBIT security baseline describes 19 security-related control objectives that are cross-referenced to
related COBIT processes and related control sections in ISO/IEC 27002:2005 (ISO/IEC 2005). The
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Waldo Rocha Flores et al.
control objectives are grouped into four domains: Plan and Organize (PO), Acquire and Implement (AI),
Deliver and Support (DS), and Monitor and Evaluate (ME) (c.f. Figure 1). The domains map to IT´s
traditional responsibility areas of plan, build, run and monitor. Within the COBIT framework, these
domains, as shown in Figure 1, cover the following:
Plan and Organize (PO): This domain provides direction to solution delivery and service delivery. It
covers strategy and tactics, and concerns the identification of the way IT can best contribute to the
achievement of the business objectives.
Acquire and Implement (AI): This domain provides the solutions and passes them to be turned into
services. To realize the IT strategy, IT solutions need to be identified, developed or acquired, as well
as implemented and integrated into the business process. In addition, changes in and maintenance
of existing systems are covered by this domain to make sure the solutions continue to meet business
objectives.
Deliver and Support (DS): This domain receives the solutions and makes them usable for end users.
It is also concerned with the actual delivery of required services, which includes service delivery,
management of security and continuity, service support for users, and management of data and
operational facilities. All IT processes need to be regularly assessed over time for their quality and
compliance with control requirements.
Monitor and Evaluate (ME): This domain serves the purpose of monitoring all processes to ensure
that the direction provided is followed. Further, the domain addresses performance management,
monitoring of internal control, regulatory compliance and governance.
Monitor and Evaluate
17.Regularly monitor the performance of information
security.
18.Gain confidence and trust in security through
reliable and independent sources.
19.Ensure that information security functions comply
with applicable laws, regulations and other external
requirements.
Deliver and Support
11.Define and manage security aspects of service
levels.
12.Manage security aspects of third-party services.
13.Ensure that the enterprise is capable of carrying on
its day-to-day automated business activities with
minimal interruption from a security incident.
14.Ensure that all configuration items are
appropriately secured and security risks minimized by
ensuring the enterprise’s awareness of its IT-related
assets and licenses.
15.Ensure that all data remain complete, accurate and
valid during input, processing, storage and
distribution.
16.Protect all IT equipment (hardware) from damage.
IT Governance Control Objectives toward
better information security
Plan and Organize
1.Identify information and services critical to the
enterprise and consider their security requirements.
2.Define and communicate information security
responsibilities.
3.Define and communicate management aims and
directions with respect to information security.
4.Ensure that security functions are staffed properly
with people who possess the necessary skills to fulfill
the role.
5.Discover, prioritize, and either contain or accept
relevant information security risks.
Acquire and Implement
6.Consider security when identifying, automated
solutions.
7.Consider security when acquiring and maintaining
the technology infrastructure.
8.Consider security when enabling operational use.
9.Ensure that all changes, including patches, support
enterprise objectives and are carried out.
10.Ensure that all new systems and changes are
accepted only after sufficient testing of security
functions.
Figure 1: IT governance control objectives drawn from COBIT security baseline
The NPV method was used to assess the generated future value of the 19 control objectives. The starting
point in the NPV method is the cost of capital for an investment, otherwise known as the required return.
The cost of capital is the amount that an investor requires to compensate her for the time value of money
tied up in the investment and for taking on risk in the investment. Thus, it represents the costs for her to
take on the investment alternative and it is the minimum return that investors expect for providing capital
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Waldo Rocha Flores et al.
to an investment, thus setting a benchmark that an investment has to meet. For an investment to add
future value, it must earn more than the cost of capital. When calculating the NPV for an investment the
following formula is used:
NPV
∞
∑
Rt
t=
( 1+
i
= t
0 )
The cost of capital rate ( ) is used as the discount rate. This is the rate of return that could be earned on
an alternative investment with similar risk. is the net cash flow, i.e. the amount of cash, inflow minus
outflow, at time To calculate the NPV for an investment each cash inflow/outflow associated with it is
discounted back to its present value. The NPV is the sum of all present values from the time series of
cash flows. If the NPV is larger than zero it is beneficial to make the investment and the investment is
therefore a good real investment opportunity. If NPV is less than zero it will not add value and thus be a
less attractive investment opportunity. Applied to our case a good real investment opportunity is an
investment in security that generates future value in terms of reduced impacts from security incidents and
provides value to the shareholder. To estimate the value of investments in control objectives the NPV of
all 19 control objectives was assessed by surveying IT professionals.
4. Method
This study utilizes a survey as a measurement tool, this due to the obvious strengths in terms of
statistical analysis and cost efficiency. The aim of the study is not to reach in-depth information regarding
each of the 19 control objectives; it is simply to gain an understanding of the relative impact of control
objectives on information security and can thus be categorized as an exploratory study.
4.1 Population and sample
When constructing a survey it is important to specify a population with favorable attributes and choose a
representative sample from that population (Saunders, Lewis and Thornhill 2009). A natural prerequisite
for respondents is that they can relate to the questions of the survey (Blair 2005). In this case it meant a
population of experienced professionals in the IT security, governance and/or assurance domain.
A strategic sample consisting of a conference with approximately 100 participants satisfying the
population constraints was used. Of this population 22 answered the survey. 15 respondents were
professionals in IT Security, 9 were professionals in IT Assurance and 11 were professionals in IT
governance. The most common combination was IT Security and IT governance. Four respondents came
from the banking industry, six from the energy industry, three from the public administration sector, two
from the telecommunication sector, two from transport logistics and one consultant. One respondent did
not specify his or her sector.
The majority of the respondents were CISA (Certified Information System Auditor) and/or CISM (Certified
Information Security Manager); twelve respondents were CISA, six CISM and three CGEIT (Certified in
the Governance of Enterprise IT). Only four respondents did not hold any certification. Thus, the
respondents originate from many different branches and a diverse number of roles. Although slightly
diminutive this sample is considered representative of the population.
4.2 The survey
A face-to-face survey was carried out since all respondents were at the same geographical location (Blair
2005). The survey consisted of two pages of which the first according to recommendation by (Blair 2005)
introduces the concepts of COBIT Security baseline, NPV, and a description of how to answer the
questions. Furthermore, the first page also includes three questions used to assess background
information of respondents. The first question concerned the domain the IT professional work in, the
second if the respondent holds any certification and the third in which industry the IT professionals are
active in. The second page of the survey consisted of 19 questions utilized in order to gain information
regarding the significance of the IT governance control objectives in the COBIT security baseline. All of
the 19 questions included in the survey were taken directly from COBIT security baseline without any
manipulation.
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Waldo Rocha Flores et al.
For each of the 19 control objectives the respondents were asked to indicate the size of the
corresponding NPV on a scale. In figure 2, the 5 questions belonging to the Plan and Organize domain
are presented to provide information of the question format. The questions were answered using ratio
scale, with 0 NPV in the middle, positive NPV to the right and negative NPV to the left. The results were
interpreted using a ruler with a millimeter scale, rounded to the nearest complete mm. The outcome was
then rescaled to the interval [-5,+5] in order to generate more pedagogical results.
Please estimate how investments in each of the areas below would add additional value (NPV) to an organization in
the industry you work in.
4. Control objectives (investment opportunities)
Yields the following NPV
Negative Positive
4.1. Identify information and services critical to the enterprise and
consider their security requirements.
4.2. Define and communicate information security responsibilities.
4.3. Define and communicate management aims and directions
with respect to information security.
4.4. Ensure that security functions are staffed properly with people
who possess the necessary skills to fulfill the role.
4.5. Discover, prioritize, and either contain or accept relevant
information security risks.
Figure 2: Question format
4.3 Analysis methods
Three tools were utilized to analyze the results of the survey: box plots, tests for normality and statistical
measurements.
Box plots (sometimes referred to as “box and whisker plots”) were first used to evaluate the results. Box
plots were chosen to be used due to the favorable non-parametric distribution requirement by the tool.
The box plot provides a graphical representation of a dataset according to percentiles. The bottom of a
box (the lower quartile, Q1) is the 25 th percentile and the top of the box (the upper quartile, Q3) is the 75 th
percentile. The band in the box represents the median (50 th percentile). Data in the 1 st -24 th percentile and
the 76 th -100 th percentile are represented by whiskers and/or dots (outliers). More information regarding
box plots can be found in (McGill, Tukey och Larsen 1978).
Tests for normality were performed using QQ-plots (Warner 2008). Outliers who did not meet the
normality assumption were removed according to the recommendation by (Montgomery 2005) in order to
improve the overall data quality. The evaluation of the data set with box plots gave an understanding of
the data before manipulation; therefore test for normality was performed after analyzing the box plots.
Standard statistical measurements such as mean, standard deviation and confidence intervals were
finally used to present the survey results. Descriptions of these measures can be found in (Montgomery
2005).
5. Results and analysis
A control objective with a positive NPV should be interpreted as a control objective that adds value and is
beneficial to invest in. If the NPV is less than zero it will not add value and is therefore not an attractive
investment opportunity. Further, the control objective with highest NPV will be the most attractive
investment opportunity when compared to other investments in control objectives with similar risk. Figure
3 shows a box plot over the 19 control objectives and table 1 describes their mean, standard deviation
and confidence intervals. The results from the survey indicate that the vast majority of security
investments have a positive net present value, and are thus beneficial for an organization to invest in.
The mean of all NPVs but one is positive. A 95 percent confidence interval over the mean values of
respondent assessments indicate that the true mean (the mean of the population) lies between the upper
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Waldo Rocha Flores et al.
(UB) and lower (LB) in the 95 % of the cases. In the remaining part of this section, the results will be
discussed on a domain-level and thereafter each domain will be discussed.
Figure 3: Assessments of control objectives investment potential
Table 1: Control objectives ranking
Objective Mean Std dev LB (95%) UB (95%)
CO1 2.0 1.4 1.4 2.6
CO2 1.5 1.3 1.0 2.1
CO3 1.7 1.5 1.1 2.3
CO4 1.1 1.5 0.5 1.7
CO5 2.0 1.1 1.5 2.5
CO6 1.2 1.3 0.6 1.7
CO7 1.3 1.3 0.8 1.9
CO8 1.3 1.2 0.8 1.9
CO9 1.6 1.5 1.0 2.3
CO10 1.5 1.6 0.8 2.2
CO11 0.5 1.8 -0.3 1.2
CO12 1.0 2.2 0.0 1.9
CO13 1.6 1.8 0.8 2.4
CO14 0.8 1.6 0.1 1.5
CO15 1.3 1.7 0.5 2.0
CO16 -0.2 1.9 -1.0 0.7
CO17 0.9 1.7 0.1 1.6
CO18 0.1 1.2 -0.4 0.6
CO19 1.3 1.5 0.6 1.9
Mean 1.2 1.5 0.5 1.9
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5.1 Domains
Waldo Rocha Flores et al.
A box plot of the results aggregated to the domain level can be seen in Figure 4. Plan and organize (PO,
CO1-CO5) have the highest median, followed by acquire and implement (AI, CO6-CO10). Deliver and
support (DS, CO11-CO16) and monitor and evaluate (ME, CO17-CO19) have relatively similar medians
and ranges, although DS have a higher degree of spread of data. Table 2 shows the mean of the domain
experts’ assessments of NPV for control objectives within each domain. As can be seen here the highest
mean is associated to the domain Plan and organize and the lowest is associated with Deliver and
Support and Monitor and evaluate. Also, the mean of the NPV is positive for all four domains.
Figure 4: Box plots per domain
Table 2: Control domains mean and spread
Domain Mean Std dev LB (95%) UB (95%)
PO 1.6 1.1 1.2 2.1
AI 1.3 1.1 0.8 1.8
DS 0.8 1.3 0.3 1.4
ME 0.8 1.0 0.3 1.2
5.1.1 Plan and organize
As can be seen in the box plot in Figure 3, investments in all control objectives in this domain are
presumed to yield relatively high NPVs. QQ-plots indicate that the outliers need to be removed in order to
satisfy the assumption of normality. The variables with the highest median, smallest box and lowest
range is CO1 (“Identify information and services critical to the enterprise and consider their security
requirements”) and CO5 (“Discover, prioritize, and either contain or accept relevant information security
risks”).
5.1.2 Acquire and implement
Investments in control objectives within this domain are generally believed to render a positive NPV. The
two control objectives with highest means are CO9 (“Ensure that all changes, including patches, support
enterprise objectives and are carried out”) and CO10 (“Ensure that all new systems and changes are
accepted only after sufficient testing of security functions”) .The boxes in this domain are approximately
the same size, with the exception of which is slightly larger than the rest. CO10 does however have a
strong outlier on the negative side which increases its standard deviation (cf. figure 3 and table 1).
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Waldo Rocha Flores et al.
There is some variation between the expected NPV of investments in this domain. For instance, the
mean NPV associated with CO16 (“Protect all IT equipment from damage”) is negative, but CO13
(“Ensure that the enterprise is capable of carrying on its day-to-day automated business activities with
minimal interruption from a security incident”) has the fourth largest mean NPV. Compared to the other
domain there seems to be a higher disagreement among respondents on the NPV associated with
investments in this domain. The assessments of NPV associated with CO12 (“Manage security aspects
of third-party services”) is for example spread between highest return assessed to well below zero.
5.1.4 Monitor and evaluate
The monitor and evaluate domain consist of three control objectives. Their mean values are associated
with a comparably low NPV. For instance is CO18 (“Gain confidence and trust in security through reliable
and independent sources“) assessed to yield a NPV close to zero. Also within this domain is the spread
of assessments comparably high. A 95 percent confidence interval over the respondents’ assessments
does for example stretch between 0.1 and 1.6 for CO17 (“Regularly monitor the performance of
information security”).
6. Discussion
The result from this survey is intended to reflect the opinion from a number of professionals within the IT
security, governance and/or assurance domain. The reliability and validity of the instrument used to
measure their opinion is described in section 6.2. The section below will discuss the results of this
measurement.
6.1 Value of investments in control objectives
This paper has provided empirical data from a panel of IT professionals regarding the value in terms of
reduced negative consequences from security incidents generated from investments in IT governance
control objectives (time, people or money etc.). 16 out of 19 control objectives are associated with a 95
percent confidence interval that only span over the positive side of the scale. This indicates that the panel
agrees that investments in IT governance control objectives strengthen security objectives and are
therefore beneficial. This is a finding that can be useful for a practitioner as it may be difficult to
demonstrate the expected NPV of investing in control objectives since the benefits to the firm are often
indirectly related to the investment and may occur well into the future.
When it comes to individual control objectives the results gives some indications that C05 (“Discover,
prioritize, and either contain or accept relevant information security risks”) and CO1 (“Identify information
and services critical to the enterprise and consider their security requirements”) are beneficial to engage
in. The less beneficial control objectives are CO16 (“Protect all IT equipment from damage.”) and CO18
(“Gain confidence and trust in security through reliable and independent sources”). The respondents’
answers regarding individual control objectives vary, the box plot in Figure 3 and the 95 percent
confidence interval in Table 1 indicate this. However, the variations are small. Two explanations for these
small variations are possible:
Positive lopsidedness
Respondent experience.
These are now further discussed.
Positive lopsidedness: The mean of the respondents assessments result in a positive NPV for all control
objectives but one. This reflects a general belief among respondents in the benefit associated with
investments on control objectives associated with security. As earlier described the respondents are
individuals which have a vested interest in IT /security governance and practice such activities on a daily
basis. With this as a basis the positive lopsidedness in NPVs could be attributed to an expected bias in
the respondent’s judgment. While the positive lopsidedness could be an effect of the respondents biased
opinions it could also reflect the situation in enterprises today. The software security market has grown in
recent years (Gartner 2009) (Gartner 2010) and forecasts of the security market such as (DefenseNews
2010) predict an increase in coming years. Such data indicate that many organizations do see a benefit
in investments that strengthen security objectives.
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Respondent experience: The respondents have different backgrounds and experiences. Some variation
among their opinions can therefore be expected. The assessments made of NPV potentials were also
made for organizations in the industry where the respondent is a practitioner. Some variation can thus be
explained by differences among industries. For example, the regulations that apply to organizations vary
with industry. A regulation might require certain investments to be made and in that way influence the
NPV that can be obtained from future investments associated with a control objective.
Based on the spread in this data it appears as the accuracy of IT professionals assessments of individual
investment opportunities in the IT governance domain is associated with a significant uncertainty. Future
work could investigate the reasons for the spread among the respondents’ rankings of such investment
opportunities.
6.2 Instrument validity
This section first address the instrument’s validity in terms of: content-, construct-, external- and internal
validity (Boudreau, Gefen and Straub 2001) (Brewer 2000).
Content validity is the degree to which items in an instrument reflect the content universe to which the
instrument will be generalized (Boudreau, Gefen and Straub 2001). E.g., if this study aimed to draw
conclusions on profitability of the COBIT security baseline using only results from control objectives 1-4
the content validity would be low. Normal methods of measuring content validity are through literature
review and expert panels/judges (Boudreau, Gefen and Straub 2001). All control objectives of the COBIT
security baseline are included in the survey. Furthermore, all survey questions are taken directly from the
framework without any manipulation. However, while the baseline concepts are thoroughly covered there
might be slight problems with the prioritization technique employed (NPV). The NPV of a potential
investment is a commonly used indicator on how lucrative investments are for an organization, but when
making investment decisions other factors could also be considered. In particular, the risk of the
investment and the opportunity costs associated with it could be of essence. These factors are only
implicitly measured in this survey and one should therefore be somewhat careful when interpreting the
relative ranking associated with different investments. Finally, the survey was studied by two academic
experts in the area who assessed the tools content validity as high.
Construct validity is the extent to which an operationalization measures the concepts that it purports to
measure (Boudreau, Gefen and Straub 2001), i.e. whether the survey measures the benefit of investing
in different control objectives and domains. First of all, neither the COBIT security baseline nor
prioritizations of its elements are abstract in such a manner that could cause significant problems with the
construct validity. Second, the baseline and prioritization potency of NPV are generally thought of as
highly valid theory. Finally, the tool was tested (and discussed) by two academic experts and one
respondent which were thought to be representative of the specified population. These pilot studies both
hinted toward high construct validity.
Another important validation concept is external validity; the degree to which the results of a study can be
generalized [30]. This study is on one hand built upon a sanctioned theoretical framework and a to some
extent representative sample. However, it is to the authors’ knowledge also the first study performed
relating to the COBIT security baseline and NPV; therefore it is not possible to compare the results of this
study to the results of previous research. Also, the sample is too small to draw any certain general
conclusions.
An additional well regarded attribute of validity is internal validity (Brewer 2000). However, since no
evaluation of causal relationships was made in this study, internal validity is not applicable here.
7. Conclusion
Optimizing the investments of resources in information security is a complex task. The study presented in
this article has tried to somewhat make the investment decision more rational by investigating the value
in terms of reduced negative consequences from security incidents generated from investments in IT
governance control objectives (time, people or money etc.). By surveying IT professionals in the security,
governance and/or assurance domain regarding the NPV that could be obtained from these investments
the study found that investments in control objectives are beneficial for a firm to engage in. The paper
has therefore provided data that supports the theory that investments in IT governance also are beneficial
for the information security in an organization.
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The mean NPV vary between the control objectives, and there are some indications of control objectives
that provide more value. However, this study cannot assert which control objective that is most beneficial
to invest in. Interesting future work includes therefore more research into the impact of prioritization
between control objectives. Research could investigate if the provided benefit for a firm depends on
proper prioritization, and if so, identify which control objective/objectives that should be prioritized.
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402

Evaluation Information Extraction for Health Text Categories
Using C4.5 and Naïve Bayes
Klaokanlaya Silachan and Panjai Tantasanawong
Silpakorn University, Thailand
Klao_99@yahoo.com
Panjai@su.ac.th
Abstract: Healthcare information technology, HIT or HICT supports health information seeking tasks. Data mining is
an information extraction technique for identifying relevant information, structuring this information and subsequently
providing the means to add textual information through mining the natural language. In the healthcare field,
techniques summarise patient records, extract terms, ascertain new knowledge and provide diagnostics for various
conditions. In this study we are interested in health information particularly with regard to the relationship between
symptoms and cause in cardiovascular disease (CVD). Data filtered through a discovery pattern can be used for
many tasks, including mining and evaluation to the accuracy of information extraction. In this paper an approach and
framework of classification analysis has been proposed for evaluating health information from personal and medical
data extracted from records and documents. The information extraction, as a feature of the selection from textual
data, is significant in that it uses sliding window and TF-IDF techniques for a multiword check as well as for statistical
matrix term weighting and rate of recurrence. Diagnosis of a probable cardiovascular disease is done by looking at
the symptoms and mined data by way of the ML algorithm. The outcome of the specific medical conditions is
considered and determined the probability of cardiovascular disease in order to classify the documents and
cardiovascular disease by the use of rule induction. This model generates a classifier from the patient medical data
training set. Two machine learning techniques, C4.5 and Naïve Bayes, have been applied where the domain concept
is ‘diseases’. Evaluation of the accuracy for the disease term and document classification process for our theoretical
patient’s symptom and diagnosis were measured precisely using recall and F-measure for comparison as well as to
demonstrate the process of learning. The results show that in predicting the categories of cardiovascular disease, the
C4.5 classifier has 99.8% rate of prediction accuracy (percentage correct) and performed better performance than
the Naive Bayes.
Keywords: information extraction, health text categories, C4.5, Naïve Bayes, evaluation
1. Introduction
The main goal of text mining is to enable the user to extract relevant information from textual resources
and manage operations such as classification and summary support (Dalila 2004). Healthcare
information technology, also known as HIT or HICT, extracts health information through a data mining
technique that aims to identify relevant information, structure the information, and at the same time
provide a means to allow the addition of semantics. It does this by processing the natural language and
looking for patterns in unstructured text. Information extraction(IE) for healthcare has been designed to
summarise patients’ medical records by extracting terms or call terms and then identify emerging patterns
in information from the text on symptoms, conditions and diagnoses. The patient’s medical data are
largely maintained in free-text form. Thus, using information extraction techniques as a reliable and
efficient method to extract structured information for further data mining form, this free-text may greatly
benefit research endeavours.
This study is focused in health information and particularly the relationship between symptoms and
causes in cardiovascular diseases (CVD). These disorders of the heart and blood vessels includes
coronary heart disease (heart attacks), cardiovascular disease (stroke), raised blood pressure
(hypertension), peripheral artery disease, rheumatic heart disease, congenital heart disease and heart
failure. The major causes of cardiovascular disease are excessive smoking, physical inactivity, and an
unhealthy diet, resulting in severe illness, disability and death. Data extraction has important implications
for the classification of documented information. (K.S. Kavitha et al. 2010 and Reddy 2007). The
probability of cardiovascular disease is based on symptoms diagnosis. For classification of diseases and
medical document, cardiovascular medical data is obtained from the extracted text. Then the diagnosis of
disease and classification will be evaluated for accuracy.
It is necessary to measure the effectiveness of classifying data sets, medical data, for more precision and
predictive accuracy in the classification of cardiovascular disease. In this paper an approach and
framework is proposed that focuses on the evaluation of health information for the classification and
analysis of cardiovascular disease case studies. The disease data can be extracted from a patient’s
medical records and other documents. This step uses sliding windows and Term Frequency-inverse
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Klaokanlaya Silachan and Panjai Tantasanawong
Document (TF-IDF) techniques for a multiword check as well as for statistical matrix term weighting and
incidence in information extraction with the patient’s textual medical term data. The next step involves
diagnosis of a probable cardiovascular disease by looking at the symptoms and mining the databases for
classification with an ML algorithm. This model generates a classifier from the medical data training set
based on the characteristics of texts already classified. Two machine learning techniques, C4.5 and
Naïve Bayes, can be applied where the domain concept is ‘diseases’. Finally, the evaluation of accuracy
of the classified disease for a theoretical patient treatment and the subsequent diagnosis can be
measured precisely using recall and F-measure with an alternate machine learning algorithm (ML) for
comparison and to demonstrate the process of learning.
2. Related work
Many researchers have studied text categorisation, medical health information and evaluation, such as
Maria Grineva, et al. 2009, proposed a method for the extraction of key terms from textual documents. In
this study the method is based on a combination of the following two techniques: a Wikipedia-based
semantic relatedness measure of terms and an algorithm for detecting community structure of a network.
Parikshit Sondhi et al. 2010 studied a shallow information extraction problem that involved extracting
sentences of a given set of topic categories from medical forum data. Given a corpus of medical forum
documents, which the research goal is to extract two related types of sentences that describe a
biomedical case, i.e.: medical problem descriptions and medical treatment descriptions. Such an
extraction task directly generates medical case descriptions that can be useful in many applications.
Experimental results show that the accuracy was up to 75%.
The Dittapol et al. 2009 study involved the application of methods of knowledge discovery from
databases using decision tree algorithms for respiratory system diagnosis to classify patients from the
Pranakornsri Ayudthaya Hospital into three groups. From the hospital’s medical records the study
methods were knowledge discovery with the employment of ID3, C4.5 and CART decision tree
algorithms and determination of the effectiveness of the three algorithms.
Keku E 2005 proposed that trained interviewers should conduct annual follow up telephone interviews to
ascertain any significant health events, including subsequent diagnostic tests, hospitalisations or death.
Information on cohort hospitalisations and deaths is transmitted to the medical record abstraction unit
who review death certificates and hospital records. Interviews with the next of kin and completed
questionnaires by physicians and medical examiners or coroners were used to obtain information on
deaths within the cohort.
3. Methodology
The proposed framework and method for information medical text extraction data for text term
classification is explained in the diagram, Figure 1, below.
Figure 1: Framework for information extraction and evaluation for health categories
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Klaokanlaya Silachan and Panjai Tantasanawong
Textual data was extracted to classify the cardiovascular disease using the principles of extract term,
sliding window and TF-IDF for matrix term weight and frequency. Groups of cardiovascular patients were
classified using rule to recognize the relationship between the symptoms of the patient in the case where
the conditions were symptomatic of cardiovascular disease. This Healthcare base was also used for
building the cardiovascular diagnostic system. The features of C4.5 were applied to classify
cardiovascular disease and relevant documents. Details of these steps include:
3.1 Data set
The construction of a corpus of medical text samples were collected from clinics and referenced from
websites, such as the World Health Organization (WHO), and others given that a standard data collection
should be used in the experimental evaluation. The corpus contains 300 cases. This text corpus is useful
for training and testing with NPL and data mining purposes.
3.2 Pre-processing
In this step the data was checked for missing and incorrect values. Some of the data was alphanumeric.
We found some inconsistencies in the patient’s records which we corrected manually by taking an
external reference.
3.3 Information extraction
To understand the relationships between a patient’s cardiovascular symptoms and their treatment, we
used the health service knowledge database and extracted those terms describing symptoms commonly
found in the texts of patients’ medical records. Extraction of the symptom terms for classification was by
single word or in phrases. As a result, a sliding window technique was used to retrieve phrases and then
match it to a medical dictionary to control the vocabulary of the health information as well as to classify
the type of heart diagnosis. (Dalila et al. 2004; Zhi-Hua etc al. 2003). The process is shown below.
Sliding window for Information Extraction (IE) has the following steps:
1. Extract key term with the number stored in the wordlist.
2. Multiword created using sliding windows
If(word != “ “)
Word += “ “
Word += WordList[j];
3. Check for word or multiword.
4. Count the frequency of the words.
5. Check the word.
6. Stored number of terms found.
3.4 Feature selection
The main idea of feature selection is to select subsets of features from the original documents. It is
performed by keeping the highest score on words according to a predetermined measure of their
importance. The term frequency-inverse document frequency (TF-IDF) is the ability to separate the words
in the document. The frequency of words in the document and the ratio of the number of documents
containing a particular word appear as an equation (Aurangzeb et al. 2010) and help evaluate how
important a term is in proportion to the number of times a term appears in the document, which is then
divided by the frequency of that word in the corpus (T.Gruber 1995; S.Izumi 2007). A terms weighting
was calculated as shown:
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Klaokanlaya Silachan and Panjai Tantasanawong
W(fd) = tf(fd) log (D / df(f)) (1)
freqij
tf(f i,dj) = (2)
Max k freq Kj
D
idf = log (3)
#(f 1 )
Where, Term frequency (TF), invert Document Frequency(IDF) , W(fd) feature f d (current transaction),
Tf(fd) feature f d normalize, feature d), D (training set), Df(f) feature f.
Disease term weight-frequencies based on TF-IDF has the following steps:
1. Store of words and the frequency in the table.
2. Loop all terms found in each document.
3. Check all terms found in each document.
4. Check for this term in any other documents.
5 Show the number of documents in which these words are found.
6 Calculate values Log2 (N / nj).
7. Loop all documents.
8. Calculate frequency in all documents.
9. Check for term found in each document or not.
10. Calculate TF-IDF.
11. Check store weight value.
3.5 Medical data
When IE is conducted from a medical text and the data is stored in a relational database as medical data.
It consists of symptom words and phrases including terminology and conditions. The next step is to focus
on analyzing the medical data alongside medical diagnostic data using classification rules in data mining
to ascertain patterns of terms and to substantiate classification of diseases. Medical diagnostic data
ought to be used in the experimental evaluation.
3.6 Classification
Classification of categories is the most widely used technique in medical data mining (Se-Chul Chun
2008), and the C4.5 classification algorithms were used for the classification of diagnoses following
feature extraction of medical data in order to make the classification. Results show this is consistent with
the performances of these classification algorithms for other applications (Aurangzeb 2010).
3.6.1 Rule base for probable diagnosis cardiovascular model
To understand the rules for establishing the symptoms that are likely to cause cardiovascular disease, a
method of constructing a rule-based decision tree from the medical terms was used to create a specific
rule (Zhi-Hua Zhou et al. 2003). The rule was used to learn rules from the new training data set based on
a technique of collecting “if . . . then . . .” rules (Kent W. Bridges 1992). The symptoms are variable,
selected for the classification of cardiovascular disease and other diseases.
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Klaokanlaya Silachan and Panjai Tantasanawong
3.6.2 Classification of document and diseases model
In the present study we used two different methods for the classification of cardiovascular disease and
medical document. They differ from traditional approaches by generating domain models from data. In
the proposed system, we use two different machine learning methods for classifying: Decision Tree
(C4.5) and Naïve Bayes. (J.R. Quinlan 1993; B.H. Jun et al.1997)
C4.5 is a commercially available classification algorithm used to generate a decision tree using the idea
of information entropy and was used for the analysis of a text categorisation system based on the
decision tree model. The data set acquired from this study was used as an input to generate the decision
tree using C4.5 algorithm. This research assumed uniform misclassification and performed a 10-fold
validation for the classifier method.
C4.5 defined the information gain formally as follows: (Anthony et al. 2004 and J.R Quinlan 1996).
n
Entropry(S) = Σ - Pi * log 2 Pi
I=1
Where: S = Data set, Sv = A partition of S according to the value of attribute A, n = The number of
attributes A, |Sv| = The number of dataset in the partition, |S| = Total number of dataset in S.
Gain(S,A) = Entropry(S)-Σ |S | Entropy(S )
v v
Value(A) |S|
Where: X = Data set, n = The number of partition in S,pi = Proportion of Sv to S.
Gain Ratio = Gain / Split Information
Where split information is a value based on the column sums.
A Bayes classifier is a simple probabilistic classifier based on Bayes theorem. The goal is to build a
model. Given a set of data X = x1, x2, x3,…..,xn, a data mining problem is designed to uncover the
properties of the distribution from which the set comes. The Bayes rule can be expressed as follows:
P (h1|xi)= P (xi|h1)P (h1)/P (xi|x1)P (h1) + P (x1|h2)P (h2) (7)
and called the posterior probability, while P(h1) is the prior probability. P(xi ) is the probability of the
occurrence of data value and P(xi|h1) is the conditional probability ( Buntine W.1992 and Margaret H.
2002).
3.7 Performance evaluation
Many different metrics are used in machine learning and data mining to build and evaluate models. The
four performance measures including precision, recall, F-measure and accuracy are employed to
evaluate models. A distinguished confusion matrix is obtained to calculate the four measures. The
confusion matrix is a matrix representation of the classification results.
Table1: A confusion matrix for a two-class classification
Actual class
Recognised
Predicted as Positive Class Predicted as Negative Class
Actual Positive class True Positive (TP) False Negative(FN)
Actual Negative class False Positive(FP) True Negative(TN)
Text classification rules are typically evaluated using performance measures from medical data. Common
metrics for disease classification evaluation include recall, precision, accuracy F. Given a test set of N
documents, the cells contain the counts for true positive (TP), false positive (FP), true negative (TN) and
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(5)
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Klaokanlaya Silachan and Panjai Tantasanawong
false negative (FN), respectively. Clearly, N = TP + FP + TN + FN. The metrics for binary-decisions, the
precision, recall, F-measure are defined as: (Gundersen et al.1996).
4. Results
TP
Recall = (8)
TN
TP
Precision = TP+FP
(9)
2*TP
F-measure =
2*TP+FP+FN
(10)
Accuracy = TN+TP (11)
TN+ FN+FP+TP
The medical dataset for our set of experiments is shown as follows:
4.1 Extracted terms
After extracting the symptom and disease terms, these can be reviewed as records and the
corresponding terms as attributes of the record from the training dataset group. The example below
shows the vocabulary used.
Table 2: Sample of diagnosis single and multi-word
weakness, paleness, chills, vomiting, cough, nausea, angina, syncope
Single word
Change in consciousness, shortness of breath, cardiac arrest, feeling of indigestion
Multi-word
Table 3: Samples of extracted symptom terms
Documents Extracted Symptom Terms
D-1
chronic vapour, chest pain, low fever, panting, tired
D-2
headache, high fever, vapour, prickly heat
D-3 encephalitis, have pains, pain and ache
..... .......
D-33 Angina, acute myocar(myocardium),backache, dizziness
D-52 syncope, acute myocar
Table 4: Sample document-term frequency data matrix
Doc
D-4
D-33
D-n
TF1
Angina
TF2
Syncope
1 1
...
TFn
Acute myocar
1 - 1
1 1 1
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4.2 Classification
Klaokanlaya Silachan and Panjai Tantasanawong
The implemented of C4.5 algorithm identified classifiers with weka tool from medical data. The medical
data is divided into two sets of training set and test set. When the classification of diseases already will
be able to see the pattern of the document and that the diagnosis of diseases The result of classification
by disease in training set are shown as seen in Tables 5 and 6.
Table 5: Sample of cardiovascular disease document classification
Documents Cardiovascular Symptom Terms
D-33
D-52
Angina, acute myocar, backache, Dizziness
Syncope, Acute myocar
D-87 Weakness, shortest of breath, angina
Table 6: Sample of Cardiovascular disease classification
Class Documents Symptom Terms
Other
Cardiovascular
4.3 Evaluation performance
D-1
chronic vapour, chest pain, low fever, pant, be tired
D-2 Have a headache, High fever, vapour, prickly heat, ..
D-3 encephalitis , have pains, pain and ache, fever, itch
........ ........
D-33
Angina, Acute myocar, backache, Dizziness
D-52 Syncope, Acute myocar
D-87 Weakness, shortest of breath, angina
.. ........
The data mining method used to build the model is classification. The instances in the dataset are
representing the results of different types of testing to predict the accuracy of the cardiovascular disease
document. The C4.5 and Naïve Bayes algorithms were used to predict the accuracy of cardiovascular
medical dataset. This paper evaluation reports on the classifier are conducted with a Weka tool. The
performance of the classifiers is evaluated and their results are analyzed. The results of the comparative
analysis are based on 10 fold cross-validations. According to the attributes, the dataset divided into two
parts such that 70% of the data is used for training and 30% is used for testing. For the purposes of this
project, the data set was divided into a training set of 210 instances and a test set of 90 instances. See
the performance comparison experiment in Table 7-8.
Table 7: Evaluation on classification result using the training set
C4.5 Naïve Bayes
Precision 0.93 0.98
Recall 0.95 0.95
F-measure 0.97 0.97
Accuracy 95.2 94.8
Table 8: Evaluation of the accuracy of prediction results using the test set
C4.5 Naïve Bayes
Precision 0.96 0.95
Recall 0.98 0.98
F-measure 1 0.97
Accuracy 99.8 99.6
A comparison of the two algorithms with Precision, Recall and F-measure on medical training set and test
set in a graph pattern seen in Figure 2 and 3.
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Klaokanlaya Silachan and Panjai Tantasanawong
Figure 2: Precision, recall, f-measure of
training set
Figure 3: Precision, recall, F-measure of test
set
The results in Table 7-8 and Figure 2-3 show that the C4.5 algorithm can build the training set classifier
better than Naive Bayes by a value 95.2%. In predicting the relationship of the symptoms to categories of
cardiovascular disease, the test set has 99.8% prediction accuracy (percentage correct), and therefore is
better than that of the Bayesian algorithm, with a precision rate of 0.96% and the recall at 1.0%. Finally,
for the F-measure, which showed the relationship between the best queries and answer, recall is 0.98%.
All results are acceptable.
5. Conclusion
This paper illustrates an approach where information extraction and features the selection of text medical
data using sliding windows, TF-IDF techniques, with a multiword check and term weight-frequency.
Information extraction(IE) is drawn from a medical text, and the data extraction is stored in a relational
database of medical data. It is necessary to employ medical diagnostic data in the experimental
evaluation. Data extraction is important for the classification of the documented information, including
classification of whether or not cardiovascular disease is featured in major health information, called
health text categories. It has been shown in this paper that classification, summary and probable
diagnosis of cardiovascular disease can be carried out through data mining using rule induction. The
commercially available C4.5 algorithm and Naïve Bayes algorithm were used as classifiers .The overall
reliability was then checked and evaluated through a confusion matrix. precision, recall, F-measure, and
accuracy were used as criteria for evaluating the performance of the training set with the accuracy values
at 95.2%. The test set classifier for predictive accuracy of the C4.5 algorithm was marginally better than
that of Bayes algorithm with the accuracy value at 99.8%. The follow-up to these test results would be to
gain permission to evaluate the system against real data from a wide range of medical data records.
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411

Optimizing Information Technology Value Governance
Framework Based on Val IT
Ali Suzangar, Mehrdad Kalantarian , Shirin Nasher , Mohammad Kajbaf and Negar
Madani
Infoamn IT Consultancy CO., Tehran, Iran
a.suzangar@infoamn.com
m.kalantarian@infoamn.com
sh.nasher@infoamn.com
m.kajbaf@infoamn.com
n.madani@infoamn.com
Abstract: Nowadays, information technology investment is crucial for organizations. Four IT investment principles
are “risk”, “modeling”, “management” and “governance and compliance”. There are different frameworks such as
ITIL, COBIT, Val IT and Risk IT which provide best practices to those IT investment principles. The Risk IT
framework is about business risks related to the use of information technology. The connection to business is
founded in the principles on which the framework is built, i.e. effective enterprise governance and management of IT
risk. Val IT is a governance framework and complementary of COBIT from the business and financial perspective.
Since Val IT framework only provides enterprise with the mechanism that it requires for monitoring and optimizing the
IT business value, therefore there is no tool to calculate and evaluate information technology investment return. ITIL
financial management process has three main aspects that provides guidance on how controlling spending and cost.
In order to apply all direct and indirect cost evaluating in new information technology investment, a hierarchy decision
making model is necessary. Since these frameworks activities are considered based on three principles of investing,
i.e. risk, management and governance, none of them has a process or approach to create a model based on the
investment costs in order to make final decision. So a comprehensive framework that based on all four investment
principles, can be as a good solution for evaluating new information technology investments. In this paper, a RMMG
framework that considers IT investment evaluation decision making model and financial process among the value
governance and compliance activities, and also evaluating IT investment risk will be proposed to aid those
organizations that confront by IT value investment issues.
Keywords: IT value governance, Val IT, ITIL, Risk IT, decision making model, RMMG framework
1. Introduction
IT governance has been defined by ISACA as “the responsibility of executives and the board of directors,
and consists of the leadership, organizational structures and processes that ensure that the enterprise’s
IT sustains and extends the organizations strategies and objectives” (ISACA 2009a), (ITGI 2007b).
IT governance can thus be pictured as focusing primarily on the following five areas (ISACA 2009a):
Strategic alignment: achieving the goals and strategies of an enterprise through the coherent
undertaking of activities by the different governance structures or management levels within an
organization.
Value delivery: creating new value for the enterprise through IT, maintaining and increasing value
derived from existing IT investments, and eliminating IT initiatives and assets that are not creating
sufficient value for the enterprise.
Risk management: addressing IT-related risks. IT risk is the business risk associated with the use,
ownership, operation, involvement, influence and adoption of IT within an enterprise.
Resource management: ensuring that the right capabilities are in place to execute the strategic plan
and sufficient, appropriate and effective resources are provided.
Performance measurement: tracking the achievement of the objectives of the enterprise’s IT-related
services and solutions and compliance with specific external requirements (ISACA 2009a).
Three IT governance frameworks have been developed by ISACA: COBIT, Val IT and Risk IT. The
integrated application of processes defined by COBIT, Val IT and Risk IT can help enterprises
significantly improve IT governance and manage IT-related risks (ITGI 2007b).
The best IT investments are those which help to maximize the value of the firm. They also contend that to
maximize the value of the firm, IT investment decisions need to be able to maximize IT benefits while
minimize IT risks (Joseph Wen, Yen and Lin 1998).
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Ali Suzangar et al.
There are four main important issues about IT investment and return benefits as follows:
1. Management of business risk is an essential component of the responsible administration of any
enterprise. Almost every business decision requires the executive or manager to balance risk and
reward (ISACA 2009c). The recognition of investment risk as an important component in IT
investment decision making has long been recognized (Epstein and Rejc 2004-2005), (Joseph Wen,
Yen and Lin 1998).
2. Since organizations are often unable or unwilling to justify the expenditure to improve and develop
services (OGC 2007), it is important to identify some methods and models to calculate the investment
direct cost and indirect cost (tangible and intangible cost criteria).
3. Always IT organizations looking for controlling the spending of money within the organization
(annual budgeting), set of processes to account the budget that is allocated to information technology
and also charging mechanisms to evaluate IT services delivered costs. As a result IT organizations
need the financial management included budgeting, accounting and charging processes (OGC
2007).
4. IT organizations like to have governance framework for value management in a manner that is fully
integrated with overall enterprise governance, provide strategic direction for the investment decisions,
define the characteristics of portfolios required to support new investments and resulting IT services,
assets and other resources and improve value management on a continual basis (ITGI 2008b).
All above issues can be considered as four main IT investment principles as follows:
1. Value risk assessment
2. Value modeling
3. Value management
4. Value governance and compliance
Since no existence value frameworks can cover all mentioned principles, this paper will tend to propose a
comprehensive framework based on these principles.
In literature review, first Risk IT framework will be defined. Then, an analytic hierarchy IT investment
decision making model based on multi criteria multi objective method will be introduced. Note that since
the designing methodology of an analytic hierarchy IT investment decision making model is not the main
concern of this paper, it would be introduced briefly in 2.2. But the complete approach has been
submitted as a separate paper to this conference titled “Evaluation of IT investment methods and
proposing a decision making model”. After that, ITIL financial management process will be defined in
three parts to control spending costs in the organization. In the consequence, Val IT framework will be
described as a mechanism for many organizations to assess their current IT value state and recognize
their pain points, and other symptoms in creating IT enabled value.
After comparing these frameworks, the RMMG proposed framework will be defined with its related layers
and processes. In conclusion, the advantages of proposed RMMG will be described.
2. Literature review
2.1 Risk IT framework
The all-encompassing use of IT can provide significant benefits to an enterprise, but it also involves risk.
Due to IT’s importance to the overall business, IT risk should be treated like other key business risks,
such as strategic risk, environmental risk, market risk, credit risk, operational risks and compliance risk,
all of which fall under the highest ‘umbrella’ risk category. While these other risks have long been
incorporated into corporate decision-making processes, too many executives tend to relegate IT risk to
technical specialists outside the boardroom (ISACA 2009c).
The Risk IT framework is about IT risk, in other words, business risk related to the use of IT. The
connection to business is founded in the principles on which the framework is built, i.e., effective
enterprise governance and management of IT risk. The three domains of the Risk IT framework are as
follows: Risk Governance, Risk Evaluation and Risk Response (ISACA 2009c).
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Ali Suzangar et al.
The risk management process model groups key activities into a number of processes. These processes
are grouped into three domains. The process model will appear familiar to users of COBIT and Val IT
(ISACA 2009c).
2.2 Analytic hierarchy it investment decision making model
Since the intangible criteria are complex to evaluate, therefore this action may take a long time and
efforts. So many managers prefer to neglect them and just focus on the financial factors (Borenstein
2005). They think that IT investment affects on their organization and enhances productivity efficiency in
situ. But indeed return on IT investment has a potential latency to create value just because of these
intangible factors. So it shows the importance of these criteria to have an appropriate investment
evaluation. The existence of the pre-defined criteria hierarchy model based on the consensus of many
specialist, can structured the decision making process systematically. Figure1 shows this proposed
model.
For this model, first tangible and intangible criteria were identified and then categorized in different criteria
and sub criteria. As a consequence, an importance rank was determined to them according to the
experiment of chief managers. Based on these ranking, at last this hierarchy model in order to consider
all these tangible and intangible criteria in IT investment evaluation was proposed. Note that this
proposed model is general model and independent from the specific IT investment to aid investment
decision making process.
Figure 1: Analytic hierarchy decision making model
So there was a consensus that this proposed model has improved the decision process in order to have
consistent and complete criteria based on different tangible and intangible factors for IT investment
evaluation.
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2.3 ITIL financial management process
Ali Suzangar et al.
Financial Management is the sound stewardship of the monetary Resources of the organization. It
supports the organization in planning and executing its business objectives and requires consistent
application throughout the organization to achieve maximum efficiency and minimum conflict.
Within an IT organization it is visible in three main processes as follows: Budgeting, IT accounting, and
charging (OGC 2007).
2.3.1 Budgeting
Is the Process of predicting and controlling the spending of money within the organization and consists of
a periodic negotiation cycle to set budgets (usually annual) and the day-to-day monitoring of the current
budgets.
The aim of Budgeting is that the actual costs match the budget (predicted costs). This budget is usually
set by negotiations with the Customers who are providing the funds. Good Budgeting is essential to
ensure that the money does not run out before the period end. Where shortfalls are likely to occur the
organization needs early warning and accurate information to enable good decisions to best manage the
situation (OGC 2007).
2.3.2 IT accounting
IT Accounting is the set of processes that enable the IT organization to account fully for the way its
money is spent (particularly the ability to identify costs by Customer, by service, by activity). It usually
involves ledgers and should be overseen by someone trained in accountancy (OGC 2007).
2.3.3 Charging
Charging is the set of processes required to bill Customers for the services supplied to them. To achieve
this requires sound IT Accounting, to a level of detail determined by the requirements of the analysis,
billing and reporting processes (OGC 2007).
2.4 Val IT
Executives, even if they are aware of the need for more effective governance and management of
information technology, may not recognize that many of the day-to-day business challenges they face
involve issues of value management. Val IT provides proven value management principles, processes
and practices to enable enterprises to maximize the delivery of business value from investments involving
IT (ISACA 2010), (ITGI 2008c).
There are some internal trigger (major IT project failures, serious budget overruns and etc) and external
events (a major shift in the marketplace and etc) that are likely to convince executives to improve their
enterprise value management practices (ISACA 2009b).
After identifying these challenges within organization, the Val IT framework provides useful guidance on
proven processes and practices that enable effective governance of investments involving IT.
This guidance is found in the three domains of Val IT (ITGI 2008b):
Value Governance (VG): ensuring that value management practices are embedded in the enterprise
Portfolio Management (PM): ensuring that the enterprise secures optimal value across its portfolio of
investments involving IT
Investment Management (IM): ensuring that the enterprise’s individual investments each contribute
the value expected of them.
Val IT Processes are a collection of interacting activities undertaken in accordance with management
practices (ITGI 2008b).
3. Comparing
According to previous discussion, it can be considered four main principles in IT investment discussing,
i.e. “value risk assessment”, “value modeling”, “value management” and “value governance and
compliance”. Each mentioned frameworks focuses on one or more than one of these principles. So in
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Table 1, these frameworks are compared in order to show how much they cover the aspects of
investment evaluation. The main target of the frameworks and also the processes and domains goals that
are included in those frameworks are assumed as this table comparison criterion.
Table1: comparison table
Val IT
ITIL
Risk IT
Value Risk Assessment
Low
Low
High
Value Modeling
Non
Non
Non
Value Management
Medium
High
Low
Value Governance and compliance
High
Medium
Low
Based on this table, all frameworks have concentrate on each specific principle. It means that e.g. Val IT
focus on the governance aspect is high, since management and risk aspect is not considered in the high
level. The main point of this table is that none of them concentrate on the value modeling principle.
4. Proposing RMMG framework
The proposed framework scenario is defined as follows:
Assume that, a new IT project is proposed to an organization to invest on it or the organization decides to
invest on a new IT project based on its own objectives and strategies. By this trigger, some readiness
activities should be done providing the safe investment and appropriate evaluation for managers. As an
important principle, organization requires assessing risks before and after new investment to monitor and
evaluate all investment opportunities and threats in order to able mitigating and responding them. Then
beside the risk assessment, a model based on tangible and intangible benefit factors of proposed IT
project can help managers to make a final decision on allocating their budget or not.
Additionally, the organization requires a management process that can predict and control its costs and
also account fully for the way its money is spent. So this process in order to provide requirement of IT
investment justification is demanded. And at last, value governance and compliance is applied to take
full advantage of proposed IT project, maximizing benefits, capitalizing on opportunities and gaining
competitive advantages.
By this scenario, the organization will require an overall comprehensive framework that is consisted of
value risk assessment, value modeling, value management and value governance and compliance.
Figure 2 illustrates this proposed framework that is called Risk, Modeling, Management and Governance
(RMMG).
The RMMG consists of four layers as Figure 2 illustrates. Each provides the guidance necessary for a
comprehensive framework as required by the mentioned investment principles:
Value Risk Assessment
Value Modeling
Value Management
Value Governance and Compliance
RMMG framework structure has been fully changed against Risk IT, ITIL, and Val IT frameworks. But
those framework processes can be located in different layers of the RMMG as follows based on the main
goal of the processes, and also the domains targets that are included in those frameworks.
Each layer addresses capabilities having direct impact on the new information technology project
investments. The structure of the layer is in the form of a lifecycle. It is iterative and multidimensional. The
layer is expected to provide structure, stability and strength to investment capabilities with durable
principles, methods and tools. This serves to protect investments and provide the necessary basis for
value risk, management and governance. The RMMG can be adapted for use in various business
environments and organizational strategies. The layers of RMMG definitions are as follows:
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Figure2: RMMG framework
4.1 Value Risk Assessment
Ali Suzangar et al.
The Value Risk Assessment layer, as the core of the framework, provides how assessing investment
risks before and after investing and implements activities to analyze and react to those risks. Value Risk
Assessment is useful in the context of Value Modeling, Value Management, and Value Governance and
Compliance. Value Risk Assessment defined processes that are as the same as Risk IT framework
related processes as follows:
Establish and maintain a common risk view (Risk IT)
Integrate with ERM (Risk IT)
Make risk-aware business decisions (Risk IT)
Collect data (Risk IT)
Analyze risk (Risk IT)
Maintain risk profile (Risk IT)
Articulate risk (Risk IT)
Manage risk (Risk IT)
React to events (Risk IT)
4.2 Value Modeling
The Value Modeling layer is considered in two parts, i.e. direct evaluation and indirect evaluation in order
to offer the analytic hierarchy decision making model based on these two evaluation types of investment.
In the indirect evaluation part, it covers all existence investment intangible criteria for converting them to
quantitative cost. The scope of this layer includes developing a decision making model for managers to
understand the weight of each investment criteria according to their objectives and strategies. The
complete approach has been submitted as a separate paper to this conference titled “Evaluation of IT
investment methods and proposing a decision making model”.
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4.3 Value management
Ali Suzangar et al.
The value management layer practices includes controlling the spending of money within the organization
(annual budgeting), set of processes to account the budget that is allocated to information technology
and also charging mechanisms to evaluate IT services delivered costs. It provides the strategic direction
for investments, the desired characteristics of the investment portfolio, and the resources and funding
constraints within which portfolio decisions must be made. Also, defines potential programs based on
business requirements, determines whether they are worthy of further consideration, and develops and
passes business cases for candidate investment programs to portfolio management for evaluation. One
of the processes of this layer is from ITIL and the others are Val IT related processes as follows:
Financial Management (ITIL)
Establish strategic direction and target investment mix (Val IT)
Determine the availability and sources of funds (Val IT)
Manage the availability of human resources (Val IT)
Evaluate and select programs to fund (Val IT)
Monitor and report on investment portfolio performance (Val IT)
Optimize investment portfolio performance (Val IT)
Develop and evaluate the initial program concept business case (Val IT)
Understand the candidate program and implementation options (Val IT)
Develop the program plan (Val IT)
Develop full life-cycle costs and benefits (Val IT)
Develop the detailed candidate program business case (Val IT)
Launch and manage the program (Val IT)
Update operational IT portfolios (Val IT)
Update the business case (Val IT)
Monitor and report on the program (Val IT)
Retire the program (Val IT)
4.4 Value Governance and Compliance
The Value Governance and Compliance layer establishes the overall framework, including defining the
portfolios required to manage investments and resulting IT services, assets, and resources. This layer
monitors the effectiveness of the overall governance framework and supporting processes, and
recommends improvements as appropriate. The processes of this layer are as same as Val IT value
governance related processes as follows:
Establish informed and committed leadership (Val IT)
Define and implement processes (Val IT)
Define portfolio characteristics (Val IT)
Align and integrate value management with enterprise financial planning (Val IT)
Establish effective governance monitoring (Val IT)
Continuously improve value management practices (Val IT)
5. Conclusion
Organizations apply different IT governance and management frameworks in order to reach their
objectives and strategies such as improving their services and gaining competitive advantages, through
new information technology investment decisions. According to this paper, we can consider four main
principles to evaluate a new IT project investment, i.e. Value Risk Assessment, Value Modeling, Value
Management and Value Governance and Compliance. There are different frameworks based on these
principles. Since each of these frameworks considers one or two mentioned evaluating principles, so the
existence of the comprehensive framework can be applicable for those organizations that want to
implement an appropriate processes and activities to have an appropriate and exact evaluating in all new
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investment decisions. Hence in this paper, a new conceptual and comprehensive framework was
identified and illustrated by four layers in order to cover and consider all those principles that was called
RMMG framework.
This proposed framework, in addition to assess value risk, implement value management and
governance activities, it evaluates direct and indirect investment costs to create an analytic hierarchy
decision making model to help organization in their investments. It states the RMMG strength point.
References
Borenstein, D. and Baptista Betencourt, P. R. (2005) “A Multi-criteria Model for the Justification of IT Investments”,
INFOR Journal, Vol. 43, No. 1, Feb, pp. 1-21.
Epstein, M. and Rejc, A. (2004-2005) “Measuring the payoffs of IT investments”, CMA Management Journal, Vol. 78,
No. 8, pp. 20-25.
ISACA (2009a) Implementing and Continually Improving IT Governance, Rolling Meadows, IL 60008 USA.
ISACA (2009b) IT Value Special Compilation, Rolling Meadows, IL 60008 USA.
ISACA (2009c) The Risk IT Framework, Rolling Meadows, IL 60008 USA.
ISACA (2010) Value Management Guidance for Assurance Professionals: Using Val IT 2.0, Rolling Meadows, IL
60008 USA.
ITGI (2007b) IT Governance Roundtable: IT Governance Trends, Rolling Meadows, IL 60008 USA.
ITGI (2008a) Enterprise Value: Governance of IT Investments Getting Started With Value Management, Rolling
Meadows, IL 60008 USA
ITGI (2008b) Enterprise Value: Governance of IT Investments the Val IT Framework 2.0, Rolling Meadows, IL 60008
USA
ITGI (2008c) IT Governance Global Status Report, Rolling Meadows, IL 60008 USA.
Joseph Wen, H., Yen, D.C. and Lin, B. (1998) “Methods for measuring information technology investment payoff”,
Human Systems Management Journal, Vol. 17, No. 2, January, pp. 145–153.
OGC (2007) Service Design ITIL service management practices v.3, London: the stationary office.
419

Developing an Outpatient Electronic Medical Record System
in Taiwan From a Physicians’ Perspective
Hsiao-Ting Tseng, Pei-Ting Chang and Ray Chang
National Chung Cheng University, Chia-yi, Taiwan
appleapple928@gmail.com
chang.payting@gmail.com
misicc.pig@gmail.com
Abstract: Electronic medical record systems (EMRS) are regarded as an innovative administrative tool in healthcare
to integrate patient information. Physicians can use an EMRS to receive integrated information to provide better
outpatient service. Many hospitals worldwide, including in Taiwan, have either implemented or plan to implement
EMRS to reduce or replace the traditional paper-based charts and patient records. The key reason for some failures in
implementation of EMRS is that system design was not user-friendly, i.e. it did not take into account physicians’ real
needs. This research employed a case study to explore the development of an Outpatient Electronic Medical Record
System (OEMRS) that was developed on the basis of physicians’ expectations. A qualitative interview confirmed that
physicians’ participation can significantly affect their satisfaction and acceptance toward OEMRS use.
Keywords: physician’s perspective, electronic medical record system, outpatient, satisfaction, acceptance
1. Introduction
According to the annual report of the Institute of Medicine for the year 1999, an estimated 98,000 people
died because of medical negligence directly or indirectly. With IT applications, the casualty figure can be
reduced to 55% (Drew, Carolyn and Robert, 2004). IT applications can improve the quality of medical care
significantly. Since then, application of information technology to improve healthcare efficiency and to
reduce healthcare expenditure has become an important trend among healthcare institutions.
Electronic medical records systems are increasingly being used to keep record of medical procedures,
interactions, treatment and procedures by physicians, medical staff and even patients. Using
computer-based technologies to convert traditional medical records into electronic file formats, and to
allow medical personnel to access this system via computers is called electronic medical records or EMR.
According to the Medical Records Institute, electronic medical records are defined as electronic
information of an individual’s lifelong health records. The coverage of Electronic Medical Records (EMR)
includes automatic formatting of paper-based records and other health information, such as medication
records, examinations charts and images of X-rays, etc.
EMR have been used at all-levels in healthcare institutions to cope with a variety of medical service
demands, such as teaching, evaluation, telemedicine and chronic care. According to a survey by the
Bureau of National Health Insurance in 1999, about 98% of Taiwan’s medical institutions have introduced
at least one (of several) computer-based technology to assist medical practitioners. EMR can reduce
operational costs in hospitals and save space required for storage of physical paper-based records;
physical space availability is very limited in Taiwan. Furthermore, patients’ medical records in different
healthcare institutions can be integrated by EMR. It can not only reduce wasteful consumption of medical
resources but also provide patients with continuous and high-quality medical services.
The main users of EMR are healthcare staff and physicians. Active participation of physicians in the
process of promoting electronic medical records can significantly enhance application and introduction of
EMR in the healthcare industry (citation). Peter et al. (2006) showed that active participation of
physicians in the process of introduction of EMR can help make the interface of EMR systems more
suitable for physicians’ needs. Moreover, with participation of physicians, system implementation can
become a much smoother process. It is important for a EMR system to meet physicians’ needs and yet
there are not many studies on doctors’ views on efficacy of EMR systems. In this study, we examine the
working of a hospital which has developed an Outpatient Electronic Medical Records System (OEMRS) as
a case study to explore and understand the development and evaluation of the system from physicians’
perspectives.
2. Background
Electronic medical records include records of all healthcare related information required by clinical workers
for providing effective and continuous healthcare. Electronic medical records not only constitute an
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electronic record of diagnoses and prescribed treatments, etc., but they also facilitate medical information
integration. The goals of this system are storage and management of medical history of individual
patients, as well as medical knowledge used for their treatments at different times. Hence, EMR can help
healthcare personnel make related decisions and improve the quality of medical care, besides making
hospital management more efficient. Electronic medical records should focus on one objective: to record
long-term medical care information contiguously to provide continuous, useful and high-quality medical
care.
In the system’s development phase, participation of users is regarded as the key factor for success. Lee
and Kim (1999) showed that good communication between information workers and users can have
positive effect on eliminating perception differences (Lee and Kim, 1999). The literature also indicates that
in the process of system development, the more there is users’ participation, the deeper is the influence
on the final product (Zmud and Cox, 1979).
In an outpatient medical care system, physicians are responsible for providing medical care services like
prescriptions and examinations. Prior studies have showed that if physicians participate in the
development process of the OEMRS, the interface of OEMRS can meet the physicians’ needs, and thus
the need for educating and training them to use the OEMRS can be reduced (Peter et al., 2006). Using an
electronic medical record system, physicians’ work efficiency, data processing procedures, and time
management can be greatly improved (Richard, Elaine and Don, 1997). However, the most important
concerns of physicians about OEMRS are patient safety and the working process. These factors can
result in impedance to introduction of an OEMRS (Robert, 2006). Thus, if we physicians act as advocates
or consultants for an electronic medical system, resistance can be reduced (Peter et al., 2006).
3. Material and methods
Most previous research about electronic medical records has focused on technical perspectives,
technology combination, sharing mechanism, related standards and legal perspectives such as privacy
concerns. Few studies have tried to understand the role physicians’ participation can play in the
development process. Past research has showed that lower participation of medical staff can be
considered a dilemma while planning introduction of electronic medical records, whether in small clinics or
large hospitals. Therefore, this research has chosen to examine the case of a hospital that invited
physician participation in developing an OEMRS.
3.1 Case hospital
The subject 1,000-bed hospital is located in southern Taiwan. The outpatient department of the hospital
serves approximately 3,600 people daily and offers over 40 medical specialties. A new building was
recently constructed to offer more outpatient services and preventive medical treatment.
Both computerized and paper-based medical records are used in the outpatient department of the
hospital. While a computerized physician order entry system is in use, paper-based medical records can
still be obtained for use by physicians as references for patients’ histories. Outpatient consultation,
emergencies, admission records, examinations images and pathology reports are available in physical
form. Past records cannot be displayed on the same page when using the same program for browsing. If
physicians need to query some related information, they need to access a sub-system or alternate
windows. Due to the inconvenience of this process, most physicians still use paper medical records. In
response to expansion of outpatient department services in the future, and to address difficulties in
cross-referencing of medical records, it is necessary to develop an integrated outpatient electric medical
records system.
A high compliance rate was observed among information department staff and clinic physicians at the
case hospital. The medical vice-president and the administrative vice-president showed great interest in
this project and provided all support, hoping that the OEMRS can solve the difficulties of cross-referencing
of medical records. A project team was formed with the deputy superintendent of the hospital as the
convener for implementation of the OEMRS at the case hospital. Representatives from the administrative
department were the president’s special assistant and five members from the information department.
One physician was chosen from each major department as the consultant physician. All consultant
physicians were active and showed strong interest in OEMRS development. In addition, they interacted
well with the information department staff. Consultant physicians said they would like to participate in the
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development process of the OEMRS to further solve the difficulties of cross-referencing of medical
records.
3.2 System development
In the process of development of OEMRS, the clinical processes that physicians wanted covered were
listed and incorporated in the OEMRS to make the clinical process smooth. Secondly, in-depth interviews
and questionnaires were used for examining the outpatient department’s work flow and practices. System
development steps are shown in Figure. 1.
Figure 1: System development steps
The prototyping life-cycle, brought by Boar (1984) was employed as a system development method for
this study. A visible and operable prototype was used as a communication tool between developers and
related users (e.g. physicians). As a result, the time and cost of system analysis can be reduced. There
are 3 factors affecting the decision whether an information system is suitable for the prototyping method
(Table 1): (1) degree of environmental change, (2) degree of structuring of the decision-making process,
and (3) similar previous design experiences (Kendall and Kendall, 1988).
Table 1: Factors of system usage
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The main reasons for choosing the prototyping method to develop the OEMRS are as follows.
Demands from physicians are often not clear, or are vague, and these demands cannot be listed easily.
Meanwhile, users’ demands may also change over time. In addition, outpatient department’s physicians in
the case hospital have long experience in clinical work but lack experience in OEMRS development and
usage. Required features and specifications of an electronic medical records system may not be easily
identified. Using the prototyping life cycle system, the system can be modified repeatedly to fit users’
demands. Also, suitability of system interface can be confirmed with users to obtain better suggestions for
further modifications. Based on a deep study of working of the case hospital’s outpatient department and
interviews with related users, the users’ demands were identified as shown in Table 2.
Table 2: System demands
The needed software/hardware are tabulated in Table 3.
Table 3: System develop environment and tools
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The OEMRS integrates other systems as shown in Figure 2. After patient’s registration, his/her basic
information is recorded (or retrieved from existing records). If physiological or biochemical or radiological
examinations are required, examination sheets are signed by the concerned department. Data are then
transmitted back to the OEMRS through PACS. Physicians can see all records of patients’ diagnoses and
determining treatments.
Figure 2: OEMRS process diagram
The main functions of OEMRS are shown in Figure 3. They are: (1) Logon portal; (2) Medical record main
page; (3) History of visit records; (4) Special medication records (offering special chemical treatment
medicine record and general medicine query function); (5) Examination and check reports; (6) Case
management records (offering case management records including cancer cases, chronic kidney disease
and diabetes cases); (7) Special check records (offering special check reports).
Figure 3: OEMRS function infrastructure diagram
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The OEMRS integrates the above functions in a window on the computer screen which can be adjusted to
meet the physician’s needs. Major treatment records and related information for a patient are put together
on a first screen with specific font colors or alert windows to remind physicians of patient previous
treatment histories.
Physicians can log on to OEMRS from the original computerized physician order entry (CPOE) or PACS.
After logging on, users can input patients’ medical record numbers to find related information and view
PACS images. If data are input into the OEMRS via the original interface, medical record numbers of
patients are directly used by the OEMRS to show the related information. Discharge medical note shows
information about a patient’s diagnostic records and examinations from admission to discharge, disease
history, and discharge medication records. Operations notes provide patients’ surgery related records to
meet surgeons’ needs. As a result, timely viability of surgery records and operations notes queries can be
fulfilled.
Outpatient physicians can browse patients’ history to check outcomes of previous visits and compare
different records to observe changes of chief complaints in order to adjust medication. Special
medication records answer any queries for special chemical treatments which are distinguished from
general medicine. Furthermore, it can be sorted and arranged by medicine name, department, or date of
prescription to meet physicians’ needs. Outpatient physicians can quickly read check reports through
Examination by choosing specific data bases to browse information they need. Pre-established
sequencing patterns are listed by date, or by users needs. Extreme Values higher than standard are
shown as red (H), and those of lower values are shown as red (L) to alert physicians. This function can
fulfill physicians’ needs for collection of related continuous examination data, neurological examination
data, and hints of extraordinary examination results. Physicians usually have to compare different
examination reports of different dates in the outpatient consulting process for determining further
treatment. Reports of the same items of examination and tests carried out at different times are compiled
in the same window. Special items are shown in red fonts to alert the physicians. Examination statistics
can be converted into line charts by physicians to help patients understand the changes in their
examination data. Such graphical presentations of examination reports help pediatric doctors explain
patients’ condition to their parents. Case management records and collects data that a case manager
needs about patient-related information such as cancer case management, chronic kidney disease, and
diabetes case management. Special examination records can be searched from the main page tag.
4. System evaluation
Since physicians usually have higher control over medical systems, and are always critical in deciding
whether the new system can be promoted smoothly or not, the case hospital developed the OEMRS from
a physicians’ perspective. During system planning and development phase, modifications are made after
discussions on the OEMRS between hospital personnel from different departments and the system
vendor. These modifications and discussions were analyzed, developed and practiced by the information
staff. After the system went online, factors influencing system usage and feedback from users were taken
for future improvements to realize the system’s benefits. Hence, in-depth interviews were used in this
research to get individual opinions that the questionnaire cannot get. This research used semi-structured
interviews and selected pediatric physicians as interviewees since that was the most supportive division in
the outpatient department of the subject hospital. Usages of OEMRS by the interviewers are shown in
Table 4.
Most interviewees started to use the OEMRS in 2008, and were using the system actively at the time of
the interview. The reason to use OEMRS was the hospital’s policy stance and the consulting physician
having joined the OEMRS implementation team. Except the director of the division, none of the physicians
tried to influence others to use the system. Table five shows individual evaluations of the OEMRS.
Table five shows that the quality of the process of information storage and retrieval by the OEMRS was
still below the physicians’ expectations. Most interviewees reported “partial” in stead of positive to the
OEMRS information quality. System quality of OEMRS was assured by most of the interviewees which
contributed to continuous use of the OEMRS.
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Table 4: Usage of OEMRS by interviewees
Table 5: Evaluation of OEMRS
Hsiao-Ting Tseng et al.
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5. Conclusion and discussion
Hsiao-Ting Tseng et al.
The objective of this research is to use a case study to explore the implementation of an OEMRS with
physician’s participation. The interviews show that one of the motivations for physicians to use OEMRS is
to accept and promote hospital policy. In the development phase of the OEMRS, cooperation and support
of consultant physicians of the case hospital and communication between physicians and information staff
were critical factors for the success of system development and operation. The system development
experiences can serve as references for other hospitals in developing their own OEMRS.
It is clear that physicians’ satisfaction will be improved if the system interface is easy to use and
corresponds to physician needs. Usage frequency of OEMRS is directly influenced by user experience.
More improvements and modifications need to be done to increase physicians’ acceptance and OEMRS
usage. In summary, physicians’ attitudes toward OEMRS development are generally positive. How to
upgrade OEMRS to assist more physicians’ clinical decision making is the task to be considered. For
instance, integrating automated health examination systems (Kuo and Fuh, 2010) to enhance inference
quality and wireless/mobile devices to benefit point of care (Chung, Bell and Lee, 2006) are feasible
directions.
References
Boar B. (1984) Application Prototyping: A Requirements Definition Strategy for the 80s, John Wiley & Sons, USA, New
York.
Chung, K., Bell, R. and Lee, D. (2006) “A Point of Care Clinical Documentation System for Hospice Care Providers”,
Journal of Medical Systems, Vol. 30, No. 1, pp 33-37.
Drew E. A., Carolyn C. and Robert J. B. (2004) “Improving Patient Safety — Five Years after the IOM Report.” The
New England Journal of Medicine, Vol. 35, No. 1, pp 2041-2043.
Lee, J. N. and Kim, Y. G. (1999) “Effect of Partnership Quality on IS Outsourcing: Conceptual Framework and
Empirical Validation.” Journal of Management Information Systems, Vol. 15, No. 4 pp 29-62.
Kendall, E. K. and Kendall, E.J. (1988) Systems Analysis and Design, Englewood Cliffs, Prentice-Hall, Boston.
Kuo, K.L. and Fuh, C.S. (2010) “A Health Examination System Integrated with Clinical Decision Support System.”
Journal of Medical Systems, Vol. 34, No. 5, pp 829-842.
Peter G. R, Howard A., Robert W. and Peter B. (2006) “Active Physician Participation Key to Smooth MOE MAR
Rollout.” Healthcare Quality, Vol. 10, sp, pp 58-64.
Richard S. D., Elaine B. S. and Don E. D. (1997) The Computer-based Patient Record: An Essential Technology for
Health Care. National Academy Press, Washington.
Robert H. M. and Ida S. (2004) “Physicians' Use of Electronic Medical Records Barriers and Solutions.” Health Affairs,
Vol. 23, No. 2, pp 116-126.
Robert M. W. (2006) “Expected and Unanticipated Consequences of the Quality and Information Technology
Revolutions.” Journal of the American Medical Association, Vol. 296, No. 20, pp 2780-2783.
Rogers, E. M. (1995) Diffusion of Innovations (4th ed.), Free Press, New York.
Zmud, R. W. and Cox, J. F. (1979) “The implementation process: A change approach”. MIS Quarterly, Vol. 3, No. 2,
pp 35-43.
427

MTN Foundation's Digital Library Project in Nigerian
Universities: An Evaluative Study
Ngozi Blessing Ukachi
University of Lagos, Akoka, Nigeria
ukachingozi2001@yahoo.com
Abstract: This survey study was conducted with the main objective of evaluating the use and service provision of
MTN Foundation’s digital library project in Nigerian universities with regards to the objectives of establishing them.
The initial plan to study two out of the three already commissioned libraries was forestalled by temporary closure of
the second one hence the study concentrated on one, situated at University of Lagos, Nigeria. Questionnaire
constituted the major instrument for data collection even though the librarian in charge of this library was interviewed
and documentary records consulted to obtain such data as list of electronic resources/database available in the
library. A total number of 1000 questionnaires were distributed to the library users. Out of this number, 852 were
returned while 812 questionnaires were found usable. The data collected was subjected to descriptive statistical
analysis using simple percentages and frequency counts. The result of the study revealed that this project is
appreciated by users considering their level of acceptance of the fact that; the resources in this library has enriched
their awareness on the existence of various kinds of e- resources (76.6%); the use of the resources has assisted
them greatly in doing their assignments (68.8%); and resources from this library have made their research work very
easy (54.4%). The study also identified some inhibitors to the optimal utilization of the library resources. These
include; lack of awareness and training on the use of the library, low bandwidth, limited access to computer
terminals, etc. The study recommends, among other things, that the bodies responsible for funding the library should
ensure that the Internet bandwidth is upgraded to enhance its speed, users should be trained or given proper
orientation on how to use the resources provided by this library and, the acquisition of more computer systems to
augment the ones provided by MTN foundation
Keywords: digital libraries, electronic resources, library resources use, universities, MTN foundation, Nigeria
1. Introduction
The poor availability and obsolescence of books, journals and other learning materials have always
posed a problem that impairs the ability of higher education institutions in Africa to adequately achieve
their purpose of teaching, research and community service for their expanding population of students
(UNESCO, 2003). Even though Nigeria has more than three hundred higher institutions presently, the
precarious state of the economy has negatively affected the institutions hence scholars and students can
only access a small portion of the necessary library facilities in these institutions. The pitiable state of
library facilities necessitated the Federal Government of Nigeria to make some interventions through
such bodies as, the World Bank Federal Universities Development Sector Adjustment Credit, the
Petroleum Special Trust Fund, National Education Materials Procurement Programme and the Education
Tax Fund. These bodies assisted institutions with the provision of such facilities as computers, books and
journals, and other office equipment for the libraries. Subsequently, at the instance of the former
President, His Excellency, Chief Olusegun Obasanjo, UNESCO facilitated the development of a plan that
sets out a road map to efficiently deliver local and international content to all Nigerian Higher Education
Institutions, staff and students, in the context of their peculiar environments, by means of a Virtual Library
Database provision to augment the existing library resources (UNESCO, 2003). The Virtual Library
Database is meant to be a full text databases covering all fields of study including indigenous content.
Though these steps had some level of positive effect on libraries in Nigeria, the digital divide gap with its
associated problems were still very much evident in Nigerian libraries. It was against this background that
Ogunsola and Aboyade, (2005) observed the urgent need for Nigerian higher institutions to move from
the traditional role of teaching, learning and research to those driven by the information technology. They
concluded that any college or university in Nigeria that does not have full Internet connectivity with
reasonable speed and relevant ICT facilities in the next few years will not be in a position to fulfil the
purposes for its establishment. Ordinarily, given the limited funding available to academic libraries in
Nigeria with the escalating cost of information materials alongside Information Technology (IT) facilities, it
is obvious that the acquisition of these facilities will end up being a day dream if abandoned to be
handled solely by the library. The need to ensure that users of academic libraries in Nigeria have access
to relevant, timely, up-to-date and appropriate information in their fields of interest necessitated the
continued struggle to have in place a digital library that will give users access to electronic information
resources from varying sources.
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Ngozi Blessing Ukachi
It is in light of the above that MTN Nigeria had in 2005 commenced its Universities Connect project which
provides computers, Internet access and other infrastructures to Nigerian Universities. This project was
embarked upon to achieve MTN’s laudable objectives of bridging the knowledge and digital divide,
enhancing educational infrastructure development and, providing educational resources for effective
learning. However, even though this laudable project has succeeded in making available and also
providing access to diversified digital resources from enormous numbers of libraries globally, there is still
need to evaluate the use and service provision of these libraries vis-a-vis the objectives of establishing
them. This it is believed will expose lapses and give room for amendments where necessary. According
to Nadiri and Mayboudi (2010) library services evaluation help librarians understand users perceptions
and it contributes in improving library service quality and meeting users’ needs better.
2. Objectives of the study
The general objective of this study is to evaluate the use and service provision of these libraries with
regards to the objectives of establishing them.
The specific objectives are:
1. To find out the extent of electronic resources made accessible to users in these libraries
2. To establish if users are given training on how to utilize the resources
3. To determine the extent to which the resources provided by these libraries are being utilized by the
users
4. To find out how the use of the resources of this library has positively impacted on the students
5. To identify factors inhibiting the optimal utilization of the resources provided by these libraries
6. To make recommendations based on the outcome of the study
3. Background information of MTN Nigeria
MTN Nigeria is one of the global mobile telecommunication service providing companies in Nigeria. The
MTN Foundation is the vehicle through which MTN Nigeria implements its corporate social responsibility
programme. The Foundation was established in July 2004 with a focus on giving back to society and
impacting the quality of lives in Nigeria in a meaningful way. The MTN Foundation, which is the
arrowhead of MTN's social investment drive, is playing a key role in deploying various programmes
designed to help reduce poverty and foster sustainable development in Nigeria.
This digital library project in Nigerian Universities by MTN is popularly referred to as MTN Foundation
Universities Connect Project. The institution of this project was brought about by the intense need to
bridge the digital and knowledge divide problem being experienced in the nation by majority of the
citizens who even though they attend Universities, cannot boast of having utilized electronic information
resources in their research activities. This innovative project is designed to provide digital access to
information and infrastructure to Federal Universities in Nigeria. The project facilitates access to a
collection of digital resources from over 5,500 libraries to assist university students and lecturers with
their research works. The project is implemented in partnership with Netlibrary Nigeria Limited. The
present beneficiary institutions of the Universities Connect project are:
For Phase 1- University of Lagos, Akoka, Lagos State
For Phase 2- Ahmadu Bello University, Zaria, Kaduna State
For Phase 3- University of Nigeria Nsukka, Enugu State
For phase 4- University of Benin, Benin City, Edo State. (This particular one has been approved but
not yet commissioned)
MTN Nigeria’s specific objectives of establishing this Education Portfolio are as follows:
To empower through the provision of information and technology resources
To enable skills acquisition, transfer and development
To raise national literacy levels
To provide educational resources for effective learning
To enhance educational infrastructure development
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The scope of the project is as follows:
Ngozi Blessing Ukachi
128 networked computers, 3 servers, 2 high capacity printers and 100KVA generator
VSAT equipment & internet connectivity bandwidth with 2 years subscription
2 years subscription to electronic resources through the NetLibrary network (Journals, Books, etc)
Conducive study environment through space renovation, provision of adequate lighting, furniture, and
alternative power supply 75b
Technical training for 12 members of existing library staff to work with NetLibrary over 2 years to build
capacity
One-week library awareness to be held annually for students and lecturers
One-week awareness workshops to be held annually for approximately 600 students and 120
lecturers
Initiate a 5–year maintenance contract with the University to ensure a conducive environment with a
clear sustainability strategy
Two years comprehensive insurance cover to take care of theft & fire
An interactive students website - “www.universitiesconnect.com”
4. Methodology
A descriptive research approach was adopted for this study. The purpose of descriptive research is to
describe the current state of affairs at the time of the study without manipulating the variables or having
control over them (Salkind, 2006). The study employed survey procedure for the collection of data.
According to Nworgu (1991) survey method of investigation is one in which a group of people or items
are studied by collecting and analyzing data from only a few people or items considered to be
representative of the entire group. The choice of this research design is considered adequate for the
study because it will enhance and give a better understanding of the situation on ground in relation to the
extent of services provided by the library and also, extent of usage by the users.
This study which was initially programmed to evaluate two out of the three presently existing functional
digital libraries established by MTN Nigeria, ended up evaluating only one, situated at University of
Lagos. This is because the second library at the time of this study was temporarily locked up as a result
of some logistic issues that are yet to be resolved between the institution and the Netlibrary. The
population of this study comprises both the librarian and users of this library.
A self-developed questionnaire tagged Electronic Resources Availability, Extent of Use, Impacts and
Inhibitors (ERAEUII) scale for users was used for data collection. The questionnaire is divided into four
parts. Part A deals with the extent of electronic resources available in the library. Part B concentrated on
the extent of use of this library and its resources. Part C sought responses on the positive impacts of
utilizing this library while Part D concentrated on identifying inhibitor to the optimal utilization of the
resources provided in this library. To complement the questionnaire, the researchers also interviewed the
librarian in-charge of this library. The data collected was subjected to descriptive statistical analysis using
percentages and frequency counts.
5. Findings of study
Questionnaire distribution pattern
A total of One thousand (1000) questionnaires were distributed to the library users. Out of this number,
852 were returned while 812 questionnaires were found usable.
Table 1: List of electronic resources available in this library
1 E- RESOURCES/ DATABASES
2 Sabinet Online Reference Database
3 EBSCOhost Reference Database
4 Jstor
5 HINARI
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Ngozi Blessing Ukachi
6 MIT
7 SSRN
8 Nation Academic Press Database
9 E-Print in physics, Mathematics, computer science and Quantitative Biology
10 Digital Library for earth system education Online
11 Virtual Libraries online
12 Science Direct Online
13 Law Journals Online
14 Oxford Journals Online
15 Ebooks Online Library
16 Linguistics Database Online
17 Guteng Online Library
18 The Encyclopedia
19 The Wiki Service
20 Free Library Online
21 Google Search Engine
22 E-Books Collection
23 File Management
6. Training on the use of the library
On the issue of whether the users are given training on how to use the resources, they all unanimously
answered no. This implies that they are not given any form of training on the use of this library. As a
result of this, majority of the users of this library are only aware of the existence of a few of the database,
thereby underutilizing the resources.
During the interview with the librarian in charge of this library, the researcher was made to know that the
library has not actually been training the users on the use of this library neither have they been holding
one-week library awareness as indicated in the scope of the project by MTN foundation. The reason for
this according to him was that the library lack adequate manpower to be able to perform that function as it
has just four (4) regular staff members.
7. Extent of use of the library
To determine the extent to which the resources provided by these libraries are being patronized by the
users, they were asked to indicate how frequently they utilize the resources in this library. Options such
as; “daily, 2-3 times weekly, weekly, and once in a while”, were given. Their response is represented in
the pie chart below:
Table 2 indicates that 66.7% of the respondents responded that they utilize the library once in a while, the
other 33.3% responded that they utilize it 2-3 times weekly, while none of the respondents attested to be
utilizing it daily or weekly.
Table 2: Response on extent of use of the library
Extent of use Frequency count Percentage
Daily 0 0.0
2-3 times weekly 268 33.3
Weekly 0 0.
Once in a while 544 66.7
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Ngozi Blessing Ukachi
The librarian was equally asked during the interview to comment on his observation regarding the
utilization of the resources of this library. It was gathered from his response that the library is not being
adequately utilized.
Table 3 illustrates the ways and extent to which the use of the resources provided by this library has
benefitted the students. The findings revealed that 622 (76.6%) of the respondents indicated that the use
of the resources in this library has enriched their awareness on the existence of various kinds of e-
resources. This was closely followed by 559 (68.8%) acceptance of respondent that the use of the
resources has assisted them greatly in doing their assignments. While the option that ‘resources from this
library have made my research work very easy’ received 458 (54.4%) acceptance, ‘my general academic
performance has improved as a result of using MTN Digital library resources in augmenting my
classroom works’ received 320 (39.4%) respondent’s acceptance.
Table 3: Response on positive impacts of utilizing MTN digital libraries
POSITIVE IMPACTS Frequency count Percentage
Enriched my awareness on the existence of various kinds of e- resources 622 76.6
Assisted me greatly in doing my assignments 559 68.8
Resources from this library have made my research work very easy 458 54.4
My general academic performance has improved as a result of using
MTN Digital library resources in augmenting my classroom works
320 39.4
Table 4 shows factors inhibiting the optimal utilization of the resources provided by this library. This
revealed low bandwidth attestation by 786 respondents, which is 96.7% of the study’s user population. A
number of 527 (64.9%) of the respondents indicated that limited access to computer terminals is one of
their inhibitors to optimal utilization of MTN Digital library resources even as Poor attitude of library staff
was indicated by 386 (47.5%) respondents. Irregular power supply received 278 (34.2%) indication by the
respondents while insufficient IT knowledge received 267 (32.8).
Table 4: Response on inhibitors to optimal utilization of MTN digital library
Frequency count Percentage
Inhibitors
Low bandwidth 786 96.7
Irregular power supply 278 34.2
Poor attitude of library staff 386 47.5
Limited access to computer terminals 527 64.9
Insufficient IT knowledge 267 32.8
8. Discussion of findings
The findings of the study show that the necessary information communication and technology facilities in
the form of computers, printers, scanners, Internet access, database, etc, required for service provision in
this library are all available. It also revealed that these facilities are in good working condition. From
personal observation, the library has cconducive study environment. There is adequate space and
furniture provision and also alternative power supply.
On the subject of positive impacts of using the library, high percentage (76.6%) of the respondents
attested that the use of this library have enriched their awareness on the existence of various kinds of e-
resources. A number of 559 respondents being 68.8% of the user population stated that it has assisted
them greatly in doing their assignments while 54.4% confirmed that resources from this library have
made their research work very easy. This result shows that adequate utilization of these resources by
students will enhance their academic performance and assist in making them assets to the society. This
finding corroborates with Tella, Tella, Ayeni and Omoba’s (2007) findings in their work on Self Efficacy
and Use of Electronic Information as Predictors of Academic Performance. This work identified that
electronic resources has many functions and benefits that are capable of positively influencing the
academic performance of both students and researchers in the university as well as other higher
educational institutions.
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Ngozi Blessing Ukachi
On the other hand, the analysis of the results reveals some shortfalls which if not taken care of could
affect the actualization of the goal of establishing this library. The entire user population of the study
unanimously stated that no form of training is given them on the use of this library and its resources. The
repercussion could be seen from the result of the extent of use of the library where not even a single user
accepted to have been using the library on a daily basis rather a very high percentage (66.7%) of the
user population indicated that they use it “once in a while”. It is a common knowledge that an individual
will utilize facilities more when he possesses adequate skills necessary for their use while on the other
hand he cannot effectively utilize what he does not have any training on.
Low bandwidth and limited access to computer terminals were identified as the major inhibitors to optimal
utilization of this Library. This finding agrees with those of Aduwa-Ogiegbaen and Iyanu (2005), Edom
(2007) and Ukachi (2008) who noted inadequate number of ICT facilities, limited access, among other
factors as inhibitors to optimal utilization of this kind of libraries. The forgoing indicates the slow pace at
which the movement towards bridging the digital divide is being made. Poor attitude of library staff was
also identified as another factor inhibiting the optimal utilization of these resources. This may perhaps be
caused by the problem of inadequate staffing being experienced by the library which is likely to be
affecting their service provision.
A survey research on the use of ICT equipment carried out by Daniel et.al (2003) shows 70%
respondents’ acceptance of incessant electric power failure as a major impediment while this particular
work has 34.2% acceptance of this factor. This provision of standby power generator is a pointer that
institutions are now realizing the place of power supply in digital/electronic service provision.
9. Conclusion
This study without doubt has led to the establishment of facts as regards the main objective of the work,
which is to evaluate the use and service provision of MTN Foundation’s University digital library projects
in Nigeria. The result of the study showed that this project is appreciated by users considering their
testimonies concerning the positive impacts of utilizing the resources being provided. At the same time, it
should be noted that mere provision of this resources without creating corresponding awareness on its
existence tantamount to waste of resources as availability is only one of the factors that influence usage
but does not necessarily guarantee optimal usage on its own.
10. Recommendation
Based on the findings of the study, if the digital/electronic libraries must live to continually fulfill their
primary goal which is, the provision of information and services geared at satisfying the information needs
of users, the following recommendations meant to check the usage inhibiting factors should be
considered and implemented.
The bodies responsible for funding the library should ensure that the Internet bandwidth is upgraded
to enhance its speed. This should also be emulated by similar libraries.
To curb the problem of limited access to computer systems, the institution should acquire more
computer systems to augment the ones provided by MTN foundation. Meanwhile, considering the
funding situation of the libraries in Nigeria which Okiy (2005) termed to be inadequate, the library on
its own should also develop some fee-based electronic reference services such as, Selective
Dissemination of Information(SDI), Abstracting and Indexing services to individuals, etc. This will help
them generate funds internally to augment what is being allocated to them for the acquisition of
additional ICT facilities to enable larger number of users to access them.
Users should be trained or given proper orientation on how to use the resources provided by this
library more effectively. The relevance of library orientation should never be underestimated be it in
the traditional or electronic library environment.
To actualize the above, more staff members should be employed in the library to assist in the service
provision of the library.
References
Aduwa- Ogiegbaen, S. E. and Iyanu, E. O. S (2005) Using Information Technology in Secondary Schools in Nigeria:
problem and prospects. Educational Technology and Society. 8(1). P.104-112.
Edom B. O. (2007) An assessment of the problems of the use of ICT facilities in information sourcing and retrieval by
the academic staff in Nigerian universities. The InformationTechnologist: 4(2).p.113-127
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Daniel, J. O. et al (2003) Forty years of information and communication technology (ICT) Library services to the
nation: in S. O. Lanlokun (ed.) forty years of library services in Nigeria. The Guardian Newspaper, March 24.p.2.
http://www.mtnonline.com/mtn-foundation/...http://www.mtnonline.com/MTN-Foundation/index.asp
Nadiri, H. and Mayboudi, S. M. A. (2010) Diagnosing university students’ zone of tolerance from university library
services. Malaysian Journal of Library & Information Science, 15(1). p.1-21.
http://majlis.fsktm.um.edu.my/document.aspx?FileName=842.pdf. Accessed on 22/01/2011
Nworgu, B. G. (1991) Educational research: basic and methodology. Ibadan, Wisdom Publishing
Ogunsola, L. And Aboyade, W. (2005) “Information and Communication Technology in Nigeria: Revolution or
Evolution” Journal of Social Sciences, 11(1): 7-14
Okiy, Rose B. (2005) Funding Nigerian libraries in the 21 st century: will funding from alternate sources suffice? The
Bottom Line: managing library finances, 18(2). p.71-77
Salkind, N. J. (2006) Exploring research. 6 th ed. Pearson: New Jersey. Samba, A. 2007
Tella, A., Tella, A., Ayeni, C. O. and Omoba, R. O. (2007), Self Efficacy and Use of Electronic Information as
Predictors of Academic Performance. Electronic Journal of Academic and Special Librarianship. 8(2).
http://southernlibrarianship.icaap.org/content/v08n02/tella_a01.html Accessed on 22/06/2010
Ukachi, N. B. (2008) Utilisation of Information Communication Technologies (ICTs) in Reference Services of
Academic Libraries: Threats and Challenges. The InformationTechnologist. 5(2).p62-69
UNESCO, (2003),“Feasibility Study on the Development of a Virtual Library by Institutions of Higher
Education in Nigeria”, Consultancy Support Services Ltd., Abuja, Nigeria, available at:
http://www.portal.unesco.org/en/files/39276/...Final.pdf/FS4VL_Final.pdf. Accessed on 18/11/2009
434

Cloud Computing-Based IT Solutions for Organizations With
Multiregional Branch Offices
Harris Wang
Athabasca University, Canada
harrisw@athabascau.ca
Abstract: One of the most significant phenomena of the new century is globalization. As business goes global,
multiregional branch offices are needed and networked computing and information services must then be established
for those branch offices. In this paper we investigate a cloud computing based approach to the rapid deployment of
computing and information services for organizations with multiregional branch offices. We first take a look at the
general process leading to the deployment of Computer and Information Technology (CIT) services for organizations,
and then present some cloud computing-based solutions for organizations with multiregional branch offices, followed
by discussions about their key features as well as issues and concerns surrounding the proposed IT solutions. An
important contribution of this paper is a generalized view of the cloud computing-based approach, which may be
used as guidance in implementing and deploying such IT solutions.
Keywords: cloud computing, globalization, information technology infrastructure
1. Introduction
In today’s world, the reach of computer and information technology is vast and deep. Computer and
information technology are prevalent in every corner of our society from health care and military
deployments, to that of the corporate business world; using computers and information technology has
become a fundamental part of daily operations for almost all organizations. Information technology drives
business and communications through virtually removing borders and distance limits and making it
possible for instant commerce and communication globally between organizations or internally.
The expectation that surrounds the use of computer and information systems on this global network has
become one that society expects instant communications with instant gratification and results from all
businesses at all times. In order to provide this type of service it is necessary to have a robust and
reliable information technology infrastructure underpinning the communications and information systems.
Traditionally, the information technology infrastructure that supports these systems needed for
businesses with multiregional branch offices usually starts internally with a core network and data center
for the originating site or head office and extends to branch offices worldwide. This traditional approach
often provides more reliable and better guaranteed computing and information services. With the
advances in computing and information technology, we now may have more options in providing the IT
needs to businesses with branch offices worldwide. In this paper, we will explore a cloud computing
based approach to the rapid deployment of computing and information technology services for
businesses with offices worldwide.
2. General management process towards an IT solution for businesses
In general, any new branch office will require a data center, network core and infrastructure,
telecommunications systems, 3-tier application systems, web servers, database servers and client
computers, and all these elements require a high degree of information security considerations to be
taken. No matter how these elements will be implemented, some general Project Management (PM)
steps must be taken (PMI 2004).
In order to determine exactly what IT infrastructure and systems are needed and how to implement the IT
infrastructure and determined systems for a new business expansion, the first step is defining the needs
of the business. In this case a Chief Technical Architect (CTA) or the like will need to work with the
functional representatives from the business and defines what will be needed to support the daily
operations of the business; from an ERP (for Enterprise Resources Planning) system and Email services
to Computer Numerical Controlled (CNC) systems and Computer-Aided Design (CAD) systems, this
should be determined in the project conception stages. This Initiation phase of the project allows the
business to communicate the technical needs or concepts to be evolved.
The next phase of the project is Project Planning (PP), which in the project lifecycle is the next logical
progression for the project. It is important in this phase to determine the full extent of the work packages
or work breakdown structure (WBS), the sequencing of activities, resources required, risks and risk
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management plans, cost estimating and budget, change and quality control, procurement plans, plan and
hold a formal project kick off meeting and define the finalized project plan (PMI 2004).
The last phase of the project is Project Execution where the work begins to occur is signified by acquiring
the project team, receiving responses from any request for proposal, selection of the vendor based on
proposal, execution of the work packages, perform quality assurance, and the PM distributes and
controls project information and implements administrative closure procedures.
This 3-phase process of project management is applicable when using a cloud computing based IT
solution to meet the computing and information technology needs of businesses with multiregional branch
offices.
3. Cloud computing based solutions
Cloud computing is defined as “a pay-per-use model for enabling available, convenient, on-demand
network access to a shared pool of configurable computing resources (e.g., networks, servers, storage,
applications, services) that can be rapidly provisioned and released with minimal management effort or
service provider interaction” (Pearson 2009). In literature and practice, there are three cloud computing
models: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service
(SaaS) (Fouquet 2009, Gruman 2008).
In the IaaS model, users subscribe for uses of certain components of provider’s IT infrastructure.
Although the subscribers don’t have control of the entire cloud infrastructure, they do have control over
selected portions of it, such as firewalls, operating system, deployed applications and storage.
In the PaaS model, a combination of applications, which forms a platform, is subscribed as a service by
users. For example, a combination of software tools may be used as a programming and software
platform.
The SaaS model can be seen as special case of PaaS, where a single application can be subscribed as
a service. Such services are often accessed through a Web browser.
As for cloud, there are private cloud, public cloud and hybrid cloud based on the relationship between
cloud owners and cloud users (Buyya 2008, Dikaiakos 2009). Private Cloud is usually owned and used
by the same organization such as a corporation. It often refers to a proprietary computing infrastructure
owned by the organization, and provides computing and information services to its employees behind the
organization’s firewall. Public cloud often refers to computing and IT infrastructure that is owned by an
organization but provide computing and information services to external users or subscribers. By
subscribing services provided by other well established companies, new start-ups, for example, can
quickly realize their computing and information technology needs without investing so much money and
time to implement their own computing and IT infrastructure.
Hybrid cloud is a mixture of public cloud and private cloud. It can be useful for some well established
corporations who already have their own computing and IT infrastructure, but need additional computing
and IT services for expansion in new areas. By subscribing needed computing and information services
available in public cloud, they can make use of the services more quickly without investing big money and
lengthy time on implementing their own CIT infrastructure. Accordingly, we derive from the above the
following cloud computing based solutions for businesses with multiregional branch offices, to meet their
computing and information technology needs.
3.1 Private cloud based solution to meet the IT needs of multiregional branch offices
For organizations who have well established computing and information technology infrastructure, such
as some high-tech companies in the IT business, a completely private cloud based solution may be a
better choice to provide computing and IT services to new branch offices in other cities or other countries.
In such a case, the data centre, servers and all major computing and IT devices reside behind the firewall
on the organization’s enterprise network, located on site of the head office, while users in branch offices
access the computing and information services through VPN or a Web browser, if a Web interface has
been made available for accessing the service. Figure 1 depicts the architecture of our private cloud
based solution.
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Branch Office A
Branch Office C
Figure 1: Architecture of private cloud based solution
In private cloud based solution since everything is under control of the very same organization, this
solution gives the organization the total freedom and autonomy in managing all the components of the
computing and information technology infrastructure.
3.2 Federated cloud based solution to meet the IT needs of multiregional branch offices
Federated cloud can be seen as a variant of private cloud. Same as in private cloud, in federated cloud
computing and information technology infrastructure is still privately owned by the sole organization, but
the equipment, servers and services are distributed among head office and branch offices. This may be
necessary when different branch offices have different missions and each needs more dedicated
computing and information services. For example, one branch may be working on data mining, while
another branch may be more on server development. The architecture of federated cloud based solution
is showed in figure 2.
Branch Office A Branch Office B
Branch Office C
Figure 2: Architecture of federated cloud based solution
3.3 Public cloud based solution to meet the IT needs of multiregional branch offices
A public cloud based solution is for the organization to subscribe all needed computing and information
technology services from providers in the public cloud. This solution is suitable for organizations that
have no resources or interest to implement their own CIT infrastructure, or small start-ups. By subscribing
the needed computing and IT services readily available in the public cloud, a start-up can quick get its
business going and have the creative ideas tested. If the business doesn’t fly, it can easily get off the
boat with less to lose. Figure 3 depicts the architecture of public cloud based solution.
Figure 3: Architecture of public cloud based solution
Private cloud owned by and hosted
at the head office of the cooperation
Branch Office E Branch Office F
Branch Office G
Branch Office A
Branch Office C
Branch Office E
Public Cloud
Head Office of the
Cooperation
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Branch Office D
Branch Office B
Branch Office D
Branch Office A
Branch Office D
Branch Office F

3.4 Hybrid cloud based solution to meet the IT needs of multiregional branch offices
As in the common definition, hybrid cloud involves both private and public cloud. A hybrid cloud based
solution may be applicable for an organization that has an established CIT infrastructure sufficient for its
current needs, but doesn’t want to invest big money and time to expand its current CIT infrastructure for
new business. In this case, it would rather choose to get the needed CIT services from a reliable source
in the public cloud. By doing this, it may be more easily turn around if the new adventure doesn’t go well.
The architecture of hybrid cloud based solution is shown in figure 4.
Branch Office A
Private
Branch Office A
cloud owned
by and
hosted at
Branch Office A
the head
office of the
cooperation Branch Office A
Branch Office A
Figure 4: Architecture of hybrid cloud based solution
Public Cloud
4. Advantages and challenges of cloud computing based solution
Cloud computing based IT solution for organizations with multiregional offices brought both advantages
and challenges. The advantages are as follows:
Cloud computing provides organizations with more agile solutions to meet their IT needs. With cloud
computing, they can quickly get the IT services needed to run their business. This is especially
suitable for new business with a brilliant but risky adventure. Because the new business idea is
brilliant, they need to get the idea tested as soon as possible before it is stolen by competitors;
because it is a risky adventure, it is very likely to fail. By subscribing CIT services available from the
public cloud, they could avoid big loss in CIT infrastructure investment (Cohen 2004).
By subscribing services from a third-party, an organization can save money on capital investment. It
can also save on maintenance because the CIT infrastructure is owned and maintained by the thirdparty.
Compared to CIT infrastructure developed from scratch, cloud computing based solutions can be
more reliable by subscribing well established computing and information technology services
provided by trusted third-parties (Stantchev 2009).
Because additional CIT services can be easily subscribed from providers in the cloud, a cloud
computing based IT solution can be more scalable. It can also be more easily scale down if
necessary, because unsubscribing unneeded services are usually less painful than disposing some
expensive CIT equipments (Buyya 2009, Brandic 2009).
Generally speaking for the entire IT industry, cloud computing provide better IT solutions to utilize IT
infrastructure and equipments, as these often expensive infrastructure and equipments can now be
shared among more users. This also means the overall power consumption will be lower, and hence
the carbon footprint will be smaller. So, it is good for the environment too (Buyya 2008).
In cloud computing based solutions, because important data centers and servers are often owned
and managed by big well established companies who usually have much better expertises and
resources to secure their equipments and services, cloud computing based solutions are often
secure in this regard (Stantchev 2009).
There are few challenges or concerns surrounding could computing based IT solutions. There challenges
or concerns are:
1. The operational costs may be high. We mentioned that the capital cost can be much lower when a
cloud computing based solution is chosen. However, its operational cost may be higher than running
its own CIT infrastructure because it may be required to pay big money for the subscribed services.
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This all depends on the relationships and contract between the organization and the services
provider or providers (Li 2009).
2. Reliability may be questionable if the CIT services provided in the cloud are not carefully chosen.
In theory, a cloud computing based IT solution should provide reliable CIT services if the providers
are carefully chosen. There are two factors that may cause the CIT services obtained from cloud
computing unreliable. These factors include:
a. Unpredictable failure of network external to the organization. Since those portions of network are
not under control of the organization, it cannot really do anything to avoid such failure, or to ensure a
quick recovery once such a failure has occurred.
b. Services broken down at the service provider. It is very important to choose a reliable and trusted
service provider. Even if this has been done, there is still no guarantee as things may change over
time. The provider may have gone bankrupt; it might be sold to another party which is unfamiliar or
even hostile to the subscriber. The original owner of the service provider may turn to be unfriendly for
some reasons.
3 .In a cloud computing based solution, the security of data and subscribed CIT services are in thirdparties’
hand. They care secure only if the third parties are doing their good job. However, even if
great effort has been taken in choosing the service providers, security may still be a problem fir the
following reasons (Pearson 2009, Kaufman 2009, Kandukuri 2009):
a. They may be an oversight when evaluating the security measures implemented at the service
providers;
b. There may be new threats that the service providers are unprepared for. If the providers do not
implement anti-threat measures in time and effectively, the security of the data and CIT services may
be at great risk;
c. The service providers may change their security practice or even side (due to pressure from the
top, for example).
d. Because in a cloud computing based solution, users access data and subscribed services through
the Internet, security breach may occur during transmission between users and the service providers.
5. Conclusions
Cloud computing brings us both opportunities and challenges. With the advancement of computer and
network technologies, more reliable and powerful computing and information technology services have
become available on the Internet, and high speed reliable internet access to these services is becoming a
reality for many users in the world. Therefore, it is possible for organizations with multiregional branch
offices to get the needed computing and information technology services through cloud computing.
In this paper, we presented four cloud computing based solutions: private cloud based, federated cloud
based, public cloud based, and hybrid cloud based. The subtle differences between these solutions, as
shown in the figures, are important because they have crucial impact to the details of implementation and
even administration, including accounting and security management. For example, in the private or
federated cloud computing based solutions, the accounting can be simple because there is no external
body involved, but the system administration may be heavy especially in the case of federated cloud
computing because of the equipments and services are distributed amongst the branch offices. This may
increase the complexity of the entire system. In case of public cloud computing based solution, the
organization may have less to do in security, but the accounting will have to consider the operational cost
of subscribed CIT services.
We also pointed out in this paper some advantages of using cloud computing based solutions, as well as
some issues. It is important for an organization to carefully study both these advantages and issues when
considering a cloud computing based solution for its needs.
References
Buyya, R., Yeo, C. S. and Venugopal S. (2008) Market-Oriented Cloud Computing: Vision, Hype, and Reality for
Delivering IT Services as Computing Utilities. Department of Computer Science and Software Engineering, The
University of Melbourne, Australia. pp. 9.
Buyya, R., Ranjan, R. and Calheiros, R.N. (2009) Modeling and simulation of scalable Cloud computing
environments and the CloudSim toolkit: Challenges and opportunities, International Conference on High
Performance Computing & Simulation, HPCS '09. Page(s):1 – 11
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Harris Wang
Brandic, I. (2009) Towards Self-Manageable Cloud Services, Annual IEEE International Computer Software and
Applications Conference, 2009. COMPSAC '09. 33rd Volume 2, Page(s):128 - 133
Cohen, D., Lindvall, M. and Costa, P. (2004) An introduction to agile methods, Advances in Computers, New York,
Elsevier Science, pp. 1-66.
Dikaiakos, M.D., Katsaros, D., Mehra, P. Pallis, G. and Vakali, A. (2009) Cloud Computing: Distributed Internet
Computing for IT and Scientific Research, Internet Computing, Issue 5, Volume 13, IEEE.
Gruman, G. (2008) What cloud computing really means. InfoWorld (http://www.infoworld.com), retrieved 2010-01-17
from http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means-031
Fouquet, M. and Niedermayer H., Carle G. (2009) Cloud computing for the masses, in Proceedings of the 1st ACM
workshop on User-provided networking: challenges and opportunities, pages 31-36.
Kandukuri, B.R., Paturi, V.R. and Rakshit, A. (2009) Cloud Security Issues, IEEE International Conference on
Services Computing, SCC '09. Page(s):517 – 520
Kaufman, L.M. (2009) Data Security in the World of Cloud Computing, Security & Privacy, IEEE, Volume 7, Issue
4, Page(s):61 – 64
Li, X., Li Y., Liu T., Qiu J. and Wang F. (2009) The Method and Tool of Cost Analysis for Cloud Computing, IEEE
International Conference on Cloud Computing, CLOUD '09. Page(s):93 – 100
Pearson, S. (2009) Taking account of privacy when designing cloud computing services, Proceedings of the 2009
ICSE Workshop on Software Engineering Challenges of Cloud Computing, p.44-52.
Project Management Institute (2004) Guide to the Project Management Body of Knowledge, 3rd Edition.
Stantchev, V. (2009) Performance Evaluation of Cloud Computing Offerings, Third International Conference on
Advanced Engineering Computing and Applications in Sciences, ADVCOMP '09, Page(s):187 – 192
440

Case Study on Information Evaluation by GIS for Aging
Society Urban Planning: Information Evaluation of Shrinking
Cities
Yupeng Wang, Hiroatsu Fukuda and Kiyoshi Shinriki
The University of Kitakyushu, Japan
y09e0101@hibikino.ne.jp
fukuda@env.kitakyu-u.ac.jp
shinriki@hq.kiu.ac.jp
Abstract: An understanding of the sites upon which they are working is crucial to city planners at every stage of the
urban design process. Usually, the information (such as population, landform, building conditions, and economic
data) is too complex to be processed and reported for analysis through the ordinary statistical approaches. The GIS
(Geographic Information System) offers software that can collect related databases for different fields onto one map,
allowing both the individual analysis diagram and the compound analysis to be easily achieved. Thus, GIS provides
planners a more comprehensive understanding of the site upon which they are working. Our research is an actual
urban design project in Japan, an example of the utilization of GIS in urban planning. It is a typical case, with an
intricate landform and typical population composition. First, GIS analyzes the basic data, covering landform,
construction age, and population. These analyses occur in two stages: first, a comparative study of the population
structure over the last 10 years in different landform areas, then the forecasting of its evolution. Using these
analyses, the proposal plan tries to improve the residential environment and prevent decline by retaining the local
population and attracting outsiders. The introduction of GIS allows digital data to be composited with draft data,
resulting in clearer and more precise analyses. This method produced accurate dates for Yahatahigasi-ku, therefore
assisting the evaluation of data reflecting the current situation and orienting the next step of the urban design. It has
thus been demonstrated that GIS enhances the efficiency of site analysis. We consider this study of GIS in urban
planning to be a development of GIS application. This paper presents a new information evaluation method for urban
planning that provides more social information on the target area than previous methods and shares the results of
information evaluations.
Keywords: urban design, GIS, population, landform, building state
1. Introduction
New urban proposal plans usually become necessary as a city develops, in order to deal with variations
in population and transformations in lifestyles. Studying the site from different perspectives and
developing a comprehensive understanding of the site are the key steps to a successful plan. The GIS
can help planners gather both the abstract and concrete data into a single graphic. This paper proposes
the introduction of the GIS in the site analysis stage. It discusses the GIS analysis method through a case
study of Yahatahigasi-ku, Japan. Based on these analyses, the proposal plan tries to improve the
residential environment and prevent urban decline by retaining the local population and attracting
outsiders.
2. Goal, research objective, and methods of research
2.1 Goal
Japan’s aging society is becoming a serious problem, which must be analyzed from different
perspectives if it is to be understood and solved. This paper aims to find a new approach that involves the
GIS in the analysis stage.
2.2 Research objective
This study is an urban regeneration proposal plan for Yahatahigasi-ku, Japan. This area became the
biggest industrial area of Japan after the Second World War but is now struggling against depopulation
and an aging community. Furthermore, the houses built during Japan’s industrial age are becoming
decrepit, and most of the land lies on a steep slope. The proposal plan explores ways of solving these
problems and providing residents with a better living environment.
Landform
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Yupeng Wang et al.
To accommodate employees, dwellings were built on the mountain around the industrial area. As
employees aged, the inconvenient landform made it difficult for them to access the facilities near their
houses. Young people are moving away in search of more comfortable residential environments, while
few people move in (though the local population is increasing). Meanwhile, industrial styles have
changed: factories are smaller, and some of the flat areas can be redeveloped.
Construction age
Dilapidated dwellings in this area also pose a problem. Traditional wood dwellings constitute the majority
of the street. The number of empty houses is increasing, though, especially in the steeply sloped area.
An accurate average date of dwelling construction would enable an analysis of the ward’s actual
condition.
Population
Yahatahigasi-ku had its glory days during the development of the West Japan Steel Factory from 1950 to
1960. The city’s population was at its highest at that time. However, as the industry innovated, local
residents began to leave. The current population of 60 thousand will decrease to 20 thousand in about 40
years. Though depopulation and collective aging are problems throughout Japan, the problem in
Yahatahigasi-ku is particularly serious.
2.3 Methods of research
This paper uses GIS to collect data on landform, construction dates, and population in an analysis of the
ward’s actual condition and future. This is a new approach to site analysis.
3. Data analysis through GIS
3.1 Landform
Population affects the size of city. As a city grows, dwellings and other buildings are built. Given a
haphazard layout, a residential environment becomes inconvenient, energy is wasted, and social
problems emerge. A contour line with a 2m pitch and building layout are put into one picture (see
Figure1), showing the connection between the landform and buildings. Factorial facilities are built in the
beach area. A great number of dwellings are on the steeply sloped area of the mountain. This condition
flows from the industrial age, when the city grew through a rapid increase in population. It is necessary to
remediate access methods for the elderly in a sustainable urban design.
Figure 1: Landform and building distribution in Yahatahigasi-ku (2005)
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Yupeng Wang et al.
To express the steepness of these areas, “slope degree” is introduced as a standard of measure.
Differences in height and average slope in each 100m×100m mesh can be calculated by counting the
number of contour lines in each mesh area. As shown in Figure 2, the slope degree is the same as the
number of contour lines.
Figure 2: Definition of “slope degree” in each mesh
Figure 3: Image of layer overlapping
Using the overlapping mesh layer and contour line layer seen in Figure 3, we found the slope degree of
each mesh. Consequently, the overlap of mesh upon building layer and the slope degree of each building
can be expressed in different colors according to the different slope degrees (as shown in Figure 4).
Slope degree of each mesh → Layer overlapping → Slope degree of each building
Figure 4: Explanation of building slope degree
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Yupeng Wang et al.
Figure 5 shows that some buildings have a low slope degree in the high-level area, namely those
buildings built on the flat area of the mountain. A comparison with Figure1 shows that buildings closer to
the top of mountain have a higher slope degree. Poor approach planning makes daily life inconvenient for
city dwellers.
Figure 5: Slope degree of each building
3.2 Construction age
Unlike the stone masonry buildings of Europe, the traditional wooden dwellings of Japan last about 30
years, after which they become decrepit. Moreover, during the immediate postwar period of 60 years ago,
a lack of resources in Japan reduced the quality of Japanese building materials and shortened the life
spans of Japanese dwellings.
In Yahatahigasi-ku, the percentage of dwellings more than 30 years old is higher than 60% in almost all
of the towns. In most towns, 80% of the dwellings are more than 30 years old. In about half the towns,
20% of the dwellings are older than 60. The layout showing construction age appears in Figure 6. A great
number of old buildings lie in the steep slope area, some of which have been abandoned by their owners
and remain empty. The number of empty dwellings will increase as the population decreases.
The average construction age of towns is shown in Figure 7. Almost all of the towns are over 30 years
old. Significantly, the average construction age of some towns is over 60, implying that the whole street is
dilapidated and that a macro-scale reconstruction conforming to the needs of modern lifestyles is needed
here.
3.3 Population
Local activity creates a bustling community and conditions the atmosphere of the street. Thus, population
and the construction of population affect local revitalization. Population layout and construction should be
analyzed before urban planning begins.
As shown in Figure 8, the population density of towns on the sloped area is lower than that in the flat area
because most of dwellings on the slope are isolated houses. Apartments have recently been built close to
the railway station. The population of the flat area is increasing slowly, but the total population of this
ward is still decreasing, especially in the towns on the steeply sloped area.
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Yupeng Wang et al.
Figure 6: Construction age of buildings in Yahatahigasi-ku
Figure 7: Average construction age of each town
An aging society is that in which the percentage of the population over 65 is higher than 25%. A
percentage higher than 50% produces a limitative colony, a social community that is difficult to maintain.
As Figure 9 shows, almost all of the towns satisfy the criterion of an aging society. The percentage of the
population that older than 65 is higher on the steeply sloped area, where it is even higher than 50% (thus
meeting the criterion of a limitative colony). All of the limitative colonies are situated in the highly sloping
area of the mountain.
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Furthermore, as Figure10 shows, the percentage of the population older than 75 is higher than 20% in
many towns, suggesting that collective aging is a major problem in this ward.
Figure 8: Population density of Yahatahigasi-ku (2008)
Figure 9: Percentage of population older than 65 (2008)
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Figure 10: Ratio of population older than 75 (2008)
Yupeng Wang et al.
We discover future population and population construction trends and predict the ward’s population size
in 10 years (2018) by applying an equation to the trend line of the last 10 years (1998 ~ 2008).
P18=P18T-(P08N-P08)×P18T/P08T
Where
P18:The population of 2018 (prediction)
P08:The population of 2008
P18T:Transitive the population of 2008 to 10 years later.
P08T:Transitive the population of 1998 to 10 years later.
Figure 11: Population of each age in Yahatahigasi-ku (1998)
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Figure 12: Population of each age in Yahatahigasi-ku (2008)
Figure 13 shows the population size 10 years from now, based on the trend of the last 10 years. By then,
the population will have decreased from 73162 to 63045. The percentage of the population that older
than 65 is going to increase from 30.2% to 35.4%, far higher than the criterion of 25% that defines an
aging society.
Thus, if current conditions continue, the population is going to decrease, and the percentage of elderly is
going to increase. Some countermeasures should be introduced to this area immediately to maintain its
vitality.
Figure 13: Population of each age in Yahatahigasi-ku (2018-prediction)
(The date in the dark color means the population is higher than a thousand.)
4. Conclusion
This paper discusses an urban regeneration proposal plan for Yahatahigasi-ku as a case study and
proposes the GIS method of site analysis. The GIS information evaluation of Yahatahigasi-ku reveals that
many dwellings in the highly sloped area suffer from a poor living environment because of their advanced
ages. Poor approach planning forces inhabitants to walk everywhere, which is hard for the elderly who
constitute a high proportion of Yahatahigasi-ku’s population.
The introduction of GIS allows digital data to be composited with draft data, resulting in clearer and more
precise analyses. This method produced accurate data for Yahatahigasi-ku, therefore assisting the
evaluation of data reflecting the current situation and orienting the next step of the urban design. It has
thus been demonstrated that GIS enhances the efficiency of site analysis.
Acknowledgments
The authors wish to express their appreciation to “Revitalization of Local Area Project” for providing the
subvention for this research.
References
Dewanchker B., (1997) “Comparison of the Change in Industrial Development in the Kitakyushu Industrial Zone and
the EMSCHER Zone in Germany”, Journal of architecture, planning and environmental engineering.
Transactions of AIJ (502) pp.51-56
Dewanchker B., Takahasi N. and Ojima T., (1997) “Ecological Improvement and the Redevelopment of an Abandon
Industrial Site in the City of Uozu”, Summaries of technical papers of Annual Meeting Architectural Institute of
Japan. pp.821-822
Fukahori H. (2006), “Disaster prevention map making with IT method”, Journal of Japan Sewage Works Association,
43(527) pp.43-46
Fukahori H. (2007), “Make Kitakyusyu-city an nature environment capital”, Journal of sewerage, monthly 30(2) (422)
pp.38〜41
Gao W., Ariyama T. and Ojima T., (1999) “Prediction on the Energy Consumption of Renewing the Residential
Recycle Material”, Journal of architecture, planning and environmental engineering. Transactions of AIJ (516)
pp.101-106
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Gao W. and Ojima T., (1995) “Study on Planning an Ecological City in SHITAMACHL Tokyo”, Journal of architecture,
planning and environmental engineering. Transactions of AIJ (472) pp.63-71
Gao W., (1993) “Thermal Effects of Open Space with a Green Area on Urban Environment: Part I: A theoretical
analysis and its application”, Journal of architecture, planning and environmental engineering. Transactions of
AIJ (448) pp.15-27
Song H., Guan D., Fukahori H. and Gao W., (2009) “Study on utilization of semi-industrial districts based on GIS in
Kitakyushu : Investigation of present status of semi-industrial districts in Kitakyushu Part 1”, Journal of Asian
Architecture and Building Engineering, pp.529-532
Urban planning general overview of Kitakyusyu city of Japan, (2007) Planning department in city urban planning
bureau of Kitakyusyu, Japan
449

The Impact of Software Test Constraints on Software Test
Effectiveness
Grafton Whyte and Donovan Lindsay Mulder
University of the Western Cape, Cape Town, South Africa
drgwhyte@aol.com
donovanmulder@hotmail.com
Abstract: Software testing is the one of the primary methods used in the validation and verification of output in the
software development industry. It is seen as a key method for achieving software quality, reliability, fitness for
purpose and customer satisfaction. Software testing is however an expensive process accounting for as much as
50% of the cost of developing software based systems. In recent years, software testing as a discipline has come
under pressure due to time, cost and skills constraints. These constraints impact negatively upon software test
effectiveness. Therefore it is critical to identify and implement test tools that reduce the negative impact of software
test constraints on software test effectiveness. In this paper the researcher examines some of the most popular
software testing tools such as test case prioritisation, test suite reduction and test selection criteria, to identify: Which
individual test tools are most likely to yield optimal test effectiveness and, Which combination of test tools is most
likely to yield optimal test effectiveness and mitigate the effect of test constraints An extensive review of the software
testing literature was conducted and used to construct a survey instrument as the basis for examining the impact of
test constraints on software test methodology. The survey was issued to expert software test practitioners from
various locations globally; the sample consisted of 43 test cases. The main findings were that no one approach to
testing would yield satisfactory results but a combination of two or more test types from Automated testing, Smoke
testing, Test case prioritisation and Regression test selection could yield effective software testing results and
mitigate the effects of test constraints.
Keywords: software test tools, software test effectiveness, software test constraints, test selection methodology, test
case selection criteria
1. Introduction
As the significance of software increases aspects such as quality, reliability and customer satisfaction
have become strategic goals for software development organisations (Chin-Yu, 2005). Software testing is
a costly (Bryce and Colbourn, 2005) and unavoidable task (Bertolino, 2007). It is complex and arduous
and can consume more than 50% of the cost of a software development project (Shahamiri, et al., 2009;
McMinn, 2009; Srikanth and Williams, 2005). Engel and Last (2007) state that inadequate execution of
software and systems verification, validation and testing account for losses that can eclipse more than
10% of a company’s turnover.
Software testing has been the method of choice for software validation and verification (Bertolino, 2007)
and remains the method of choice through which confidence in the end product is realised (Ramler and
Wolfmaier, 2006). In today’s software development environment testing has come under pressure due to
shorter time to market, shrinking budgets and higher quality demands (Ramler and Wolfmaier, 2006).
Shahamiri (2009) and Chin-Yu (2005) states that improvement of software quality and reliability through
defect detection is a goal of software testing as is risk mitigation (Frank and Weyuker, 2000).
Software testing drives are commonly beleaguered by constraints such as time, cost, and skill. These
constraints risk the realisation of software testing goals and reduce test effectiveness. Understanding
how to mitigate this risk is a key-factor for achieving successful software testing. Therefore the research
question asked here is
What test approaches are most likely to reduce the negative impact of test constraints on test
effectiveness?
Hence this research aims to identify software test tools or approaches likely to increase test effectiveness
in the presence of test constraints.
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2. Literature review
2.1 Definitions and terminology
Grafton Whyte and Donovan Lindsay Mulder
Software testing is defined as the observation of the execution of software based systems in order to
verify that the system behaves as expected and to identify defects in the system under test (Bertolino,
2007).
Software testing effectiveness is defined as the number of defects found through software testing
divided by the total number of defects (Vallespir and Herbert, 2009).
For the purposes of this paper the researcher defines a:
Test tool as any methodology, process or know-how that contributes to software testing and as such
is not limited to software based test tools.
Test approach as one or a combination of test tools used to implement software testing.
Test constraint as any factor that inhibits the software testing process from achieving the desired
levels of performance.
Test Design refers to test case content and test case size.
2.2 Test constraints
According to a study by Chin-Yu (2005), defect detection rate is impacted by the skill level of test
personnel and size of the project. As does testability (Berner, et al., 2005) of the system. Mirarab and
Tahvildari (2008) argue that time constraints impact upon regression testing and negatively impact on the
cost effectiveness of test case prioritization methodologies. Bryce and Colbourn (2005) state that due to
time and cost constraints entire test suites in most instances are not run.
2.3 Test design
Rothermel, et al. (2004) discusses four regression test methodologies from a test design perspective.
Two design factors are considered: test case size and test case content. The four methodologies are
“retest-all, regression test selection, test case prioritisation, and test suite reduction”. All four are shown to
have increased cost effectiveness, defect detection capability with reduced test execution time with the
application of relevant test case design. It is shown that large test cases increases the cost effectiveness
and reduce test execution time in the retest-all, regression test selection, and test case prioritisation
methodologies. This was not shown to be true for test suite reduction. It was shown that functional
grouping within test suite reduction could lead to greater defect detection capability. This however might
not be true for difficult-to-find defects in all four methodologies. It is also shown that large test cases have
a greater defect detection capability when compared to smaller test cases. Smaller test cases are more
prone to finding hard to detect defects and lend itself to more effective test case prioritisation and
regression test selection.
2.4 Test selection methods
One of the most common test selection methodologies is test case prioritisation. Test cases are ordered
according to explicit test selection criteria. This is to enhance the defect detection rate early in the test
process (Rothermel, et al., 2004; Srikanth and Williams, 2005) and decrease test execution time
(Sampath, et al., 2008) with respect to the realisation of specific testing goals such as test all high risk
functionality. TSC could be code coverage, possibility of defect existence and defect detection potential
(Sampath, et al., 2008; Do, et al., 2008). Other TSC used to detect high risk defects quickly are
“requirement volatility, customer priority, implementation complexity and fault proneness” (Srikanth and
Williams, 2005).
Regression test selection increases cost effectiveness however there are trade-offs one of which is
between safety and efficiency. Regression test selection methods assume that test cases that do not test
changed functionality will not detect defects (Engström 2010). The trade off here isthe risk of not finding
all defects versus cost effectiveness and short test execution cycles.
Another common test selection methodology is test suite reduction. The goal of test suite reduction is to
reduce the cost of regression testing (Parse, et al., 2009) by satisfying all test requirements with the least
amount of test cases (Zhang, et al., 2008a, b). Another aim of test suite reduction is to permanently
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Grafton Whyte and Donovan Lindsay Mulder
remove redundant test cases from a test suite. This leads to reduced cost and time of test execution
verification and test suite management (Rothermel, et al., 2004). Code and functional coverage and
defect detection potential are commonly used as test selection (reduction) criteria (Parse and Khalilian
and Fazlalizadeh, 2009). Discarding test cases can quickly result in a significant decrease in the defect
detection capability of reduced test suites.
2.5 Test oracles
Test oracles are defined as an accepted dependable source of specified input and expected output of
software behaviour and a means of reconciling expected and actual behaviour (Shahamiri, et al., 2009).
From the definition it is clear that test oracles have a significant impact on the defect detection capability
and cost effectiveness of a test suite which is a view supported by Memon, et al. (2003) as well as
Memon and Xie (2004, 2005). A strong test oracle will have many verification points thus increasing test
development, execution and verification time but increasing defect detection capability. A weak test
oracle could result in reduced test execution time though this might be due to misleading or incomplete
oracle information. In this case there are risks of defects not being detected. Memon and Qing (2005)
also conclude that test cases lose their defect detection capability substantially, through decrepit test
oracles; comprehensive test oracles employed at the end of the execution of a test case yields the best
cost benefit ratio; some test oracles only detect defects during a small window of opportunity and
comprehensive and regular application of comprehensive test oracles can counteract the impact of small
test cases. This is supported by Rothermel, et al. (2004) who also states that large test cases minimises
the impact of weak test oracles on test effectiveness.
2.6 Smoke testing
Smoke testing is used to detect defects early in the software development lifecycle (Memon, et al. 2003).
It is widely accepted that smoke testing leads to lower defect resolution costs, lower costs of formal
testing, enhanced software quality and risk minimization.Memon and Xie (2004) conclude that smoke
tests detect greater than 60% of defects; small smoke tests execute a large percentage of code; larger
smoke tests are able to detect more defects; test oracles have a substantial impact upon the defect
detection capability of smoke tests.
2.7 Automated testing
Shahamiri and Kadir and Mohd-Hashim (2009) argue that test automation has been the one method used
to decrease the costs of software testing. This is supported by Ramler and Wolfmaier (2006) and Karhu,
et al. (2009) who also states that automated testing can be used in place of manual testing when time is
a constraint. This is further supported by Zhu, et al. (2006) where it is stated that in order to reduce the
costs and improve software test effectiveness it is critical to automate the testing process.
2.8 Literature review conclusion
The Software Test Tool Model (figure 1) serves as a summary of the literature review. This model
summarises the relationship between Test Tools (Test Selection Criteria, Test Selection Methods, and
Test Execution Methods) and Test Effectiveness as conceptualised for the purpose of this research.
Derived from the ideas and concepts discussed in the literature review, this model provides a visual map
of how all the test tools and test selection criteria fit together to form a software testing approach and how
these factors collectively can increase test effectiveness.
The Software Test Tool model works as follows: the Test Selection Criteria impacts upon the
effectiveness of the Test Selection Methods which in turn impacts Software Test Effectiveness. Test
Selection Criteria applied to Test Cases which in turn impacts upon Software Test Effectiveness. Test
Design and Test Oracles impacts upon the defect detection rate and capability of Test Cases which in
turn impacts upon Software Test Effectiveness. Test Selection Criteria impacts the test execution time of
Test Execution Methods which in turn impacts upon Software Test Effectiveness.
From the literature it is concluded that:
Skill of human resources, project size, inadequate requirements, software testability, time, cost and
test design are test constraints falling into the categories of time, cost and skill.
Retest-all, regression test selection, test case prioritisation, test suite reduction, smoke testing, test
automation, test oracles and test design are determined from the literature to be test tools used to
minimise the impact test constraints on test effectiveness.
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Grafton Whyte and Donovan Lindsay Mulder
Test selection criteria such as code coverage, possibility of defect existence, defect detection
potential, test case design (test case content and size);and requirement volatility, customer priority,
implementation complexity and fault proneness are identified as test selection criteria which can
support test case prioritisation.
These test tools and test selection criteria were found to directly affect test effectiveness through four
aspects which featured prominently in the reviewed literature; these are (a) defect detection
capability, (b) defect detection rate, (c) cost effectiveness and (d) test execution time.
Figure 1: Software effectiveness model
3. Research methodology
The ideas discussed in the literature review embody the Goal-Question Metric Approach template
proposed by Basili et al. (1994): They propose analysing software testing tools, software test selection
criteria and software test constraints for the purpose of knowing which software testing tools and test
case selection criteria or a combination thereof increases software test effectiveness in the presence of
software test constraints with respect to their usage and possible software testing improvement potential
from the view point of software testing experts and professionals.
There are a plethora of test tools and test selection criteria in the current literature that can arguably
minimise the negative impact of test constraints on test effectiveness. The usage of these test tools and
test selection criteria differ widely, while information about the actual usage in the presence of test
constraints in project situations seems to be missing. To assess the extent to which test tools minimise
the negative impact, a research instrument was needed that could be measure the perceived impact of
test tools on test effectiveness in the presence of test constraints. No such instrument was found in the
literature. Most if not all of the research in the literature dealt with test tools used under experimental
conditions and not in real projects. Also it is not certain how these test tools and test selection criteria
would contribute to the overall test effectiveness in live projects. Therefore a research instrument was
developed based on test tools and test selection criteria found in the literature and that could be used to
measure the perceived impact on actual projects.
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A survey questionnaire consisting of closed questions was used as the research instrument. Quantitative
data was collected. The research constructs are test tools, test case selection criteria, test constraints
and test effectiveness. The survey was designed to elicit data from practitioners’ perspectives and
experience. The aim was to identify the perceived impact (a) test tools have on test effectiveness, (b) test
selection criteria on test effectiveness, (C) test constraints on test effectiveness and (d) actual test
effectiveness of testing activities. The research instrument was piloted using 2 case studies. The pilot
study was interview based in order to gauge first-hand the effectiveness of the survey instrument. The
instrument yielded coherent results with minor modifications.
The research population was the world of software testing professionals in which one of the authors was
a recognised member. Convenience sampling was used to derive the sample from the population. Each
respondent was asked to provide data for three projects. Each project was treated as a single case. In
total 43 cases was reported on by the respondents. The survey questionnaire was sent to 14 members of
the sample of which 2 did not respond effectively achieving a response rate 85.7% with respect to the
initial sample. However the sample size grew to 18 with a total of 16 responses (88.9%). Of the possible
47 possible cases 43 were deemed acceptable as the value of software test effectiveness was omitted in
4 cases. Respondents were located in geographically dispersed locations (USA, England, Ireland,
France, South Africa, India and Australia). The predominant roles were test managers and test leads (see
figure 2). The case studies covered a range of industries with financial services and telecoms dominating
(see figure 3).
3.1 Validity
Construct Validity: Observations were based on the respondents experience and as such might have led
to some differences in interpretation to mitigate, definitions of all test variables were defined in the
questionnaire.
External Validity: 43 case studies were included in this research. The results can be generalised to a
certain extent as the case studies are from different industries and from geographically dispersed
locations .Although convenience sampling was used to select respondents due to the dispersed nature of
the sample it can be considered a fair representation of the population.
Internal Validity: The survey questionnaire was designed with a certain goal in mind; there were no
extraneous questions therefore, it is reasonable to conclude that the instrument had internal validity.
3.2 Reliability
Joppe (2000) defines reliability as: “The extent to which results are consistent over time and an accurate
representation of the total population under study is referred to as reliability and if the results of a study
can be reproduced under a similar methodology, then the research instrument is considered to be
reliable.” The survey tool is based upon the Goal-Question Metric Approach template proposed by Basili,
et al. (1994), the tool demonstrated acceptable levels of reliability in their research therefore, reliability is
assumed.
Figure 2: Distribution of roles
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Figure 3: Distribution of industries
4. Research results
Grafton Whyte and Donovan Lindsay Mulder
According to the Goal-Question Metric approach (Basili et al.1994) for measurement to be useful from an
organisational view point it must be goal driven and specific. The purpose of measurement in this
research is to identify the testing tools most likely to overcome organisational constraints and yield
optimal test effectiveness.
From the outset two goals were set for this research:
1. Identify individual Test Tools (TT) and Test Selection Criteria (TSC) most likely to yield best Test
Effectiveness (TE). It was determined that the best statistical approach for identifying these
constructs would be correlation analysis.
2. Identify the combination of Test Tools (TT) and Test Selection Criteria (TSC) most likely to yield
best Test Effectiveness (TE). It was determined that the best statistical approach for identifying these
constructs would be multiple regression analysis.
4.1 Descriptives
Constructs for this research were organised into three construct groups:
Software Test Tools (TT) – Table 1.0lists each tool as presented to respondents, a definition was also
added to ensure a common understanding. Tools are listed here with group descriptions where
appropriate. Respondents were asked to rate for each project whether the test tool increased test
effectiveness. Their responses were graded on a Likert scale of 1 to 5 denoting ‘complete disagreement’
to ‘complete agreement’, respectively. Sample size (N=43) in every case.
Table 1: Software Test Tools
Type Description
Test Design
Variable
Label
Mean
Std. Dev.
Test case content TT1 3.77 1.269
Test case granularity TT2 3.33 1.375
Test oracles
Test selection method
TT3 2.63 1.865
Regression test selection TT4 3.35 1.526
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Grafton Whyte and Donovan Lindsay Mulder
Type Description Variable
Label
Mean
Std. Dev.
Re-test all TT5 2.65 1.462
Test suite reduction TT6 2.19 1.577
Test case prioritisation TT7 3.91 1.151
Test execution method
Automated testing TT8 2.70 1.859
Manual testing TT9 4.19 1.220
Smoke testing TT10 3.60 1.788
Software Test Selection Criteria (TSC) – Table 2.0 list each test selection criteria. Respondents
received them with definitions and were asked to rate projects on each criterion; whether these test
selection criteria increase software test effectiveness. Responses were graded on a Likert scale of 1 to 5
denoting ‘no increase’ to ‘significantly increased’, respectively.
Table 2: Software Test Selection Criteria
Type Description Variable
Mean
Std. Dev.
Label
Test Case
Code coverage TSC1 1.40 1.400
Functional coverage TSC2 3.81 1.118
Defect detection capability TSC3 3.09 1.702
Setup time TSC4 2.74 1.706
Implementation complexity TSC5 2.86 1.207
Execution time TSC6 3.58 1.239
Requirements
Customer priority TSC7 3.63 1.543
Implementation complexity TSC8 2.88 1.562
Fault proneness TSC9 2.51 1.907
Volatility TSC10 2.79 1.767
Test Case Composition
Test case content TSC11 3.53 1.182
Test case granularity TSC12 2.88 1.219
No test selection criteria TSC13 1.74 1.853
Test Constraints (TC) – Table 3 list the main test constraints encountered by test projects, again
respondents were asked to rate projects on each criterion, whether these test constraints hindered
software test effectiveness. Responses were graded on a Likert scale of 1 to 5 denoting ‘no impact’ to
‘significantly impacted’, respectively.
Table 3: Test Constraints
Type Description
Test Constraints
Variable
Label
Mean
Std. Dev.
Time Time 3.72 1.260
Cost Costs 2.93 1.534
Skills Skills 2.81 1.332
The relationship between these variables and test effectiveness can be represented in the following linear
function
Test effectiveness (TE) = Test Tools (TT) + Test Selection Criteria (TSC) – Test Constraints (TC)
Subsequent correlation and regression tests explored the applicability of this function.
4.2 Goal 1 - correlation tests
Pearson correlation was run for each of the constructs independently (assuming two of the three
constructs were zero) to see which of the underlying variables correlates with the construct Test
Effectiveness (TE).
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The results from Table 4 suggest that regression testing selection (TT4) and smoke testing (TT10)
correlate strongly with test effectiveness (TE), with 54% and 44% of the variability in TE explained by
these two variables, with both achieving significance levels in the 99 percentile, suggesting these results
are very reliable. Two further variables, test case prioritisation (TT7) and automated testing (TT8)
correlate less strongly with TE (35% and 38%, respectively), but still achieve significance levels in the 95
percentile.
Table 4: Test Tools (TT) correlated with TE
Type Description Variable
Pearson
Significance
Test Design
Label
Correlation
(2-tailed)
Test case content TT1 -0.036 0.821
Test case granularity TT2 0.099 0.527
Test oracles
Test selection method
TT3 0.206 0.185
Regression test selection TT4 0.536 0.000**
Re-test all TT5 0.016 0.919
Test suite reduction TT6 0.106 0.501
Test case prioritisation
Test execution method
TT7 0.347 0.023*
Automated testing TT8 0.384 0.011*
Manual testing TT9 -0.129 0.409
Smoke testing TT10 0.444 0.003**
From Table 5 we note that one variable, defect detection capability (TSC3), achieved correlation of 39%
at significance levels in the 99 percentile (0.010). Other variables that achieved high significance levels in
the 95 percentile are functional coverage, customer priority, test case content and no test selection
criteria (test all) with respective correlations of 31%, 35%, 31% and 34%.
Table 5: Test Selection Criteria (TSC) correlated with TE
Type Description Variable
Pearson
Significance
Test Case
Label
Correlation
(2-tailed)
Code coverage TSC1 0.219 0.159
Functional coverage TSC2 0.315 0.039*
Defect detection capability TSC3 0.390 0.010**
Setup time TSC4 0.270 0.080
Implementation complexity TSC5 0.196 0.207
Execution time
Requirements
TSC6 0.071 0.649
Customer priority TSC7 0.354 0.020*
Implementation complexity TSC8 0.017 0.914
Fault proneness TSC9 0.155 0.320
Volatility
Test Case Composition
TSC10 0.106 0.499
Test case content TSC11 0.306 0.046*
Test case granularity TSC12 0.167 0.285
No test selection criteria TSC13 0.343 0.024*
There were no significant correlations with any variables in the test constraint construct (TC).
4.3 Goal 2 – multiple regression testing
Having identified variables to emerge from independent tests of association with Test Effectiveness,
attention was turned to testing the linear function in totality using multiple regression analysis to see if the
variables that emerged in the correlation test would hold or would new variables emerge as predictors of
test effectiveness.
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Grafton Whyte and Donovan Lindsay Mulder
Data for the model were analysed using linear multiple regression analysis. The procedure estimates the
coefficients (beta) of one or more independent variables to predict (R²) the value of a single dependent
variable. Variables are systematically entered and removed from the equation using the stepwise method
to determine the line of best fit.
Table 6: Linear Regression model
Dependent Variable Independent Variables Beta R Adjusted R² Significance
Test Effectiveness
(TE)
0.718 0.479 .000
Regression test selection
(TT4)
0.465 .000
Smoke testing (TT10) 0.340 .005
No test selection criteria
(TSC13)
0.337 .004
The model suggests that 48% of the variability in the construct Test Effectiveness (TE) is explained by
the variables TT4, TT10 and TSC13. The proportion that each of the independent variables explain is
indicated by their beta percentages, 46%, 34% & 33% respectively.
5. Discussion
Test tools and test selection are applied quite extensively in the case studies investigated. Given the
diversity of the population it can be assumed this is likely to be the case for the Software Testing industry
globally. This indicates that software testing practice is becoming more rigorous and formalised and to a
certain extent scientific, which is a good sign for the software development industry and business as a
whole.
The results suggest regression test selection (TT4) and smoke testing (TT10) significantly, and to a
lesser extent test case prioritisation (TT7) and automated testing TT11) correlated with Test
Effectiveness. These Test Tools can each be applied individually to testing activities in order to increase
Test Effectiveness.
In practice these Test Tools are most associated with increased Test Effectiveness and their use is more
likely to increase the probability that a software development project will meet its strategic goals.
Smoke testing is used to detect defects before more expensive formal testing. Automated testing
significantly reduces test execution time and also increases functional coverage during testing in shorter
test cycles. Individually the application of these Test Tools will lead to early detection of defects, reduced
cost of testing, quicker time to market and increased software quality.
Regression test selection and test case prioritisation are dependent upon adequate test selection criteria.
One test selection criterion that correlated strongly with Test Effectiveness is defect detection capability
(TSC3). Other test selection criteria that correlated with slightly less significance are functional coverage
(TSC2), customer priority (TSC7), test case content (TSC11) and no test selection criteria (TSC13).
Defect detection capability (TSC3) is an imperative design consideration. It is the make or break factor in
the realisation of software quality through increased test effectiveness. It plays a pivotal role in reducing
the risk of software going to market with undetected defects. Maximised functional coverage (TSC2)
during test execution reduces the risk of parts of a software system being untested after it has been
released to market. Test case content (TSC11) directly relates to functional coverage and as such is
used to measure functional coverage of software testing, thus giving the business a risk based view that
can be used to determine the readiness of a software system before release to market. Customer priority
(TSC7) allows software development businesses to quickly meet the most important goals of the
customer. No test selection criteria (TSC13) translates into testing of the entire software system thereby
mitigating all risk posed by inadequate functional coverage. However this is an expensive approach to
software testing and requires no or very little time constraints.
Individually these Test Selection Criteria increase software quality, customer satisfaction thereby possibly
enhancing and preserving a business’s good reputation.
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Grafton Whyte and Donovan Lindsay Mulder
Applying multiple regression analysis to the combined Test Tools (TT) and Test Selection Criteria (TSC)
identified the combined variables of regression test selection (TT4), smoke testing (TT10) and no test
selection criteria (TSC13) to have the most significant impact upon Test Effectiveness.
In practice this result suggest that smoke testing (TT10) should be used for early detection of major
defects after which regression test selection (TT4) should be applied to the software under test and that
no test selection (TSC13) be applied to test cases, therefore test everything. Testing everything is an
approach best used for major software release prior to go-to-market. Though this is expensive it mitigates
the risk of defects ‘making it out into the wild’ resulting in damaged reputation and possible significant
economic loss and even loss of life. During minor releases where it does not make economic sense to do
exhaustive testing with full functional coverage one or more of the Test Selection Criteria identified
through the correlation analysis should be applied. This will lead to reduced test execution costs and time
with increased defect detection rate in system under test.
The data analysis strongly suggested a saturation point in the application of the number of Test Tools
and Test Selection Criteria, exactly at which point this achieved is debatable but initial indications from
this research suggests after a 80% level of Test Effectiveness has been achieved. The total number of
Test Tools and Test Selection Criteria in this study is twenty-three (23). Correlation and multiple
regression analyses reduced this to nine and three respectively, suggesting a high-degree of over-lap
between tests. In business terms it would seem not to make sense to try and achieve levels of Test
Effectiveness beyond the 80 percentile point.
Interestingly, neither correlation nor multiple regression analyses revealed a significant relationship
between Test Constraints and Test Effectiveness. Given that organisational constraints are always
uppermost in practitioner’s minds. One reason for this absence could be due to the fact that the sample
was made up of seasoned test experts, who through their experience have learnt how to mitigate the
impact of Test Constraints on Test Effectiveness.
6. Conclusion
The aim of this paper was to identify from the plethora of Test Tools used in practice to determine
1. Which individual test tools are most likely to yield optimal test effectiveness and,
2. Which combination of test tools is most likely to yield optimal test effectiveness and mitigate the
effect of test constraints
Data from forty three cases across various industries and countries were collected to identify the current
application of Test Tools in practise. The research was designed using the Goal-Question Metric
approach and the data analysed using correlation analysis to identify individual Test Tools and Test
Selection Criteria most closely associated with Test Effectiveness and; multiple regression analysis to
identify the combination of Test Tools and Test Selection Criteria that would lead to optimum Test
Effectiveness.
The correlation analysis identified nine variables; Four Test Tools (TT): regression test selection (TT4),
smoke testing (TT10), test case prioritisation (TT7) and automated testing (TT11) and, five Test Selection
Criteria (TSC): defect detection capability (TSC3), functional coverage (TSC2), customer priority (TSC7),
test case content (TSC11) and no test selection criteria (TSC13), allowing test practitioners to pick and
mix the various approaches given the specific constraints.
The multiple regression analysis identified the combined variables of regression test selection (TT4),
smoke testing (TT10) and no test selection criteria (TSC13) to have the most significant impact upon Test
Effectiveness.
The main value of this research is that it begins to spell out for the growing community of test
practitioners who have limited experience in the field of software testing and are confronted by a
bewildering array of test options, which individual and combined test techniques will most likely help them
achieve optimal test effectiveness.
Areas of further research:
A saturation point in the application of Test Tools and Test selection criteria is alluded to in this
paper, more evidence to support this idea is required and to pinpoint the threshold. This will enable
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Grafton Whyte and Donovan Lindsay Mulder
Of the research sample the majority of test cases were overwhelmingly successful, further research
needs to be conducted on cases which are not successful to ascertain if the emergent variables
remain consistent.
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460

Strategic Considerations for Effective Mapping of
Educational Technology to Academic Outcomes
Hossein Zadeh, Arthur Shelley and Rod McCrohan
RMIT University, Melbourne, Australia
hossein.zadeh@rmit.edu.au
arthur.shelley@rmit.edu.au
rod.mccrohan@rmit.edu.au
Abstract: Advancements in IT and web-based technologies in the past two decades have the potential to
revolutionize higher education, but realizing this potential seems to remain an elusive goal. Educators in diverse
contexts are constantly exploring innovative technologies that claim to add value to traditional classroom knowledge
delivery and impact the course delivery and design in colleges and universities. Even though the use of technology
in higher education has substantially increased over the past few years, this use has been primarily limited to content
management and delivery. There are, however, much broader strategic issues around alignment between the suite
of learning technology tools promoted by universities and the academic plan, learning and teaching priorities, and
expected graduate capabilities. To date many universities have not undertaken a full strategic assessment of the
issues and implications of the introduction and sustaining of educational technologies and how these can best be
utilized to fulfill academic policy and add value to student learning experiences and outcomes. We conducted a focus
group of a number of innovative and early technology-adopter university teachers in which they discussed how
educational technology tools (Ed-Tools) can be embedded into courses such that they develop students’ analytical,
sense-making and synthesis skills whilst enhancing their decision-making and delivery capabilities. This study
highlights the importance of effectively using educational technology to support academic staff with their teaching
and learning. A distinguishing factor of this study is that it looks at the issue from a holistic point of view, and not
merely from the teachers’, or the administration, or the students’ point of view. We have compiled a list of barriers
and also a list of recommendations. Findings of this exploratory study are presented intentionally in the form of a
discussion paper rather than a traditional academic paper. It is hoped this presentation format opens up the issues
for in-depth consideration by learning and teaching policy makers at universities and colleges.
Keywords: educational technology, ed-tech, ed-tools, teaching and learning, graduate capabilities
1. Introduction
Advancements in IT and web-based technologies in the past two decades have the potential to
revolutionize higher education, but realizing this potential seems to remain an elusive goal. Educators in
diverse contexts are constantly exploring innovative technologies that claim to add value to traditional
classroom knowledge delivery and impact the course delivery and design in colleges and universities
(Barnett, Keating, Harwook, & Saam, 2004 as cited in Ajjan & Hartshorne, 2008). Numerous past studies
have shown that technology use in higher education has increased (Maloney, 2007). However; this use
has been primarily limited to content management and delivery, such as accessing course materials.
Dalsgaard (2006) noted that whether the focus is on distance education or campus based education,
universities all over the world are using information management systems to support and improve
learning within their institutions. Learning, however, is far more than transfer of content. In the
experience of the authors, the extent to which these technologies are actually applied varies to a great
extent; some courses use technology merely as content management while others engage in a variety of
more innovative approaches to actively engage students in interactive learning experiences.
To be effective, learning and teaching requires preparing the students to cope with making decisions in
an unpredictable future environment. The Web, for example, has grown into a global information space
with more than a billion users and has entered a new, more social and participatory phase where people
are engaging in different types of online collaborative activities (Anderson, 2007). This new form of the
Web, often referred to as Web 2.0, allows people to communicate knowledge, share resources and
participate in social networks (Ding, Jacob, Caverlee, Fried & Zhang, 2009). With the emergence of Web
2.0, students no longer access the Web only for course information; instead they access and create
collective knowledge through social interactions (Maloney, 2007).
1.1 Learning support systems
Almost all digital object support systems (online or local) share many of the same functions, but differ in
the environments in which they are used. Course management systems (CMSs), learning content
management systems (LCMSs) and virtual learning environments (VLEs) are generally used to facilitate
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learning in an academic setting. While both the terms CMS and VLE can be used interchangeably, these
terms seem to be region specific. CMS is more commonly used in North America and VLE is more
prevalent in European countries (Weller 2007 as cited in Daniels, 2009). These eLearning acronyms are
further complicated with the more recent introduction of the PLE or personal learning environment,
intended to shift greater control of learning environments to the learners by giving them greater flexibility
in choosing their learning tools (Sclater 2008 as cited in Daniels, 2009).
Learning management systems (LMS) typically are used to train employees in business environments.
CMSs are widely used by colleges and universities to manage and deliver course content presented via
the web. For example, MIT uses Stellar; the University of Michigan uses CHEF; and Stanford uses
CourseWork. Often these systems designed for a particular institution are not publicly available.
Educational institutions without adequate resources to develop a personalized CMS can employ an open
source CMS such as Moodle, LRN, or Sakai. For institutions needing additional technical support,
proprietary learning systems are available from companies such as Blackboard and Desire2Learn. The
primary functions of CMSs are to organize and distribute course content, administer learning exercises or
quizzes, and track student progress. While CMS software is often used to manage distance learning
courses, it is just as popular in supporting face-to-face instruction. It should be noted that all these
information management systems are based on web 2.0 technologies (Daniels, 2009).
1.2 Web 2.0
Web 2.0 also referred to as ‘social software’ covers a range of tools that allows users to interact and
share data with each other via the internet. Blogs, wikis, podcasts, social networking web sites (facebook,
twitter, MySpace etc.) and social bookmarking sites, such as Delicious, and 3D environments such as
Second Life are examples of some of the tools that are being used to share and collaborate in social,
educational and business contexts. The Web 2.0 “read/write” idea is not new as there were listservs,
groupware, and web-based communities linking people with common interests even before the advent of
Web 2.0 (Alexander, 2006 as cited in Ajjan & Hartshorne, 2008).
In the educational context Web 2.0 has reshaped both the way instructors teach and the way students
learn. These new technologies have simplified content sharing and transformed knowledge creation,
usage and distribution (Dearstyne, 2007). With the use of Web 2.0, students no longer access the web
only for course information; instead they access and create collective knowledge through social
interactions (Maloney, 2007 as cited in Ajjan & Hartshorne, 2008). Table 1 lists some of the more
commonly used Web 2.0 educational technology tools in use today. Dalsgaard (2006) argues that Web
2.0 technologies support self-governed, problem- based and collaborative learning processes unlike
other educational viewpoints where the responsibility rests with the teacher to deliver knowledge while
the learner passively receives it. Ferdig (2007, as cited in Ajjan & Hartshorne, 2008) also notes that Web
2.0 applications can support pedagogical approaches such as active learning, social learning, and
student publication, by providing environments and technologies that promote and foster these
interactions.
With the emergence of the new learning environment, it is imperative for universities to ensure that
educational technologies have positive impact in assisting the current learning and teaching practices
Table 1: List of commonly used Web 2.0 educational technology tools
List of commonly used
Ed-Tools
Audio blogs, Video Blogs & Podcasts
Wikis, Discussion boards, Instant
Messaging (IM)
E-portfolios & blogs
Social bookmarks
Tele and Video Conferencing
Function
Sharing ideas, information and content/creations
Working and collaborating with others in a shared work area
Collection and/or presentation of evidence of experiences, thinking over
time, productions, etc.
To exchange information, ideas, resources, materials
Conversations for geographically spread resources
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Some examples of benefits of the use of Ed-Tools are presented in table 2
Table 2: Examples of benefits from implementation of Ed-Tools
Theme Comment Reference
Interaction,
communication and
collaboration
Knowledge creation
Ease of use and flexibility
Writing skills & motivation
Insight
A sense of community and
resource sharing amongst users.
Active and student-centered
learning. Educators as facilitators
User friendly and flexible learning
technologies
Peer assessment & feedback.
Global exposure and writing
proficiency
Educators gain an insight in to the
world of students
Alexander, 2006; Brown & Adler, 2008;
Hartshorne & Ajjan, 2009; Richardson, 2009;
Dalsgaard, 2006
Williams & An, 2010
Alexander, 2006; Brown & Adler, 2008;
Hartshorne & Ajjan, 2009; Richardson, 2009;
Dalsgaard, 2006
(Ajjan & Hartshorne, 2008)
Williams & An, 2010
These practices should support the seven principles of good practice in undergraduate education,
namely:
Good practice encourages interaction between students and faculty
Good practice encourages interaction and collaboration between students
Good practice uses active learning techniques
Good practice gives prompt feedback
Good practice emphasizes time on task
Good practice communicates high expectations
Good practice respects diversity – talents, experience, and ways of learning
Furthermore, many universities consider as priority engagement with communities, enterprises and
industry, and strive to produce graduates who are work-ready professionals.
In order to prepare such graduates, universities need to have educational technologies adopted and
embedded into course learning and teaching activities. So far the adoption does not appear to be
universal across universities (or even within individual universities). In order to elicit and address the
issues affecting the adoption and embedding of learning and teaching technologies, a group of
academics who have already embedded a variety of learning and teaching technologies into their
teaching practice were invited to participate in a focus group. A summary of the findings of the focus
group is presented in this report.
2. Process
Leading educational technology adopters as well as key learning and teaching representatives from
business schools in one of the largest universities in Australia were invited to a focus group. The focus
group was facilitated by an external consultant specilising in Ed-Tools. The aim of the focus group was to
identify key strategic themes and issues regarding the use and adoption of Ed-Tools in learning and
teaching. Examples of barriers to adoption of Ed-Tools, as reported in the literature, were noted by the
focus group (see Table 3). Specifically, the goal of the focus group was to address the question: How can
educational technologies be adopted & embedded into course learning and teaching activities?
The external facilitator guided the group through a series of questions designed to discover:
How teaching & learning technologies are currently being used at the university;
How industry use of ICT relates to student experience;
The barriers to embedding teaching & learning technologies into the curriculum; and
How the university could support staff in their adoption of teaching & learning technologies into the
curriculum.
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Table 3: Examples of barriers to adoption of Ed-Tools
Academics
Students
Theme Comment Reference
Technology adoption ‘one-at-a time’ approach to adoption and
integration.
McGee & Diaz, 2007
Lack of integration with
CMS
Learners' changing
expectations
Institutional commitment
and Support
Uneasiness with nature of
e-tools
Technical issues
Time and effort
Emerging e-tools not integrated into CMS
Changing student cohorts and expectations of
instructional strategies
Review and change/upgrade of CMS.
Investment in E-tools
Some students uncomfortable with openness
of e-tools
Technical glitches and insufficient technical
support with e-tools
E-tools take time away from learning subject
matter content
McGee & Diaz, 2007;
Dalsgaard, 2006
McGee & Diaz, 2007
Williams & An, 2010
Williams & An, 2010
Williams & An, 2010
Data was collected and analyzed by the external facilitator. Only annonymized results were made
available to the researchers.
3. Outcomes
Outcomes of the focus group are presented in this section. Suggestions for addressing the issues are
outlined in the next section.
3.1 Current use of teaching and learning technologies in the university
The focus group participants reported various uses of teaching and learning technologies. The most
commonly used technologies are:
Various Blackboard functions (blogs, discussion forums, collaborative workspaces, online testing)
Video objects embedded and/or streamed online
Slide presentations embedded online (for example using Camtasia)
Lectopia
Other technologies that are being used to varying degrees include:
eBooks - to which academics can contribute comments
Commercial pay per use online quizzes
Pebblepad - for recognition of prior learning (ePortfolios)
Wikis – both internal and external
Business simulation tools
Web conferencing (via Elluminate)
Delicious (bookmark sharing)
Google Docs (collaborative development)
Facebook (for semi-formal learning)
Video conferencing between campuses and also with individual students through Skype
KeePad response systems
iPhone Apps
The focus group reported that while some academics are embedding educational technologies into their
courses, there is evidence to suggest that this is not a widespread practice. Such evidence can be found
in the uptake of PebblePad and Lectopia both within the business schools and the wider university.
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3.2 Industry use of information and communication technology (ICT)
As universities are to create work-ready professionals, it is important to compare the exposure to, and
use of technologies in the university courses to the common use of technologies in industry. There is a
large range of technologies being used in industry – some of them specific to the industry itself. Of the
more common technologies, the following were considered in use across a range of industries (in no
particular order):
Wikis
Search engines
Standard desktop tools: spreadsheets, document processing etc
Website development tools
Communications software
Presentation software
Skype
Microblogging
Social networking (eg LinkedIn, Facebook)
Instant messaging
Simulations
Videoconferencing
Content management systems
Filing systems
Project management tools
Blogs
Email
Phone - SMS, Smart phones
Discussion boards
In comparing these to the technologies used in the university, it was considered that some academics
use some of these, but many academics don’t use any of these technologies at all.
3.3 Barriers to embedding teaching and learning technologies into the curriculum
From the previous deliberations it was considered that there are particular barriers to academics adopting
and embedding technologies on a wider scale. The group listed and considered a large range of barriers
that might exist. As a small group, it was not possible to consider solutions to all of these, so the issues
were sorted, grouped and a decision was made that the following are most pressing barriers:
1. The value placed on teaching and issues of career progression
2. Time issues
3. Logistics and large class sizes
4. Workplan issues
Suggestions in addressing these issues are presented in the next section.
Other barriers that were listed and should be considered included:
Technology is used as an ‘add on’, not embedded into the course
Lack of appreciation for pedagogy/instructional design
Very limited understanding of available technologies and how these can support and enhance
learning and teaching
Kudos is given for the adoption of a technology rather than good teaching practice, neither for the
effective and sustainable use of the new technology
465

Many academics do not attend learning and teaching forums/PD
Over focus on Good Teaching Score (GTS)
Academic preferences and cultural resistance - not interested in adoption of technology
Startup costs
Issues of technical support for both the adoption of a new technology and on-going support.
Lack of internal budget to support innovative use of technology
Poor user interfaces eg previous versions of Blackboard
Fear of losing IP if it is put online
Access to materials is limited to one semester
Universities focus on raising their international rankings impacts on what activities are supported
3.4 Suggestions
The group considered the four most pressing barriers to adoption and provided the following suggestions
as to what the university could do to support staff in their adoption of educational technology tools in the
curriculum.
3.4.1 Value of teaching /career progression/motivation
It is believed that teaching is not valued or rewarded by many universities, particularly in Australia where
the main academic focus seems to be only on “research”. The current funding model used by the
Australian Federal Government and the increased focus on raising rankings impact on what activities are
supported and do not provide incentive to engage in development of teaching. Research and publication
receive more recognition and facilitate progress in one’s career. This is unlike the U.S. system where one
can choose a teaching career path in academia. This is a de-motivator for academics to focus on good
teaching practice and continuously improve their teaching skills.
Australian universities could provide support in the following ways:
Teaching should be supported as a career option. This would include recognition of leadership, the
scholarship of teaching, and innovation in teaching practices. Benchmarks need to be developed for
good teaching practice to be measured against. The university needs to enable more flexibility by
providing alternative career paths for academics, for example, teaching or research.
Recognition and reward should be for developing good learning experiences not for merely adopting
a new technology. The university needs to reinforce the effective use of new technologies, not just
the adoption of them. Managers need to acknowledge the benefits of developing teaching skills and
the value this brings to student experiences and learning outcomes.
Australian universities have a strong focus on Good Teaching Score (GTS) and if innovations do not
contribute to improved GTS, then they are not encouraged. As GTS is often negatively impacted in
the first trial of a new technology, this is a disincentive for academics to be innovative. Universities
need to redefine what constitutes good GTS and alternative recognition schemes for teaching need
to be investigated. Some schools at the university have internal schemes with additional recognition.
These schemes should be investigated and, if appropriate, adopted more widely throughout the
university.
Academics need to develop skills in how to use technology effectively as a teaching tool.
Unfortunately, many learning and teaching forums are not well attended. The university needs to find
a way to reward academics for attending and contributing to learning and teaching forums and to
support and encourage the development of skills in the design of technology supported learning
activities.
Innovation sometimes fails, however there are always lessons to be learned that can improve
teaching practice and adoption of technology in the future. Universities need to develop a process for
building upon these foundations and acknowledging those academics who have been early adopters.
Adopting new teaching practices and technologies incurs additional time and cost. There should be
discretionary budget allocated to schools to provide resources for innovations. Some schools already
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allocate small budgets for the trials of innovations. Where this model has been implemented, it should
be investigated with a view to adopting it more widely within the university.
Currently, academics feel that there is no recognition and support for day-to-day innovation of
teaching practice. Successes are largely legitimised when there is some form of external grant
associated with the development. The university needs to develop a process and culture of
supporting and recognising innovation internally, that is, amongst one’s peers.
There appears to be a strong cultural resistance from academics to moving away from face-to-face
teaching. Technology is often viewed as an ‘extra’ which means it is viewed as taking extra time and
resources. This view needs to be addressed.
There appears to be a lack of understanding around copyright and IP. On the one hand, academics
fear losing their IP if it is digitised, and on the other, they are not encouraged to use content which is
publicly available. Universities needs to ensure that academics and copyright advisors are fully aware
of their digital rights and obligations.
3.4.2 Time issues
Time issues relate to both academics and students and also to time pressures associated with the
amount of content to be covered in various curricula. Academics need to be supported and encouraged
to be creative and experiment with technologies, that is, time allocated and no repercussions for less than
successful experimentation.
In this regard, universities could provide support in the following ways:
It takes time to become familiar, and stay up to date, with teaching and learning technologies. It
would help academics if time was allocated for this.
The work plan is critical to success, therefore it should include and reward the adoption and effective
use of technologies.
In the early adoption phase academics need technical support. It is essential that educational
designer and media production support teams understand educational needs and provide support in
a timely way.
As it takes time to develop resources, there should be more encouragement/incentive for academics
to share resources in order to leverage better practices.
To some extent, technology is being seen (and used) as an add-on to teaching and learning which
merely takes more of an academic’s scarce time. Universities need to support and encourage the use
of technology as an integral part of the teaching and learning process that will save time.
Interestingly, and independently, these findings reflect those of McGee & Diaz (2007) who argued that
under ideal circumstances, a faculty member may require anywhere from three to four terms to adopt a
learning technology tool and even more time to produce positive results in teaching and learning.
3.4.3 Logistics and large class sizes
In addition to the time issues outlined above, many of the very large classes in business schools are
compulsory, making the audience difficult to manage as they don’t really want to be there.
Internationalization brings its own set of challenges and in order to service overseas students well, the
use of technology is essential.
Support in the form of the following can help to address these issues:
Provide more staff to manage the workload. The team could include: teaching assistants,
tutors/sessional lecturers and educational designers.
Educational designer and media production staff who are well versed in the use of technologies
should be made available to teaching staff on an ‘as needs’ basis.
There is a need to understand how to build an effective teaching team for very large subjects. The
university should support and encourage this development.
The inflexibility of IT policy is usually a deterrent to exploring new technologies. While it is understood
that security is paramount, there needs to be some leeway for academics to experiment with a range
of teaching and learning technologies.
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3.4.4 Work plan issues
It was considered that work plans are key to many of the issues impacting upon the adoption and
embedding of technology. There are differences across schools in terms of how innovations are
incorporated in the work plan.
The following are suggestions for improvement:
The work plan could list the range of innovations which are used and this could be used to assess
academics for promotion.
Work plans could be attached to the resource structure and a direct course budget.
The structure of work plans should be examined with a view to making them less linear.
4. In conclusion
Interactive eLearning tools and web 2.0 offer great potential to engage students in richer and more
interactive learning experiences that are aligned with their learning preferences. Teaching approaches
can adapt their instructional strategies to take advantage of these new developments to optimize the
learning outcomes for both the students and the teaching staff. A shift from content delivery and recall to
facilitated interactive learning experiences is easier using new technologies, but there is a resistance
amongst many teaching staff to move in this direction. Whilst some early adopters have innovated and
applied some new technologies to achieve great outcome (with evidence to show this generates better
capability development), these cases are still in the minority.
This study looks to understand the underlying barriers to embedding the new technologies into an
integrated learning experience and find pragmatic ways to remove them. It is hoped that such an
approach will enhance the teaching practices and learning experiences of both teachers and students
and provide graduates with stronger capabilities to perform in the workplace.
Web 2.0 technologies create an environment where a teacher becomes a facilitator of learning rather
than a distributor of knowledge (Williams & An, 2010). Academics need support and encouragement to
assume this new role and to use technology effectively for teaching and learning. Technology is not a
generic solution and in order to implement it effectively, universities need to provide an environment that
encourages and supports innovation and good teaching practice. It also needs to demonstrate
commitment to the use of technology by embedding them in practice, for example, academics should be
using Ed-Tools themselves to build competency and show leadership around the value of these tools.
Acknowledgement
The authors wish to thank Mr Stuart Whitman, managing director of ScienceAdvantage for his valuable
insight through this project and Ms Carol Skyring for focus group facilitation and data analysis. The
authors wish to also thank Academic Development Group—College of Business, RMIT University for
financing this work through a Research in Learning and Teaching (RiLT) funding award.
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PhD
Research
Papers
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472

Evaluating the Performance of ERP Systems in Saudi
Arabian Higher Education: A Stakeholders’ Perspective
Mona Althonayan and Anastasia Papazafeiropoulou
Brunel University, UK
mona.althonayan@brunel.ac.uk
Anastasia.Papazafeiropoulou@brunel.ac.uk
Abstract: Enterprise resource planning (ERP) systems are complex and comprehensive software designed to
integrate business processes and functions. Despite the difficulties and risk adopting ERP systems is expanding
rapidly. Furthermore, universities make large investments in information systems (IS) expecting positive impacts
(return on investment). Moreover, universities are facing serious challenges implementing a new technology. Meeting
stakeholders’ expectation in higher education is one of those challenges; this refers to the universities as unique
organizations. Since the effectiveness of post implementation of ERP systems has become an essential indicator of
success; effective selection, development and improvement of information systems requires a systematic evaluation
tool. Although there are a variety of IS success evaluation studies, there is no consensus on the appropriate manner
of evaluation of IS success to help organisations return on investments in information systems. Previous studies
focused on information systems and user performance, but they highlight the need for more focus on ERP systems
and stakeholders’ performance. Despite the importance for IS evaluation, there is a lack of accepted frameworks on
IS evaluation in general and ERPs in specific in higher education. This paper focuses on three information system
models: Delone and McLean’s IS success, Task Technology Fit (TTF) by Goodhue and End User Computing
Satisfaction (EUCS) by Doll and Torkzadeh. To avoid the weakness in these three models, this paper attempts to
integrate the three models to produce a new construct which has a more comprehensive view of the most important
factors pertinent to evaluation of stakeholders’ performance on ERP systems in higher education, combining the
impact and the quality of the system. This framework will be applied at a later study the stakeholders’ performance in
Saudi Arabian higher education.
Keywords: ERP systems; performance; stakeholders; evaluation; higher education, individuals, framework
1. Introduction
Organizations spend millions of dollars on information systems to improve organizational or individual
performance. According to Petter et al., (2008) information systems (IS) are developed using information
technology (IT) to help individual performance. Practitioners and researchers seek to understand and
measure the success of these investments (Goodhue, 1995). Despite the importance of IS success,
Sedera et al., (2003) indicate the success of large IS, particularly enterprise resource planning (ERP)
systems is arguably difficult to measure, since ERPs generate substantial and intangible benefits and the
systems involve many users (stakeholders) ranging from top executives to data entry operators, who can
define its success differently. In addition, there are many applications that span the organization, with a
diversity of capabilities and functionality. Thus, measuring ERP systems’ success is a complex
endeavour.
ERP has played a significant role both in the recent history of information technology management in
higher education, and the history of higher education itself. It is important to define the concept of ERP
systems in higher education: “multiple in scope, tracking a range of activities that include human
resources systems, student information systems and financial systems” (Robert et al., 2004).
It is clear that there are many similarities between implementing ERP system software in the education
sector and other organisations/sectors. This uniqueness is based on different combinations of certain
characteristics, which were determined by Okunoye and Folick (2006) as: “complexity of purpose, limited
measurability outputs, both autonomy and dependency from wider society, diffuse structure of authority,
and internal fragmentation”.
In higher education institutions, the stakeholders are considered a fundamental factor that distinguishes
education institutes from other organizations. The major proponents of ERP systems, such as Swartz and
Orgill (2000) argue that there are many encouraging reasons to implement ERP systems, for example, to
improve information access and the effectiveness of workflow. Moreover, other reasons to consider ERP
are capability to improve controls and the ability of stakeholders to use ERP easily. In contrast, Bradley
and Lee (2007) identified that universities have similar problems to other organizations, such as
coordinating resources, controlling cost and motivating and facilitating ERP amongst the faculty and the
staff; therefore, IT evaluation is important, especially with the large budget universities spent on IT/ERP
473

Mona Althonayan and Anastasia Papazafeiropoulou
systems project. ERP systems literature has considered manufacturing industries, but few studies
discuss ERP in academic institutes. Despite the rapid current growth of the ERP in higher education
sector, there is lack of scholarly publication discussing ERP implementation in higher education (Rabaa`i
et al., 2009).
Since the value from IS evaluation and the impacts of ERP system on both the organization and
individuals, is to justify the value of productivity, quality, and competitiveness of the organization, the aim
of this paper is to integrate the three models D& M IS success, Task Technology Fit (TTF) Goodhue and
End User Computing Satisfaction (EUCS) Doll and Torkzadeh, to produce a new construct which has a
more comprehensive view of the most important factors by which to evaluate stakeholders’ performance
on ERP systems in higher education.
First evaluation of stakeholders’ performance is discusses on and the three selected models the D&M,
TTF and EUCS are introduced. The Proposed framework including the final factors chosen from the three
models to evaluate stakeholders’ performance on ERP systems in higher education is then discussed.
2. Evaluation of stakeholders’ performance
The following subsections discusses three IS models to evaluate ERP system stakeholders’
performance.
2.1 Task-Technology Fit (TTF)
Task Technology Fit (TTF) is defined by Goodhue (1995) as “the extent that technology functionality
matches task requirements and individual abilities”.
On the other hand, Goodhue and Thompson (1995) identified TTF as “the degree to which a technology
assists an individual in performing his or her portfolio of tasks”. The concept was derived originally from
work adjustment theory (Dishaw and Strong, 1999).
Chang (2008) explained that the TTF model considers the degree to which the capabilities of the
technology match the demand of the task, and has four main constructs: task characteristics, technology
characteristics, which together affect the third construct of TTF which in turn affects the outcome variable,
either utilization or performance (Dishaw et al., 2002). In addition, Goodhue et al., (2000) stated that TTF
presumes that the performance impacts upon the fit between three constructs: technology characteristics,
task requirements, and individual abilities. The TTF model posits that IT will be used if the functions
available to the user support (fit) the activities of the user.
Task
characteristics
Technology
characteristics
Individual
characteristics
Task
Technology Fit
Performance
Impacts
Figure 1: The model of Task Theology Fit (Goodhue, 1995)
Since the measurement of system success is difficult, many management information systems (MIS)
researchers depend on user evaluation of systems as a surrogate for MIS success, that means the
assessment made by a user (Goodhue, 1995).
The TTF instrument is conceptually based on the Task Technology Fit theory in which the
correspondence between information systems functionality and task requirements leads to positive user
evaluations and positive performance impact (Goodhue, 1998).
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Mona Althonayan and Anastasia Papazafeiropoulou
Figure 2: TTF model and user evaluation (Goodhue, 1995)
Goodhue and Thompson (1995) argued that greater use leads to better performance only when there is
task-technology fit. Goodhue and Thompson designed a new model to demonstrate the link between the
information technology and individual performance. This connection draws on insights from two
complementary researches (user attitudes as predictors of utilization and task technology fit as predictor
of performance). This new model is called the Technology-to-Performance Chain (TPC). This new model
emphasizes that for the information technology to have a positive impact on individual performance; the
technology must be utilized and must be a good fit with the tasks it supports.
Although Kositanurit et al., (2006) assert that the TTF model does not answer the question of what
characteristics of the IS lead to the highest levels of user performance, it suggests some constructs that
are relevant to investigation. Researchers have attempted to integrate the TTF model with other models.
For instance, Dishaw and Strong (1999) conducted a study to integrate between the technology
acceptance model (TAM) and TTF. They aimed to provide a theoretical basis for exploring the factors
that explain software utilization and its link with user performance. Dishaw and Strong (2002) extended
their work by investigating the relationship between computer self-efficacy and the combined TAM\TTF
model. Continuing their effort to combine models, Dishaw and Strong (2004) integrated two models,
namely, TTF and the unified theory of acceptance and use of technology (UTAUT).
Gros et al., (2005) supported the combination between TTF and other models by saying it is important to
consider how systems help or impede the user, but it is not sufficient alone to explain system’s success
or satisfaction with it.
2.2 Information Systems Success model
Delone and McLean’s (1992) IS success model is widely cited, and has been a valuable contribution to
the literature on IS success measurement, because it was the first study that tried to impose some order
to develop a comprehensive IS model and instrument for a particular context (Gable et al., 2008).
Delone and McLean (1992) conducted a large number of studies found in the academic literature
covering the period of 1981-1987 attempting to identify those factors that contribute to information
systems success. Based on these studies, they defined six major dimensions or categories of IS
success: systems quality, information quality, use, user satisfaction, individual impact and organisational
impact. The main contributions Delone and McLean make to our understanding of IS success evaluation
are: (1) a method for classifying the large number of IS success measures that have been used in the
literature into six categories; (2) their approach begins to identify relevant stakeholder groups in the
process of evaluation; (3) they suggest a model of “temporal and causal” interdependencies between
these categories (Seddon and Kiew, 1994; Myers et al., 1997; Seddon, 1997).
System quality
Information
quality
Task
Technology
Individual
Use
User
Satisfaction
Figure 3: D&M (1992) I /S success model
User evaluations
(surrogate for TTF)
Task Technology Fit
(TTF)
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Individual
impact
Performance
Organizational
impact

Mona Althonayan and Anastasia Papazafeiropoulou
Delone and McLean (1992) proposed an IS success model, but did not empirically tested it (Sabherwal et
al., 2006). However, many studies have attempted to test and modify Delone and McLean’s model and
called for further development and validation of their model. For instance, Seddon and Kiew (1994) were
the first to empirically test the causal/process nature of the model by testing part of Delone and McLean’s
model, and Seddon (1997) re-specified and extended the Delone and Mclean model and presented an
alternative model of IS success. Rai et al., (2002) and Sabherwal et al., (2006) further built on Delone
and McLean’s (1992) model.
Seddon (1997) argued that Delone and McLean attempted to do too much by combining both the process
and causal explanation of IS success in their model, and that as a result the model was confused and
miss specified. The importance of Seddon’s (1997) study is that he adopted a theoretical approach to
modify Delone and McLean’s model, and he distinguished between actual impact and expected impacts,
and incorporated the additional construct of perceived usefulness (Sabherwal et al., 2006).
Seddon (1997) believed that successful systems will provide benefits such as helping the user do more
or better work in the same time, or take less time to achieve as much work of the same quality as was
done in the past.
The focus in this paper is on individual impact, which was defined by Delone and McLean (1992) as “the
effect of information on the behaviour of the recipient of all the measure of IS success”. Gable et al.,
(2008) identified individual impact as the “measure of the extent to which the (IS) has influenced the
capabilities and effectiveness, on behalf of the organization, of key users”. The reason for choosing the
individual impact is practicality, because impact is closely related to performance, meaning, according to
Delone and McLean (1992) that impact could be an indication that the information system has given the
user a better understanding of the decision context, improved his or her decision-making and productivity
and has brought about a change in user activity or changed the decision-maker’s perception of the
importance or usefulness of the IS. The usefulness is the degree to which a person believes that using
particular systems would enhance his or her job performance (Seddon, 1997).
Pitt et al., (1995) augmented Delone and McLean’s model to include service quality as a measure of IS
success. They argued that Delone and McLean’s model needs to be expanded to reflect the IS
department’s service role. Moreover, the basis of Delone and Mclean’s categorization theory is
communication; thus, the IS department is not just a provider of products, it is also a service provider.
According to Petter et al., (2008) many researchers have suggested that service quality is an important
factor to be added to the Delone and McLean’s IS success model, because it is salient to IS success. In
addition, there is a danger of miss -measuring IS effectiveness if researchers do not include an
assessment of service quality.
Petter et al. (2008) defined service quality as “the quality of the support that systems users receive from
the IS department and IT support personnel”. Moreover, it measures the service quality of IT departments
as opposed to individual IT applications, by measuring and comparing user expectation and their
perceptions of the IT department (Petter et al., 2008). There is support for this argument in the IS
literature. For example, Conrath and Mignen (1990) reported that the second most important component
of user satisfaction, after general quality of service, is the match between user’s expectations and actual
IS service. Rushinek and Rushinek (1986) added that fulfilled user expectations have a strong effect on
overall satisfaction.
Pitt et al. (1995) propose that service quality can be assessed by measuring customer expectations and
perceptions of performance level for a range of service attributes. Then the difference between
expectation and perceptions of actual performance can be calculated and averaged across attributes.
A decade later, Delone and McLean (2003) reviewed and evaluated this argument before updating the
information systems success model, based on a review of more than100 articles of the empirical
conceptual literature on IS success that was published during the same period. Petter et al., (2008)
explained the utility of the update to the Delone and McLean IS model and evaluated its usefulness in
light of dramatic changes in IS practice, especially the explosive development of e-commerce. The
update study was conducted on six dimensions: systems quality, information quality, service quality, use,
user satisfaction and net benefits.
476

Information
quality
System quality
Service quality
Mona Althonayan and Anastasia Papazafeiropoulou
Intention to use Use
User satisfaction
Figure 4: Updated D&M IS success model (2003)
This research focuses on service quality, which is considered an important dimension in IS measurement
success, because suggests that there is a correlation between stakeholders’ expectation of the service
quality and their performance level. Therefore, considering the service quality dimension for measuring
stakeholders’ performance of ERP systems in higher education is really essential. Table 1; illustrates
Delone and McLean model the service quality factors proposed in Pitt et al. (1995) and confirmed in,
D&M update (2003).
Table 1: Service quality factors, D&M information system update model (2003)
Service quality
-Reliability
-Assurance
-Empathy
-Tangibles
-Responsiveness
Sedera and Gable (2004) attempted to build upon their previous work (2003) to derive a standardized
instrument for measuring enterprise systems success, based on the research cycle developed by
Mackenzie and House (1979) and McGrath (1979) that which entails two main phases: (1) exploratory
phase and (2) confirmatory phase. Results from confirmatory factor analysis utilizing structural equation
modelling techniques confirmed the existence of four distinct and individually important dimensions of
ERP systems: individual impact, organisational impact, system quality and information quality individual
impact.
System
quality
- Ease of use
- Ease of
learning
- User
requirements
- System
features
- System
accuracy
- Flexibility
- Sophistication
- Integration
- Customization
Enterprise
systems
success
Figure 5: Sedera and Gable (2004) Validated Measures of ERP
Individual
Information impact
quality - Learning
-Availability
- Usability
- Understand
ability
- Relevance
- Format
- Conciseness
477
- Awareness/
Recall
- Decision
effectiveness
- Individual
productivity
Net Benefits
Organization
al impact
- Organizational
cost.
- Staff
requirements.
- Cost reduction.
- Overall
productivity
- Improved
outcomes/outputs
- Increased
capacity
- E-government

Mona Althonayan and Anastasia Papazafeiropoulou
Petter (2008) believed that Sedera and Gable’s (2004) modification model, particularly the instrument for
evaluating IS success, is unique. His point of view is based on two different reasons: (1) Sedera and
Gable’s model captures the multidimensional and complex nature of IS success by measuring four
dimensions; (2) another strength in this model is that the instrument was tested within the context of ERP
systems to ensure its validity. In contrast, Darmawan (2001) argued that combining two or more levels
into a single level analysis causes the aggregation or disaggregation of data collected at the lower
(individual) to the higher (organisation) level, and could introduce bias, meaning an over- or underestimation
of the significance of effects associated with variables that are aggregated or disaggregated.
The reason for selecting the individual impact dimension from Delone and McLean’s IS success model
(1992) and service quality impact from the update model is because both dimensions can help this
research, to discover whether or not ERPs improve the stakeholders’ performance and how it meets their
requirements.
The reason for selecting the individual impact dimension from Delone and McLean’s IS success model
(1992) and service quality impact from the update model is because both dimensions can help this
research, to discover whether or not ERPs improve the stakeholders’ performance and how it meets their
requirements.
2.3 End user computing satisfaction
The end user computing satisfaction model designed by Doll and Torkzadeh (1988) is a potentially
measurable surrogate for utility in decision-making, while users interact directly with the application
software to enter information or prepare output reports. The end user application’s utility in decisionmaking
is enhanced when the output meets the user’s requirements (Doll and Torkzadeh, 1988).
End user computing satisfaction is conceptualized as the effective attitude towards a specific computer
application by someone who interacts with the application directly (Doll and Torkzadeh, 1988).
The EUCS instrument consists of five factors: content, format, timeliness, ease of use/efficiency and
accuracy. Although this model is focused on end user computing satisfaction, it includes factors which
could be useful for IS/ERP systems measurement.
EUCS was designed for a conventional computing environment. Therefore, performance was excluded,
since as Doll and Torkzadeh explain, performance-related behaviours may be application specific, and
development of generalizable measure of EUCS success is difficult (Amoli and Farhoomand, 1996).
Content
Accuracy
End- User
Computing
Satisfaction
Format
Timeliness
Figure 6: End user computing satisfaction model (Doll and Torkzadeh, 1988)
In the ERP systems domain Somers et al., (2003), adopted the EUCS model to measure end user
satisfaction in ERP systems, their study examined further the theoretical meaning, structure,
dimensionality, reliability and validity of EUCS when adopted to measure EUCS with ERP software
applications. Their study confirmed that the EUCS instrument can be better understood and applied as a
standardized measure of advanced information technology, for instance in ERP systems application.
478
Ease of
use

Mona Althonayan and Anastasia Papazafeiropoulou
Academics and practitioners have continually sought a reliable and valid measure of information systems
success. Ideally, success measures were focused on user behaviour or measuring decision outcome,
other than what users consider value in a system which is linked to how it helps them to achieve their
goal (Torkzadeh et al., 2005).
The selection factors which are illustrated in Table 2 are derived from the D&M model (individual impact
factors), TTF model and EUCS model, and are based on their relevance to the performance and system
quality. (*) Refers to the factors most related to performance, (Q) Refers to the factors most related to the
quality of the system, while (R) refers to repeated factors in TTF, EUCS and D&M models.
Table 2: The selection factors from the three models
Information systems success factors Task technology Fit End User
Computing
Satisfaction
-Time taken to complete a task *
-Improved personal productivity *
-Time efficiency of task accomplishment *
-Interpretation accuracy *
-Computer awareness *
-Confident on performance*
-User confidence*
-Task performance*
-Confidence in decision*
-Ability to identify solutions*
- Ability to identify strategic opportunities or problems*
-Ability to forecast firm performance*
- Time to solve problem*
- Accuracy of problem solution*
- Efficiency of effort *
- Time savings*
-Personal effectiveness*
- Problem identification*
-Immediate recall of information*
-Delayed recall of information*
3. Proposed framework
-Lack of
confusion(Q)
-Level of detail
-Locatability
-Meaning
-Right data(Q)
-Accessibility (Q)
-Assistance(Q)
-Authorization(Q)
-Ease of use (Q)
-Flexibility (Q)
-System
reliability(R)
-Training (Q)
-Accuracy (Q)
-Compatibility (Q)
-Currency (Q)
-Presentation
-Content(Q)
-Format (Q)
-Timeliness(Q)
-Ease of use(R)
-Accuracy(R)
The factors in Table 2 derived from the TTF and EUCS models, when combined together can help to
evaluate the performance from the technical aspects. Moreover, the selected factors are the most
suitable in the ERP systems environment, and aim to measure how the ERP systems enhance individual
performance. This study excludes some of the factors in the TTF model. Goodhue (1998) asserted that
presentation and level of detail have similar meaning in EUCS model, which are content and format. In
contrast, locatability and meaning will not help to evaluate ERP systems from the stakeholders’
performance together with the individual impact because Goodhue (1998) believed that TTF measures
are intended to evaluate all systems and service of IS department, whilst the EUCS focuses on individual
application.
Furthermore, the derivation of the factors in Table 3‘Time taken to complete task, improve stakeholders
productivity, immediate recall of information, stakeholders confidence and performance and ability to
identify problem and solutions’ was initially based on a comprehensive study conducted by Delone and
McLean (1992) under the dimension of individual impact. All the factors were interpreted by the
researcher because they all give similar meanings. Computer awareness is an important factor to
measure the stakeholders’ knowledge about the system in general and ERP systems in particular. When
the individual has appropriate knowledge and experience required to use the system, better performance
should result. It is important to add service quality from Delone and McLean’s updated information
system success model (2003) to the factors to measure the quality of support that ERP systems
stakeholders received from the IT department and its impact on the individual performance.
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Mona Althonayan and Anastasia Papazafeiropoulou
Table 3: The author has gathered the factors with the same meaning into one factor
Information Systems Success Factors Factors
- Time taken to complete a task
Time taken to complete task
-Time efficiency of task accomplishment
-Task performance
-Improved personal productivity
Improve stakeholders’ productivity
- Efficiency of effort
-Personal effectiveness
-Effectiveness in supporting decision
-Immediate recall of information
Immediate recall of information
-Delayed recall of information
-Confident on performance
Stakeholders confidence on performance
-User confidence
-Confidence in decision
- Ability to identify strategic opportunities or problems
-Ability to identify solutions
- Accuracy of problem solution
- Time to solve problem
- Time savings
Ability to identify problem and solutions
-Computer awareness Computer awareness
None of the three models, TTF, EUCS and D&M, discussed previously, when applied separately do not
provide effective evaluation of stakeholders’ performance, since TTF and EUCS evaluate the technical
aspects of the systems, and the individual impact in the D&M model focuses on the human / social
aspects. However, when the three models are integrated, this will effectively evaluate the stakeholders’
performance.
Gable et al., (2008) argued that a holistic measure for evaluating an IS should consist of dimensions that
together look both backward (impact), representing the net benefits, and forward (quality), representing
the best surrogate measure of probable future impact. The combination of impact and quality represents
a complete measure of the information system.
Impact
(impacts to
date)
IS impact
Quality
(impacts
anticipated)
Figure 7: Gable et al (2008) the conceptual model
Therefore, to overcome the shortcomings of previous models, this research aims to integrate all the three
models to create a new synthesized model which has a more comprehensive view of the most important
factors that affect stakeholder performance it does so by adopting the conceptual model developed by
Gable et al., (2008) which combines the impact and the quality, and selecting the appropriate factors.
The outcome is the factors the study gathered from Delone and Mclean’s (1992) IS success model; it
considers (impact) as a half measure. The factors gathered from the TTF model and EUCS consider
(quality) as a half measure, which will be used to evaluate stakeholders’ performance.
Since individual performance is an essential indicator of organizational performance, consequently,
studying the impact of ERP systems on stakeholders’ performance is a significant way to assess the
utility of this software on higher education and how it contributes to performance efficiency and
effectiveness, as shown in Table 5.
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Mona Althonayan and Anastasia Papazafeiropoulou
ERPS impact
Figure 8: ERPs impact adopted from Gable et al (2008) the conceptual model
Table 5: The final chosen factors from three models
Information Systems Success Task-Technology Fit (TTF) End User Computing
Satisfaction
-Time taken to complete task
-Improve stakeholders’ productivity
-Immediate recall of information
-Stakeholders’ confidence and performance
- Ability to identify problem and solutions
- Computer awareness
- Service quality
(Reliability Assurance-Empathy-Responsiveness-
Tangible)
4. Conclusion
-Lack of confusion
-Right data
-Accessibility
-Assistance
-Authorization
-Ease of use
-Flexibility
-Training
-Accuracy
-Compatibility
-Currency
-Content
-Format
-Timeliness
Several widely used instruments have been tested for user satisfaction in IS in general and ERP systems
in particular, although few studies have discussed ERP systems from stakeholders’ point of view. The
literature review highlights the importance of ERP from technical and organisation levels, while social and
individual levels and their aspects have been ignored. Since stakeholders are the central elements
creating value through their interaction with ERP system, there is a need for studying and evaluating ERP
systems by focusing on how the human factors influence success and how ERP system can improve
stakeholders’ performance.
The aim of this study was to develop integrated framework derived from the three widely used models:
Delone and McLean’s IS success, Task Technology Fit (TTF) and End User Computing Satisfaction
(EUCS), which measure different aspects of factors that have impact on individual performance on ERP
system environment. This study has proposed a theoretical framework that aims to evaluate the impact of
ERP systems on stakeholders’ performance.
The selection of the most appropriate and related factors among these models in this study will help
researchers and practitioners to evaluate the stakeholders’ performance in ERP systems by focusing on
the Saudi Arabian higher education.
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482

The Benefits of ICT Adoption: An Empirical Study of Nigerian
SMEs
Idisemi Apulu and Ann Latham
University of Wolverhampton, UK
i.apulu@wlv.ac.uk
A.Latham@wlv.ac.uk
Abstract: The successful operation of companies in most industries is becoming increasingly dependent on their
ability to adopt and utilize ICT systems (Chibelushi, 2008). The rapid development of ICT is suddenly changing the
conventional way of doing business in organizations. In recent times, organizations of all types are adopting ICT in
order to improve organizational efficiency, productivity, communication and to strengthen their competitiveness. In
the present knowledge economy, there is a need for organizations, including SMEs, to develop some forms of
competitive advantage with the use of ICT in order to be successful. SMEs play a vital role in the Nigerian economy
and greatly contribute to the country’s industrial development. Despite the growing number of studies on the benefits
of ICT adoption in SMEs, the benefits of ICT adoption in the Nigerian context is still under researched. Thus, this
paper is drawn from on-going PhD research and aims at investigating the benefits that are derived from the adoption
of ICT within Nigerian SMEs. The analyses of data collected for this study would provide valuable information to SME
owner-managers, policy makers and academic researchers.
Keywords: ICT, SMEs, adoption, benefits, Nigeria
1. Introduction
In recent years, the growth of ICT has had a substantial impact on the way organizations function. Sigala
(2003), states that the widespread use of ICT is changing the way people and companies work. ICT can
be viewed as a collective term for a wide range of software, hardware, telecommunications and
information management techniques, applications and devices, and are used to create, produce, analyse,
process, package, distribute, receive, retrieve, store and transform information (Barba-Sánchez et al.,
2007). Also, Gupta et al. (2008) define ICT as technologies such as the Internet, Intranets, Extranets,
ERP and other such technologies that cover a wide spectrum from basic infrastructure implementation to
technologies that improve services and operations in organizations. ICT helps to support human activities
that enhance organizational or personal efficiency and effectiveness (Cohen et al., 2002). ICT helps to
execute activities faster, support autonomous decision making processes, and enable distributive
operations in order to become more efficient (Pokharel, 2005). It has revolutionized the manner in which
firms interact and do business. ICT has a valuable potential for developing SMEs as the effective use and
better integration of ICT in business processes could assist them to make more efficient decisions
relevant to their performance (Sigala, 2003; Pokharel, 2005; Ongori and Migiro, 2010). Although there is
a growing number of studies on the benefits of ICT adoption in SMEs, the benefits of ICT adoption in the
Nigerian context as the area of study is still under researched. The paper is drawn from on-going PhD
research and aims at investigating the benefits that are derived from the adoption of ICT within Nigerian
SMEs. The analyses of data collected for this study would provide valuable information to SMEs ownermanagers,
policy makers and academic researchers.
2. Information and Communication Technology (ICT)
Fulantelli and Allegra (2003), state that ICT offers enterprises a wide range of possibilities for improving
their competitiveness and provides mechanisms for getting access to new market opportunities and
specialized information services in organizations. According to Apulu and Latham (2009a), ICT helps
organizations to exchange information and build closer relationships with their customers, suppliers and
business partners. It also helps companies to provide immediate customer feedback that allows them to
react fast to customer demands and recognize new market niches. Fulantelli and Allegra (2003) argue
that the use of ICT brings about transparency in business processes in terms of dealing with
stakeholders, which in turn, could lead to the development of better business practices that will help to
meet customers’ service levels. ICT is an effective tool that can be used for improving external
communications and delivering quality service to customers. It improves a firm’s ability to plan better for
the future by providing the management with easy access to relevant information about different activities
and/or operations within and outside the firm (Parida et al., 2009). Akkeren and Cavaye (1999) also state
that ICT improves the ability for SMEs to compete with larger organizations and enables them to operate
on an international scale. In the present knowledge economy, there is a need for organizations including
SMEs, to develop some forms of competitive advantage with the use of ICT.
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Idisemi Apulu and Ann Latham
3. Small and Medium Sized Enterprises (SMEs)
SMEs form a significant proportion of the economy in many countries (Sarosa and Underwood, 2005).
Wielicki and Arendt (2010) state that SMEs’ importance is magnified by the fact that for any country,
regardless of its stage of economic development, SMEs generate the bulk of economic output (usually
well over 90%). SMEs play a vital role in the Nigerian economy and greatly contribute to the country’s
industrial development as they assist in creating jobs thereby improving the socio-economic development
of the country. Nigerian SMEs are known as cornerstones responsible for Nigeria’s economic growth and
stability (Ojukwu, 2006). They are also viewed as sources of flexibility and innovation that makes
significant contributions to economies, both in terms of the number of SMEs and the proportion of the
labour force employed by these firms. Lawrence (2008), states that SMEs contribution to the economy of
many countries cannot be over emphasized.
The definition of SMEs varies from country to country but is often based on employment, assets or a
combination of the two. The Small and Medium Sized Development Agency of Nigeria (SMEDAN)
defines SMEs based on the following criteria: a micro enterprise as a business with less than 10 people
with an annual turnover of less than 5 million Naira, a small enterprise as a business with 10-49 people
with an annual turnover of 5-49 million Naira and a medium enterprise as a business with 50-199 people
with an annual turnover of 50-499 million Naira. In Nigeria, SMEs cover the entire range of economic
activity within all sectors (SMEDAN, 2005). Zhouying et al. (2009), state that the use of ICT in SMEs can
offer SMEs several benefits that could assist in increasing their capacities and competitiveness.
4. Benefits of ICT in SMEs
ICT has a significant positive impact on organizational performance (Maldeni and Jayasena, 2009) and is
vital to SMEs. Without the use of ICT, modern businesses are not possible as ICT has a significant
impact on SMEs’ operations and is claimed to be crucial for the survival and growth of economies in
general (Berisha-Namanil, 2009). ICT provides opportunities for business transformations (Chibelushi,
2008) and provides SMEs the opportunity to conduct business anywhere (Jennex et al, 2004). Brady et
al. (2002), state that ICT plays an important role in enhancing the productivity and effectiveness of certain
activities or functions made by SMEs. ICT can create new, strong linkages between internal activities,
and even coordinate these actions more closely with their consumers and suppliers to facilitate
integration within the company (Leenders and Wierenga, 2002). According to Prasad et al. (2009), ICT
enhances companies’ abilities to coordinate activities regionally, nationally and globally and creates
interrelationships between companies. It also expands the scope of industries in which companies
compete to achieve competitive advantage (Porter and Millar, 1985).
Love et al. (2004) ascertain that the use of ICT offers many benefits to SMEs at different levels
(operational level, tactical level and strategic level). The benefit of ICT cuts across all sectors of the
economy and all the fields of human activities. The European Commission (2008), states that SMEs
could use ICT to grow and to become more innovative. Swift (2009) argues that SMEs benefit from the
use of ICT as it connects them more easily and cheaply to external contacts. Through the use of ICT,
SMEs can engage in e-commerce which will aid them in increasing their efficiency in their day-to-day
business operations and sustain their business growth through the opening of new market channels
(Ongori and Migiro, 2010). ICT enables SMEs to have access to robust business information that leads
to organizational effectiveness (Irani, 2002). Akkeren and Cavaye (1999) state that ICT provides a cost
effective way for SMEs to market their business, launch new products, improve communications, gather
information and identify potential business partners. Hence, ICT can be regarded as a vital resource that
enhances the competitiveness of SMEs in any business environment.
5. Methodology
The research question for this study is “Does ICT help SMEs in Nigeria?” The study adopts a case study
approach and aims at determining whether or not ICT helps SMEs in Nigeria. Case study research
enables the researcher to discover more effectively the context of a situation. Case studies assist to gain
a deeper understanding of the studied phenomenon (Yin, 2003). In this study, case studies utilizing semistructured
interviews, observation, and document review were employed. Multiple sources of data were
used to address the ethical need to increase the reliability and validity of the research processes (Yin,
2003). According to Orlikowski and Baroudi (1991); Remenyi and Williams (1996), case study is one of
the most frequently used research methods in information systems research. Also, Sauer (1993) is of the
opinion that research in information systems is best done by case study.
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Idisemi Apulu and Ann Latham
Semi structured interviews that focused on the in-depth understanding of the benefits of ICT adoption
within SMEs in Nigeria were used as tools for collecting data during the study and enabled the
researchers to elicit respondents views and experiences in their own words. 25 SMEs in Apapa, Lagos
were selected in accordance with the definition of SMEs in Nigeria (10 to 199 employees) and based on
their decision to deploy ICT in their business processes. All the 25 interviewees were either ownermanagers,
heads of departments or IT officers. Interviews were carried out using an interview guide, with
each interview lasting between 1-1½ hours and tape recorded.
Although the interviews were used in order to aid better interpretation of results, the use of documents
and observations were also important. The researcher examined relevant documents (e.g. annual
reports, project reports) that were gathered from the participating organizations. In addition, observing the
management operations and procedures of the SMEs assisted in providing better information than just
relying upon company reports and key informants. This multi-method approach enabled triangulation to
take place. The data analysis process of the case study involved identifying patterns in the case study
data. This includes arranging data in a chronological order, writing up the data according to phases and
themes, in addition to grouping the paragraphs of the same themes and phases together.
Furthermore, Lagos was chosen for the purpose of this study as it is considered the commercial nerve
centre in Nigeria because of its strategic location, peculiar demographics and contribution to national
Gross Domestic Product (GDP). According to Lawal (2002), over 60% of industries are located in Lagos
hence; Lagos could serve as the industrial characteristics of Nigeria.
The primary details of the SMEs that participated in the interviews are shown in the table below.
Table 1: Primary details of the SMEs that participated in the interviews
SME (Case study) Type of Business Number of
Employees
Business Age
1 Engineering 43 (Small firm) 12 years
2 Medical/Health 20 (Small) 13 years
3 Telecommunication/Communication 26 (Small) 18 years
4 Wholesale/Retail 90 (Medium) 9 years
5 Hospitality 120 (Medium) 5 years
6 Telecommunication/Communication 16 (Small) 3 years
7 Telecommunications/Communication 16 (Small) 3 years
8 Transport/Clearing and Forwarding/Haulage 15 (Small) 2 years
9 Financial Service/Service Industry 35 (Small) 5 years
10 Manufacturing 80 (Medium) 10 years
11 Transport/Clearing and Forwarding/Haulage 15 (Small) 21 years
12 Transport/Clearing and Forwarding/Haulage 15 (small) 9 years
13 Others 25 (Small) 2 years
14 Communication/Telecommunication 65 (Medium) 8 years
15 Manufacturing 89 (Medium) 7 years
16 Financial service or service industry 25 (small) 4 years
17 Pharmacy/Medical/Health 13 (small) 14 years
18 Others 18 (small) 8 years
19 Oil and Gas/Maritime 14 (small) 2 years
20 Oil and Gas/Maritime 30 (small) 5 years
21 Engineering 29 (Small) 11 years
22 Financial Service/Service Industry 22 (small) 17 years
23 Education 29 (small) 7 years
24 Legal Practice 17 (small) 5 years
25 Oil and Gas/ Maritime 15 (small) 1 year
Interviewees were asked to comment on the benefits derived from the use of ICT solutions in their
various firms. Respondents identified several benefits of using ICT which include:
5.1 Efficiency
Thirteen respondents identified efficiency as a benefit gained from adopting ICT. The respondents stated
that ICT brings about efficiency in terms of conducting their various businesses. For example one
respondent states that:
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“ICT has helped us to become more efficient in terms of carrying out our duties as a small
company. In the past, we were using bill cards to get our stock update, which was a manual
process and usually takes some days. However, since we started using ICT we can get our
stock update under some hours and it has made our company to become more efficient”.
5.2 Speed
Some interviewees were also of the opinion that ICT brings about speed. According to one respondent:
“ICT now makes us to deliver quality service to our customers within a very short time.
Unlike the manual method, the use of ICT makes our work to move very fast”.
5.3 Productivity
Increase in productivity was identified as another benefit of using ICT in the companies. Respondents
believe that the adoption of ICT in their various companies has enabled them to become more
productive. According to one company:
“With ICT our business is more productive in terms of meeting our targets and ICT has
helped us to become more creative”.
5.4 Communication
Some respondents stated that ICT improves communication. According to one respondent:
“ICT helps us to communicate, in terms of exchanging information. ICT is mainly used in our
organization for communication with our customers, suppliers, to get quotation for various
products by searching the internet and also to get information from other stake holders in the
business”.
Another respondent states that:
“ICT helps us to communicate better with our clients. We usually receive feedbacks from our
clients within a short time via email and it also helps us to manage our data”.
5.5 Easy Access to Information
Easy access to information was described by respondents as a benefit of using ICT. Respondents
believe that the use of ICT has enabled information to become readily available in their various
companies. One respondent commented:
“ICT makes it very easy for us to access information. ICT is a key to success in every
organization”.
Another respondent states that:
“ICT brings about the availability of data, that is, information availability on a daily basis”.
5.6 Awareness and Increase in profit
Respondents identified some other benefits of using ICT such as helping to create awareness and
assisting their companies to make or increase profit. One company comments:
“ICT is interesting, it has added a lot to the body of knowledge. ICT helps organizations to
create awareness because it provides the opportunity for companies to advertise their
products and services online. ICT has helped us to save cost and also, to increase profit.
Virtually every aspect of the whole life is now embracing ICT which makes it more lucrative
for companies to get more benefits and gain, such as increase in their annual returns. ICT is
wonderful”.
Another company comments:
“ICT has helped to increase our company’s profit. Every organization is a profit oriented
organization and it implies that we are here to make profit through the use of modern
technologies”.
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5.7 Customer satisfaction
Idisemi Apulu and Ann Latham
All the respondents’ mentioned that ICT helps to provide better customer service to their customers
thereby increasing customers’ satisfaction. One respondent commented:
“ICT helps us to satisfy our customers by providing them with their required service”.
Also, another respondent commented:
“ICT is what is in vogue nowadays. You cannot do without technology. If you are competing
with other organizations that are ICT compliant, it is very important that you are also able to
compete, as this will help to satisfy your customers. Information has a lot to do with
organizational advantage in terms of customers’ satisfaction”.
5.8 Competitive advantage
Eighteen respondents believe that one of the benefits of using ICT is the fact that it helps organizations to
have some form of competitive advantage. According to one respondent:
“The adoption of ICT in this company has enabled us to have some sort of competitive
advantage against our competitors”.
The other respondents also made similar comments while identifying the benefits of using ICT in their
different companies.
5.9 Customer growth and good reputation
Two respondents stated that ICT has assisted them to attract more customers and to establish good
reputation with their existing customers. One of the respondents commented:
“The world globally is changing; technology is now at the forefront of every organisation.
There is no way as an SME; we can meet up with the current trend of technology if we do
not use ICT because everything is going digital. As a company, using manual systems
nowadays can hinder good patronage from people. Hence, we had to come out and do what
others are doing in order to meet up with the standard of others. The use of ICT has assisted
us to attract more customers and has also helped to build a good reputation for this
company.
5.10 Planning and focusing
One company stated that ICT helps them to plan and be more focused. ICT also helps to provide their
business with the services they require. The company, a telecommunication company, comments:
“The benefits of using ICT are much and based on my opinion, ICT is indispensible. For
example if you do not have a computer, you cannot produce things like recharge cards.
Companies are also doing away with manual accounting these days. They are moving from
paper ledger to automated ledger. It is only with the use of ICT infrastructures that we can
reasonably handle these developments and put things in a good format. ICT helps us to plan
and to be more focused. Also, ICT helps us in the area of database management and
inventory production. It constitutes the life wire of the efficient management of our business”.
5.11 User friendliness
User friendliness was also identified by a respondent as a benefit of ICT. The respondent stated that:
“ICT is user friendly. For example as a construction company, we can design an estate
within a week using ICT applications such as AutoCAD”.
5.12 Confidence
Another respondent believes that ICT brings confidence to business.
According to the respondent:
“One of the benefits we have derived from the use of ICT applications is the fact that it helps
to build confidence in our customers especially when they see the use of modern
technologies in this company. People can also do business with us online and this increases
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Idisemi Apulu and Ann Latham
confidence. When a company have a website for example, it brings about confidence.
People can go to the website and get the information they require. ”
The table below provides a summary of the Findings.
Table 2: Summary of the findings
Benefits of ICT in Nigerian SMEs Number of Respondents
Efficiency 13
Speed 17
Productivity 3
Communication 3
Easy access to information 7
Awareness and Increase in profit 4
Customer satisfaction 25
Competitive advantage 18
Customer growth and reputation 2
Planning and focusing 1
User friendliness 1
Confidence 1
6. Discussion
The evidence demonstrates that there are several benefits associated with the use of ICT in SMEs. The
responses obtained from the interviewees have enabled the researchers to identify some major benefits
associated with the use of ICT in Nigerian SMEs. The introduction of ICT in SMEs can bring about
modifications in the way they work. On the whole, ICT applications can provide several benefits across a
wide range of intra- and inter- firm business operations and transactions. Parida et al. (2009), in their
research with Swedish firms, discovered that ICT helps firms to access information. The authors stated
that easy access to information is precious for firms operating in a dynamic environment and that the
firms need to be updated on new technology, innovations amongst others, which might influence a firm’s
future competitiveness. According to Ion and Andreea (2008), with ICT high efficiency is obtained in
business transactions due to a fast and accurate processing of information. ICT applications can assist to
improve information and knowledge management within an organization, can reduce transaction costs
and can increase the speed and reliability of transactions in any organization (Apulu and Latham, 2009b).
More specifically, Barba-Sánchez et al. (2007), argue that SMEs can obtain a wide range of benefits
from the use of ICT. They also state that ICT can reduce business costs, improve productivity and
strengthen growth possibilities.
Based on the case studies and literature review, it can be said that ICT helps to improve customer
service in SMEs. Parida et al. (2009), state that ICT is a tool that provides customers with better services
in terms of quicker responses and closer interactions. ICT also improves communication and maintain
close relationships with business partners. Most of the respondents in the study stated that ICT brings
about competitive advantage. Apulu and Latham (2009b) advocate that appropriate use of ICT can assist
SMEs gain competitive advantage by reducing costs and improving core business processes. Therefore,
from the literature review and case studies, it is certain that one of the major benefits derived from the
use of ICT in Nigerian SMEs, is the fact that it helps them to remain competitive.
Some respondent also mentioned that ICT helps to increase efficiency in their various organizations.
According to Cohen et al. (2002), ICT plays a supportive role in terms of enhancing organizational
efficiency and effectiveness. Fink and Disterer (2006) also argue that ICT helps organizations to become
more efficient, effective and competitive. Furthermore, Pavic et al. (2007) state that organizations have
the opportunity to achieve a competitive advantage from the advances in ICT through market efficiency
gains, better quality, innovation and customer responsiveness.
Increase in profit is identified as another benefit that is derived from adopting ICT in Nigerian SMEs.
Respondents stated that ICT is used as a marketing tool to help increase profit. Also some respondents
mentioned that ICT is a modern technology and it is impossible for companies to cope without utilizing
some form of modern technologies especially in terms of competing with other organizations that are ICT
compliant. According to Ongori and Migiro (2010), the impact of globalization has enabled companies to
build strong relationships with their counterparts from any part of the world by using ICT. This has obliged
many SMEs to adopt ICT in order to survive in the present competitive era.
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Idisemi Apulu and Ann Latham
Easy access to information was described as another benefit. Respondents stated that the use of ICT
has enabled information to become readily available in their various companies. Similarly, Irani (2002)
ascertains that ICT helps SMEs to have access to robust business information that leads to
organizational effectiveness. Also, Funteli and Allegra (2003) argue that organizations can exchange
real-time information and build closer relationships with customers, suppliers and business partners with
the use of ICT. Customers can also receive immediate feedback from companies and move from manual
data processing to automated data processing. Improved communication was also described by
respondents as a benefit of using ICT within Nigerian SMEs. It was noted that most SMEs decided to
adopt ICT to enable them communicate with their customers, suppliers, and stakeholders in their field of
business. According to Kollberg and Dreger (2006), ICT provides new ways of storing, processing,
distributing and exchanging information within companies and customers. Also, Akkeren and Cavaye
(1999) state that ICT helps to improve communication, gather information and identify potential business
partners in organizations.
Ashrafi and Mutarza (2008), argue that organizations of all type around the globe are currently utilizing
ICT in order to provide better customer service. In terms of customer satisfaction, all the respondents in
the study stated that ICT has enabled them to provide better customer service to their customers.
Respondents also mentioned that ICT has assisted them to fully compete with their competitors.
According to Chowdbury and Wolf (2003), ICT helps to increase business competitiveness and enhance
enterprise performance through indirect cost savings such as labour cost and increased labour
productivity and direct cost such as reduction of firms input. From the case studies, it was identified that
the use of ICT increases productivity as it helps SMEs to meet their desired targets and also increases
the speed of delivery in terms of responding to customers’ demands. All these help to bring about
customers’ satisfaction. Jones et al. (2003), state that ICT brings quick response time to markets,
customers, suppliers, increases flexibility and reduces delivery time and processing of payment.
Having online presence has been identified by some respondents as another benefit of adopting or using
ICT in their companies as ICT provides an opportunity for businesses to offer products and services in
the global markets. Some respondents also commented that having online presence helps to create
awareness. For example, a respondent stated that one of the benefits of using ICT is the fact that it helps
to build their customers confidence in company, especially with the use of modern technologies.
Therefore, this implies that ICT helps to inform potential customers’ about a company’s service.
ICT is being applied in a wide range of areas within many organisations in recent times. This has radically
changed the manner in which businesses are conducted in organizations (Cohen and Kallirroi, 2006).
According to Zhouying et al. (2009), ICT can help firms to overcome spatial and institutional barriers, cut
time, cost of production, increase flexibility, take new marketing channel and employ new ways of doing
business. This means that ICT brings about increased competitiveness.
Furthermore, Parida et al. (2009) argue that ICT improves a firm’s ability to plan better for the future. A
company stated that ICT helps them not only to plan and become more focused, but also to provide their
business with the services they require. Two other companies mentioned that ICT helps them to build a
brand and to satisfy their customers thereby assisting them to build a good reputation. In order words, the
integration of ICT in SMEs business processes can greatly improve their performance.
7. Conclusion
The findings of this study imply that ICT helps SMEs in Nigeria. Some benefits associated with the use of
ICT in Nigerian SMEs have been identified, which support the findings of other research. For example,
ICT enhances organizational speed/efficiency (Cohen et al., 2002; Sigala, 2003; Pokharel, 2005; Ongori
and Migiro, 2010), improves the ability for SMEs to compete (Akkeren and Cavaye, 1999; Fulantelli and
Allegra, 2003), enhances productivity (Brady et al., 2002), enables SMEs to have easy access to robust
information (Akkeren and Cavaye, 1999; Irani, 2002), helps to plan for the future (Parida et al., 2009) and
improves communication (Akkeren and Cavaye, 1999). Furthermore, the study identifies some distinctive
benefits that are associated with the use of ICT in Nigerian SMEs, such as customer satisfaction,
customer growth and reputation and confidence in business.
The identified benefits show that the deployment of ICT applications in these SMEs can assist in
providing better customer service and enable them to effectively compete with their competitors. Based
on the literature review and the case studies, it is certain that the utilization of ICT in Nigerian SMEs
would assist in increasing their competitiveness. Therefore, it can be concluded that Nigerian SMEs
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Idisemi Apulu and Ann Latham
stand to gain some added advantage from the use of ICT as it can help to further develop their business
processes. The findings of this study could encourage SME owner-managers and IT professionals to
intensify their efforts in deploying ICT in their various organizations as the study has provided some
explanation on the benefits associated with the deployment of ICT within SMEs using the Nigerian
context.
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491

Establishing the Suitability of Dynamic Web Applications Development
Platforms for Learning web Techniques in Tertiary
Institutions
Johnson Dehinbo
Tshwane University of Technology, Pretoria, South Africa
DehinboOJ@tut.ac.za
Abstract: The availability of many platforms for developing dynamic Web applications suggests the existence of the
problem of choosing the most suitable platform for learning the concepts of web applications development by undergraduate
students in tertiary institutions. Students may not perform at their best capacity level if the platform chosen
by the institution is not very suitable for learning the relevant concepts. As part of the framework to determine the
most suitable platform for leaning web applications development in tertiary institutions, this study establishes a set of
criteria for evaluating the suitability for learning the concepts of Web techniques in Web application development
such as Web page serving, HyperText Transmission Protocol (HTTP) basics, Server information, Form validation
and processing, as well as maintenance of Session and Application states. These criteria were applied by evaluating
four platforms namely Java Servlets, Java Server Pages, Active Server Pages and PHP using various research
methods including descriptive inquiry, document analysis, observations and programming tests. While ASP was
found to be more suitable on applying the criteria, the significance of the study lies in the establishment of a comprehensive
but specific set of criteria that can be used as a scientific basis for selection.
Keywords: web applications development platforms, programming languages, web techniques, comparison frameworks
1. Background of the study
This study establishes part of a framework containing various criteria that can be used to evaluate dynamic
Web platforms to determine a suitable platform for learning Web applications development in tertiary
institutions. This part of the framework is to determine platform that will be suitable for learning the
concepts of Web techniques in Web applications development.
There are currently many platforms for implementing dynamic application programs on the World Wide
Web and for learning dynamic web applications development in tertiary institutions today. Lim (2002)
states that information systems departments need to reexamine their curricula in order to prepare students
to face the challenge of being productive in a computing world swamped with web technologies.
The use of various programming and scripting languages could lead to elements of repetition and confusion.
Yet, comprehension is very important in undergraduate studies (Wiedenbeck 1999:5).
The comprehension of relevant concepts by students may be affected by the choice of platform because
according to Sebesta (1996:2-3), the language in which programmers develop software places various
limits on the development efforts. Thus, the choice of dynamic web application development platform
should involve critical evaluation in line with the statement below:
Web development tools need to be analyzed in terms of its purpose (what it is designed to
do), technology (ease of use, robustness, scalability, security, performance, etc.), support
(portability, cost, ISP support), and how well it works in the real world (Ashenfelter 1999:
105).
With regard to the purpose-based analysis of the platforms, appropriate Web techniques are critical for
developing dynamic Web applications. The research question then is: How do we determine the dynamic
Web platform that will be suitable for learning the concepts of Web techniques in Web applications development
by undergraduate students?
The objectives of the study are therefore given as follows:
1.) To identify the concepts of Web techniques that needs to be learnt by undergraduate students of
Web applications development in tertiary institutions.
2.) To establish the criteria to determine suitability for learning the concepts.
3.) To apply the criteria by using them to evaluate the suitability of four specified platforms.
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2. Literature review
Johnson Dehinbo
Evaluating programming languages, development platforms and tools is very important for understanding
the effects on novice programmers, but is difficult to carry out (Wiedenbeck et al. 1999). This could be the
reasons why Apte et al. (2003) note that a study of existing literature showed varying conclusions about
the superiority of one dynamic Web platform over another. Prechelt (2000) also indicates that programmers
usually hold varied strong opinions on development platforms. These are illustrated in the various
approaches towards the comparisons of platforms in the studies reviewed below.
2.1 Previous studies comparing platforms
In a survey of middleware platforms, Cooper (2001) concluded that ColdFusion is fast to learn and fast to
use, Common Gateway Interface (CGI) is also fast to learn and that Servlets are hard to learn and use,
even by someone who already knows Java. Bishop and Hurter (1999) examined the Scripting languages;
Tcl/Tk, Perl and Python and found out that Python incorporated the features of Modula-3 into its scripting
syntax thus making it suitable for "programming in the large". Programs in Python were also found to be
typically much shorter than equivalent in C or Java.
Prechelt (2000) observes that designing and writing programs in the scripting languages, namely Perl,
Python, Rexx, or Tcl takes no more than half as much time as writing it in C, C++, or Java. Moreover, the
resulting program is only half as long. Kruse (2003) illustrates the differences in the strengths and weaknesses
of Personal Home Page (PHP) and Java.
However, most of these studies did not use any criterion as a basis for the comparisons. The comparisons
in these studies seem to be based on intuition rather than scientific facts. Comparison needs to be
based on a variety of factors supported by scientific facts and results.
A common criterion used in other studies is performance. Renaud et al. (2003) indicate various metrics
can be used to measure performance. These include response or waiting time, synch delay, number of
messages exchanged, throughput, communication delay, node fairness, Processor and memory usage.
Marshak and Levy (2003) evaluated platforms only in terms of user-perceived latency.
Interestingly, Vinoski (2003) pointed out that performance has somehow been overemphasized as people
check only those qualities that are easily measurable, such as performance. This has unintentionally led
many programming language users to presume that “high performance” is the same as “high quality”.
Such presumptions could be entirely meaningless, depending on the nature of one’s application. So,
comparisons should involve other relevant factors as criteria.
2.2 Studies using various criteria in their comparisons
Cecchet et al (2003) evaluate three specific mechanisms namely PHP, Java Servlets, and Enterprise
Java Beans (EJB) with respect to performance and ease of development. The study attributes PHP’s better
performance to the fact that it executes as a module in the Web server, sharing the same process
(address space), thereby minimizing communication overhead. This is unlike Java Servlets which run in a
Java Virtual Machine (JVM) as a separate process from the Web server (Cecchet et al 2003). In terms of
ease of development, Cecchet et al (2003) explain that PHP scripts are easy to write because they embed
code directly into an HTML page.
In examining ASP, PHP and ASP.NET, Hartman (2001) mentioned two factors that complicate choosing
a scripting environment. First, there is the issue of culture among developers which has a lot to do with
the ideological camps to which they belong. If they love to tinker with source code to develop solutions
more efficient than off-the-shelf products, and embellished their cubicles with defaced portraits of Bill
Gates, they would probably prefer to use PHP. Convenience lovers would probably prefer to use ASP.
Yet, very few developers are equally willing to use both, or talk about "the other" technology without a
trace of disdain. Hartman’s second factor is the website's future scalability and functional requirements
which might restrict which servers and platforms the site could run on or impact the feasibility of developing
future features, such as database-linked connectivity (Hartman 2001).
However, the most important criterion is the suitability for doing the job for which a tool is needed. This
view is presented next.
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2.3 Studies emphasizing suitability for achieving the purpose of systems
Web development tools need to be analyzed in terms of its purpose (Ashenfelter 1999:105). Similarly, for
choosing a language or platform that is suitable for learning introductory programming, Holt et al. (1997)
use the criteria that it should be appropriate for introducing programming concepts used in the real world
such as in business, science and government; and it should encourage systematic problem solving. Similarly,
Kolling and Rosenberg (1996) suggest clean concepts directly reflecting the theoretical model and
avoidance of conceptual redundancy as achieving the same thing in a variety of ways can mean flexibility
to the expert, but usually confuses beginners.
Moreover, Hadjerrouit (1998) evaluates the suitability of Java as a first programming language using the
criteria like: programming concepts to be taught including problem solving skills, algorithmic thinking and
structured programming; use in subsequent courses and programming paradigm support.
These studies emphasize the need for the suitability for doing the job for which a tool is needed as Web
techniques is required in Web applications development.
2.4 Summary of the literature review
Table 1 summarizes the literature review. A key point observed is that choosing a suitable platform
should involve exhaustive evaluations of various options based on various relevant criteria that are
backed by scientific facts and results. This study fills this gap in the body of knowledge by being unique in
the following ways: The advantages and strengths of platforms should be examined and ranked in the
light of certain desired qualities relevant to specific use such as the suitability for learning Web techniques,
just as for example, the ease of learning increases productivity in institutions than flexibility which
could be preferable in industries. This informs the identification of desirable concepts of Web techniques
before establishing criteria for evaluations.
Table 1: Scoring for the platforms based on the criteria on web techniques.
Sources Tasks / Conclusions Limitations / Points noted
Cooper(2001) Surveyed some middleware platforms and concludes
that Coldfussion is fast to learn and use while Servlet is
hard to learn and use.
Bishop & Hurter
(1999)
Examined scripting languages Tcl/Tk, Perl and Python
and concludes that Python programs are typically
shorter.
Prechelt(2000) Observes that designing and writing programs in the
scripting languages, namely Perl, Python, Rexx, or Tcl
takes no more than half as much time as writing it in C,
C++, or Java. Moreover, the resulting program is only
half as long
Kruse (2003) Illustrates the differences in the strengths and weaknesses
of Personal Home Page (PHP) and Java
Renaud et al.
(2003)
Marshak and
Levy (2003)
Indicate various metrics can be used to measure performance.
These include response or waiting time,
synch delay, number of messages exchanged,
throughput, communication delay, node fairness, Proc-
essor and memory usage
Also evaluated platforms only in terms of userperceived
latency.
Vinoski (2003) Pointed out that performance has somehow been
overemphasized as people check only those qualities
that are easily measurable, such as performance
494
Systematic approach not
used in evaluating ease
of learning and ease of
use
Comparison not based
on specific use
Did not use any specific
criterion as a basis for
the comparisons.
The comparisons seem
to be based on intuition
rather than scientific
facts
Comparison concentrates
on performance
which Vinoski states has
been over-emphasized
Comparison based on
latency form of perform-
ance as above
Performance may not be
the ultimate depending
on the nature of one’s
application

Cecchet et al
(2003)
Johnson Dehinbo
Evaluate PHP, Java Servlets, and Enterprise Java
Beans (EJB) with respect to performance and ease of
development. The study attributes PHP’s better performance
to the fact that it executes as a module in the
Web server, sharing the same process (address
space), thereby minimizing communication overhead.
Serve as example towards
multiple factors
used in the comparisons
Sources Tasks / Conclusions Limitations / Points noted
Hartman (2001) Examined ASP, PHP and ASP.NET, mentioned two
factors that complicate choosing a scripting environment.
These are the issue of culture among developers
dealing with the ideological camps to which they belong
and the website's future scalability with functional
Ashenfelter
(1999: 105)
requirements.
Established that “Web development tools need to be
analyzed in terms of its purpose (what it is designed to
do), technology (ease of use, robustness, scalability,
security, performance, etc.), support (portability, cost,
ISP support), and how well it works in the real world”
Holt et al. (1997) Use the criteria that it should be appropriate for introducing
programming concepts used in the real world
such as in business, science and government; and it
Kolling and
Rosenberg
(1996)
Hadjerrouit
(1998)
should encourage systematic problem solving
Suggest clean concepts directly reflecting the theoretical
model and avoidance of conceptual redundancy as
achieving the same thing in a variety of ways can
mean flexibility to the expert, but usually confuses be-
ginners
Evaluates the suitability of Java as a first programming
language using the criteria like: programming concepts
to be taught including problem solving skills, algorithmic
thinking and structured programming; use in
subsequent courses and programming paradigm support.
3. Research design and methodology
Also serve as example
towards multiple factors
used in the comparisons
This serves as for this
study’s evaluation based
on ‘purpose’ which is the
learning of Web tech-
niques
This serves as a pointer
into the formulation of
criteria to be established
Also serves as a pointer
into the formulation of
criteria to be established
Emphasize the need for
the suitability for doing
the job for which a tool is
needed.
An interpretive research design is used involving elements of descriptive, analytical and comparative
studies. McMillan and Schumacher (2001:33) state that while a descriptive study describes a system with
the aim of characterizing it as it is, by using numbers, comparative study investigates the differences,
thereby taking descriptive study a step further. Therefore, a descriptive approach is used to characterize
desirable features of the platforms towards establishing a set of criteria. In applying the established criteria,
an analytical approach is used to analyze and evaluate platforms to determine the level of satisfaction
of the criteria for learning Web techniques.
3.1 Research methods adopted to obtain the results
The descriptive method used involves document review and study of various manuals and textbooks for
different platforms from various sources and established body of knowledge, including those written by
the designers and originators of the platforms as well as various websites for the applicable web servers
such as IIS and tomcat, to identify features that could enhance the learning of Web techniques in Web
applications development. These features were characterized to establish criteria for evaluating the suitability
of platforms for learning Web techniques. The established criteria serve as a model. Bowling
(2002:141) describes models as abstract representations of the essential characteristics of phenomena
of interest that make explicit, the relationships and comparison between the characteristics. The model is
then applied for analyzing, evaluating and comparing specific platforms.
The analytical method is aimed at evaluating specific platforms to ascertain their level of satisfaction of
the established criteria. Therefore, documents were reviewed for the specific platforms to be evaluated
and compared, and answers were sought to the questions and the availability of features that serve as
the criteria.
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Johnson Dehinbo
Moreover, experience was used to physically observe the support for various Web techniques by the platforms.
Bowling (2002:358) describes observation as a research method in which the investigator systematically
watches, listens to and records the phenomenon of interest. Scores were then assigned to each
platform based on the availability of desired features, the level of support enabled on specific tasks or the
inherent characteristics of the platform.
3.2 Measuring scale used
Using close-ended "Yes/No" questions, the measuring tool has values on a scale of 1 to 3, where:
3 = "Yes",
2 = "Not quite or with some workaround", and
1= "No".
A scale of 1 to 3 avoids subjective situations where it could be difficult to distinguish between, for example,
a score of 3 or 4 in a scale of 1 to 5.
3.3 Establishing reliability and validity of the descriptive inquiry
It is important that a measuring scale or instrument be consistent and reliable. It should produce more or
less the same accurate results every time it is applied (Coertze & Heath 1997: 78). Also, Coertze and
Heath (1997:79) indicate that validity is concerned with soundness or the effectiveness of the measuring
instrument. As a way of increasing validity, answers to the criteria questions were sought from established
and recognized sources. The accompanying references are provided for verification or for more
information. This is supplemented with practical experiences and program tests confirming the satisfaction
of some of the criteria established.
Also, to increase reliability, the quantitative characterization and evaluation using numbers would enhance
clarity in the choice of platform with the highest score. This is unlike just using qualitative sentences
to evaluate the platforms, at the end of which it could be difficult to say which platform is really
more suitable. Furthermore, reliability is enhanced with the scale of 1 and 3 thereby avoiding subjective
situations of distinguish between, say, a score of 3 or 4 in a scale of 1 to 5.
3.4 Data analysis
The data analysis was done using simple statistical parametric analysis, such as sums and means. The
scores for all the criteria were summed up for each web based dynamic platform to obtain a total score
from which the platform with the highest overall score can be identified.
3.5 Limitations
As an interpretive study, a particular limitation is that of the subjective view of the researcher. However,
users can add/remove certain criteria or change their weights.
4. Development of the criteria for the evaluations
It is important that a suitable platform satisfies the purpose for which it is needed which in this case is the
learning of Web techniques. Therefore, important Web techniques are first identified before establishing
desired qualities and questions that serve as criteria for evaluating the suitability for implementing and
learning these concepts.
4.1 Important web techniques
Web applications development is primarily about creating dynamic Web applications. However, dynamic
contents are usually surrounded by static contents. This necessitates learning the generation of both
static and dynamic contents. This involves techniques such as Web page serving, HTTP Basics, Server
information, Form processing, as well as maintenance of Session and Application states.
Web page serving
This involves the creation, loading and redirection of Web pages. Students need to learn:
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Johnson Dehinbo
How to install “normal HTML codes” on the Web server? Which directory the “HTML files” will be
stored in order for the Web page to be accessible with appropriate URL addresses?
How to access Web pages from the browsers? How the appropriate folders/directories are mapped
relative to the default Web root directory. How appropriate URLs are mapped to the installed application/HTML
files in relative folders?
How to redirect Web pages to other pages? How pages are linked in HTML and how Web forms call
the necessary programs to preprocess the form data?
HTTP basics
The Web runs on HTTP which governs how Web browsers request files from Web servers and how the
servers send the files back. A basic understanding of HTTP is necessary to understand the various Web
techniques. This includes knowledge of the HTTP request messages; its content, which includes some
header information, and optional body; the Web server’s response message including some header information
and usually a body (Lerdorf & Tatroe 2002:158).
Server information
Much information about the Web server and the client will usually be made available to the Web applications
for effective Web management. Although some server information are obtainable from the response
header, students need to learn how further information can be obtained from the server. Such further information,
according to Lerdorf and Tatroe (2002:160-161) includes the hostname or IP address, the
server port number, the fetch method (GET/POST), the path information (e.g.
“…/students/science_faculty”), the script/application/program name useful for self-referencing scripts, the
query string in the URL (e.g., “name=Johnson+age=38”), the client PC’s name/IP_address, the authentication
method used, etc.
Form processing
Using form data moves data from a Web page to a server-side program (Hall, 1999). Students need to
learn many tricks and techniques for working with forms:
Attaching information as a query string at the end of the URL after a question mark, for GET requests,
or sending it on a separate line, for POST requests (Sun Microsystems 1997).
The significance of using POST rather than GET, with respect to the security of the transmitted data.
Techniques of implementing self-processing pages that both generate the form and process it.
Methods of extracting the sent information from form data which differs for various Web applications
platforms, along with the ways of converting one type of data to another.
File Uploading and how to handle the uploaded files?
Form Validation
It is necessary to validate entered data before using or storing it for later use. Several strategies are
available for validating data. One involves using JavaScript or VBScript on the client side. However, since
the user can choose to turn JavaScript or VBScript off, or may even be using a browser that does not
support it (Lerdorf & Tatroe 2002:173), a more secure choice is to use the dynamic Web platform to do
the validation.
Students therefore need to learn how to:
Check that a value was supplied: i.e. form variables are non-empty.
Check that an email address is valid by requiring an “@” sign, checking for the presence of period “.”
in the domain name, checking the last two or three digits of the domain name against the country
codes and organization domains respectively.
Check that a supplied filename is local and exists. This can be ensured by allowing the “browsing” of
the filename on the required media.
Validate a field to ensure that it contains a nonnegative integer.
Ensure correctness of the comparison of a form value with other values by trimming leading/trailing
spaces, converting to lowercase/uppercase etc.
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Maintaining Session and Application states
Johnson Dehinbo
HTTP is a stateless protocol (Lerdorf & Tatroe 2002:173; Sun Microsystems, 2002, Module 8: 3), which
means that once a Web server completes a client’s request for a Web page, the connection between the
two ceases to exist. Thus, there is no way for a server to recognize that a sequence of requests all originate
from the same client.
State is useful though. To build a shopping cart application for example, it is necessary to keep track of a
sequence of requests from a single user (Lerdorf & Tatroe 2002:178). According to Hall (1999), maintaining
states can help the server to provide visitors with a number of conveniences: Firstly, it enables identifying
a user during an e-commerce session. The user selects and adds items to the shopping cart, and
then continues shopping. Since the HTTP connection is closed after each page is sent, how does the
store know that the user is the same user who put the previous item in his cart? Maintaining states using
various techniques is a way of accomplishing this.
Secondly, it is inconvenient to remember the username and password for many sites. An alternative is for
the server to give a unique user-ID, and when the client reconnects at a later date, the user-ID is returned,
which is verified by the server. Thirdly, it allows customizing a site and lastly, it enables the focusing
of advertisement for displaying "directed" advertisements than "random" ones. This is possible if the
server “remembers” clients’ interests.
Techniques are available to get around the Web’s lack of state, and to keep track of state information
between requests (i.e. session tracking). These include using Hidden form fields, Cookies, and URL rewriting.
Hidden form fields can be used to pass around information using unique identifier assigned. With
URL rewriting, where every local URL on which the user might click is dynamically modified to include
extra information (Lerdorf & Tatroe 2002:178) such as a user-identification or session ID. A cookie is a bit
of information that the server can give to the client. On every subsequent request, the client will give that
information back to the server, thus identifying the client (Hall 1999: Lerdorf & Tatroe 2002:179). In using
cookies, students will need to learn: How to retrieve the Session object from the request object passed?;
How to store the Session attributes?; Accessing the Session attributes?; Destroying the Session; Tedious
details, problems and limitations of Session management.
Session and Application object store state information for use by script files and can also be used to
share information among all users of a given application. One can therefore use Application variables to
store global information, such that different users can modify Application variables simultaneously (MSDN
2002: Module 5: 18). Students will need to learn how to create, lock, store and unlock the Application objects.
4.2 Criteria for evaluating the suitability for teaching Web techniques
From the concepts above, this section now establishes the criteria to ensure that Web applications development
platforms could handle Web techniques with the following features:
Facility for static Web page serving by the associated Web server: this is necessary to illustrate the
use of the platform for static Web contents.
Facilities for extracting information from the HTTP request header: this indicates the use of the request
header as a medium for conveying useful information.
Facilities to embed or set information into the HTTP response header: this illustrates the use of the
response header to convey useful information.
Provision of other relevant information by the Web server: this illustrates the wealth of information
available through the server.
Availability of default folders for placing program codes: these will be easier for beginners to use before
they have mastered the art of mapping to various directories.
Possibilities of sending information via the service method that could implement both GET and POST
methods: this will ensure that the rest of the codes are not affected by changes between GET and
POST methods.
Facilities for form validation, e.g. checking for non empty fields, range of values, content of fields, and
using hidden variables to check if form has been filled once, etc.; this will illustrate the importance of
form validations.
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Johnson Dehinbo
Facilities for identifying users in a session, e.g. using cookies, hidden variables or URL rewriting to
illustrate the techniques used to overcome HTTP’s statelessness.
Possibility of setting “age” for cookies thereby making cookies last longer or alternatively disallowing
cache of pages.
Facilities for maintaining Application objects: this illustrates the techniques for maintaining global Application
states.
5. Summary of the results of applying the criteria
Application of the established criteria involves evaluating the suitability of four platforms namely Java
Servlets, JSP, ASP and PHP for learning the Web techniques. Table 2 below gives the scoring for the
platforms based on the criteria. From the table, it is obvious that most of the Web techniques features are
supported by all the platforms, possibly because that is the major goal of all platforms. In order to serve
static information that accompanies dynamic contents, the associated Web servers all have facilities for
static Web page serving.
The HTTP headers serve to pass valuable information, including error status, and as such all the platforms
have facilities to extract information from the HTTP request-headers, and to embed information into
the HTTP response-headers (Lerdorf & Tatroe 2002:175-176). All the platforms have methods of obtaining
relevant information about client and server.
Table 2: Scoring for the platforms based on the criteria on Web techniques.
Criteria questions Servlet JSP ASP PHP
1 Are there facilities for static Web page serving by the associated
server?
3 3 3 3
2 Are there facilities to extract information from the HTTP request
headers?
3 3 3 3
3 Are there facilities to embed or set information into the HTTP re- 3 3 3 3
sponse headers?
4 Are there ways of obtaining relevant information from the server? 3 3 3 3
5 Is there availability of default folders for placing program codes? 3 3 3 3
6 Is there the possibility of sending information via a service method
that could implement both GET and POST methods?
7 Do numeric values accepted from a Web form retain their numeric
type instead of being in string format which still has to be recon-
verted ?
8 Are there simple facilities or functions for form validation, e.g.
checking non-empty fields, range of values, field contents etc.?
9 Are there facilities for identifying users in a session, e.g. using
cookies, hidden variables or URL rewriting?
10 Is there the possibility of setting the age of cookies thereby making
cookies last longer?
11 Are there facilities for maintaining application objects so as to maintain
global application states?
12 Pedagogically, is the platform good for teaching and learning Web
techniques?
TOTAL
Scale: 3 = "Yes", 2 = "Not quite or with some workaround", and 1= "No".
3
1
2
3
1
2
3
3
3
3
3
2
3 3 3 3
3 3 3 3
Novice Web developers would prefer putting their codes in default folders rather than creating and mapping
new folders. All the platforms have default folders for this purpose.
Experience shows that passing information via GET methods embeds the values along with the URL and
as such is useful for debugging. But for good security, POST does not show the information on the URL.
All the platforms allow for the sending of information via a service method that could implement both GET
and POST methods.
499
2
2
31
2
2
31
3
3
36
2
3
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Johnson Dehinbo
When numeric values are accepted from a Web form, it is better that they retain their numeric type instead
of being in String format which still has to be reconverted. This is true in all the platforms except
Java-based ones where form values that are not Strings must be parsed because they are all passed as
Strings (Sebesta 1996:435). One has to use methods such as parseInt() to convert back to integer (Wigglesworth
2000:821). However, experience has shown that in the case of ASP, when the operator used
on the variables is an addition operator “+”, it always assumes the String concatenation operator “+”,
thereby giving results such as “2+5 = 25”. ASP similarly provides the conversion functions such as CInt()
to explicitly convert to integer (Deitel et al. 2001: 741) in such situations.
The fact that the need for the explicit conversion explained above arising due to confusion between addition
and String concatenation is not necessarily applicable in the case of other arithmetic operators such
as subtraction “-”, multiplication “*” and division “/” makes such problems difficult to identify. If experienced
programmers have difficulties in identifying such problems, one can imagine how long it will take
students to do the same.
Validation of values accepted from Web forms is important to ensure the integrity of the processing. In
the Java-based platforms, one can use the length() method to determine whether the field is empty and
one can “catch the NumberFormatException” if the entered value is non-numeric (Wigglesworth 2000:
821). ASP has simple functions such as IsDate(), IsNumeric(), and IsEmpty() to assist in the validation
(Deitel et al. 2001: 735). Also, there are facilities or functions for form validation such as checking nonempty
fields, range of values, content of fields etc. in the PHP platform (Lerdorf & Tatroe 2002:173), but
not as simple as in ASP.
To remedy HTTP’s statelessness, all the platforms have facilities for identifying users in a session via
cookies, hidden variables or URL rewriting, and there is the possibility for setting the age of cookies to
make them last longer (Lerdorf & Tatroe 2002:178-179). In addition, all the platforms have ways of maintaining
global Application states. Pedagogically, ASP and PHP, from experience, seem to be more suitable
for teaching and learning Web techniques due to the simplicity of their commands and functions. In
summary, applying the established criteria reveals that ASP has the highest score followed by PHP and
then the Java-based platforms. It should however be noted that the scores are subjectively based on author’s
knowledge and experience as well as the current design of the platforms. They are thus subject to
change. Therefore, the emphasis of this study is on the establishment of the criteria that enables the selection
among the platforms. Users can thus adapt these criteria to their own taste and can also test or
apply the criteria on other platforms.
6. Conclusions
It is important to ensure that a platform selected for learning Web applications development is suitable for
implementing and learning Web techniques. This is because Web development platforms differ from the
general programming languages in their support for Web techniques used for generating both static and
dynamic Web contents. By studying the features of many platforms, features that are desirable for supporting
the Web techniques in Web applications are identified. These enabled the establishment of criteria
to determine the suitability of the platforms for implementing and learning Web techniques. While ASP
was found to be slightly more suitable on applying the criteria, the significance of the study lies in the establishment
of a comprehensive but specific set of criteria that can be used as a scientific basis for selection.
References
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501

Human Resources Transformation Beyond Boundaries in
Outsourcing Business Models - Expatriate Benchmarking
Swathi Duppada 1 and Rama Chandra Aryasri 2
1
Satyam Computer Services Limited (Mahindra Satyam), Canada
2
School of Management Studies, JNTU, Hyderabad, India
gsrkmedu@gmail.com,
aryasri@yahoo.com
Abstract: Human Resource (HR) divisions of multi national companies (MNCs) are under tremendous pressure
globally with the challenges and opportunities with the outsourcing business models to maintain competitive position
in the marketplace. Attracting the mobile talent with multi dimensional skill set to address effective, efficient and
controllable business needs is becoming complex, hence expatriate management and training has gained much
attention. Successful Expatriate assignments drive revenue, value and growth to the organization. The expatriation
process requires huge amount of effort for analysis, planning, selection, training before departure of the associate to
host country. The authors would like to bring the practical approaches that need to be considered in global business
outsourcing model considering 3 dimensions – Associate delight, Customer delight and Investor delight with
expatriate benchmarking. The research study also brings the expatriate management strategies in 3 categories –
Onsite (foreign location / host country), Offshore (home country) and Near-shore (country close to host country, but
with lesser delivery cost). To substantiate the research, the data is collected from several Human resource leaders
and managers at various levels – HR Executives, HR Analysts, HR Managers, Senior Managers from IT
organizations in different geographies through interviews and web based surveys. Statistical analysis are conducted
on the data collected and the data analysis first revealed that 1) the organizations with good global management
strategy had larger number of associates with better expatriate experience, steadier focus on leadership and resulted
in better financials 2) The training is more focused on technology and job related skill set, but often ignored the level
of depth in imparting the behavioral and cultural skills. The main contributions of the paper are expatriate training
business drivers in the context of IT global outsourcing, proposing and benchmarking of Expatriate Canonical model
framework, recommendations on delivery models with expatriate management with regard to IT outsourcing
companies.
Keywords: benchmarking, expatriate management, expatriate training, ROI, onsite, offshore, near-shore
1. Introduction
Technological advancement and innovation in the global business landscape is resulting in lot of
challenges and opportunities for the IT industry. Driven by these challenges and opportunities,
organizations are moving across national borders to align the business need to be in competitive market
place to capitalize the wonderful opportunities and establishing foreign-owned subsidiaries, entering into
joint ventures and strategic alliances. In today’s agile market conditions, the C-level executives are
challenged to grab the opportunities, making referenceable customers to sustain in the business with
human talent. To accomplish these goals, the executives are looking for new ways and models to exploit
the current and next generation growth opportunities. National culture has received so much attention
because it is hypothesized to be a constraint on management practice and organization culture (Barry,
2008).To achieve global delivery excellence, organizations are reshaping the traditional business models,
adopting the outsourcing models, deploying and utilizing its global human talent through expatriate
assignments as platform to manage and win the business overseas. International business assignments
are important to the success of the MNCs because they help to build the level of global competence and
global integration within the organization [Paula MaryAnne M and Aparna, 1998). Due to expatriate
assignments by multinational companies, language and mobility parameters have significantly impacted
across the globe. As the world continues to globalize, firms are required to manage an increasingly
diverse workforce with expatriation being just a subset of this challenge.
Global expansion strategies are essential for small, mid and large sized IT organizations to expand and
sustain in the business by recruiting and retaining globally competent people and utilize their managerial
and technical capabilities for a competitive advantage. Expatriate management nowadays is regarded as
one of the tools international organizations use to enhance global integration (Evans, Pucik, and Barsoux,
2002). To lead these international operations successfully, flexible and highly skilled workforce with
global mindset and strategic vision is needed and as such the expatriate Managers are on boarded.
Successful Expatriate assignments drive revenue, value and growth to the organization and have always
been a driving and determining factor for the success of the organization’s overseas operations. These
expatriate managers become the cornerstones on which the international operations are built as they
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Swathi Duppada and Rama Chandra Aryasri
help in informal control mechanism, for knowledge transfer, and for international team development.
Hence, an emerging view of foreign assignments is that it may create a unique competitive advantage
which is difficult to imitate by competitors.
The research study revealed that the multinational organizations are structured and governed based on
their working model and relationships. There are several types of global assignments that exist based on
the business need and trends, hence the expatriates will be sent to foreign locations with different
duration types – Short term, mid term and long term. Based on the survey analysis, most of the
multinational companies classify the short term assignments duration may include 1-3 months, midterm
assignments duration may include 3-6 months and long term duration may include more than 6 months.
In this paper, the research is focused on outsourcing business model in IT organizations and expatriates
transformation.
2. Literature survey
According to CIPD/KPMG labor market outlook report on skills, migration and off-shoring, almost half
(45%) of the 600 employers surveyed report vacancies that are hard to fill, with 21% saying they are
recruiting migrant workers for engineering vacancies, and 18% for both IT and accountancy/finance
positions. As a result, almost one-fifth (17%) intend to recruit migrant workers in the third quarter of 2010.
In the past three months, one in five (21%) of employers surveyed recruited migrant workers with over a
third (37%) of these workers being recruited from outside the European Economic Area (EEA). More than
half of migrant workers hired by the financial sector come from outside the EEA. The findings also point
to greater off shoring activity. Nearly one in ten (9%) private sector companies plan to offshore jobs in the
12 months to June 2011. Of those planning to offshore UK jobs, two-thirds (65%) intend to offshore to
India, a third to China (36%) and three in ten to eastern Europe (29%). The most common functions
outsourced by employers include call centres (55%), IT (51%), and finance (49%) (KPMG & CIPD, 2010).
A fundamental challenge faced by multinational companies today is how to ensure that managers
develop not only an overview of the organization in its entirety, but also a feel for international business
(Gooderham & Nordhaug, 2003). A lot of research still continues to view the globalization topic is a work
in progress research. Only a few firms are considered to have developed an effective capability to locate,
source, manage human resources any where in the world (Lewin and Volberda, 2003), and multi national
enterprises continue to have assets, sales, ownership of work forces and control concentrated in home
countries or regions (Rugman & Verbeke, 2004),). The study of global staffing has traditionally
concentrated on resourcing key positions within Multinational enterprises and top management top key
positions at Head Quarters and subsidiary locations, generally idiosyncratic mixes of strategy rather than
any logical progression of focus related to process of globalization Harzing, 2001, Harzing & Van
Ruysseveldt, 2004) . The literature gives most attention to recruitment and selection of expatriates and
international managers, talent management at HQ or local level, and more flexible forms of international
business travelers, virtual teams and impatriates (Scullion & Collings, 2006). Briscoe and Schuler noted
that the definition of international employee inside organizations continues to expand: “… the tradition of
referring to all international employees as expatriates – or even international assignees – fall short of the
need for international HR practitioners to understand the options available…and fit them to evolving
international business strategies [(Briscoe and Schuler, 2004)”. In the context of international resourcing,
this now includes a fragmentary group of individuals, ranging from: contract expatriates (Baruch and
Altman, 2002), assignees on short term or intermediate term foreign postings (Morley and Hearty, 2004,
Mayerhofer, Hartmann, and Herbert, 2004) ; international transferees (moving from one subsidiary to
another) (Millar and Salt, 2006); virtual international employees active in cross-border project teams
(Janssens and Brett , 2006) ; self-initiated movers who live in a third country but are willing to work for a
multinational (Tharenou, 2003); immigrants actively and passively attracted to a national labor market
and domestically based employees in a service centre but dealing with overseas customers, suppliers
and partners on a regular basis . Millar and Salt draw attention to a number of factors that have increased
demand for new forms of international mobility (Millar and Salt, 2006) : the need for skilled expatriates to
help build new international markets (Findlay, Jowett and Skeldon, 2000) ; temporary and short term
access to specialized talent in sending countries to assist the execution of overseas projects (Minbaeva &
Michailova, 2004 and Hocking, Brown and Harzing , 2004), ; and the need for highly mobile elites of
management to perform boundary-spanning roles to help build social networks and facilitate the
exchange of knowledge (Tushman & Scanlan, 2005).
3. Outsourcing delivery patterns in it organizations
According to David J. Bryce and Michael Useem, outsourcing is defined as an outside company’s
provision of the products or services associated with a major function or activity of a user organization
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Swathi Duppada and Rama Chandra Aryasri
(David & Michael, 1998) . The definition of outsourcing is not yet standardized; however, the outsourcing
term is much widely used in information technology business. According to Wikipedia, outsourcing is
often viewed as involving the contracting out of a business function - commonly one previously performed
in-house - to an external provider (Overby, 2007). In February 2004, the members of the President
Bush’s council of economic advisers stated: outsourcing of professional services is a prominent example
of a new type of trade” (Gregory, Kristin, Harvey, 2004). The following are the successful outsourcing
implementation patterns due to reduced cost, access to most talented resources at cheater cost, 24 X 7
productivity,
3.1 Onsite delivery model / staff augmentation model
In onsite delivery model, the customer/client would request for skilled expatriates from offshore to work at
their location. In nutshell, the customer work will be done by expatriates at client location with lesser cost.
Normally this model will be adopted when the continuous involvement of client is required at every stage
and security of the data and information is required. Also this is best fitted when the requirements are not
very clear. This model is suitable for short term engagements like strategy consulting, due diligence,
architecture consulting, Roadmap Initiatives and will increase the top line revenues of the offshoring firm
providing services to client.
Figure 1: One view of delivery models
3.2 Offsite delivery model / near shore model
When the client needs more number of expatriates to deliver and if the client cannot extend the facilities
to the expatriates, then the client would prefer the offsite delivery model as the expatriates can use the
foreign/subsidiary office to deliver the projects. The only difference from Onsite delivery models is that the
majority of the expatriates will work from the same country as the client location /city/near city. This model
will enable expatriates to come and conduct face to face discussions and is suitable for medium sized
project.
504

3.3 Offshore delivery model
Swathi Duppada and Rama Chandra Aryasri
When the projects need to be done at cheaper / affordable cost, this model is ideally suitable, however
this model requires clear planning and should possess clear objectives. In this model, the project delivery
is accomplished at offshore (which is in different country). This type delivery model requires frequent
communications with telephone calls and emails as there is no face to face communication.
3.4 Onsite-offshore delivery model
In onsite-offshore delivery model, the work is distributed between Onsite (Client location/host country)
and offshore (home country), hence the client/customer gets most benefitted by taking the advantage of
talent and time from offshore and expatriates from the same offshoring partner will be available at onsite.
The normal distribution ratio of offshore and onsite is 70% and 30%. This model is most successful model
adopted by the Multi National companies to deliver projects better and cheaper. This model is preferred
by the customer as they see significant benefits - 24 X 7 productivity, Most talented offshore resources at
cheaper cost, Access to well trained expatriated to communicate on day to day basis and less burden
with the administration issues.
4. Expatriate transformation canonical framework and benchmarking
The suggested Expatriate transformation canonical framework is very useful to the IT organizations in
transforming the offshore talent for global needs. The purpose of this framework is minimizing the
expatriate dependencies across different business units (verticals) and competency units (technology
units) in different geographic locations. The following diagram depicts the expatriate movement between
locations based on the project needs.
Figure 2: Expatriate transformation canonical framework
Notation: Req - Expatriate Request Res Expatriate Response, MNC – Multi-National Company,
APAC – Asia Pacific, T&M – Time & Material
In order to excel in providing best-in-class expatriates, the canonical framework should be used with the
suitable adapters for the transformation of the expatriate request and expatriate response. Most IT
505

Swathi Duppada and Rama Chandra Aryasri
organizations traditionally follow Hub and Spoke resource model for resources. The business units would
communicate the resource requirements to corporate resource pool through the business unit talent
management team. Hence the first transformation takes place from business unit expatriate resource
request message to pool to transform organization protocol / common organization language. The
request has several input parameters like duration, type, skill, role, etc. These parameters will be used in
determining the right expatriate for the assignment request. This framework has the flexibility to add new
types of expatriate requests.
Figure 3: Expatriate movement beyond boundaries
Typically expatriate management/ training and other related activities will have their own business
process and each of these processes will have process steps. Most likely each process step will deliver
some kind of services. These services may internally use all sorts of formats; hence there is a need to
transform the messages to a common message format.
5. Expatriate process benchmarking, tool and analysis
According to Gartner survey report in December 2010, India is on the top list for offshore services
(Gartner, 2010). To investigate the Expatriate management and training practices for HR excellence to
meet the on demand needs, the authors have selected the MNCs having operations across the globe.
The extensive research on the organizations is conducted to study the patterns and practices of
expatriation. The following are samples of it some of the organizations reveal the need to study, analyze,
benchmark the expatriate practices based on the annual reports.
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Cognizant Revenu Chart for past 4 years
79.10% 79.10%
18.50%
19.20%
82.82%
16.06%
86.19%
12.91%
2.40% 1.70% 1.12% 0.90%
2009 2008 2007 2006
Year
Figure 4: Cognizant revenue contributions (Cognizant, 2009)
506
NA
EUROPE
APAC

% of Revenue
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Swathi Duppada and Rama Chandra Aryasri
65.80%
63.20%
Infosys Revenue chart for past 2 years
26.40%
23.00%
1.20% 1.30%
10.00% 9.10%
North America Europe India ROW
Region
Figure 5: Infosys revenue contributions (Infosys, 2009
60
30
20
10
0
52.8
51.38
50
% of Revenue
40
16.18
TCS % of Revunue for the Y 2009-10 and 2009-08
18.99
10.49 10.53
8.65 7.85
5.24 4.75 4.72 4.71
1.92 1.79
North America UK Europe India APAC Iberoamerica Middle Ease
and Africa
Region
Figure 6: TCS revenue contributions (TCS, 2009) Figure 7: Wipro revenue contributions (Wipro, 2009)
Figure 8: Expatriate process benchmarking
2009-10
2008-09
507
% of Revenue COntribution
70%
60%
50%
40%
30%
20%
10%
0%
2009-10
2008-09
Wipro Revenue chart for past 2 years
2009-10
2008-09
North America Europe Japan ROW
Region and Year

Swathi Duppada and Rama Chandra Aryasri
For these interviews, companies that previously had addressed or involved in addressing the
transformation of their HR functions were selected. A 3-step process is used to conduct the study on the
expatriate processes with multi channel methods. As a first step, the details of the existing Expatriate
Management and training practices and models of the organizations are obtained. The data collection
analysis activity began by identifying the benchmarking partner followed by making available the online
survey weighted questionnaire about their expatriate life cycle process at their organization.
The questionnaire includes – pre-assignment (to capture the drivers of assignment from the perspective
of assignment key stakeholders), on-assignment (to monitor the deliverables and the progress of the
assignment) and post assignment (to help assignment success and synergy to the organization). The
criterion that was set for organizations to be a benchmarking partner is that the organization should have
at least global presence, specifically in North America (NA), Europe and Asia-Pacific which includes
India, in conducting IT business.
Table 1: Normalized scores of the detailed survey
BENCHMARKING PARTNER
Benchmarking Framework Attribute 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Structure of the organization 0.87 0.82 0.81 0.86 0.86 0.9 0.83 0.86 0.82 0.89 0.82 0.89 0.84 0.87 0.86 0.82 0.86
Expatriate Request transformation 0.84 0.85 0.79 0.85 0.86 0.9 0.84 0.84 0.84 0.87 0.82 0.84 0.85 0.86 0.85 0.84 0.86
Expat Planning Automation 0.83 0.82 0.79 0.82 0.84 0.87 0.82 0.82 0.82 0.84 0.79 0.83 0.84 0.84 0.84 0.81 0.83
Expat Screening Automation 0.9 0.69 0.67 0.75 0.69 0.72 0.68 0.76 0.68 0.74 0.68 0.85 0.69 0.79 0.69 0.68 0.77
Expat Interviewing and Automation 0.87 0.73 0.71 0.76 0.74 0.69 0.74 0.76 0.73 0.73 0.73 0.87 0.72 0.74 0.74 0.73 0.71
Expatriate Selection Automation 0.81 0.87 0.84 0.86 0.89 0.91 0.87 0.84 0.87 0.92 0.85 0.81 0.89 0.89 0.83 0.87 0.85
Immigration Process Automation 0.74 0.84 0.82 0.91 0.85 0.89 0.84 0.88 0.83 0.89 0.83 0.79 0.85 0.88 0.85 0.83 0.81
Training Automation 0.89 0.82 0.82 0.81 0.87 0.93 0.83 0.85 0.82 0.91 0.82 0.85 0.84 0.87 0.84 0.82 0.84
Depature/Deputation/Onsite transfer automation 0.81 0.81 0.81 0.79 0.81 0.88 0.83 0.83 0.81 0.85 0.81 0.81 0.81 0.86 0.81 0.81 0.79
Arrival Support Automation 0.83 0.78 0.76 0.82 0.79 0.92 0.79 0.85 0.76 0.91 0.76 0.83 0.79 0.89 0.79 0.76 0.75
Strategic Partnering 0.82 0.75 0.69 0.78 0.75 0.95 0.75 0.79 0.74 0.82 0.71 0.82 0.74 0.81 0.74 0.71 0.76
Expatriate Service Development 0.78 0.68 0.52 0.75 0.79 0.7 0.69 0.78 0.67 0.81 0.62 0.74 0.71 0.79 0.71 0.62 0.77
Sum of the Normalized Scores 9.99 9.46 9.03 9.76 9.74 10.26 9.51 9.86 9.39 10.18 9.24 9.93 9.57 10.09 9.55 9.3 9.6
Score Ranking 4 13 17 7 8 1 12 6 14 2 16 5 10 3 11 15 9
The above graphs clearly show that the organizations with good recruitment practices stand in top
position; thereby the authors have arrived at the best practices in the next section.
In order to find out the results and observations, the original sample included 100 associates from each
firm were identified. With 69% of participants, the data is collected on technology, managerial and
behavioral skills
Normalized Score
10.4
10.2
10
9.8
9.6
9.4
9.2
9
8.8
8.6
8.4
Sum of the Normalized Scores V/S Benchmarking Partner
B1 B2 B3 B4 B5 B6 B7 B8 B9 B10 B11 B12 B13 B14 B15 B16 B17
Benchmarking Partner
Sum of the Normalized Scores
Normalized Values
18
16
14
12
10
8
6
4
2
0
BP Partner Ranking with Normalized Values
Sum of the Normalized Scores Score Ranking
B1 B2 B3 B4 B5 B6 B7 B8 B9 B10 B11 B12 B13 B14 B15 B16 B17
Benchmarking Partner
Figure 9: Normalized scores with survey results Figure 10: Ranking with survey results
Statistical analysis are performed to obtain the top most recruitment metrics – Full productivity, Quality of
Service, Quality of Promotion and Knowledge Management of expatriates for mid to long term duration.
The results are captured after the research, analysis and screening using Expatriate transformation
framework.
Quality of promotion is an important metric for branding. This parameter will have increased influence of
people, processes and opportunities of the expatriate representing organization.
6. Future trends
In the days to come expatriate processes would be completely modernized and automated. The use of
technology in the sector continues to increase at a remarkably faster pace with technologies hence;
organizations have to be on top of technology and competencies along with the deep domain knowledge
to address the future expatriate resource fulfillment needs.
508

Full Productivity
8
7
6
5
4
3
2
1
0
-1
-2
-3
Average Full Productivity w ith/out ETCFABM
Swathi Duppada and Rama Chandra Aryasri
With ETCFABM Adoption Without ETCFABM Adoption
Intial Offshore EBMF Adoption Onsite Log term Onsite
Time
Quality of Service
9
8
7
6
5
4
3
2
1
0
Average Quality of Service w ith/out ETCFABM
With ETCFABM Adoption Without ETCFABM Adoption
Intial Offshore EBMF
Adoption
Onsite Log term
Onsite
Time
8 - Superior 6- Meritorious 4-Acheivable 2- Reasonable 0-Nornal
Figure 11: Average full productivity Figure 12: Average quality of service
Quality of Promotion
4.5
4
3.5
3
2.5
2
1.5
1
0.5
Quality of Promotion with/out ETCFABM
With ETCFABM Adoption Without ETCFABM Adoption
0
Intial Offshore
Time
EBMF Adoption Onsite
5 - Excellent 4- Very Good 3-Good 2-Reasonale 1-Nornal
Knowledge Management
6
5
4
3
2
1
0
Knowledge Management with/out ETCFABM
With ETCFABM Adoption Without ETCFABM Adoption
Intial Offshore EBMF Adoption Onsite
Time / Locale
5 - Excellent 4- Very Good 3-Good 2-Reasonale 1-Nornal
Figure 13: Average quality of promotion Figure 14: Average knowledge management
Expatriate processes would become more efficient and robust and fully integrated with the overall
organizational objectives. Firms will have to pay high attention to ensure that the expatriate solutions
address the employer branding and regulatory compliances issues. The focus on building passive
candidate pool and diverse recruitment would increase tremendously. High attention will be paid towards
achieving collaboration between the hiring Manager and the recruiter.
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510

The Diffusion of Mobile Phones for Business and Information
Management in Kenya
Wakari Gikenye
University of Zululand, South Africa
wagikenye@yahoo.com
Abstract: Diffusion of innovation is the process by which an innovation is adopted and gains acceptance by
members of a certain community, innovations that are perceived by individuals as having greater relative advantage,
compatibility and less complexity may be adopted more rapidly than others (Rogers 2003:5 :16). Information and
communication technologies (ICTs) like the computer and the internet have been widely adopted by people in
western countries, while in developing countries they have taken much longer to be adopted. Mobile phones ICT on
the other hand have been widely adopted by both the western and developing countries in the last decade. In Kenya,
for instance, the number of subscribers had reached 20 million by March 2010, and still growing (Communication
commission of Kenya 2010). The rapid spread and use of mobile phone technology has in the last three years been
extended to the use of innovative mobile money transfer services both of which have increased the speed of
economic activities for Kenyans, including the low income people who were not served by financial institutions like
banks and the post office network. Money transfer services were first introduced in Kenya in 2007 in the form of ‘Mpesa’,
a financial transaction medium, which has had phenomenal growth since its introduction and has greatly
impacted economic activities. The M-pesa mobile money transfer service has been described as a revolutionary way
of making cell phone technology work to serve a basic need by providing a fast, safe, cheaper and easy way to
transfer money (Vodacom 2010). This paper examines the rapid diffusion of mobile phones and related mobile
money transfer services in Kenya. It is based on an on-going research study on “The diffusion of ICTs in the informal
sector in Kenya”.
Keywords: diffusion of ICTs, mobile phones adoption, money transfer services, Kenya
1. Introduction and background
Diffusion of innovation is the process in which an innovation is adopted and gains acceptance by
members of a certain community, innovations that are perceived by individuals as having greater relative
advantage, compatibility and less complexity may be adopted more rapidly than others ((Rogers
2003:5:16). Information and communication technologies (ICTs) like the computer and the internet have
been widely adopted by people in the western countries, while in developing countries they are taking
much longer to be adopted. Mobile phones ICT on the other hand have been widely adopted by both the
western and developing countries during the last ten years. In Kenya, by March 2010 mobile phone
subscription had reached 20 million and still growing (Communication commission of Kenya 2010). The
rapid spread of mobile phone technology in Kenya has been extended to the use of innovative money
transfer services. This has impacted the speed at which economic activities are carried out especially for
those people who were not served by financial institutions like the banks.
Money transfer services were first introduced in Kenya in 2007 in the form of ‘M-pesa’, it is a non-bank
service where customers exchange cash at M-pesa agents in return for an e-money account, the virtual
account can then be used for making payments, storing funds for future use and transferring funds to
other phone users (Standard Chartered 2009/2010). The M-pesa money transfer service has been
described as a revolutionary way of making cell phone technology work to serve a basic need by
providing a fast, safe, cheaper and easy way to transfer money (Vodacom 2010). It was initially started as
a mobile money transfer service to improve the efficiency of microfinance by using mobile technology to
make transactions faster, cheaper and more secure (Geach, 2007:4) Other mobile money transfer
services introduced later are Zap by Zain which is Safaricom’s main competitor in Kenya, ‘Yu Cash’ for
YU mobile phone operator and orange money from Orange mobile phone operator, these services are
heavily used for financial transactions and have also created jobs for agents in the many outlets across
the country. As Kalba (2008:632) has rightly observed, mobile phones are “… spreading ubiquitously
across the planet and are the latest phase of globalization’’ having out-diffused virtually every prior
technology, whether TV sets, radios, wrist watches, fixed lines computers, Internet etc.
This paper examines the rapid diffusion of mobile phones and mobile money transfer services and their
effect on the information and business management in Kenya. It is based on an on-going research study
“The diffusion of ICTs in the informal sector in Kenya”, the purpose of the study is establish the status of
ICT penetration (or lack thereof) in the micro and small enterprise (MSE) sector in Kenya, the terms
informal sector and MSEs sector are used interchangeably in the study. The study attempts to answer
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the following research questions: What is the status of ICT penetration/access, use and impact (or lack
thereof) in the MSE sector in Kenya?, What is the rate and level of ICT diffusion in the informal sector in
Kenya?, What types of ICTs are being used by the MSE traders in Kenya, and what impact if any do they
have on the businesses?, What challenges if any hinder the awareness and use of ICTs in the informal
sector in Kenya?, What is the government involvement in putting the required infrastructure for ICT use in
the informal sector Kenya.
2. Review of relevant literature
The rapid diffusion of the mobile phone in the last ten years can be explained by; among other things, the
drop in the price of mobile handsets to within reach of those with low incomes, the drop in mobile tariffs
as a result of stiff competition between mobile phone operators, mobile phones also require only basic
literacy to use and this makes them accessible to a larger proportion of the population, they are easy to
use and adaptable and for those without electricity phone–charging kiosks have quickly come up in small
towns and shopping centers while solar-powered phones have also been introduced into the market
(CCK 2010). The low cost of prepaid calling cards has also contributed to the rapid diffusion (Standard
Chartered 2009/2010:61; Communication Commission of Kenya, 2010).
Mobile ICT technology has made it possible to extend financial transfer services to millions of people
including the low income at relatively low cost (Kimenyi and Ndungu 2009:2). Mas and Radcliffe (2010:2)
have observed that, there nearly five times the number of M-pesa outlets than the total number of all the
other financial services i.e. Post Bank branches, post offices, bank branches and automated teller
machines all put together in the country. This is because unlike conventional banking branches that are
only located in major urban centers due to high running expenses, M-pesa agents are the ones who
decide on the most strategic points to locate their service outlets since they are easy to put up and to
maintain, this has dramatically reduced the cost of delivering financial services, with the benefits being
transferred to the users (Njenga nd :5).
Mpesa has shown impressive growth in the utilization of mobile payments within a short period of time,
with the number of monthly transactions having increased from 354,298 in July 2007 four months after it
was introduced to 16,747,419 in July 2009, an increase of 4627 percent, the value of monthly
transactions also rose from Kenya shillings 1.065 billion (Us $ 14.2 million) in July 2007 to 40.176 billion
(Us $535.6 million) in July 2009, a growth of 3671 percent, these financial transactions generated
substantial returns, and created job opportunities with about 12,300 agents in the country (Kimenyi and
Ndungu 2009:3).
Factors that have been responsible for the highly successful money transfer services in Kenya are; the
fast adoption of mobile phones, the unmet need to access financial services as well as a strong demand
for domestic remittances, such needs used to be met through informal and risky methods like sending
money through relatives and friends, or matatus (shared taxi), buses and couriers by those working in the
urban areas to their relatives in the rural areas, (Omwansa 2009).
M-pesa therefore may have been introduced at the right time, to meet the needs of accessing financial
services especially by those who were not served by the formal banking institutions. The cost of mobile
money service is relatively low compared to the earlier methods, it is also faster more convenient and
safer than cash. The adoption of mobile-based money transfer service has speeded up access to
financial services not just for the unbanked but also for the banked as a preferred avenue of transactions
(Daily Nation September 29 2010). The biggest beneficiaries, however, are the MSE traders who have
discovered a new time-saving service leaving them with more time to work on their businesses
(Omwansa 2009:111). The mobile money transfer have services also offered protection and safety by
enabling instant and on-demand payments (Mas and Radcliffe 2010:5). Other innovative successful
money transfer services in Africa are Wizzit in South Africa and Glofirst card in Nigeria which are used to
draw cash, transfer money, make purchases, and check bank statements using the mobile phone
(Standard Chartered 2009/2010:61).
2.1 Methodology: How do MSEs in Kenya get information for their business
management?
According to Rogers’ theory of diffusion (2003:1), getting a new innovation adopted even when it has
obvious advantages is difficult and many innovations require a period of many years to gain wide
adoption. The slow adoption of computer and the internet for information provision in developing
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countries provide examples while adoption and use for the same has been much faster in Western
countries. Technology acceptance model (TAM) developed by Davis (1989) stresses perceived
usefulness (PU) and perceived ease of use (PEOU) of an innovation (Khasawney and Ibrahim 2008:137).
A combination of social, economic and psychological factors might explain how different communities
become aware of and adopt particular innovations while they take much longer to perceive the
usefulness and ease of use to others.
A survey was carried out in two provinces in Kenya where a total of 377 MSEs were selected using a
combination of multistage sampling technique consisting of purposive, cluster and random sampling. The
two provinces selected are Nairobi and Central provinces representing an urban and a rural area
respectively. The MSEs consisted of retail shops (mainly dealing with clothing and footwear), phone
shops, auto-spare shops, furniture and hardware shops, and curio and horticultural traders. The clothing
and footwear retail shops, phone shops and electronic shops were more concentrated in the city center
while hardware, furniture, hair salons and construction material stores were found in the market centers.
Curio traders were found in the up-market Village Market in Nairobi province while horticultural traders
were based next to Jomo Kenyatta International Airport.
Data was collected using comprehensive structured and non-structured questionnaires, to gather
information from MSE owners, managers and employees on their use of ICTs for business management.
The questions were based on their use, attitudes and impact of ICTs. Due to the informal nature of the
business environment in the MSE sector, researcher-administered questionnaires were used.
3. Results
The results are presented in sections 3.1. to 3.7
3.1 Gender composition, educational level and age of respondents
The sampled MSE traders were 49 percent men and 51 percent women, making the gender balance
quite close. As shown in table 1 the educational level of the traders varied from primary to degree level,
with more than 27% (104 respondents) of the respondents having gone up to degree/diploma level and
48% (182) up to secondary school level. 16% (60 respondents) had undergone various types of post
secondary training, while over 6% (25 respondents) were primary school leavers. Majority of respondents
had attained secondary school education and above.
Table 1: Educational level of respondents
Frequency Percent
Primary Level 25 6.6
Secondary Level 182 48.3
Post Secondary Training 60 15.9
Diploma/degree/Masters 104 27.6
No answer 6 1.6
377 100
Table 2 shows the majority of the respondents are relatively young people between the age of 20 to 45,
with 75 percent being under 35 years, these are young people trying to earn a living from MSE trade,
most of whom are school leavers who failed to get jobs in the formal sector.
Table 2: Age of respondents
Frequency Percent
Below 25 years 100 27
25-35 years 180 48
36-45 years 93 25
Over 45 years 1 .3
No answer 3 .8
Total 377 377
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3.2 Size of MSEs in the study
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The MSEs in the study can be divided into three categories based on their size and the premises they
occupy. The first category operates from permanent buildings and enjoys infrastructural facilities such as
water, electricity, they also pay relatively higher rents. They enjoy relative permanency and their capital
outlay is also relatively higher. Examples of these are horticultural exporters and electronic and autospare
shops. Most MSEs in this category use ICTs such as the computer, Internet and email for their
businesses.
The second category of MSEs operates micro-sized businesses in shared premises. Despite being
housed in permanent premises and sheltered from the vagaries of the weather their businesses and
operations are very small, these are the micro retail stalls found in the main streets of Nairobi.
The third category operates from temporary sheds or stalls or in the open (this is the origin of the term
“Jua Kali’’, Kiswahili for ‘’in the hot sun’’ used generally to refer to informal sector enterprises in Kenya).
Their premises generally lack infrastructural facilities such as running water and electricity. They do not
own or use computers and also lack awareness of ICT developments, examples are curio traders,
grocery stores, food kiosk operators etc.
Over seventy per cent (270) of the MSEs studied had between one and five employees, with 35 percent
(133 respondents) having only one employee, only 7 percent had more than five employees.
3.3 Diffusion and use of ICTs among the MSEs
With the exception of mobile phones, the majority of MSE traders do not use ICTs such as computers for
their businesses. The majority carry on as if such technological developments have nothing to do with
them.
As table three shows twenty six percent (96 respondents) owned a computer, while over 94% (356
respondents) (shown in table 4) reported owning mobile phones. There was also a relatively high number
of respondents with computer skills; 42 percent (158) but who were not using them because they did not
think their businesses need the use of computers and said they could not afford them.
Table 3: Ownership of computers in the MSEs
Frequency Percent
Yes 96 25.5
No 281 74.5
Total 377 100.0
3.4 Diffusion and use of mobile phones and money transfer services for business
management
Findings shown in table 4 show that the mobile phone is quite popular among the MSE traders, with over
94% reporting that they owned and used a mobile phone to conduct their businesses. 95 percent (357
respondents) also reported that they were registered M-Pesa users, M-pesa was the pioneer for money
transfer services and has been synonymous with mobile money transfer services in Kenya.
Table 4: Ownership of mobile phone by MSE owners
Frequency Percent
Yes 356 94.4
No 21 5.6
Total 377 100
As shown in table 5, 28 percent (108 respondents) reported using M-Pesa daily, 29% (111 respondents)
use it once or twice a week; 21 % (80 respondents) said they used it whenever the need arose.
Sixty three percent (237 respondents) of the M-pesa users said they used it to send and receive money
from relatives while 79% (296 respondents) said they used it for business transactions. For most
respondents, the mobile phone was their first contact with a phone, having never used the landline. Given
that even the low prices of handsets and cost of airtime is a significant proportion of their earnings, the
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high percentage of ownership and use of mobile phones means they value them highly and they would
rather forgo other things to make sure they maintain the use of the mobile phone, which they reported
using heavily for their work. In addition to being useful in business activities mobile phones are also seen
as a status symbol.
Table 5: Frequency on the use of M-pesa (mobile money transfer service)
Frequency Percent
Everyday 108 28
Twice a week 20 5
Once a week 91 24
Once a month 17 5
Other 36 10
When need arises 80 21
No answer 25 7
Total 377 100
Almost 60 per percent (222 respondents) reported that they used the mobile phone for their businesses
transactions, 73% (275 respondents) said they used it for ordering goods, 79% (299 respondents) for
contacting customers, and 50.4% (190) said they had used it to improve their businesses. 72 per cent
(271) said they used the mobile phone for social communication, e.g. contacting friends and relatives.
3.5 What difference has the mobile phone made for MSE traders in Kenya
Fifty one percent (192 respondents) said the use of mobile phones made it easier and faster to
communicate and carry out business transactions at any time as well as communicating with people in far
off places. Fifteen percent (57 respondents) said the mobile phone helped them to get goods delivered
more easily, 31 percent (115 respondents) said the use of mobile phones made it easier to contact and
bring more customers leading to increased revenue.
A small number of respondents (2%; 6 respondents) said that they were what they were because of the
use of mobile phones, i.e. they had been able to start a business and maintain it due to the availability
and use of the mobile phone. They reported that, by using the mobile phone, they were able to know
which market to go to after comparing prices in different markets, before they left home. They were also
able to change plans if the information received on the prices of a particular commodity would not bring
them profits.
Most respondents reported doing businesses they had been doing more easily and conveniently with the
use of the mobile phone, 16%(62 respondents) said they were impressed by the genuineness, speed,
convenience and reliability that the mobile phone had brought and which had resulted in making their
work much easier and convenient, 4 percent (16) went as far as saying they could not do without it as it
had ‘’become everything in their business’’.
Only 2 per cent (6) said they relied on the money transfer service when a customer did not have money
and could send it later, most traders said they prefer face-to-face transactions rather than encouraging
credit services. 4 percent (14), said that M-Pesa is good for security and for carrying the money around
instead of cash, because even if the phone is stolen the money is still safe. 3 per cent (10) said it is good
for emergencies including medical ones due to its speed and convenience. 19 percent (72) said the
money transfer services are conveniently available for more hours unlike banks, and that it is easier to
save small amounts due to instant access, and one need not queue at the bank.
Other uses the mobile phone is used for by the MSE traders are; telling the time (73 percent; 276
respondents) thus replacing the wrist watch, 47 percent (178) use it as a camera, 46 percent (173) used
it to access the Internet, 49 percent (185) use it as a radio.
3.5.1 Problems of using mobile phones by MSE traders in Kenya
Thirty seven percent (140 respondents) said they had problems buying credit for their phones but
nonetheless indicated that it was a necessary cost for doing business, 54 percent per cent (207)
complained about network congestion, a common problem experienced by Safaricom customers the
main telephone service provider in Kenya and M-pesa money transfer service users. The mobile phone
was also reported (46 per cent) to be an easy target by thieves and pickpockets. Only 1 percent (4
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respondents) reported having problems with charging their phones, this is significant given the fact that
there are many people in Kenya without access to electricity in their homes.
3.5.2 Information sources for MSE business management
Apart from getting information from mobile phone contacts and fellow traders, 34% (128 respondents) of
MSE traders also reported getting their business information through acquaintances, friends and
relatives, through word of mouth while only 2% reported getting information through government officers.
23 percent said they got information through the mass media while 15% got their information through the
internet.
3.6 Challenges that hinder the awareness and use of ICTs by MSEs in Kenya
As the findings show in 3.2 above the majority of MSEs are small in size with the majority having less
than five employees, most of them are survival outfits, and their size and earnings do not enable the
ownership of ICTs like the computer. As shown in table 6, they are started with minimum preparation as
shown by the amount of starting capital, making the acquisition of expensive ICTs a remote possibility.
Forty eight percent reported starting their businesses with less than 1000,000 Kenya shillings ($1250)
with some having been started with as little as less than 10,000 Kenya shillings ($125).
Table 6: Capital outlay at the beginning of business
Frequency Percent
Less than Kshs 10,000 7 2
Kshs 10,000-20,000 49 13
Kshs 20,000-40,000 41 11
Kshs 40,000-60,000 41 11
Kshs 60,000-100,000 40 11
Over Kshs 100,000 51 14
Do not know 55 15
No answer 93 25
Total 377 100
3.7 Government Involvement in putting the required infrastructure for ICT use
In spite of the efforts the government of Kenya has made to bring the internet closer to Kenyans by
enabling three under sea cables to improve internet connectivity and the reduction on taxes on
computers, the MSE traders do not think the government has done much to assist them in getting the
necessary information for their businesses, they reported that they could not afford computers for their
businesses even for those who have acquired computer skills (3.3 above). Asked why they did not
recognize or appreciate the government efforts to help them get more information through ICTs they said
that that their first priority was to get affordable and more permanent premises where they would
establish their businesses, that the current status of MSE business premises in Kenya is unpredictable
with the City Council’s occasional raids on semi-permanent premises. The MSE traders also felt the
government was too keen to collect taxes and license fees but less eager to give services corresponding
services to enable them establish more productive businesses.
4. Discussion
This study has found that, gender composition for MSE traders studied is the same for men and women,
this is unlike other studies’ findings that there are more women than men involved in MSEs (Okello-Obura
et al 2007:13).
The small size of the MSEs has not endeared them to the use of ICTs like the computer, rather the
majority of the MSEs traders have adopted mobile phones and mobile money transfer services for
management of their businesses, the mobile phone technology has also been well adapted to the local
economic environment for use by both the unbanked and the banked Kenyans.
Due to the convenience resulting from the use of mobile phones and money transfer services and saved
time and money in saved journeys respondents reported that business had become much easier and
faster to run, and was more profitable. Thirty five per cent (131 respondents) said mobile money transfer
services simplified business and social financial transactions, saves time and money, by cutting costs of
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traveling and increases the efficiency of doing business. Money transfer services are more flexible and
can be used for saving and withdrawing small amounts of money, they operate for more hours, unlike the
banks, they are cheaper than bank accounts and require no minimum balance.
The mobile phone was reported to have changed business practices for the better as it made it easier to
order, supply and make payments for goods and services using the mobile phone. As summed up in a
Standard Chartered bank report (2009/2010:60) “the mobile phone is having a dramatic effect …and is
proving to be a life-transforming device”, mobile phones have become a key economic driver and are
used in many different ways like marketing of goods and obtaining information, they have reduced travel
time to distant bank branches and have enabled access to banking. According to Kimenyi and Ndungu
(2009:2) Kenya’s mobile phone transfer service is a good example of how low cost approaches using
modern technology can effectively expand the financial services frontier.
Mas and Morawczynski (2009:89) are optimistic that there is more potential use of mobile transfer
services that can be extended to payment of salaries and wages, payment of bills, school fees etc, and
that, although not originally conceived to work as a saving service it has been used as such by the
unbanked even with no interest. Emerging partnerships of various banks with mobile phone providers
taking place in Kenya will make the realization of mobile banking a reality, as well as collectively bring
together the aggregate savings from the wide network of money transfer services’ customers.
While achievements of the mobile phone in the MSE sector are from private sector efforts the
government has played a significant part in providing an enabling environment. This has not been felt in
the adoption and acquisition of other ICTs like the computer and the internet, and the challenge remains
for the government to do more so that the MSE traders can realize the benefits of the other ICTs.
5. Conclusion
This paper has found that, the status of ICT adoption especially that of computers is still low and out of
reach of the MSE traders whose operations continue to remain small. The affordable and easy-to-use
mobile phone technology however has been quickly and extensively adopted and is being used to
provide easier communication of needed information by MSEs in Kenya. This has made businesses more
efficient, less costly and more profitable in the MSE sector. The mobile phone technology has also been
innovatively used to offer financial transfer services whose fast adoption is proof that it has been found
useful and handy not just for the unbanked but also as a service to supplement the banked.
The rapid diffusion of the mobile phone is not only enabling faster and more efficient communication but
is also empowering people including the low income with information and services that were not available
to them before. This will have a positive impact on the economy and with the telephone companies
increasing their activities in the market and the growing partnerships with the banks the Kenyan economy
is bound to grow as a result.
The study also found out that for ICT adoption to be a reality for the MSE traders and indeed for all the
other Kenyans, there is need for concerted efforts by the government, the internet service providers and
for the people themselves to update themselves with what is happening around them and the rest of the
world if they are to catch up and keep abreast with the rest of the world. A lot remains to be done to
enable the realization of ICT benefits so as to maximize information acquisition for business
management. While the mobile phone technology has been innovatively used to provide the MSE traders
and other Kenyans with easier communication and money transfer services it has limitations on the
impact that it can make on the economy of the country even at its best. The government needs to
facilitate the creation of more jobs so as to have a vibrant economy which can increase the demand for
goods and services, including those being produced by MSEs. Lack of jobs is the genesis for the flocking
of the unemployed into the informal sector, where the participants try to eke out a living. Even with the
government efforts to make internet connectivity easier to access and the zero-rating of taxes on
computers and accessories people need to satisfy the basics before they can acquire ICTs.
Appendix 1
Questionnaire
Section A: Personal Information
1. .Name: ________________________________________ (Optional)
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2. Age: (1) Below 25 years (2) 25-35 years (3) 36-45 years (3) Over 45
3. Sex: (1) Male (2) Female
4. Marital Status: (1) Single (2) Married (3) Other
5. Educational Level: (1) Primary Education Level (2) Secondary Education Level (3)
Post Secondary Training (specify)_________________(4) Diploma/degree Holder.
Section B: Information about the business enterprise
6. What is the name of your business ________________________________________
7. Are you the (1) Owner (2) Part Owner (3) Manager (4) Employee
8. What are the goals of your business enterprise? _______________________________
9. How many permanent employees does the business have? (1) One only (2) 2-5
(3) 6-10 (4) Over 10 specify how many____________________________________
10. Do you have employees that are not permanent? (1) Yes (2) No If yes how many?
11.Is the business service-oriented or goods- production enterprise? Service-
oriented (1) goods-production enterprise (2)
12. How many years has it been in existence? Less than 2 years (1) 2-5 years
(2) 5-10 years ((3) Over 10 years (4)
13. Are there many other such business enterprises in the neighbourhood? Yes (1) No (2)
14. If yes how many? (1) 1-5 (2) 6-10 (3) Over 10.
15. What facilities do they share if any?__________________________________
Section C: Use of ICT (Information and Communication Technologies like the phone, computer
and internet) for the business
16. Does your business use ICTs? (1) Yes (2) No. If Yes, for what are the
ICTs used for (1) To get information on raw materials/ordering goods (2) To get
information on Customers, markets for goods/services (3) To contact friends and
relatives (4). Any other need, specify _________________________ _
17. How do you get information for your business? (1) Personal knowledge (2) Fellow
Traders/producers (3) Mass media (radio, TV, newspapers) (4) internet (5) mobile
phone contacts (4) Government officers (5) Acquaintances, friends and relatives,
Other sources specify__________________________________________________
18. How do you get information about customers for your work? Customers
come on their own (1) Word of mouth (2) Advertising in the mass media (radio, TV,
newspapers) (3) Through the internet and email contacts (4) Mobile phone contacts
19. What else and by whom do you think needs to be done to make your access to
information through ICTs better? (1) government (2) Phone companies (3) Other,
specify ______________________________________________________________
Section D :Acquisition and Use of (ICTs)
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20. Does your business own a computer\mobile phone /or land line? Or other ICT
resource, Specify_______________________________________________________
21. How is/are the ICT resources used in the enterprise? (1) Typing
(2) Communication (3) Internet use. (4) scanning (5) fax services (6) Sending money
22. Do you think ICT resources are useful to the enterprise? Yes (1) No (2) Give
Reasons _____________________________________________________________
____________________________________________________________________
23. Are there any people with computer skills in your organisation? (1) Yes (2) No
24. If yes how many? (1) only one (2) all employees
25. What kind of skill do they possess? (1) typing skills (2) skill for email and internet
use (3) technical skills
26. Are these skills used for the organisation? (1) Yes (2) No
27. If yes what are the skills used for? (1) Typing (2) emails for keeping in touch with
friends and relatives (3) business communication.
28. What benefits does the use of ICTs bring to the business enterprise? ______________
_____________________________________________________________________
29. Do you know what was the approximate capital outlay at the beginning of this
business? (1) Kshs 10,000-20, 000 (2) 21,000-40,000 (3) 41,000-60,000 (4) 61,000-
100,000 (5) Over 100,000, Specify (6) Do not know.
30. What is your approximate monthly turn-over (1) Kshs 10,000-20,000 (2) 21,000-
40,000 (3) 41,000-60,000 (4) 61,000-100,000 (5) Other specify (6) Do not know.
Section E: Access, Use and Impact of Mobile Phones
31.How long have you had your mobile phone? (1) 1-2 years (2) 2-5 years (3) 5-10 years
32. What do you use your mobile phone for? (1) For my work (2) For ordering goods (3)
For contacting customers (4) For improving my business (5) For social
communication (6) Other, specify ________________________________________
33. How can you compare the time you did not have a mobile phone and now ?
34. What other uses do you use your mobile phone for (1) For telling time (2) as a camera
(3) for internet (4) For Mpesa (5) As a radio
35. Has the mobile phone helped you to improve your business? (1) Yes (2) No
36. What are the challenges\problems of using the mobile phone? (1) expensive to buy
(2) air time (3) network congestion (4) easy target for thieves and pickpockets.
37. Do you make/receive more business /more social calls on you mobile phone?
(1) More Business-related calls (2) More social calls
38. How many of the calls that you have made for the last one week are (1) work related
(2) For social communication.
39. Those which are work-related what were they used for? (1) To contact customers
(2) To order goods\supplies (3) Other, Specify_____________________________
40. Are you a registered Mpesa user? (1) Yes (2) No
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41. How often do you use Mpesa (1) Everyday (2) Once a week (3) Other specify______
42. What do you use Mpesa for? (1) T o send\receive money to\from relatives (2) For
Business transactions.
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Querying DTI Analysis Results Within Deep Perisylvian Area
Sarmad Istephan and Mohammad Siadat
Oakland University, Rochester, USA
sistephan@gmail.com
siadat@oakland.edu
Abstract: This paper is an advancement in the field of Data Driven Medicine. There has been a tremendous amount
of work done in integrating technology into the medical field. Part of that work is in the storage and querying of
medical images which is the focus of this paper. The high level motivation of this paper is to design a database
driven system that empowers radiologists to validate their hypotheses against a set of medical images. More
specifically, a system has been developed that answers queries pertaining to the average Fractional Anisotropy (FA)
within a given brain structure. The proposed system enables querying of Diffusion Tensor Imaging (DTI) images to
evaluate hypotheses that correlate changes in DTI analysis results (e.g., FA map) with brain epileptogenicity. The
system makes the assumption that the following data are available: a) high-resolution and high-contrast image data
such as T1-weighted MRI, b) models of brain structures of interest segmented in the high-resolution and highcontrast
image space, c) DTI analysis maps such as FA map, d) registration Information that transfers the brain
structures’ models from their native image space (T1) to target image space (FA map). A data model to store this
information has been designed. The data model is implemented in a database that uses SQL Server 2008
technology. This database stores patients’ data, various image modalities, segmented models, and registration
information. Part of importing the images into the database includes reading the dicom image tags and feeding the
available tags into the database. After all the required pieces of data are in the database, the calculation of the
average FA within a given model is done as follows. First, using the Visualization Tool Kit (VTK) libraries and the
registration information the segmented model is transferred from its native space to the target image space (e.g.,
from T1-weighted MRI to FA map). Next, a bonding box is created around the model and each voxel within the
bonding box is examined to see if it is inside the segmented model. At this point all the voxels of interest (inside the
model) are identified and the average FA map would be calculated using the Image Tool Kit (ITK) libraries. The
primary focus of this work was to calculate the average FA but the system can be extended to include many other
features of interest such as fiber density, curvature measures, etc. In conclusion, this system creates a link between
quantitative measurements of several modalities of data e.g. DTI and qualitative patients’ situations in clinical
practices, which is an important element in the field of Data Driven Medicine.
Keywords: medical image querying, medical image database, DTI/MRI querying, medical image data model,
DICOM, medical imaging
1. Introduction
Data Driven Medicine is an initiative to improve health care in the United States by leveraging technology.
The United States Department of Health and Human Services (HHS) has recently received a $3.6 billion
budget to improve Information Technology (IT) within health care. A part of that budget goes to Health IT
which is part of HHS. Health IT replaces traditional paper methods for storing patient information with
Electronic Health Records (EHRs). The usage of EHRs enables the storage and secure dissemination of
comprehensive patients’ health history. The availability of EHRs provides doctors with a mechanism to
reach an accurate diagnosis sooner than traditional paper methods would (HHS Press Office 2010; The
Office of the National Coordinator for Health Information Technology 2010).
Patients’ medical image scans of various modalities are a subset of EHRs. These modalities include
Magnetic Resonance Images (MRI), Diffusion Tensor Images (DTI), Computed Tomography (CT) and
Ultra Sound (US). There are many medical image modalities created daily. In 2002, on a daily basis, at
least 12,000 radiological images were created at the University Hospital of Geneva. In one year this
amounts to 1 terabyte of image data (Muller et al 2004). Another study showed that tens of terabytes of
image data is produced by an average size radiology department which means pedabytes of image data
per country per year (Glatard et al Magnin 2004). This humongous amount of data can be used to
complement traditional medicine in many ways. It is impossible to ask radiologists to analyze this data
because their time is expensive and analyzing this amount of data manually would take a very long time.
Therefore, a system must be designed that can automatically query the data.
This paper focuses on developing a system with a database to store medical image modalities and
develops a mechanism to query the image data automatically. Since this is an automatic system, then it
addresses subjective analysis that may occur if a radiologist was performing the analysis. Also, the
system will be able to analyze many more aspects of the images much faster than a radiologist can.
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Sarmad Istephan and Mohammad Siadat
A data driven system has potential to be used in many areas. One usage of such a system is in medical
school education where students can leverage the system to construct and test various hypotheses that
they develop and verify them across many images. A second use of this system is to leverage the image
data to determine an accurate quantitative outcome prediction. A quantitative outcome prediction would
provide the patient with information using their image modalities in conjunction with those from previous
patients with a similar disease to come up with conclusions. An example of a conclusion would be that
90% of patients going through treatment plan X had side effect Y and it is up to the patient whether to
undertake such a treatment that only 10% of patients did not have the side effect of. A third use of such a
system is to come up with patient centric treatment plans. This means that treatment plan X can be
tailored to a specific patient by leveraging information from the image data. A fourth use of such a system
is as a decision support system. A decision support system will use the pre-operation and post-operation
image data from previous patients during a new patient’s invasive surgery to decide on where to cut in
order to minimize/eliminate tissue damage. Finally, the image data can be used as a mechanism to
prevent the need for invasive techniques all together because it may unlock other treatment options that
would not have been discovered by only using patient provided information (Muller et al 2004).
The remainder of the paper has the following structure. In Section 2, a brief examination of previous work
is provided. In Section 3, the method this paper uses is explained. In section 4, the technology used for is
provided. In section 5, simulated data and results are provided. Finally, in section 6, the paper is
concluded.
2. Previous work
There are three approaches to query medical data. One approach is to use the structured data.
Structured data includes demographic data of a patient such as age, gender, height, weight, etc. Another
approach is to use unstructured data. Unstructured data includes the image data of patients. The third
approach is to use a hybrid of structured and unstructured data (Siadat et al 2009). This paper focuses
on developing hypotheses and validating them using the unstructured image data.
There are two methods used to query unstructured image data. One method is to create structured data
(annotations) that represents the unstructured data. This approach is accomplished manually by a
human. Sine transcribing unstructured data into structured data is manual then it is prone to error in the
sense that the human can make mistakes while dictating the data. Also, it is irreproducible in that two
humans may come up with different annotations or even the same human might come up with different
annotations at different times for the same image data. In addition, this manual process is time
consuming because only one volumetric image can be operated on at a given time. Finally, it is neither
feasible nor possible to have a complete set of structured data to describe all the features of an
unstructured image (Chbeir et al 2002) (Glatard et al 2004).
The other method to query unstructured data is through the use of image segmentation, feature
extraction and other imaging techniques that operate directly on the image itself. This approach
addresses all the concerns of using structured data to represent unstructured data and hence is the
preferable approach (Chbeir et al 2002). This paper queries the unstructured data directly to answer
queries.
The hybrid system approach to querying medical data is to use the unstructured image data as a
complement to traditional textual queries. Textual queries are those pertaining to structured data. The
querying of structured data will always be needed as a way to focus the study on certain demographics.
However, leveraging unstructured data as a complement to the structured data provides the ability to
answer many questions that are difficult to answer otherwise (Muller et al 2004). An example of such
questions is, “Is there an intensity difference in the medial side of the perisylvian area of the left
hemisphere of the brain compared to the medial side of the perisylvian area in the right hemisphere for
patients within the ages of 20 and 25?” The age part of the question uses structured data and everything
before that uses the unstructured data. (Chbeir 2002).
There have been many good systems designed so far that use unstructured data. Most of these systems
are designed using the Content Based Image Retrieval (CBIR) technique. In this technique, a system is
given an image and asked to find all similar images in the database. The process of finding the similar
images in the database is then refined by selecting an image from the result set and asking the system to
again search. This iterative process is repeated over and over until accurate results are reached. The
Spine and Pathology and Image Retrieval System (SPIRS) achieved a 20% increase after three iterations
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Sarmad Istephan and Mohammad Siadat
of similarity based retrieval (Hsu et al 2008). Another system that uses CBIR is the Medical Image
Management System (MIMS) which combines the use of structured and unstructured data to answer
queries (Chbeir 2002). Another system that uses CBIR by exposing various methods as Web Services is
MedImGrid (Jin 2007). Another system that performs Gabor Filter feature extraction and CBIR is done by
Tristan Glatard (Glatard 2004). There are many other papers that also use CBIR as a mechanism to
query unstructured data and are all reviewed in Henning Muller’s review of CBIR systems (Muller 2004).
The theme amongst all these systems is the requirement of an initial image to initiate a query. This paper
develops a system that does not require an initial image. Furthermore, these systems compare against
one image modality. However, the system in this paper is able to do registration between different
modalities of images thus allowing registering anatomical information to functional information.
The research in medical data storage and retrieval has resulted in many systems that are widely used in
hospitals. The overall system is the Hospital Information Systems (HIS). The HIS system is a system that
consists of many subsystems used in the capturing, storage and retrieval of everything from patient
appointments to image modalities acquisition to billing (Biohealthmatics 06). One subsystem of HIS is the
Picture Archiving and communication Systems (PACS). PACS allows for the capturing, storing and
retrieval of medical image modalities without the use of traditional image films (Becker and Arenson 94).
A complement to PACS is the Radiological Information Systems (RIS). RIS enables the storage of patient
data such as patients’ history from admission to discharge, patients’ appointments, patient centric reports
and traditional film tracking (Biohealthmatics 06). The future of the system designed in this paper is a
complement to all of these systems with the primary focus on the validation of hypotheses by querying
the unstructured image data.
3. Method
In this paper, a new system was developed that enables the storage of unstructured medical images and
hypotheses validation through querying the images directly. The goal of the system is to extend the
power of Structured Query Language (SQL) through the use of the Common Library Runtime (CLR) to
query the unstructured data. The general form of the query the system supports is,
SELECT [Field Name]
FROM [Database.Tables]
WHERE [FeatureX] [Spatial Relation to Structure Name] [Structure Name] of [Image Map] [Comparison
Operator] [Comparison Value]
An example of this query is:
SELECT [Field Name = Patient Name]
FROM [Database.Tables]
WHERE [FeatureX = AverageFA] [Spatial Relation to Structure Name = Adjacent to Medial Side] of
[Structure Name = Perisylvian Area] of [Image Map = DTI] [Comparison Operator = >] [Comparison Value
= 50]
This general query has been encapsulated into a function called QueryImage. QueryImage function is a
SQL CLR function that can be called directly from a query’s where clause. This function was created as
an easy mechanism for the communication between the application and the database.
QueryImage takes the following parameters,
[FeatureX]: Type of module to be executed (e.g., Average FA).
[Spatial Relation to Structure Name]: Geometric relationship to be used (e.g., within).
[Structure Name]: The name of the structured to be queried (e.g., Perisylvian area).
[Image Map]: The type of image modality to be used (e.g., MRI).
[Comparison Operator]: The type of comparison to make (e.g., >).
[Comparison Value]: The value to compare against (e.g. 50)
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Sarmad Istephan and Mohammad Siadat
The power of this design is that new modules can be added to the system at any time without affecting
the rest of the system. Using the AverageFA module, a radiologist can form the hypothesis, “the Average
FA goes down next to an epileptogenic area.” This hypothesis can be answered using the query,
SELECT PatientName
FROM [Database.Tables]
WHERE QueryImage(“AverageFA”, “ Adjacent to Medial Side”, “Perisylvian Area”, “DTI”, “50). The system then fetches the next patient and the cycle repeats itself.
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No
No
No
Execute Query
Get Next Patient
Is there more
patients
Yes
Is FeatureX
Available?
No
Is Image Map
available?
Yes
Is Model
available?
Yes
Is Registration
Information
available?
Sarmad Istephan and Mohammad Siadat
Yes
Yes
Figure 2: System’s query execution architecture
No
Database
Return Result Set
Generate
SpacialRelationToStructure
Name
Transfer
SpatialRelationOfInterest
model to ImageMap
Calculate FeatureX
Save feature value
Is feature true for
ComaprisonValue Using
ComaprisonOperator?
Yes
Accumulate result
into Result Set
The steps to generate spatial relation to the structure name, the transfer of the relation and the
calculation of feature are depicted in figure 3. This is done by the application first receiving the query,
getting the image map, model and registration information from the database and calculating featurex
using VTK libraries and Image Tool Kit (ITK) libraries. More specifically, VTK library is used for the
following steps. First, load the model data from the database. Once the VTK polydata model is loaded
then transfer the model from the model space to the image space using the registration information. The
transfer of the model to the image space is illustrated in figure 4. Next, a bounding box is drawn around
the model. Then an array containing a 1 for inside and 0 for outside for each voxel from the bounding box
is generated. Figure 5 shows two voxels, once outside the model and one inside the model. Then, ITK
libraries are used to load the image space volume. Finally, the sum of the intensity values for all inside
voxels from the image space are all summed and divided by the total number of inside voxels. This sum
represents the average FA.
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No

Sarmad Istephan and Mohammad Siadat
Figure 3: Details of the steps generation of the spatial relation to the structure name, the transfer of the
relation and the calculation of feature from Figure 2
Figure 4: The model space transformed to Figure 5: Model showing voxel outside and inside
the image space
4. Technologies used
The data model is implemented in a database that uses SQL Server 2008 technology. This database
stores patient data, various image modalities, registration information and segmented model information.
An ASP.NET web application has been built on top of this database leveraging the .NET Framework 4.0
technology. This web application contains forms in which the available images are imported into the
database. The backend for the forms is written using the C# programming language. Furthermore, the
backend code uses ClearCanvas to read the dicom image tags. In addition, C# VTK library DLLs and C#
ITK library DLLs are used form image and model manipulation. It should be noted that both VTK library
and the ITK library are written in C++ and therefore, CMAKE was used to create the C# DLLs from the
native C++ code. Finally, Matlab was used to generate simulated image volumes and 3D Slicer was used
to generate VTK models for the image data.
5. Simulated data and result
In this system, simulated data was generated and used to test the system because the outcome is
known. It would be difficult to use real MRI/DTI data to verify the system because the outcome is not
known. The simulated data includes sets consisting of a DICOM volume (see figure 8 for an example), a
surface model (see figure 9 for an example) and registration information. The system was verified that it
is able to query the simulated images using the QueryImage function.
The process of generating the simulated data is depicted in figure 6. First, Matlab was used to randomly
generate the model’s parameters. R1, R2, Zmin, Zmax, Xmin, Xmax, Ymin and Ymax. The R1 represents
the radius from the center of the image to the outer edge of the structure. R2 represents the radius from
the center of the image to the inner edge of the structure. In other words, R1 and R2 are used to control
the width of the generated structure. Zmin and Zmax is the minimum and maximum number of slices the
system is to generate (see figure 7). Xmin, Xmax and Ymin, Ymax are the dimensions of the slices. Using
526

Sarmad Istephan and Mohammad Siadat
the values of R1, R2, Zmin, Zmax, Xmin, Xmax, Ymin and Ymax, a model is generated and then saved
as a DICOM image (see figure 8). If the system is to generate more images then another set of
parameters are evaluated creating another DICOM image.
The models are the imported into 3D slicer to generate a geometrical surface model which is then saved
in VTK format. Then, the model is loaded using VTK libraries and a transformation (translation and
rotation) is applied to it. Finally, all this information is saved into the database using the web forms. At this
point the system is ready to be queried.
Figure 6: Simulated data generation
Figure 7: Axial, Coronal and Sagittal views of a slice within the 3 volume
Figure 8: Model created out of the 3D volume
6. Conclusion
This paper created a system that is used to store and query medical images which serves as an
extension to the field of Data Driven Medicine. This system can be used in academia, hospital research
and hospital clinical diagnosis and prognosis. This paper shows the feasibility of such a system and will
be extended into a complete system in future work by adding more module types such as fiber density
measures, curvature measures and standard deviation of the intensity modules.
References
Becker, S. and Arenson Ronald (1994) “Costs and Benefits of Picture Archiving and Communication Systems”,
Journal of the American Medical Informatics Association, vol. 1:4, November, pp.361 – 371.
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Sarmad Istephan and Mohammad Siadat
Biohealthmatics (2006), Healthcare Technologies [Online], Available:
http://www.biohealthmatics.com/technologies/healthtech.aspx [3 Dec 2010].
Chbeir, R., Atnafu, S. and Brunie, L. (2002) “Image Data Model for an Efficient Multi-Criteria Query: A Case in
Medical Databases”, Proceedings of the 14th International Conference on Scientific and Statistical Database
Management IEEE. pp. 165-174.
Glatard, T., Montagnat, J. and Magnin, I. (2004) “Texture Based Medical Image Indexing and Retrieval: Application to
Cardiac Imaging”, Proceedings of the 6th ACM SIGMM international workshop on Multimedia information
retrieval.
HHS Press Office. (2010) HHS Budget Makes Smart Investments, Protects the Health and Safety of America’s
Families, [Online], Available: http://www.hhs.gov/news/press/2010pres/02/20100201a.html [29 Nov 2010].
Hsu, W., Antani, S., Long, R. Neve, L. and Thoma, G. (2009) “SPIRS: A Web-based image retrieval system for large
biomedical databases”, International journal of medical informatics, vol 78, pp. 13-24.
Jin, H., Sun, A., Zheng, R. He, R. Zhang, Q., Shi, Y., Yang, W. (2007) “Content and Semantic Context Based Image
Retrieval for Medical Image Grid”, GRID '07 Proceedings of the 8th IEEE/ACM International Conference on Grid
Computing.
Muller, H., Michoux, N., Bandon D. and Geissbuhler, A. (2004) “A review of content-based image retrieval systems in
medical applications - clinical benefits and future directions”, International Journal of Medical Informatics, vol.
73, pp 1-23.
Siadat, M., Hammad, R., Shetty, A., Soltanian-Zadeh, H., Sethi, I., Eetemadi, A., Elisvich, K. (2009) “DTI data
modeling for unlimited query support”, SPIE, Vol. 7264.
The Office of the National Coordinator for Health Information Technology (2010), Why Health IT? [Online], Available:
http://healthit.hhs.gov/portal/server.pt/community/healthit_hhs_gov__home/1204 [29 Nov 2010].
528

Towards an Evaluation Method for Information Quality
Management of Health Information Systems
Siti Asma Mohammed and Maryati Mohd Yusof
National University of Malaysia, Bangi, Selangor
asmadixie@gmail.com
mmy@ftsm.ukm.my
Abstract: Information quality has been regarded by most researchers as one of the critical success factors of Health
Information Systems (HIS) adoption. However, there is increasing evidence of poor quality information found in HIS.
Poor information quality increases medical errors and adverse events. The occurrence of poor information quality
reveals the need to evaluate information quality management (IQM) practices in healthcare organizations. It is crucial
to assess the effectiveness of IQM to ensure the quality of information produced by HIS. A review of current
evaluation methods for IQM in healthcare has been carried out to identify any existing gaps for further improvement.
The literature review was conducted from the health informatics and information systems (IS) disciplines. It was
found that the lack of information quality was due to a combination of human, organizational and technological
factors. In the literature, guidelines and best practices are suggested in order to manage information quality in
healthcare. However, there is inadequate literature that offers specific approaches and criteria for assessing quality
information from the perspective of humans, organizations and technology. Therefore, this paper proposes a
comprehensive and systematic evaluation method for HIS information quality management in improving the quality of
information in HIS. The proposed method is developed based on PMBOK (Project Management Body of Knowledge)
in order to provide a systematic evaluation process. With regards to evaluation criteria, this research focuses
primarily on the criteria identified from a combination of quality management, IQM and IS/HIS evaluation findings
from the literature. This paper contributes to the information quality body of knowledge within the information systems
area. This evaluation method can be applied as a tool to evaluate the IQM practice in healthcare organizations and
assist HIS users in improving the quality of information.
Keywords: health information systems, information quality management, evaluation, project management, human
factors, organizational factors
1. Introduction
Most researchers consider information quality (IQ) as one of the critical factors for the success of HIS
(DeLone and McLean, 1992; Heeks, 2006; Yusof et al, 2008). Unfortunately, increasing evidence shows
that HIS has not been producing the intended quality of information (Gaikwad et al, 2007; Miettinen and
Korhonen, 2008; Agnew-Blais et al, 2009). Poor IQ increases medical errors and affects the quality of
patient care (Institute of Medicine, 2000). Human, organizational and technological factors are among the
elements that influence poor IQ in HIS (Caccia-Bava, Guimaraes and Harrington, 2006; Kaplan and
Harris-Salamone, 2009). For example, organizational studies show that users are unable to align
information usage with management and clinical performance (Garrib et al, 2008). Further, poor IQ
occurs because of unclear responsibility for IQ and lack of clarity in IQ expectations among users (Kerr,
2006). Lack of quality requirement specification is the reason why users have little understanding of the
purpose of collecting and utilizing information to support decision making (Sutherland and Steinum,
2009). Consequently, users consider less to produce quality information, which later becomes the main
hindrance to adopting HIS (Orfanidis et al, 2004).
2. Theoretical background
Having Information quality management (IQM) practices is necessary to achieve optimal quality of
information. IQM is a set of activities where an organization establishes, controls, conducts quality
strategies so that the process of producing information satisfies user requirements (Caballero et al,
2008). These activities include establishment of roles, responsibilities, IQ requirements and procedures.
IQM provides guidance on the meaning of IQ to the organization (Price and Shanks, 2005). Information is
of high quality if it is fit for use where the information is able to satisfy the actual use of the information
(Tayi and Ballou, 1998). IQ and data quality (DQ) are always used interchangeably in the literature by
most researchers. Therefore, this paper will also use the term IQ interchangeably with DQ unless
specified. There are guidelines and best practices being developed for having strategic IQM in healthcare
organizations (AHIMA, 1998; Arts et al, 2002; Kerr, 2006; Aqil, Lippeveld and Hozumi, 2009). However,
the most critical factors for IQM and the criteria are still unclear to benchmark the quality of HIS
information (Ammenwerth, Breu and Paech, 2010). In addition, more research is needed to study the
practicalities of information use such as the relationships between users and the HIS in disseminating
information, the dynamic changes of clinical relationship in addressing information discrepancy and other
529

Siti Asma Mohammed and Maryati Mohd Yusof
stakeholders’ influences (Greenhalgh et al, 2009). Evaluation can be undertaken to investigate the IQM
practice in healthcare organizations for effective HIS. A more holistic evaluation approach is needed to
understand the production of IQ by HIS given human and organizational interventions. To date, there is
inadequate literature that offers a comprehensive and systematic evaluation approach together with
specific criteria for having quality information. Hence, more work is required to investigate this issue
further.
2.1 Previous works on HIS information quality management
Table 1 below shows the review of best practices that have been developed to strategically manage
information production in HIS. This review attempts to identify the gap in HIS IQM.
Table 1: Selected Works on HIS IQM
Author Objective Information
Life Cycle
Factors and Criteria
Method
P A M A H O T
Data Quality
Assurance in
Medical
Registries
(Arts et al,
2002 )
AHIMA Data
Quality
Management
Model
(AHIMA,
1998)
Data Quality
Improvement
Strategy
(Kerr, 2006)
PRISM
(Aqil,
Lippeveld
and Hozumi,
2009)
1) To identify
the type
and causes of
poor data
quality
2) To develop
data quality
assurance
procedures for
medical
registries
To ensure data
quality
and continuous
quality
improvement
To
institutionalize
and establish
strategic
management of
data quality in
the New
Zealand health
sector
To evaluate the
performance of
HIS
from the
perspective of
information
quality handling
X X X Training
Motivation
Quality follow
up
X X X Data collection
purpose
Education
Training
Communicate
changes and
updates
Accountability
Quality data
sources
X X X Quality data
source
Training
Quality
awareness
Peer review
Frequent
checks,
analysis and
profiling of
data
Data quality
mapping
(business
rules and data
quality
metrics)
X X X Checking skill
HIS tasks
competency
Motivation
Confidence for
HIS tasks
530
Data
requirements
Quality
assurance plan
Ethics
Scope
Information
requirements
Processes
Documentation
Monitoring
Regulation
Data
stewardship
Governance
Planning
Resources
Training
Supervision
Information
quality
culture
promotion
Database
design and
function
Technical
support
Interface
usability
Data
ownership
Accessibility
Correct
algorithms
and formulas
Data
currency
Database
normalization
Database
maintenance
and support
Database
design and
normalization
Interface
System
maintenance
Interface
complexity
HIS design
IT complexity
Formative
Formative
Formative
Formative

Siti Asma Mohammed and Maryati Mohd Yusof
Note: Information Life Cycle: P – Plan, A – Acquisition, M – Maintenance, A - Apply
Factors: H – Human, O – Organization, T – Technology
Generally, all the four methods mentioned in Table 1 provide clear guidance for having quality information
in HIS. For example, Arts, Keizer and Scheffer developed a generic framework that outlines the
procedures for data quality assurance for medical registry system. The procedures are divided into three
categories; system registry setup and organisation (plan), detection during data collection (acquisition)
and actions to be taken to improve data quality (maintain).
As for American Health Information Management Association (AHIMA), an IQM model is developed to
continuously improve IQ. The model includes data application (purpose for which data are collected),
data collection (process by which data elements are accumulated), warehousing (processes and systems
used to archive data) and analysis (process of translating data).
Another IQM initiative, which is a DQ improvement strategy, has been developed by Kerr to promote DQ
in New Zealand. This strategy was designed at the Ministry of Health New Zealand with involvement from
healthcare stakeholders in New Zealand. This program is meant to provide DQ standard operating
procedures for healthcare organizations in New Zealand.
Aqil, Lippeveld and Hozumi developed a PRISM model that details the determinants influencing HIS
performance from the perspective of IQ handling. The behavioral factors, which explain the human
behavior in handling data, discussed briefly on the use of information technology. For example, HIS tasks
competency and the confidence level of using HIS.
The similarity between these studies is the emphasis on IQ behavior or IQ handling, which comes under
the human factor. Human factors such as training, motivation, education and quality awareness are
among the important determinants that will influence IQ. DQ requirements, clinical process, management
supervision, IQ culture and IQ governance are the examples for organization factors. For the technical
aspects, while AHIMA focusing on the stability of database design to achieve IQ, the other three methods
include the importance of HIS design such as interface usability. On the other hand, Aqil, Lippeveld and
Hozumi depicts that information technology usage will also affect IQ.
It can be seen that all methods share similar opinion on the importance of quality awareness, DQ
requirements and IT technical support in ensuring IQ. Further, the methods are applied across the
information life cycle (ILC) through a formative evaluation. This research believes more can be added to
the evaluation criteria proposed within the human, organizational and technological factors. There should
be more explicit evaluation categories and evaluation criteria that can be assigned to each ILC. Thus, a
holistic evaluation method that includes criteria from human, organization and technology factors
throughout the ILC would offer a better solution.
2.2 Project Management Body of Knowledge (PMBOK)
In designing a systematic evaluation approach, this research recognizes the importance of project
management discipline. We believe project management is important when conducting an evaluation.
This is because project management is based on planning, organizing and controlling each activity so
that evaluation objective is achieved (Irani, 2010). As such, a project management discipline, Project
Management Body of Knowledge (PMBOK), becomes the basis for developing the evaluation method
(PMI, 2008). PMBOK provides common operational steps with clear inputs and outputs. PMBOK is
recognized as a good practice and contributes to project success and organization value (Zwikael, 2009).
PMBOK defines project management as ‘the application of skills, tools and techniques to project activities
to meet project requirements’ (PMI, 2008:6). PMBOK includes a collection of processes to manage all
types of projects. These process groups are performed sequentially and iteratively prior to completing the
project. Each process group has its individual processes that are linked by their inputs and outputs. The
output of one process becomes the input of another. Tools and techniques are the mechanisms applied
to create the output.
In addition, most studies in IS evaluation have failed to focus on understanding the ‘how’ aspect or the
evaluation process itself (Tuten, 2009; Irani, 2010). This may explain why IS evaluation in healthcare
531

Siti Asma Mohammed and Maryati Mohd Yusof
organization is unclear and does not provide a strong basis for a good evaluation theory and an effective
evaluation method (Ammenwerth et al, 2004).
Thus, this research believes that PMBOK complements IS evaluation in the sense that PMBOK provides
more guidance and details on how to plan, execute, manage and control the evaluation method. This
research uses PMBOK to develop the evaluation method to support users in improving the quality of
information in HIS continuously.
3. Proposed evaluation method for HIS information quality management
The proposed evaluation model (Figure 1) is developed based on PMBOK (PMI, 2008:39). It describes
the process for conducting the evaluation. This is done by phases throughout the ILC. In order to find the
specific criteria that determine the production of IQ in HIS, this research makes use most of the criteria
identified from a combination of quality management, IQ and IS/HIS evaluation findings. Three major
factors that influence the production of quality information are identified; human, organization and
technology. Even though those criteria do not explicitly focus on IQ, they are all relevant and applicable in
evaluating HIS IQM. Some criteria used are also based on IQM best practices given in the literature such
as the information behavior criteria. Important criteria pertaining to the use of HIS and user satisfaction
towards the system in use are also included after reviewing the literature from health informatics. The
way a user behaves towards the information he possesses, the way he uses the system and his
satisfaction towards the system used will determine the quality of information produced. This research
makes use of the HOT-fit (Human, Organization and Technology-fit) framework in categorizing the factors
and dimensions (Yusof et al, 2008). This is because HOT-fit gives explicit evaluation categories, and
indicates clear relationships and definitions between the evaluation factors and dimensions. However, the
detail criteria are the findings from literature reviews pertaining to effective IQM. Therefore, criteria used
for this study are categorized under different suitable factors and dimensions.
Figure 1: Evaluation method for HIS information quality management
The model above describes the evaluation phases, key activities, ILC involved under each evaluation
phase, input (evaluation resource), evaluation output (deliverables), criteria for each ILC involved and the
methods used to conduct the evaluation. Each evaluation phase has its own activities, inputs/outputs,
criteria and methods. The evaluation criteria are distributed according to different ILC being evaluated.
Some criteria are repeatedly included in different ILCs depending on its relevance. Below are the
definitions for ILC stages for this research.
Table 3: ILC stages definitions (adapted from English, 1999)
ILC Stage Definition
Plan Plan for resources including information requirements, IQ definitions and metrics, process design,
information modeling, database architecture, information resources, user roles, system usage
preparation and method for collecting the information.
Acquisition Process of collecting, verifying and storing the data/information into HIS.
Maintenance Ensure that all resources continue to operate properly to make the information assessable and
usable. These include updating, changing, cleansing and validating data and system maintenance.
Apply Information is used to accomplish objectives.
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3.1 Evaluation criteria
3.1.1 Human
Siti Asma Mohammed and Maryati Mohd Yusof
System Use refers to the frequency and breadth of HIS use (Yusof et al, 2008). System Use is
associated with higher performance of quality of care (Poon et al, 2010). System Use includes the
training provided for the HIS users in using the system, the level of system acceptance, the level of
motivation to use the system and their knowledge of the system that is beyond their current job
assignments (Yusof et al, 2008). User role is another criterion for System Use. Clear user roles when
using the system determines the quality of information in HIS. User roles refer to data collectors, data
custodians and data consumers (Kerr, 2006; Wang et al, 1998). Information Behavior is the HIS user’s
effort in ensuring quality in collecting, creating and using the information. Information Behavior criteria
include education and training on medical information, and quality awareness on the information
possessed. The information must be patient-centred and should satisfy the actual use of data consumers
(Macinati, 2008; Ahire, 1996).
3.1.2 Organization
The organization Structure of healthcare organization has a major influence on the production of HIS IQ.
Structure includes leadership, physician involvement, IQ governance, IQ culture, IQ team and IQ
requirements. Leadership indicates the role and commitment of the top management in motivating quality
culture among the HIS users (Wang and Strong, 1996; English, 1999). IQ culture is a very important
criterion that is emphasized by English (English, 1999). It refers to organization culture transformation
that regards IQM activities as a habit and mind-set by applying continuous quality improvement
principles. IQ team is the main entity that initiates and encourages IQM activities. IQ requirements are
part of the IQM activities where IQ standards and definitions are developed during the ILC planning
stage.
3.1.3 Technology
System Quality affects the production of IQ. Database design, ease of use, availability, usefulness and
data security and are among the important criteria for System Quality (Ammenwerth, Breu and Paech,
2010). Database design refers to the data inside the database that is efficiently organized for easy
retrieval and reduces anomalies. Ease of use includes the convenient of using HIS such as the interface
usability. Availability refers to the run time of the HIS for a desirable or expected length of time. Service
Quality is the overall support received from the IT team within the healthcare organization and from the
HIS vendor. Criteria for Service Quality are responsiveness, follow-up, assurance and empathy (Yusof et
al, 2008)
3.2 Evaluation phase
3.2.1 Initiation
Evaluation initiation is the process of initiating a new evaluation project (PMI, 2008:44). During the
initiation phase, the stakeholders with the most knowledge of the clinical process, medical information
being collected, the HIS in use and those responsible for maintaining the quality of information, are
identified. The stakeholders include the quality team, medical officers, physicians, nurses and HIS users.
The stakeholders must be those who interact and influence the overall outcome of the evaluation project.
These people will become the input for this evaluation phase and throughout the evaluation project. An
analysis of the stakeholders, to understand the degree of influential and impact to the evaluation, will be
done using Social Network Analysis (SNA). During this phase, the evaluation goal and the project scope
are explained. The evaluator informs the stakeholders of the goal, the reasons for conducting the
evaluation and the significance of the evaluation that triggered the evaluation. All parties are expected to
agree to the evaluation before the scope is further defined. A decision is made; whether to continue,
delay or discontinue the evaluation. The evaluation scope defines the evaluation boundaries, which
include the parts of the process and system that are to be studied. The time and resources needed to
conduct the evaluation are also negotiated during this initiation phase. The deliverables for this phase are
the Evaluation Charter and Stakeholder Analysis. The Evaluation Charter formally authorizes the
evaluation project and documents initial requirements that satisfy the stakeholder’s needs and
expectations. Table 4 explains the parameters for evaluation initiation phase.
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Table 4: Parameters for evaluation initiation phase
3.2.2 Planning
Siti Asma Mohammed and Maryati Mohd Yusof
Key Activity Identify stakeholders
Sub-activities 1. Identify stakeholders
2. Brief evaluation goal
3. Discuss and agree on evaluation scope
ILC -
Input Stakeholders
Evaluation Criteria -
Output Evaluation charter, Stakeholder analysis
Method Interviews, SNA
Evaluation planning is the process of designing the evaluation (PMI, 2008:46). During this phase, the
evaluator attempts to learn about the current system, the clinical process, the environment supporting the
clinical process and the IQ requirements. The evaluator will try to understand the problem domain in
which the IQ problems exist and assesses the status of quality management effort concerning the
planning and strategy for having quality information in HIS. The quality management team is expected to
describe and guide the evaluator on the initiatives about IQ. The aim of the appraisal is to understand the
IQM effort at the planning stage of the ILC. Further, the evaluator will identify HIS user roles involved in
the different stages of ILC and their degree of dependencies using SNA. The key deliverables for this
phase will be Evaluation Plan, Workflow Analysis and SNA. The Evaluation Plan defines how to execute
the evaluation. Table 5 describes the parameters for evaluation planning phase.
Table 5: Parameters for evaluation planning phase
Key Activity Quality management environment analysis
Sub-activities 1. Review of strategic and operative environment
2. Understand and assess the status of quality management effort
ILC Plan
Input Evaluation Charter, stakeholders
Evaluation Criteria
Human Organization Technology
System Use
Training
User role
Information Behavior
Education and training
Structure
Management leadership
Physician involvement
IQ governance
IQ culture
IQ team
IQ requirements
Output Evaluation plan, Workflow Analysis, SNA, IQ standards
Method Interviews , Document Analysis, Observations
System Quality
Database design
Ease of use
Availability
Usefulness
Data security
3.2.3 Execution
Evaluation execution is the process of performing the evaluation at the operational level where medical
information is collected, stored, maintained and applied (PMI, 2008:55). The aim of this assessment is to
get an overview of information production during the delivery of care. The criteria for this phase will be
used to guide the evaluation. During the assessment, any possible issues are monitored and captured.
The problems underlying these issues are analyzed. Table 6, Table 7 and Table 8 describe the
parameters for execution phase according to three different stages of ILC, which are acquisition,
maintenance and apply.
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Siti Asma Mohammed and Maryati Mohd Yusof
Table 6: Parameters for evaluation execution phase (ILC - acquisition)
Key Activity Information production process and business impact assessment
Sub-activities 1. Records quality activities
2. Monitor and capture various possible issues
3. Analyze problems
4. Identify, update and refine variances from the evaluation project
ILC Acquisition
Input Evaluation plan, Workflow Analysis, SNA, Quality team, HIS users
Evaluation Criteria
Human Organization Technology
System Use
Acceptance
System motivation
Knowledge/skills
Information Behavior
Quality awareness
Patient centered
Structure
Physician involvement
IQ culture
Output Evaluation results, cause-and-effect analysis
System Quality
Database design
Ease of use
Availability
Usefulness
Data security
Service Quality
Responsiveness
Follow up
Assurance
Empathy
Method Interviews, Observations, Trend analysis, Expert and user judgments
Table 7: Parameters for evaluation execution phase (ILC - maintenance)
Key Activity System maintenance assessment
Sub-activities 1. Investigate maintenance efforts
2. Monitor and capture various possible issues
3. Analyze problems
4. Identify, update and refine variances from the evaluation project
ILC Maintenance
Input Evaluation plan, Workflow Analysis, Quality team, HIS users
Evaluation Criteria
Human Technology
Information Behavior
Quality awareness
Motivation
Patient centered
Output Evaluation results, cause-and-effect analysis
System Quality
Database design
Ease of use
Availability
Usefulness
Data security
Service Quality
Responsiveness
Follow-up
Assurance
Empathy team
Vendor
Method Interviews, Observations, Trend analysis, Expert and user judgments
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Siti Asma Mohammed and Maryati Mohd Yusof
Table 8: Parameters for evaluation execution phase (ILC - apply)
Key Activity IQ and business impact assessment
Sub-activities 1. Assess and map the IQ usefulness based on users’ predefined IQ standards at planning
stage.
2. Assess the information satisfaction
3. Identify, update and refine variances from the evaluation project
ILC Apply
Input Evaluation project plan, Workflow Analysis, Quality team, HIS users
Evaluation
Human
Criteria Information Behavior
Information satisfaction
Output Evaluation results, cause-and-effect analysis
Method Interviews, Observations, Trend analysis, Expert and user judgments
3.2.4 Monitor and control
Monitoring and controlling the evaluation occurs at every evaluation phase especially during the biggest
part of evaluation which is the execution phase (PMI, 2008:59). Monitoring is to track the evaluation
progress and to identify any variances or issues during evaluation. If necessary, the evaluator may
control the issues by adjusting the scope, plan or resources. A progress report is necessary to gain an
insight into the evaluation progress and to identify areas that need attention.
3.2.5 Closure and actions
The closure phase consists of activities to finalize and complete the evaluation project (PMI, 2008:64).
During this phase, the evaluator communicates the evaluation findings and recommendations to the
stakeholders. Experiences and lessons learned during evaluation are shared with the stakeholders.
Based on the findings and lessons learned, this phase should be a continuous process of improvement.
Future actions must be considered and implemented. An evaluation plan must be included to assess
these future actions in order to continuously improve IQM practices in healthcare organization.
4. Conclusions
This paper has highlighted the issues of poor IQ in HIS, reviewed the existing works on IQM in healthcare
organizations and proposed an evaluation method for IQM evaluation. From the literature, we found that
poor IQ in HIS is influenced by three factors; human, organizational and technological factors. Review of
current IQM practices in healthcare organization suggests that a comprehensive criteria for having quality
information in HIS is needed. In addition, there is a need for a systematic and effective evaluation
method. Thus, an evaluation method for IQM of HIS that is based on project management discipline is
proposed. The evaluation method is designed based on PMBOK, to complements the method for
conducting IS evaluation. In this paper, we have justified the need for project management knowledge in
IS evaluation. The evaluation method also includes the evaluation criteria based on human,
organizational and technological factors, which are assigned to each ILC according to its relevance. The
evaluation method is meant to evaluate the IQM practices for HIS at the operational level.
We believe this research contributes to IS discipline especially related to IQ and HIS evaluation. First, this
research extends the knowledge that IQ is also influenced by the user’s behavior towards the system in
use. Second, this research takes a holistic approach to examine the production of IQ in healthcare
organization, which goes beyond usual studies that evaluate IQ to validate the HIS efficiency in producing
quality information without taking into consideration the factors that affect quality. This research
addressed the need for a better understanding of the HIS evaluation process by adapting project
management discipline. Lastly, this research proposes a systematic evaluation method for HIS
information quality management to support the users in improving continuously the quality of information
in the HIS. For future work, opinions from experts are required to verify the criteria for having quality
information and the evaluation method. Afterward, the evaluation method will be validated in healthcare
organization for further refinement. This research will use qualitative study to gain an in-depth knowledge
about HIS IQM in healthcare organization, with an intention to develop directions or predictions about the
practice of HIS users in producing quality information.
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538

Developing a Change Management Model for Iranian
Academic Libraries: A Delphi Study
Maryam Nakhoda 1 and Sirous Alidousti 2
1
University of Tehran, Tehran, Iran
2
Iranian Research Institute for Information Science and Technology (IranDoc),
Tehran, Iran
mnakhoda@ut.ac.ir
alidousti@irandoc.ac.ir
Abstract: Purpose- This paper aims to develop a change management model for Iranian academic libraries. Change
is inevitable in organizations where it is now experienced as a daily phenomenon. Academic libraries perform in the
rapidly growing environment of education and research and they need to be active in facing change in order to
realize their mission. To facilitate the planning and implementation of change, several models have been designed in
the past, but these are either too general or have been developed in specific contexts and cannot easily be adopted
in other contexts. In order to overcome the challenges of change and to improve change management, Iranian
academic libraries need their own change model. Design/methodology/approach-The model was designed based on
a qualitative approach and a Delphi study. A panel of twenty-two experts in Management and Library Science and
Information Science contributed to the design and validated the model in three rounds of Delphi. The input of the
Delphi process was the “Information Services Framework for Managing Change” by Penfold and 54 predefined
actions for change extracted from change models related to libraries. The experts were asked to allocate each action
to one (or more) of the stages of the basic model. The panel members could also add their own preferred actions to
the list. The consensus was measured by percentage agreement (60% or greater) for each item. Findings- Thirteen
actions were added by the experts to the initial list. From the resulting 67 actions, only one of them was rejected by
the panel, leaving 66 actions, which were consolidated to 58. These actions were then divided into five stages:
reviewing the current status, analysing and defining library users, planning, implementing the change, and
maintaining the change. After defining the problem, defining change management and describing the respective
model, the methodology of the study and the findings were discussed and finally suggestions for future work were
made.
Keywords: change; change management; change models; academic libraries; Iran
1. Introduction
Modern organizations encounter more extensive changes. Dealing with these changes effectively
requires planning. Change management and its models discuss how to guide an organization during the
change process. Due to their pivotal role in education, libraries and information centres, especially
academic libraries, need strategies for efficient management of change. This paper presents the research
findings to design a change management model for academic libraries, especially in Iran.
2. Statement of the problem
Studies have shown that more than 70% of all efforts for organizational change have been unsuccessful
(By 2005 and Goodrich 2008) mostly because of unfamiliarity with change management (Cicmil 1999 and
Smith 2006). In addition, libraries encounter changes caused by internal and external stimulants (Mark
1997and Pugh 2007). Hirshon (1999) referred to the importance of change management for the
academic libraries worldwide.
Iran is a developing country with an increasing academic growth. Advances in information technologies
and the rise in the number of universities, students, and researchers (Iran’s statistical yearbook 2008)
pave the way of academic improvements in Iran. Such factors create challenges for Iranian academic
libraries which have to be dealt with in order to fulfil their roles. Therefore the need for change in the
academic libraries’ services, spaces, and materials’ formats would appear. According to the importance
of context in developing the managerial processes, the change model of the Iranian academic libraries
must be devised according to their special status and the environment in which they perform their
activities.
The objective of this study is presenting a change model in order to improve the implementation of
changes in Iranian academic libraries as well as increasing the efficiency by reducing the costs and
redundancy.
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Maryam Nakhoda and Sirous Alidousti
This study contributes to providing a perfect change model for academic libraries, especially academic
libraries of Iran. Also it is of value to academic libraries’ directors to aid them in managing changes in
their libraries.
3. Change management and change models
Change can be defined as kind of state conversion with its tendency being from a relatively undesirable
state towards a more desirable one. Change management and change models are branches of
management studies. Paton, Beranek, and Smith (2008) mentioned the functions of a change
management plan. In change management at least three fields are studied: the current state of the
organization, the state the organization should reach in the future, and finally how to guide this
conversion from the current state to the desired state.
Several studies have been done on change management in academic libraries (Clarke and Morris 1998;
Konings and Dekker 2005; and Ferguson 2007). However, there is little evidence of efforts to apply
existing change models in academic libraries (Sidorko 2008). The first change models followed a threestage
process, including preparation of the organization for change, change implementation and
consolidation of new procedures in the organizational culture. For instance, Lewin’s change model (1974)
consisted of three stages, namely “unfreezing”, “moving”, and “refreezing” (Gilley, Godek, and Gilley
2009). Herein, the term “model” denotes a systematic description of the stages and activities necessary
to carry out a change. The literature review reveals common characteristics among a relatively large
number of change models. Burke (2002) refers to two common functions of change models, namely,
“conversion of organization’s diverse features to simple and manageable parts” and “helping to focus on
more significant parts” in the change process.
4. Research methodology
In the present study, a qualitative approach and the Delphi method in three rounds were applied. The
Delphi method was firstly employed in 1950s in defence sciences research by the RAND Company and
has been used in other fields as well (Green 2000; Ludwig and Starr 2005). Reaching a judgment based
on consensus could be considered as the outcome of a Delphi study (Linstone and Turoff 1975). The
three major characteristics of the Delphi method are “anonymity” of members to each other, “feedback”
and “iteration” (Ambrosiadou and Goulis 1999). The researcher collects the results of the first round of
the study and sends them back again to the panel of experts. After providing the panel of experts with the
results of the first round, each of them expresses his/her opinion once more. This process may continue
for several rounds until consensus is finally reached (Bradley and Stewart 2002).
Among the applications of the Delphi method, which are close to the aim of the present study, design and
validation of models in other fields can be mentioned (Sharma et al. 2008; Minkman et al. 2009; and
Minkman, Ahaus and Huijsman 2009).
4.1 Selection of Delphi panel members
In Delphi studies, the “panel of informed individuals” or “experts” possess knowledge of the subject under
study. In the determination of these experts, purposive sampling is often used (Hasson, Keeney, and
McKenna 2000), in which participants are selected to solve a specific problem using their knowledge.
Concerning the size of the sample, Okoli and Pawlowski (2004) considered ten to twenty qualified
experts as a valid sample.
In the current research, members of the Delphi panel were selected by purposive sampling. A list of
twenty-nine individuals appropriate for participating in this study was initially prepared. Twenty-two of
them expressed their willingness to participate in the first round. The characteristics of the participants
were as follows:
Current director of a central academic library: eight individuals, considering that in Iran most of the
academic (university) libraries are considered “central” academic libraries (Haghighi 2006);
Ex-director of a central academic library: six individuals;
Current assistant of a central academic library: four individuals;
Faculty member of Librarianship and Information Science familiar with the management of academic
libraries or with a background as a manager/consultant/executive responsible for projects for change
in different organizations (such as libraries): one individual;
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Maryam Nakhoda and Sirous Alidousti
Faculty member of management familiar with the management of academic libraries or with a
background as a manager/consultant/executive responsible for projects for change in different
organizations (such as libraries): three individuals.
Among the current directors of central academic libraries in the panel, seven of them have a PhD degree
in Librarianship and Information Science. One of them has a PhD degree in Mechanical Engineering. The
average duration of their experience as the director of an academic library is 6.5 years. Of the members
with a background as the director of a central academic library, four of them have PhD degrees in
Librarianship and Information Science and two of them have a PhD degree in Management in the Wood
and Paper Sciences industry. The average duration of their experience as the director of a central
academic library is 5.6 years. Of the assistants of central academic libraries who were members of the
panel, three have M.A. degrees in Librarianship and Information Science and one has a M.A. degree in
Management. The average duration of their experience as an assistant in a central academic library is
7.5 years. The faculty member of Librarianship and Information Science, who was member of the panel,
has twenty-five years of experience, and the faculty members of Management in the panel have 19.3
years of experience in this position.
4.2 Preparation of Delphi questionnaire
The design of the Delphi questionnaire was based upon a model that was earlier selected to include two
stages. Of the twenty-nine change models found in the literature for the first stage, three suitable models
for libraries were selected. In the second stage, using consensus method and analysis techniques related
to Multiple Attribute Decision Making (MADM), Penfold’s model (1999), called “information services
framework for managing change” was chosen as the basic model for the Delphi process (Nakhoda,
Fadaie, and Alidousti 2010).
To prepare the Delphi questionnaire, the essential activities for change management in academic
libraries were determined by reviewing appropriate change models to libraries. So, Kotter’s change model
(Kotter 1998), Penfold’s change model (Penfold 1999), and Curzon’s change model known as the “cycle
of change model” (Curzon 2005) were studied to extract the necessary activities to bring about change.
Besides these three models, Lewin’s change model called the “action research model” was also analysed
for the extraction of activities. In comparison with current approaches towards change, this model is
fundamental and among the oldest of the change models (Cummings and Worley 2001). Each of the four
change models mentioned is composed of a series of stages. In turn, each stage of these models
consists of several actions. The resulting collection and summarization of 54 actions from these models
were included in the first round of the Delphi questionnaire as suggested actions for change.
Hence, the main two elements of the first round of the Delphi questionnaire were the five stages of the
basic model (Penfold’s model) and proposed actions for implementing change in academic libraries. The
development and confirmation of the model, based upon conditions in Iranian academic libraries, were
accomplished by members of Delphi panel. The consensus level in this study had a numerical value of
60% of all respondents (Williams and Webb 1994). In other words, in the case that at least 60% of
respondents in second and third rounds were to select a specific stage for a suggested action, this stage
would be considered as one of consensus.
5. Findings and conclusion
In the first round questionnaire, a matrix was provided, composed of five stages of the basic model (in the
first row) and 54 suggested actions for implementing change in academic libraries (in the rightmost
column). To determine its necessity to the change model, each action was first specified by two options,
i.e., yes or no. In the case of a positive response, the respondent was required to select the stage of the
basic model that they considered the most suitable for that action. At the end of questionnaire, the
respondent could write down those suggested actions for implementing change in academic libraries,
which he/she thought, should be added to the list. Among the twenty-two questionnaires sent in the first
round, three of them were not completed, so, nineteen questionnaires (equal to 86.3%) were submitted.
Some Delphi panel members selected more than one stage in the allocation of actions to the Penfold'
model. Furthermore, some members considered some actions not suitable for any of the stages. Table 1
provides the actions added by panel members in the first round.
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Maryam Nakhoda and Sirous Alidousti
Table 1: Actions added by panel members in the first round
No. Description of actions
1 Preparing an evaluation report of changes
2 Standardizing the services
3 Standardizing the necessary space in the library
4 Reinforcing the expert human resource in the library
5 Convincing top managers of the necessity of change
6 Convincing top managers of the library regarding change and its probable costs
7 Convincing top managers of the library regarding advantages of change
8 Institutionalizing the need for change in the library
9 Forming the culture required for each change
10 Separating plans related to software and hardware changes in the library
Handing out forms to users concerning whether or not to implement a change, accompanied by expressing
11
the positive and negative aspects of changes
Forming a planning group whose members are selected from authorities of the parent organization, library
12
managers, users and staff for comprehensive decision-making
13 Approving the main changes in the university to assure that they will be followed by future managers
In the second round, the responses of each member in first round as well as the frequency of responses
of all Delphi panel members were provided to panel members and they were again asked to express their
opinions. It should be noted that, in this round, the number of suggested actions for implementation of
change was again 54, and an opportunity was again provided to panel members for further judgment,
considering the opinions of the group. The respondents were then asked to review the actions added by
panel members to the list of 54 actions in the first round, and to allocate those actions that they find
necessary to the most suitable stage(s) of Penfold’s model. All respondents in this round had also
participated in the previous round. After collecting the data related to the second round of the Delphi
method and calculating the frequencies of responses, a consensus criterion was applied to the data. The
consensus level was considered as at least 60% of respondents (10 or more members).Therefore,
thirteen actions remained below consensus level.
In third round questionnaire, the responses of each expert in second round and the respective stages
with the highest frequencies were provided. In this stage, frequencies of less than six were not
mentioned. The respondents were asked to first identify the necessity of each of the thirteen actions, and
then allocate each of them to the most appropriate stage(s).Out of the seventeen questionnaires that
were sent in this stage, sixteen of them were filled out and returned. All respondents in this round had
also participated in the previous round. After collecting the data related to the third round of the Delphi
method, the consensus criterion was once again applied to data. The consensus level was set to at least
60% of respondents in this round (nine or more members). Among the thirteen actions that were judged
again, five of them were added to the list of actions by the panel members from the first round. Only the
action, “terminating the contract with an organizational development consultant”, was not identified as
being necessary in a change model for Iranian academic libraries, according to the votes of the majority
of respondents (ten members). In total, 66 actions were allocated to the different stages of the basic
model of the study (Penfold’s change model).
During revision of the Delphi results, it was observed that some actions were covered by some others
and had similar content. Hence, combining these actions into a single action would simplify the model. It
was revealed that eight actions out of the 66 actions had such characteristics. These actions were added
by the panel members in the first round and passed the consensus criterion in the second round.
Ultimately, 58 actions were yielded and each of them belonged to a stage of the basic model. Table 2
provides the final Delphi model, i.e., the stages and actions in the change management model for Iranian
academic libraries. The number of actions does not denote the order of implementing the actions.
Table 2: Change model for Iranian academic libraries
Actions in stage 1: Reviewing the current state
1. Recognising the problem
2. Understanding the nature of change (positive/negative or permanent/temporary)
3. Carrying out SWOT (analysis of strengths, weaknesses, opportunities and threatens) for the library
4. Carrying out PEST (political, environmental, social and technological analysis) for the library
5. Analysing the library’s current plans and strategies
6. Identifying the key factors for success (activities, scope and key conditions) to reach the library’s goals
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Maryam Nakhoda and Sirous Alidousti
Actions in stage 2: Analysing and identifying the users
1. Evaluating users’ needs and making practical suggestions
2. Identifying library users
3. Handing out forms to users concerning whether or not to implement a change, accompanied by an opportunity
to express positive and negative aspects of changes
Actions in stage 3: Planning
1. Consulting with a behavioural sciences expert regarding the management of the staff’s reactions towards
change
2. Contracting with an organizational development consultant from outside of the library
3. Studying how to obtain and keep the existing information in the library and its costs
4. Studying the vision and mission of the library
5. Studying the general and specific objectives
6. Determining the library services, users of services and requirements for providing services
7. Acquiring information concerning the problem and initial recognition of possible solutions
8. Comparing the library services and processes with similar libraries and the libraries in other sections
9. Providing the acquired information to users or key groups which will be influenced by the change
10. Discussing the pressures and problems with the staff in order to prepare the library for change
11. Holding meetings and discussion with the library staff concerning change
12. Making the decision about whether or not planning is needed for a specific change (evaluating the
advantages, disadvantages and probable impacts of change)
13. Making an agreement on the problem-solving method(s) among the group responsible for change
14. Forming a powerful executive group for planning the change
15. Describing the vision of the change, including its goal and direction
16. Making strategies for reaching the change vision
17. Discussing the change vision with the library staff
18. Searching and finding organizational development resources and support of other sections for implementing
the change
19. Assigning some budget for unpredictable situations in the change process
20. Searching for the source of the library staff’s resistance to change
21. Making the plan for the implementation of change
22. Participating in the strategic planning of the parent organization and developing it
23. Analysing costs and proving the value of the library to the parent organization
24. Separating the plans related to software and hardware changes in library
25. Standardizing the services provided in an academic library
26. Standardizing the necessary space in the academic library
Actions in stage 4: Implementing the change
1. Training in new behaviours which are in accordance with change practically, by the group guiding the change
2. Alleviating barriers to change (personal, structural or those related to systems or skills) in the library
3. Piloting the change in a limited part of library
4. Converting the state of the library from its current state into the desired state
5. Encouraging team work and communication among the library staff
6. Keeping open the communication channels between the director of the library and staff during change
7. Applying the required modifications in the process of execution of the change
8. Analysing of the order of the actions carried out for change
9. Reinforcing the expert human resources in the library
Actions in stage 5: Maintaining change achievements
1. Highlighting advances in the library’s performance (as a result of change)and informing the staff about them
2. Recognizing and appreciating the staff who had a role in the improvements
3. Supervising and evaluating the activities related to change periodically in order to measure their level of
progress
4. Determining the time for evaluating the changes made
5. Determining persons for evaluating the changes made
6. Determining the method(s) for evaluating the changes made
7. Acquiring new information after performing actions, in order to evaluate and determine the impacts of the
actions carried out
8. Disseminating the results of change evaluation among library staff
9. Growing the staff who can assist the realization of the change vision
10. Reinforcing new behaviours caused by change
11. Explaining to the staff the relationship between the new behaviours caused by change and library’s success
12. Making sure that the next top manager will follow the performed change
13. Measuring the satisfaction of the library users
14. Disseminating information about the library’s new services
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6. Discussion
Maryam Nakhoda and Sirous Alidousti
Approved actions in the model have been confirmed in previous studies too. Recognising the problem
has been considered as an action to recognize issues creating the need for change (Harigopal 2001;
Cummings and Worley 2001). Other actions in stage one will clarify different aspects of change (Penfold
1999). The second stage contains actions to know library users, their needs, and points of view much
better. Adcroft, Willis, and Hurst (2008) pointed to the importance of this knowledge. Considering stage
three, it has been suggested to use the help of consultants to manage psychological and organizational
dimensions in the change process (Lippitt 1972; Harigopal 2001; and Cummings and Worley 2001).
According to Burnes (1992), change could be carried out after the diagnosis of the problem by gathering
relative information. There are actions in planning stage to discuss the change with staff (Leavitt 1965;
Porras and Silvers 1991; and Burke and Litwin 1992). Forming the planning group for change and
assigning budget have been confirmed respectively by Kotter (1998) and Vollmann (1996), Austin and
Bartunek (2006), and Nilakant and Ramnarayan (2006). Software and hardware changes in the library
could be separated in planning stage due to their specifications. In moving from the current stage to the
desired one in stage four (Burnes 1992), developing the library staff, providing them with necessary skills,
and alleviating barriers to change are significant actions (Kotter 1998; Curzon 2005; and Sidorko 2008).
Encouraging team work and communications were confirmed by Kotter (1998), Penfold (1999), and
Curzon (2005) as necessary actions for change. Cummings and Worley (2001) pointed to the evaluation
of change process during the implementation. In stage five, highlighting the successful results of change
and appreciating the helpful staff would be effective in maintaining the change (Kotter 1998). Evaluating
the activities related to change, disseminating the results and information about new services, and
measuring the users’ satisfaction could help the library director in making decision to continue or give up
the change (Penfold 1999). Also in stage five new behaviours caused by change would be reinforced and
the staff would know the relation between their role in change and the library success. The commitment
of next top manager to follow change could help the effective changes to be more permanent (Kotter
1998).
7. Limitations and suggestions
The first limitation of this research is originated form the nature of Delphi method, as the results of Delphi
study could be altered by using a different panel of experts. In addition; the final model of this study
needs to be validated in action to gain the empirical validity too.
In future studies, the design of instruments for the model’s actions can be studied. Regarding the actions
in the proposed change model, another study can be devoted to the order of these actions in the model.
The time needed for performing each action is another issue for future research
The directors of Iranian academic libraries can apply the suggested model to improve the process of
change management in these libraries. The knowledge and skills for managing change could be included
in the lessons of Library and Information science. This would help the students to apply necessary
techniques in their working environments.
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545

Adding Action to the Information Audit
Huan Vo-Tran
RMIT University, Melbourne, Australia
huan.vo-tran@rmit.edu.au
Abstract: The Information Audit (IA) has long been seen as an important tool within the Information Management
field, with its origins stemming from financial audits. It is used extensively in libraries as an improvement tool and,
although many have tried to define it, such as Guy St. Clair (1997), Orna (1999) and Henczel (2001a), there is still no
general consensus on a definition, or the steps taken to achieve it. Whatever form it may take, it is agreed that to
undertake such a task requires a structured approach. The following study will propose a hybrid approach in which
Henczel’s seven-stage Information Audit model will be coupled with the Action Research (AR) methodology in order
to assist a mid-sized architectural practice to manage their information throughout the architectural design process,
and, in particular, as they attempt to design a new academic building for a prominent Australian university.
Keywords: information audit, information management, architectural design process, action research
1. Introduction
As organisations begin to create and accumulate information, they tend to lose sight of how to mange it,
and what information they actually possess. We are currently seeing this information being created at an
astonishing rate, and manifesting itself in many forms. Organisations such as architectural firms are not
only dealing with traditional paper-based documents, but are now also dealing with an abundance of
unstructured data such as emails, pictures from building sites, technical drawings, formal documents
from governing organisations, handwritten notes taken during interviews with clients and even transcripts
collected from focus group activities.
In order for an organisation to achieve high performance it is stated that, “effective information
management is the key” (Roglaski 2006), but the sheer amount of unstructured data being created by
these organisations present it with many challenges. Rogalski continues by stating that, “finding the right
information is difficult, information is not well leveraged among partners and it is not coming together in
ways that will yield useful new insights” (Roglaski 2006).
However, before an organisation can effectively and efficiently manage the information that they create,
possess and disseminate, they must first complete an audit of their current information practices. An
Information Audit (IA) can be seen as a tool that can be used to assist them with this process. Botha and
Boon (2003) suggest that an Information Audit can be defined as:
The systematic examination of the information resources, information use, information flows
and the management of these in an organisation. It involves the identification of users’
information needs and how effectively (or not) these are being met.
The study will attempt to audit the information created by a mid-sized architectural practice as they cycle
through the architectural design process in order to design a new academic building for a prominent
Australian university. This will be done through the use of a hybrid methodological approach in which Sue
Henczel’s seven-stage Information Audit model will be combined with Kemmis and McTaggart’s Action
Research (AR) model.
2. Literature review
2.1 Information Audit (IA)
Over the last three decades there have been many attempts to define what an IA is, and what it should
encompass. Yet to date, there is still no universal consensus. Early IA definitions (Reynolds 1980; Burk &
Horton 1988) tended to focus on more formal information sources with a strong emphasis on document
management, while recent approaches (Buchanan & Gibb 1998; Henczel 2001; Orna 1999) have moved
away from this narrow approach to recognise and incorporate the importance of organisational
approaches and the broad range of information resources.
In order to demonstrate the differences in approaches and definitions of Information Audits a brief
examination of some of the definitions is provided :
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Huan Vo-Tran
LaRosa (1991)
… A systematic method of exploring and analysing where a library’s various publics are
going strategically, and determining the challenges and obstacles facing those publics. The
audit, which raises questions about where and when these publics find and use information,
gives the library a better understanding of the present and future needs of its constituents
which in turn helps the library determine its most appropriate strategic direction.
St. Clair (1997)
A process that examines how well the organisation’s information needs and deliverables
connects with the organisational missions, needs and goals and objectives.
Buchanan and Gibb (1998)
Discovering, monitoring and evaluating an organisation’s information resources in order to
implement, maintain, or improve the organisation’s management of information.
Orna (1999)
A systematic evaluation of information use, resources and flows, with verification by
reference to both people and existing documents, in order to establish the extent to which
they are contributing to an organisation’s objectives.
Henczel (2001b)
Is a process that will effectively determine the current information environment by identifying
what information is required to meet the needs of the organisation. It establishes what
information is currently supplied, and allows matching of the two to identify gaps,
inconsistencies and duplications. The process will also facilitate the mapping of information
flows throughout the organisation and between the organisation and its external environment
to enable the identification of bottlenecks and inefficiencies.
As we can see from the definitions listed above, a majority focus on the organisations and the
management of their information. It is only LaRosa who makes reference to the end users of this
information, and only a few make reference to the use of Information Technology (IT) in their primary
definition of IA, which can now be seen as an essential part of every organisation and the way they
manage their information.
2.2 Approaches to information audits
Buchanan and Gibb (2007) describe the IA as being, “central to the effective organisational management
of information, however there is evidence from the field that IA is neither fully accepted nor commonly
practiced” (Buchanan & Gibb 2007). However, when an IA is executed by an information practitioner it
can be seen as a very costly exercise for an organisation due to the time and resources that must be
allocated for such an undertaking.
Currently there is no standard or agreed methodological approach within the field, and it is generally left
to the practitioner to sort through a myriad of academic and proprietary methods – some more
comprehensive than others. Once an appropriate methodology has been selected, the practitioner is
required to identify “the numerous tools and technique(s) required to support the methodological process"
(Buchanan & Gibb 2007).
Many may also argue that a standard for IA is not required, as each organisation needs to be treated as
a separate entity and requires a different approach. Buchanan and Gibb (2007) also suggest that there is
a, “lack of an agreed methodological approach” which in turn makes the selection of the methodology
somewhat challenging. To add to the complexity of methodology selection, there has also been limited
empirical evidence regarding the usability of the existing approaches.
In support of Buchanan and Gibb's (2007) argument, Botha and Boon (2003) concluded that, “more
research is required on the topic of information and more of the methodologies need to be tested in
practice” (Botha & Boon 2003), which in turn will allow both practitioners and academics to develop more
reliable IA methodologies that can be confidently used and re-used.
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2.3 Information audit methodologies
Huan Vo-Tran
As stated in section 2.2 there has been a myriad of methodologies created and adopted. The table below
provides an outline of some of the major methodologies, in chronological order.
Table 1: Outline of some major information audit methodologies in chronological order
Year Author Brief description
1987 Worlock Worlock discusses a framework of headings for the auditing process after testing it
out in various environments and suggests that the judgement of these headings
rests with the person undertaking the audit. In total, there are five headings, each of
which should not be seen as being mutually exclusive. The five headings are:
Utility analysis.
Quality values.
Productivity factors.
Implementation criteria.
Strategic impact statements.
1988 Burk and Horton Burk and Horton were the first to develop InfoMap; it was seen as the first IA
methodology developed for widespread use in the industry. Its focus was to evaluate
the information resources using a four-stage process.
Survey staff using questionnaires or surveys.
Measure the information resources against cost/value.
Analyse resources.
Synthesise the findings and map the strengths and weaknesses of the information
1993 Booth and
Haines
resources against the objectives of the organisation.
Booth and Haines made use of the IA for organisational change and for the
development of a new information policy for a regional health authority in the UK.
Their strategy involved five components, which were:
Identify and review the corporate objective.
Decide what information is needed to meet the corporate requirements.
Conduct an IA through the use of questionnaires and interviews to determine if the
current required information exists within the organisation and if so, how it is
currently being utilised.
Address the identified information gaps and problems where possible.
Develop a comprehensive information management policy for the organisation.
Year Author Brief description
1993 Ellis, Barker,
Potter and
Pridegeon
1994 Webb
(cited in Botha
and Boon 2003)
Ellis, Barker, Potter and Pridegeon acknowledge that there are many different
approaches to information auditing; however, they suggest that, to fulfil its function,
an IA must encompass the following:
Establish what the major goals of the organisation/operation are and what kind of
organizational constraints act upon the operational information systems.
Determine the needs of the users.
Inventory the resources available.
Build up a coherent picture of how the system functions from the information
gathered in the first three stages.
Webb describes the IA according to three distinct stages:
Initial audit (inventory).
Collecting the data.
Data analysis.
It can be seen as an operational advisory audit as it looks at how the IA can be used
to audit the current system and how effectively and efficiently the resources are
being used.
1997 St. Clair St. Clair states that the information audit can be grouped into five main areas which
are:
Getting the ball rolling
Conducting interviews
Organising and conducting interviews
Follow up
1997
1998
2007
2008
Buchanan and
Gibb
Typical pitfalls and mistakes.
Buchanan and Gibb studied a number of IA case studies and developed what they
described as a “universal model” for conducting IAs. Their approach was to create
an IA model that could be used in a number of different environments and for the
purposes of developing an effective information strategy for organisations. The
“universal model” proposed by Buchanan and Gibb consists of five phases, these
being:
Promote
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Identify
Analyse
Account
Synthesise.
2001 Henczel Henczel's work in 2001 leveraged off the strengths of Orna and Buchanan and Gibb
to produce a seven-stage auditing process. Henczel also suggests that the use of
the IA should focus more on the strategic direction of the organisation and that it is
the first step in the development of a knowledge audit or knowledge management
strategy. Henczel's seven stages are:
Planning
Data collection
Data analysis
Data evaluation
Communicating recommendations
Implementing recommendations
The information audit as a continuum.
Year Author Brief description
1990
1999
2004
Orna Orna makes a metaphorical reference to the financial audit in her description of the
IA as an, “authoritative examination of accounts with verification by reference to
witnesses and documents” (Orna, 1990). Orna discusses the scope of the IA in
terms of seven phases which are:
Plan.
Investigate the information available in the organisation.
Identify the resources that are available for making information accessible.
Determine information used to further the purposes of the organisation.
Identify those that are responsible for managing and processing the information,
respectively.
Identify and evaluate the information technology that is used to manage information
resources.
Calculate the cost and determine the value of organisational information resources.
Since then, Orna (1999) has developed an alternative auditing process comprising
ten steps:
Conduct a preliminary review to confirm operational/strategic direction
Gain support/resources from management
Gain commitment from the other stakeholders (staff)
Plan, including the project, team, tools and techniques
Identify the IR, information flow and produce a cost/value assessment
Interpret findings based upon current versus desired state
Produce a report to present findings
Implement recommendations
Monitor effects of change
Repeat the IA.
From the analysis of Table 1, we can clearly see that there are many different approaches to conducting
an IA, ranging from Webb’s (1994) three-step process all the way up to Orna's (1999) ten-step process. It
is also of interest to note that not all IAs focus on the same aspects and contain the same level of
structure and detail.
3. Methodology
As stated in the introduction section, the study will attempt to audit the information created, processed
and disseminated by a mid-sized architectural practice as they cycle through the architectural design
process in order to design a new academic building for a prominent Australian university. Although there
are many different methodologies that could have been selected as outlined in section 2.3, the
researcher has opted for a hybrid approach in which two methodologies will be combined. This particular
study will attempt to combine Henczel’s (2001) seven-stage IA model with Kemmis and McTaggart’s AR
spiral.
3.1 Justification
After careful consideration of the methodologies on offer, the researcher has decided to select Henczel’s
seven-stage IA model over the other competing methodologies as it:
Leverages off the strengths from previous work by Orna and Buchanan and Gibb to produce a
seven-stage auditing process.
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Focuses on a strategic direction for the organisation.
Is similar to the AR cycle – Henczel’s model advocates the IA as a continuum where there is an
establishment of a cyclical process.
Allows for the creation of a knowledge audit or knowledge management strategy.
Is a structured, descriptive and methodical process as opposed to that of Worlock (1987).
Has incorporated IT into its overall process.
Has considered management and operational aspects with the submission of a business case in the
planning stage before proceeding.
In addition to Henczel’s seven-stage IA model, the researcher has also incorporated Kemmis and
McTaggart’s AR spiral. This will be utilised in place of stage six – implementing recommendations. The
reason for this selection is that the researcher believes that, although Henczel’s stage six fits well into the
overall IA process, the use of the Kemmis and McTaggart’s AR spiral will serve as a better diagnostic
and implementation tool as it can be seen as a more strategic and structured approach for implementing
change. The use of an AR methodology should also, “assist in solving an organisational problem, or in
some instances takes a step forward in deepening an organisation’s understanding of themselves”
(Emerald, 2008).
3.2 Participants
The study will make use of a mid-sized architectural and urban design practice as a case study. It will
attempt to audit the information created by a mid-sized architectural practice as they cycle through the
architectural design process in order to design a new academic building for a prominent Australian
university. The practice was established in 1996 and is based in the Central Business District (CBD) of
Melbourne, Australia. It is currently being led by a team of five directors and also encompasses ninety
professionals, who include: architects, technical staff, designers and construction staff.
The practice has been involved with, and completed numerous large-scale commissions for both private
and government sectors, with some of their most recent projects including major commercial buildings,
university education and training facilities, and government and defence projects.
3.3 Henczel’s seven-stage IA model
Similar to Orna’s (1990) IA model, Henczel’s IA model also consists of seven main stages. As
demonstrated in Figure 1 each stage is clearlydefined and each stage needs to be complete before the
next one can commence. Listed below is a short description of what is involved in each stage.
Stage one: Planning
Involves planning and the submission of a business case for approval by the organisation before
proceeding on to the data collection.
Stage two: Data Collection
Involves the collection and development of an Information Resource (IR) database and its population
through survey techniques such as questionnaires, personal interviews or focus groups.
Stage three: Data Analysis
Once the data has been collected, it must be organised in a way that allows it to be analysed. It is up to
the person leading the IA to select the most appropriate method for the analysis of the data. Henczel
suggests that, as specialist skills are required to accomplish this, it might be worthwhile to contract
experts outside your organisation.
Stage four: Data Evaluation
At the data evaluation stage, the data begins to show the person conducting the audit a “snapshot” of the
organisation’s information environment. This will facilitate the interpretation and formulation of the
recommendations
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Figure 1: Henczel’s seven-stage information audit model
Stage five: Communicating Recommendations
Henczel suggests that there are many ways of doing this, depending on the size of the organisation and
the scope of the recommendations. However, the key people who need to be kept informed through this
process may include:
Anyone who has championed the audit
Any sponsors
People who directly participated
Those who will be affected by the recommended changes. (Henczel 2001).
The communication of these recommendations may be delivered in many forms and could include:
reports, website or intranet, verbal presentations, seminars and personal feedback to participants.
Stage six: Implementing Recommendations
This stage can be seen as the second-last stage in Henczel’s seven-stage IA model. It involves the
development of a plan for when and how the recommendations outlined in the previous stage will be
implemented. Henczel suggests that the organisation, together with the nature of the recommendations,
will influence how the implementation occurs.
Stage seven: The Information Audit as a Continuum
Henczel suggests that when you reach the end of the audit, it is really only the beginning and that
organisations need to be thinking about the IA as a continuous process to ensure that data gathered
initially can be re-assessed and updated.
3.4 Kemmis and McTaggart’s Action Research spiral
McKay and Marshall (2001) describe how Action Research (AR) in its simplest form involves both action
and participation within a particular field. Its focus is to problem-solve in order to improve the way
processes are performed and services are delivered.
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AR typically makes use of four main phases of continuous change, which are: Plan, Act, Observe and
Reflect
For the purpose of this study, Kemmis and McTaggart’s AR Spiral was selected and will be embedded
within the implementation recommendations stage (stage six) of Henczel’s seven-stage IA model. The
spiral consists of the four phases of AR and is to be carried out collaboratively with the organisation that
is being studied.
Figure 2 represents Kemmis and McTaggart’s AR Spiral (1988). It includes the four main phases of
continuous change (plan, act, observe and reflect). Provided below is a brief description of what happens
within each phase.
Plan:
Develop a plan of critically informed action to improve what is already happening within the organisation
that is being studied.
Act:
Based on the plan formulated, act upon the plan and implement it.
Observe:
Observe the effects of the critically informed action in the context in which it occurs.
Reflect:
Reflect on these effects as the basis for future planning, subsequent critically informed action and so on,
through a cycle of succession cycles. (Kemmis & McTaggart, 1988)
Figure 2: Kemmis and McTaggart’s (1998) action research spiral
3.5 Combination of the two methods
As stated in section 3.1, the study will take on a hybrid approach where Henczel’s seven-stage IA model
and Kemmis and McTaggart’s AR Spiral will be used in conjunction with one another. The study will cycle
through each one of the seven stages of Henczel’s IA model; however, there will be a modification made
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Huan Vo-Tran
to the sixth stage (implementing recommendations) of the audit instead of making use of Henczel’s sixth
stage, where the outputs should include:
An information policy
Post-implementation strategy
Revised business plan and information management process
An updated information resources database.
With the addition of Kemmis and McTaggart’s AR Spiral, the findings of the previous stages of Henczel’s
seven-stage IA model will inform the planning phase and, in the last component of reflection, will lead into
the final stage, which is the information audit as a continuum. Figure 3 demonstrates how this will be
accomplished.
To what extent is the current
process working and how
can it be streamlined?
Record the process taken
as new information comes
in. Also record the interview
responses from the
architects to see how they
manage and disseminate
this data.
Has this process been
streamlined, if so how? How
important is the collected
data for the next phase in
the architectural design
process?
Follow up on the
observations by interviewing
the architects to see if the
suggested changes have
been beneficial.
In the feasibility stage of the
architectural design
process, information is
collected from a wide range
of sources including focus
group interviews and
emails. This is then placed
in a folder called ‘briefing
folder’. From an information
management point of view,
how can this process be
improved? Is teaching
generic information
management skills to
architects going to improve
the process?
Shift the way architects
think about information
management by suggesting
‘best practice’ tools and
techniques then allowing
them to explore these.
Try questioning the
architects so that the can
critically reflect on their
information management
approaches and see if they
can come up with other
solutions.
Continue general aim but try
and emphasize ‘best
practices’ in information
management.
Record any changes in the
architects’ approach to
information management
after suggestions have been
made.
Figure 3: The incorporation of Kemmis and McTaggart’s action research spiral within stage six of
Henczel’s seven-stage information audit model. (Vo-Tran 2010)
In terms of the techniques that will be used within the combined methodologies, the researcher has
decided to select two commonly used techniques, these being observations and interviews. The use of
observations for this study will allow the researcher to understand, without interfering with the current
practices within the organisation during their the planning phases. Observations can be used again to
see if the changes that have been made during the implementation stages have been beneficial. In
addition to the observations, interviews will be conducted to explore the attitudes and responses to the
changes that have been made. This will also allow the researcher to gather qualitative information in the
form of narratives. It is anticipated that the interviews will take place at the organisation and take on a
planned but unstructured approach.
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4. Preliminary findings
Huan Vo-Tran
As the study is currently in progress, this section will outline the major findings of the first two stages to
date. The findings will be broken down and reported in terms of Henczel’s seven-stage IA model.
Stage one: planning
A formal letter was submitted to the directors of the architectural practice seeking their permission to
participate in the study. Written permission was granted by the practice and the researcher then sought
and received ethics clearance from their home university.
Adhering to Henczel’s seven-stage IA model, the following tasks and activities were considered and
implemented:
Table 2: Outline of the tasks and activities that were considered and implemented
Task Activity
Developing clear objectives An understanding of what the IA is trying to achieve for both the researcher and
architectural practice
Understanding the organisation and its core business
Identification of the key stakeholders
Defining and scoping the
resource allocation
Physical and information scope
Human, financial, technical and physical resource allocation
Insource, outsource options
Selection of a methodology Data collection, analysis and evaluation
The presentation of the findings and recommendations
Action plan for implementing the recommendations
Development of a
communication strategy
(Henczel 2001a)
Before the audit
During the audit
After the audit
From the tasks and activities listed in the table above, a business case was formulated and presented to
the directors of the architectural practice; this has subsequently been approved and signed off.
Stage two: data collection
Upon completion of the business case, data needed to be collected. This was undertaken using a
combination of techniques, such as onsite interviews and observations. From this, an Information
Resources (IR) database was established and greater understanding of the architectural practice was
achieved. Listed below are some of the findings that resulted from the interviews and observations.
Projects are won through the tendering process, in which the architectural practice presents their
ideas to prospective clients.
Staff at the architectural practice work around project-based teams. They can be working on multiple
projects at any given time depending on workload and expertise.
Each project has one of the architectural practice’s five directors in charge, and these directors may
be spread across no more than three projects.
All project teams are multidiscipline, and may include architects, draftsmen, consultants, engineers
and designers.
Projects may last anywhere between six months and four years, depending on the size and
complexity.
In addition to the practices and processes listed above, the data collection also identified some
challenges in information management the architectural practice is facing:
Storage of documents and images. Documents and images are currently being duplicated in both
physical and electronic formats. These may not be identical as it might take time to update the
documents to reflect either format. In addition to this, electronic copies of documents are stored
within folders according to the file type, e.g. all the PDF files in one location while all the word
documents are in another.
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Huan Vo-Tran
Recording decisions. The architects have stated that this is one of their biggest problems; any
changes that have been made to a building go straight onto the drawing and there is no record to
why this decision has been made. This causes problems later on when they have no idea why these
changes have been made.
Re-use of information. Although no two projects will be ever the same, there are some elements or
aspects that could be reused. Instead, the architects and draughtsmen spend lengthy amounts of
time trying to re-create almost identical drawings when they could be spending the time working on
other elements of the building.
Transfer of project details to new staff members. As the practices’ staff members move from one
project to another, it takes them time to read through the brief, and attempt to get up to speed as
soon as possible. This is done through reading both the physical and electronic documents, which
may not always contain the most recent changes. This in turn, means that they will have to spend
more time with another staff member going through the finer details.
5. Directions for future research
As the research is currently in progress, it is anticipated that over the next six months the study will move
from the data collection stage into the data analysis and evaluation stages. The data collected so far will
now inform what needs to be done in terms of implementing the recommendations and structuring the
action research component of the hybrid methodology. It is also anticipated that once the IA has been
completed, it will add to the body of knowledge about which Botha and Boon (2003) concluded in a
paper, “more research is required on the topic of information and more of the methodologies need to be
tested in practice” (Botha & Boon 2003).
References
Booth, A. and Haines, M. (1993) "Information audit: whose line is it anyway?" Health Libraries Review, Vol 10, pp
224–232.
Botha, H. and Boon, J. A. (2003) "The Information Audit: Principles and Guidelines", Libri, Vol 53, pp 23–38.
Buchanan, S. and F. Gibb (1998). "The Information Audit: An Integrated Strategic Approach." International Journal of
Information Management, Vol 18, No. 1, pp 29 - 47.
Buchanan, S. and F. Gibb (2007). "The Information Audit: Role and Scope." International Journal of Information
Management, Vol 27, No. 3, pp 159 - 172.
Buchanan, S. and F. Gibb (2008). "The information audit: Methodology selection." International Journal of
Information Management, Vol 28, No. 1, pp 3 - 11.
Burk, C. F. and F. W. Horton (1988). InfoMap: A complete guide to discovering corporate information resources.
Englewood Cliffs, NJ, Prentice-Hall.
Ellis, D., R. Barker, et al. (1993). "Information Audits, Communication Audits and Information Mapping: A Review and
Survey." International Journal of Information Management, Vol 13, No. 2, pp 134 - 151.
Emerald. (2008). "How to... carry out action research." [Online], Emerald,
http://www.emeraldinsight.com/research/guides/methods/action_research.htm.
Orna, E. (1990). Practical information policies: how to manage information flow in organizations. Aldershot, Gower
Publishing Limited.
Orna, E. (1999). Practical Information Policies. Hampshire, Aldershot.
Orna, E. (2004). Information strategy in practice. Aldershot, Gower Publishing Limited.
Dubois, C. P. R. (1995). "The information audit: its contribution to decision making." Library Management, Vol 16, No.
7, pp 20 - 24.
Henczel, S. (2001a). The Information Audit: A Practical Guide. München, K.G.Saur.
Henczel, S. (2001b). "The Information Audit as a First Step Towards Effective Knowledge Management." Information
Outlook, Vol 5, No. 6, pp 13.
Kemmis, S. and R. McTaggart (1988). The Action research planner. Waurn Ponds, Deakin University Press.
McKay, J. and P. Marshall (2001). "The dual imperatives of action research." Information Technology & People, Vol
14, No. 1, pp 46 - 59.
LaRosa, S. (1991). "The corporate information audit." Library Management Quarterly, Vol 14, No. 2, pp 7-9.
Roglaski, S. (2006). "The Rising Importance of Enterprise Content Management." DM Review, Vol 16, No. 11, pp 36.
St. Clair, G. (1997). "The information audit I: defining the process." InfoManage, Vol 4, No. 6, pp 5-6.
Swash, G. D. (1997). "The information audit." Journal of Managerial Psychology, Vol 12, No. 5, pp 312-318.
Vo-Tran, H. (2010). "Auditing the architectural design process", Paper read at 1 st International Conference on
Information Management and Evaluation. Cape Town, South Africa.
Worlock, D. (1987). Implementing the information audit. 59th Aslib Annual Conference, 'The information Manager'.
University of Sussex, Electronic Publishing Services Ltd. 39: 255-260.
555

Business Intelligence Best Practices for Success
Joseph Woodside
Cleveland State University, USA
joseph.m.woodside@gmail.com
Abstract: Business Intelligence (BI) is in a high adoption and high growth area, as users quickly value the
capabilities and increasingly demand more features to compete in today’s economic climate. However, from a return
on investment (ROI) standpoint, BI is similar to ERP and CRM, in that it has a poor risk/reward profile, as it regularly
runs into cost overruns, due to scope creep and limitless requests for support from end-users (Bernard 2009). Unlike
operational systems which often have specific requirements and implementation completion timelines, BI
environments are constantly evolving to meet business and information requirements (Moss 2007). Given the
complexity of most system implementations, no single measure exists for Business Intelligence success. In order to
effectively evaluate BI success, measures are developed to identify critical implementation factors based on the
research objectives and investigation (Wixom 2001). As an organization progresses in BI maturity, the value of its
activities expands. Successful organizations increasingly utilize analytical approaches to identify and enact modest
improvements that increase profitability and return on business intelligence investments. This paper presents several
key findings, lessons learned, success evaluation methods, and best practices as identified through prior literature
review and a formal empirical study, which extends and enhances prior literature and understanding of BI.
Keywords: BI, business intelligence, critical success factors, implementation, success
1. Road to Business Intelligence
Beginning in the late 1960s, experiments began with Decision Support Systems (DSS), utilizing
computers to analyze data and offer decision-making support. DSS were typically used for narrowly
focused activities such as production planning, investment management, and transportation applications,
and several inputs are required to prepare the analysis (Leidner 1993). With the introduction of software
applications such as SAS and SPSS in the 1970s, statistical software became more available and
accessible to end users. Despite this introduction, DSS did not prosper and evolved into Executive
Support Systems (ESS). (Davenport 2007; Ranjan 2008).
ESS were utilized by executives for viewing firm performance and focused less on decision making
support. The feature found in most ESS was single database access with current organizational
information, in an easy to access manner. ESS usage was also found to be positively related to problem
identification, decision making, and analysis. Other ESS features included non-keyboard interface,
organizational database, drill-down capabilities, trend analysis, exception reports, graphics, and critical
information monitoring. The focus of an ESS was on the organizations day-to-day activities as well as
marketplace indicators. A DSS by contrast was intended to allow on demand decisions and routine
analysis (Leidner 1993). ESS were referred to as high-risk/high-return systems, as the systems serve
executives whose information needs are complex, but also have greater influence. ESS provided
executives easy to use information that supports their critical success objectives. ESS also failed to enjoy
widespread usage due to resistance by executives to hands-on usage (Rainer 1995).
Firms have since made major investments in such systems as enterprise resource planning (ERP),
supply chain management (SCM) and customer relationship management (CRM), yet struggle to achieve
competitive advantage. Firms need streamlined access and analysis of the underlying information in
order to make operational decisions. Strategic organizations sought to improve efficiency through faster
and better-informed decision making, and looked to technology to enhance strategic and tactical results
to improve time to market, connectivity, integration, and visibility into their business. Unbeknownst to
users at the time, this data from these systems was a significant organizational asset, which would later
be leveraged for success and competitive advantage. In order to realize these benefits however, the data
must be developed into an enterprise wide unified view. Construction and integration of knowledge is a
key to succeeding in the competitive global market. Information Technology moved to support day-to-day
operations and all aspects of decision making, with differentiation through technology becoming
increasingly important. New generations of technology savvy users and executives were finding ways to
utilize previously untapped information. The entire field emerged as Business Intelligence (BI) and
includes collection, management, and reporting of decision making data and information. BI capabilities
have consistently been identified as the number one technology priority for organizations according to
current industry surveys (Davenport 2007; Ranjan 2008).
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2. Business Intelligence
Joseph Woodside
BI is not a single product, application, program, user, area, or system, rather an architecture of integrated
systems that provide users with easy access to and storage of information for decision making and
learning. Competitive pressures cause organizations to continually improve and adapt in order to be
successful in the ever changing business environment, and information is required by employees
throughout all levels of the organization for ongoing decision making (Ranjan 2008; Saha 2007).
Business Intelligence refers to applications and technologies used to gather, capture, access,
consolidate, and analyze information to improve decision making by various horizontal and vertical levels
of stakeholders. These systems capture important metrics on business operations, as well as providing a
mechanism for improved decision making. At the various levels these information items may include
documents, calendars, wikis, links, reports, dashboards, scorecards, search, databases, lists, user
knowledge, and much more. For example, these technologies can help coordinate projects, calendars,
schedules, discuss ideas, review documents, share information, keep in touch with others, utilize Key
Performance Indicators (KPI) to gauge operational status, and generate reporting information ondemand.
The BI process is one that allows large amounts of disparate data to come together into a single
repository and turn that data into meaningful information for decision support processes. BI can include
various forms of analysis, data mining, scorecards, dashboards, metrics, reporting, portals, data
warehouse, OLAP, decision support, knowledge management, etc. This information is available to all
levels of the organization and associated stakeholders, on-demand, and in an easy-to-use fashion (Moss
2007; Ranjan 2008; Saha 2007).
3. Research model
During interviews with executives, managers, and professional staff, before, during, and after BI
implementation and from review of prior literature, a path-analytic BI implementation success model was
proposed as shown in Figure 1. Literature review from information systems was utilized to develop the
research model and relationships between those areas. Prior literature has studied information success
using multiple methods. Researchers are instructed to utilize appropriate success measures based on
the objectives of the study and investigation (Wixom 2001).
Figure 1: BI implementation success model
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3.1 Collaborative culture
Joseph Woodside
Team work is an important aspect throughout any implementation project. This requires close
cooperation between all department areas and business and technical teams, including top management,
consultants, end-users, and vendors (Bhatti 2005). Aligning resources with business strategies is also
important, as typically there is limited alignment between BI strategy and business strategy (Williams
2007). Organizational learning through shared visions and commitment to learning is an important aspect
to collaborative culture and can be achieved through team work and alignment between units in support
of a common objective and set of goals.
H1: There is a positive relationship between collaborative culture and implementation success
3.2 Customization
Business Process Re-engineering (BPR) involves rethinking and redesigning business processes to
improve key performance measures such as cost and quality of service. Most organizations are required
to modify their existing business processes to fit the application software as a way to limit customizations
(Bhatti 2005). Arnott describes this similarly as the degree of fit between the organization and the
software and hardware (Arnott 2008). Many times an implementation may not meet expectations, due to
an underestimation of change management complexities and encountering resistance to change (Bhatti
2005). In many cases, end users must be trained in the new paradigm after and during BI
implementation. Users must also be trained in understanding and adjusting to changes in business
processes (Williams 2007). BI platforms should be selected which allow for customizations to occur
dynamically through the user interface, this resolves prior system issues which occurred at time of
upgrade of customized applications or modules. The flexibility of most BI platforms allow for
customizations which previously were unavailable in the scope of an enterprise application.
H2: There is a positive relationship between customization and implementation success
3.3 Communication
Wide information sharing and understanding must occur by all stakeholders throughout the
implementation stages and beyond. Communication should start as early as possible to gain
organizational understanding and acceptance (Bhatti 2005). Beyond development of BI and user training,
the vision must be marketed and communicated. The BI applications must be viewed as mission critical
and all users share that vision (Williams 2007). Communication should be started early in the form of
several announcements and organizational newsletters, including email, meeting, and Intranet
announcements. Kick-off meetings with key personnel and staff resources should also take place, along
with regularly recurring meetings.
H3: There is a positive relationship between communication and implementation success
3.4 Project management
Organizations should use structured and formal approach for BI projects. Many projects fail to adequately
account for organizational requirements, resources, and funding necessary to support a successful BI
implementation (Williams 2007). PM includes coordinating, scheduling, scope, and monitoring activities
and resources in line with the project objectives. PM is also responsible for the overall implementation
process and developing organizational support. The DW/BI systems should be developed iteratively
building to a complete application set. (Arnott 2008; Bhatti 2005). Agile methodology was adopted, having
a formal project methodology and a formal project management office for oversight and project tracking is
critical to the project’s success. It is important to establish critical success indicators and metrics from
project inception, to ensure expectations are met and exceeded. To allow improved deployment speed,
an iterative methodology with rapid prototyping should be employed. Parallel user sub-groups should be
established to allow continuous feedback from rapid prototyping and to reduce periods of inactivity.
H4: There is a positive relationship between project management and implementation success
3.5 Resources
Resources can include financial, people, hardware, software and time for project completion. It is also
important to fund new activities required as a result of BI implementation such as meta data
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Joseph Woodside
management. Resource issues often have a negative impact on implementation success (Arnott 2008;
Williams 2007; Wixom 2001). Consultants are often required due to a knowledge gap and complexity of
new systems. User involvement can occur through requirements gathering, implementation participation,
and use after go-live (Bhatti 2005). Dedicated resources should be assigned to avoid inevitable
competing projects and priorities. Dedicated consultant resources should be allocated to improve timeline
and knowledge transfer for new technology areas. Though consultants should only be utilized as a
temporary solution, as knowledge-loss occurs with continued usage. Dedicated department or area
based resources should be assigned for local subject matter experts and knowledge diffusion.
H5: There is a positive relationship between resources and implementation success
3.6 Top management support
Top management provides the required resources in a direct or indirect manner through financing, as
well as the power and support. Top management is also responsible for setting a clear direction, overall
project objectives, project guidance, representation, and establishing these throughout the organization
(Arnott 2008; Bhatti 2005). Sponsorship across the entire management team, allows others in the
organization to support the project through reducing political resistance, and facilitate participation. Top
management support must include top management champions and are viewed similarly (Wixom 2001).
All top management should be advised of the project by the sponsors, and any issues or concerns
addressed initially. It is vital for the sponsors to continually update top management early in the project,
and as components are released to end-users.
H6: There is a positive relationship between top management support and implementation success
3.7 Training
Training end-users is important to improve knowledge and appropriate use of the system. General BI
concepts, components, demonstration, and use are key training areas. Training should also include
process changes and overall flow of information and integration (Bhatti 2005). Training also includes the
standards and policies that must be followed for the new BI applications, to optimize use of BI by endusers
(Williams 2007). Training modules and materials should be developed prior to the initial go-live,
along governance plans, such as best practices, content and technical standards, and policies and
procedures should be developed for training purposes. In addition, proactive monitoring of training issues
should be immediately addressed to avoid long-term paradigm creation in early stages. New users
should be required to take established training and existing users on an annual basis and directed to the
training materials as questions arise.
H7: There is a positive relationship between training and implementation success
3.8 Vertical integration
In prior BI implementations multiple vendor solutions required purchase, as one vendor did not provide a
fully integrated solution, also other companies chose a best of breed approach based on vendor
offerings. Today, several vendors offer completely integrated solutions with equitable offerings across
services. In one survey organizations utilized an average of 3.2 vendors with 8-13 tools (Howson 2008).
For the small-medium business scenario, utilizing a vertical architecture with a single vendor was
identified as a critical success factor. Due to resource and funding requirements, the ability to match
expert skillsets with a best of breed approach is not possible. The use of a single vendor also improves
delivery time through ease of installation and avoids integration issues that commonly arise when utilizing
multiple vendor solutions vendors. Here, a vertical architecture is defined as having a single vendor
designed and developed BI platform, which includes Knowledge Management, Content Management,
Performance Management, End-User Tools, Querying / Reporting, Analysis, and Database Management
System.
H8: There is a positive relationship between vertical architecture and implementation success
3.9 Success factors
BI project implementation success is measured through perceived success, whether the project
completed timely, completed on budget, and overall satisfaction with the BI (Howson 2008; Wixom 2001).
Table 1 displays the summary of supporting works for construct and hypothesis development.
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Table 1: Summary of supporting works
Wixom and
Watson (2005)
Joseph Woodside
Bhatti
(2005)
Williams and
Williams (2007)
Howson
(2008)
Implementation Factors
Collaborative Culture X X
Customization X X X
Communication X X
Project Management X X X X
Resources X X X X
Top Management Support X X X
Training X X
Vertical Integration X
Success Factors
Perceived Success X X
Timely Implementation X X
Satisfaction X X
4. Research methodology
Arnott
(2008)
A survey was development followed Moore and Benbasat's (1991) identified stages of item creation,
scale development, and testing: Item creation, in which existing items were utilized from prior literature,
then additional items added to those components which fit the definitions. Scale development, where
similar categories of items were created and refined as needed. Testing, in which sample surveys were
conducted, and then was followed by revisions and larger distribution (Moore 1991). The final survey was
randomized to reduce order effects. The survey uses a seven point likert scale, and measures the level of
agreement with each statement, with 1 being strong disagreement and 7 strong agreement. The survey
was administered to a national healthcare organization who had recently completed a BI implementation.
The survey was reviewed by subject matter experts in and across organizational levels as part of a pretest
to resolve any concerns or address any identified discrepancies, as well as re-word identified items,
or remove non-weighting or duplicative manifest variables. A total of 141 responses were received with
105 (75%) non-managerial users, and 36 (25%) managerial users. Multiple geographic locations were
included, along with multiple staff functions and department areas. Overall 148 responses were received,
with 7 responses removed that were incomplete past general user information, for a total of 141 usable
responses. 106 respondents were non-managerial users, with the remaining 35 respondents holding a
supervisory position through executive position. Users from multiple geographic office locations and
functional areas were represented within the study group, as well as users with short and long-term
tenure at the firm.
5. Data analysis
A path analysis is employed using SmartPLS 2.0 software to analyze the results and determine model fit
(Ringle 2005). A model with significant loadings is developed. Significance of relationships was
determined between implementation factors and success factors. The final model specification includes
the supported paths, all paths were supported for significance at p = 0.01. Results showed that 73.8% of
the variability in implementation success is explained from the model.
Table 2 displays the quality of the model. The average variance extracted is indicated by the column
AVE, and is the average communality for the latent factors in the model. AVE is utilized for convergent
validity, and should be greater than or equal to 0.5, which the latent factors exceed. Composite reliability
is also utilized as Cronbach’s alpha commonly underestimates or overestimates reliability. Composite
reliability follows similarly to Cronbach’s alpha, with 0.80 to be considered good, 0.70 to be considered
acceptable, and 0.60 to be considered for exploratory requirements. Composite reliability exceed 0.90 for
this model. R-Square displays the effect size measure, and is not shown for exogenous constructs. An R-
Square of 0.67 is considered substantial, 0.33 considered moderate, and 0.19 considered weak. The R-
Square for this model is 0.73. Cronbach’s alpha should be equal to at least 0.80 to be considered good,
0.70 to be considered acceptable, and 0.60 to be considered for exploratory requirements. For short
scales, Cronbach’s alpha may be biased, this study utilized 7 point scales for all questions measured,
and Cronbach's alpha exceed 0.80 (Garson 2010; Ringle 2005). Table 3 displays the hypothesis results.
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Table 2: Measurement model quality
Joseph Woodside
AVE Composite Reliability R Square Cronbachs Alpha
Implementation Factors 0.57986 0.90581 0.878317
Success Factors 0.66762 0.922954 0.738381 0.899059
Table 3: Hypothesis results
Hypothesis Result
H1: There is a positive relationship between collaborative culture and implementation success Supported
H2: There is a positive relationship between customization and implementation success Supported
H3: There is a positive relationship between communication and implementation success Supported
H4: There is a positive relationship between project management and implementation success Supported
H5: There is a positive relationship between resources and implementation success Supported
H6: There is a positive relationship between top management support and implementation
success Supported
H7: There is a positive relationship between training and implementation success Supported
H8: There is a positive relationship between vertical architecture and implementation success Supported
6. Conclusion and future directions
This paper presents several key findings as identified through a formal study, and improves the power of
the explanatory success model, which extends and enhances prior literature and understanding of BI.
The first key finding is the identified implementation construct addition of a vertical architecture,
particularly for the small-medium business (SMB) scenario. A vertically-integrated architecture improves
the implementation timeline and required resource base for implementation success. The second key
finding is around establishing a collaborative culture to promote organizational learning capabilities. This
extends previous notions of team work and business-IT alignment, and is necessary to support adoption
and use of BI. Third involves implementation success outcomes when democratization or universal user
adoption of BI has been achieved. In past studies measuring BI success, only a small portion of users
had access to BI capabilities, successful outcomes can be realized while extending BI benefits to all
users.
Limitations include the use of single organization study; additional organizations should be reviewed to
increase sample size in and across various industries and firm sizes. There is an importance to
identifying universally applying critical success factors, and the ability for tailoring those factors to an
individual organization or implementation. However it is the adaptability of the BI capabilities and the
overall project that will ensure successful completion. Other identified areas of study and importance
beyond implementation include establishing a competency center to ensure continue usage of business
intelligence, stakeholder satisfaction, and decreased costs. Another area is establishing an architecture
roadmap for future iterations and system updates, these include enhancements to key capabilities and
features, bug fixes, security improvements, and ensured vendor support. A governance plan is also
important to establish technical roles, support service level agreements, back and recovery, database
and data standards, metadata standards, content branding, life cycle policies, and training.
References
Arnott, D. "Success Factors for Data Warehouse and Business Intelligence Systems," Australasian Conference on
Information Systems) 2008, pp 55-65.
Bernard, A. "Four Technology Best (and not so best) Bets for 2009," in: CIO Update, 2009.
Bhatti, T.R. "Critical Success Factors for the Implementation of Enterprise Resource Planning (ERP): Empirical
Validation," The Second International Conference on Innovation in Information Technology) 2005.
Davenport, T.H., Harris, Jeanne G. Competing on Analytics Harvard Business School Publishing Corporation,
Boston, 2007.
Garson, G.D. "Partial Least Squares Regression (PLS)," N.C.S. University (ed.), 2010.
Howson, C. Successful Business Intelligence: Secrets to Making BI a Killer App, 2008.
Leidner, D., Elam, Joyce "Executive Information Systems: Their Impact on Executive Decision Making," Journal of
Management Information Systems (101:3) 1993, pp 139-155.
Moore, G.C., Benbasat, Izak "Development of an Instrument to Measure the Perceptions of Adopting an Information
Technology Innovation," Information Systems Research (2:3) 1991, pp 192-222.
Moss, L.T., Atre, Shaku Business Intelligence Roadmap, Boston, 2007.
Rainer, R.K., Watson, Hugh "The Keys to Executive Information System Success," Journal of Management
Information Systems (12:2) 1995, pp 83-98.
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Joseph Woodside
Ranjan, J. "Business Justification with Business Intelligence," The Journal of Information and Knowledge
Management Systems (38:4) 2008, pp 461-475.
Ringle, C.M., Wende, S., Will, S. "SmartPLS 2.0 (M3) Beta," Hamburg, 2005.
Saha, G.K. "Business Intelligence Computing Issues," ACM Ubiquity (8:25) 2007.
Williams, S., Williams, Nancy The Profit Impact of Business Intelligence, 2007.
Wixom, B.H., Watson, Hugh J. "An Empirical Investigation of the Factors Affecting Data Warehouseing Success,"
MIS Quarterly (25:1) 2001, pp 17-41.
562

Work
in
Progress
Papers
563

564

The Evolution of IT Governance in Multiple Industry Units
and the Business Case for an Outside Partner
Ganeshprasad Chandrasekaran 1, 2 , Chandramohan Annavarapu 2 and Balaji
Rathinasamy 2
1
Tata Consultancy Service Limited, Chennai, India
2
SRM School of Management, SRM University, Chennai, India
cgprasad@gmail.com
profacmohan@gmail.com
balaji99@gmail.com
Abstract: IT Governance has become the integral part of the strategic thinking process for the growing number of
companies across different industries. Companies are increasingly evaluating what is core to their business and
weighing the benefits of outsourcing critical non-core functions such as IT (Information Technology). IT Governance
exists within the context of corporate governance and the principles are especially the same. IT governance is an
accountability framework and management process that helps to define and communicate what must be done and
provides the rigorous oversight to ensure that it is. The accountability framework is typically planned with well defined
roles and responsibilities reflecting decision rights among the stakeholders in the IT Management process and is
reinforced with effective reporting. This paper reports on an investigation which focused on the role of IT governance
and the outsourcing partner as mechanism for the effective and efficient management of IT. Results are presented
from a survey in which respondents consisted of IT executives with responsibilities for IT governance and
Outsourcing from different parts of the globe, who represent multiple industries. The outcome of the survey indicates
a strong correlation between the overall use of IT governance practices and overall governance performance.
Keywords: IT governance, outsourcing, corporate governance, business
1. Introduction
The advent of the 21 st century has brought about new challenges for the corporate world as it continues
to evolve in adapting to ever-changing operating environments. However, business expectations for IT
are rising. The vast majority of business processes are enabled by computers and organizations have no
fallback paper processes. IT-enabled products and services have become a competitive differentiator in
almost every industry. To help meet the strategic needs of the business, many companies are
implementing IT governance practices to enhance IT and business alignment. IT governance is
recognized as an extension of corporate governance. The IT Governance Institute (ITGI, 2008) indicates
that corporate governance is the “Methodology by which a corporation is directed, administered and
controlled, whereas IT governance supports achieving corporate objectives, strategy, direction,
administration and control, using appropriate IT investment and resource management.” This paper
reports on investigated results about “IT governance practices being used to balance the competing IT
priorities like control, agility, cost, customer, business needs, revenue growth and profitability”.
2. Literature review
IT governance is the responsibility of executives and the board of directors. It consists of the leadership,
organizational structures and processes that ensure that the enterprise’s IT sustains and extends the
organization’s strategies and objectives (ITGI, 2008). Leveraging IT successfully to transform the
enterprise and create value added products and services has become a universal business competency.
IT is fundamental for managing enterprise resources, dealing with suppliers and customers, and enabling
increasingly global transactions (Eric and William, 2008).
According to the ITGI, “Boards and executive management generally expect their enterprise’s IT to
deliver business value, i.e., provide fast, secured, high-quality solutions and services; generate
reasonable return on investment; and move from efficiency and productivity gains toward value creation
and business effectiveness (Alan, 2009). The governance of outsourcing is the function described as “it is
no longer a company’s ownership of capabilities that matters but rather its ability to control and make the
most of critical capabilities, whether or not they reside on the company’s balance sheet” (Lucin and
Assaf, 2009). Outsourcing in simple terms is “the delegation of few services or IT-intensive business
processes to an external provider for increasing the availability of service and the overall profitability”
(Spremic, et al., 2008, p.252).
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3. Research findings
Ganeshprasad Chandrasekaran et al.
In addition to the literature review, the research study was supported by a survey and an interview. The
survey was conducted with twenty one IT professionals and interview with three IT professionals. Both
the survey and the interview were with IT professionals who fall under the category of senior executives
and work for different CMM (Capability Maturity Model) organizations. During the interview the same
survey questions were used, however had in detail discussion around every question. The literature
review was instrumental in designing the survey questions and the survey has targeted use of the IT
governance practices and its performance. The below points were used to frame the survey and they are
(a).Are IT Governance practices able to balance the internally focused cost and control objectives?
(b).Are IT Governance practices able to balance the externally focused customer and business
needs?
(c).Is IT Governance helps to meet the internal and external business objectives?
(d).Can IT Governance practices ensures to prioritize the business demands?
(e).Is there any real growth in revenue and profitability later to the implementation of IT governance?
(f).What is the proportional focus of IT governance and an Overall Business Objective?
(g).In General, are IT Governance initiatives working?
The overall use of IT governance practices was measured by the average combined score and the
results of the survey respondents indicates a strong correlation between the overall use of IT governance
practices and overall governance performance. For the open-ended questions raised on IT governance,
answers indicate that most common IT governance objectives are focused on cost containment (includes
efficiency, standardization and automation) and risk reduction (includes compliance, security, and public
scrutiny of IT failure). This is perhaps not surprising, given the recent economic climate and global surge
in regulatory requirements imposed on IT organizations.
Survey Response
35
30
25
20
15
10
5
0
IT Goverance - by Maturity
Cost Complaince Cusotomer Decision
Category
Figure 1: IT Governance objectives by maturity group
High
Medium
Maturity is determined by a combination of use of governance practices and performance. The study
revealed (as shown in Figure 1) the following about the different maturity groups.
(i). Low maturity organizations (those with lower usage of IT governance practices and lower
performance scores) have IT governance objectives that are more focused on cost and risk reduction.
The high-impact IT governance practices that are shown to optimize performance at the initial level of
maturity, however move beyond cost and risk to also focus on agility as well as project and service value
that may not be cost oriented.
(ii). Medium maturity organizations (those with moderate IT governance practice usage and medium
performance scores) also focus on cost objectives, but they have a greater focus on customer and
business related objectives. The high-impact IT governance practices at this maturity level build on the
foundational practices to include supporting a process culture, asset management, tactical demand
management and improving the transparency of project assumptions.
566
Low

Ganeshprasad Chandrasekaran et al.
(iii). High maturity organizations (those with broadest use of IT governance practices, and highest
performance scores) have the highest focus on customer and business related objectives and the lowest
level of focus on cost containment. Mature organizations have learned to use IT auditing as a tool to
achieve their operating objectives as well as addressing compliance mandates.
4. Conclusion
Although best practices are openly available and clearly described in literature, they are not necessarily
widely adopted. This implies that in many organizations, there is significant room for improvement in the
area of IT governance specifically in the low and medium matured organizations. As the IT organization
makes the transition from utility service provider to a more strategic revenue enabler, IT governance can
be a powerful tool for balancing competing IT priorities. However, this study suggests that in many
organizations, IT governance initiatives are more focused on cost containment and risk reduction
objectives. Focus on customer differentiation and enabling business needs has taken a lower priority than
more foundational cost and risk reduction objectives. The results, however also indicate a positive
element, IT governance initiatives are working and the further research will continue to understand the
methods adopted by organizations to utilize the IT governance principles to the fullest extend.
References
Alan, C. (2009) IT Governance: Implementing Frameworks and Standards for the corporate Governance of IT, ITGI
Publications, Illinois.
Andreas, W.M. (2008) “Modes of Governance in Business Process Outsourcing: Equity Control or Tradability of
Services, an Executive versus Market's Perspective”, Proceedings of the XLIst Annual Hawaii International
Conference on System Sciences, Hawaii, USA.
Brown, A.E. and Grant, G.G. (2005) “Framing the Frameworks: A review of IT Governance Research“,
Communications of the Association for Information Systems, Vol. 15, pp 696-712.
David, N. (2005) IT Governance: Managing Information Technology for Business, Thorogood Publications, London.
Eric, J.B and William, A.Y (2009) The effective CIO: How to achieve outstanding success through strategic
Alignment, Financial Management and IT Governance, Auerbach Publications, Florida.
IT Governance Institute. (2008) Aligning COBIT®4.1, ITIL® V3 and ISO/IEC 27002 for Business Benefit. [online],
Available at: < http://www.isaca.org/Knowledge-Center/Research/ResearchDeliverables/Pages/Aligning-COBIT-
4-1-ITIL-V3-and-ISO-IEC-27002-for-BusinessBenefit.aspx > [Accessed on 10 November 2010].
Lawrence, J.A, Susan, P., Gary, F.P and Dasaratha V.R (2007) “Corporate Governance, Audit Quality and the
Sarbanes-Oxley Act: Evidence from Internal Audit Outsourcing“, The Journal of Accounting Review, Vol. 82, pp
22-31.
Lucian, A.B. and Assaf, H. (2009)”The Elusive Quest for Global Governance Standards“, University of Pennsylvania
Law Review, Vol. 157, pp 1263-1317.
Patel, N.V. (2002) “Global Ebusiness IT Governance: Radical Re-Directions”, Proceedings of the XXXVth Hawaii
International conference on System Sciences, IEEE Computer Society, Hawaii, USA.
Short, J. and Gerrard, M. (2009) “IT Governance Must be Driven by Corporate Governance” Gartner Research,
Stamford, USA, November.
Spremic, M., Zmirak, Z. and Kraljevic, K. (2008) “Evolving IT Governance Model – Research Study on Croatian
Large Companies”, WSEAS Transactions on Business and Economics, Issue 5, Vol. 5, May, pp 250-259.
Weill, P. and Ross, J.W. (2004) “IT Governance on One Page”, Center for Information Systems Research,
Massachusetts Institute of Technology, Cambridge, USA.
567

The Relationship Between Quality Management and
Knowledge Management in the Service Industries
Amir Honarpour and Ahmad Jusoh
Management and Human Resource Development, University Technology
Malaysia, Johor, Malaysia
Amir_honarpour@yahoo.com
ahmadj@utm.my
Abstract: Regarding the knowledge based economy master plan (2002), Malaysia is transforming itself towards a
knowledge-based economy, which concentrates on knowledge, people and virtual networks. Researchers argue that
achieving such an objective and gaining value from knowledge causes some problems including changes in
customer demands, developing new skills, knowledge creation, and modifying the economical structure to a
knowledge-based economy etc. (Plump and Zamfir, 2009; Suete, 2001;Nonaka and Teece, 2001). These challenges
affect the way organizations collect, use and disseminate information. Knowledge management can lead to a
sustainable competitive advantage. On the one hand, it is supposed that knowledge is an intangible and unique
asset, which provides an organization with competitive advantage, while on the other, QM contributes significantly to
the performance of organizations, mostly in the manufacturing sector. Considering the organizational life and
structure, both QM and KM are professional communities that are positioned at different points in their maturity
lifecycle, however, they have similar aims and positions in regard to management. It appears that both quality
management and knowledge management are complementary, if not compatible, as the strategies of both are long
term for the intention of gaining competitive advantage and overall improved performance. QM aims to help the
value-creators of organizations in improving their performance as well as KM. They hold somesimilar basic
assumptions, e.g. the importance of cultural changes and process improvement. There are valuable studies on the
description of the interaction between QM and KM (see Jaime et al., 2006; Dvir, 2004). Regarding this point of view,
this research is going to consider implementing KM in an organization with regard to QM practice and show how they
interact and how they improve their effectiveness.
Keywords: knowledge, knowledge management, quality management
1. Introduction
In the early 1990s, Malaysiaset out a 30-year plan as vision 2020 to become a developed country in
terms of economic performance and technological capability. Transferring from a manufacturing industrial
economy to a knowledge-based economy is a part of this plan (Ramlee and Abu, 2005; Fleming and
Soborg, 2010). A knowledge-based economy (k-economy) focuses on knowledge, people and virtual
networks, and requires the adoption and application of new management and organizational systems
along with knowledgeable, skilled, dynamic, creative and innovative human resources (Plumb and Zamfir,
2009; Ramlee and Abu, 2005; Fleming and Soborg, 2010). Moving towards a knowledge-based economy
needs intensive knowledge investment such as research & development (R&D), software, information
and communication technology (ICT), education and training (Suete, 1999). To succeed in this way,
knowledge management has an essential role. As Chong et al. (2010) suggested, knowledge
management (KM) has a strong effect on innovation adoption. In addition, to support scientific activities,
especially in R&D, uses of quality management complemented by knowledge management will improve
the quality of research (Jaime, 2006; Holt and Dilani 2009). Finally, the object of education and training
should be to make quality human resources and knowledge workers the backbone of the k-economy.
Such a labour force is able to create and affect knowledge to produce useful actors with strong and
analytical skills (Ramlee and Abu, 2005). According to Abadesco (2004), a knowledge worker is ‘anyone
who makes a living out of creating, manipulating or disseminating knowledge’. Therefore, KM is the
infrastructure for knowledge workers' jobs, and also has an important role in supporting activities required
for achieving a K-economy. However, the point is that recent studies have revealed that a large amount
of KM projects (more than 50%) fail or do not achieve their goals (Prusak and Weiss, 2007;Madanmohan,
2005). This may be caused by many reasons such as the lack of top management commitment or failing
to locate, capture, organize and disseminate the tacit knowledge (see Akhavanet al., 2005).
Researchers have linked Quality Management (QM) with organizational learning in an attempt to show
how Quality Management leads to continuous improvement (Choo et al., 2007; Konidari and Abernot,
2006). Linderman et al. (2004) stated that knowledge is created by quality management practices as
shown in the Nonaka's Knowledge Creation Process. Molina et al. (2007) advocated that QM practices
have an important role in the transferring of knowledge. In addition, the knowledge-based economy is
replacing the meaning of service quality management in a way that it becomes knowledge-driven and
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Amir Honarpour and Ahmad Jusoh
relies on people’s continuous growth and sharing ideas and knowledge (Plumb and Zamfir, 2009). It
seems that the notion of knowledge and quality are strongly associated, as Jaime(2006) said "as
Knowledge Management reaches its maturity in terms of acceptance as an important part of doing
business in the modern world, quality will again become the mantra of successful companies".
Based on the literature, quality management is a good basis and facilitator for implementing knowledge
management, however, empirical research on this subject is insufficient. In Malaysia 2,383 organizations
have received ISO 9001:2000 and other firms are mostly ready to execute IMS in their organization
(Kadir et al., 2009). As QM practices and systems are widely used in the country, this research can be
helpful concerning Vision 2020.
2. Knowledge management and quality management
QM has contributed significantly to the performance of organizations, mostly in the manufacturing sector.
It played a major role in the rise of the Japanese industry in the 60's and 70's (James, 1997), and the
recovery of some sectors of the American industry in the 80's. In the 80's and early 90's there was
growing management attention on QM, which was accompanied by a considerable growth in the
community. There are different QM models and techniques such as ISO 9000, Deming Prize, the
American Malcolm Baldrige National Quality Award, and the European Quality Award. Many researchers
from the mid 1990s have studiedthe field of knowledge management and have contributed to relevant
theories. In this study, the systematic framework of organizational knowledge management processes
introduced by Alavi and Leidner (2001) is applied. This framework is based on the sociology of
knowledge and considers the cognitive and social nature of organizational knowledge. It also represents
an individual's cognition and practices as well as the organizational ones (Alavi and Leidner, 2001). The
knowledge management processes include knowledge creation, knowledge storage/retrieval, knowledge
transfer, and knowledge application. According to Pentland (in Alavi and Leidner, 2001), knowledge
creation refers to developing new knowledge or replacing existing content within the organization's tacit
and explicit knowledge. Knowledge storage or retrieval refers to the knowledge that resides in different
component forms, such as written documentation or structured information stored in electronic
databases. Knowledge transfer refers to transferring knowledge between individuals or from individuals to
organizational memory or across groups. Knowledge application is defined as the integration of
knowledge for creating organizational capability (Alavi and Leidner, 2001).
Regarding to previous studies the conceptual model has been developed. This model is introduced in
figure 1. Based on this model some propositions has been presented to investigate the relationship
between QM and KM.
Figure 1: Conceptual framework of the study
569

2.1 QM and knowledge creation
Amir Honarpour and Ahmad Jusoh
The application of information technology and systems has recently attracted traditional service providers
such as airlines and travel agencies into service-value networks (Plumb and Zamfir, 2009). These
changes are towards the satisfaction of the changing needs of customers. Customer satisfaction also
means considering internal customers (Yusof and Eng, 2003). This relationship can be provide by
listening mechanisms, QFD, customer stories etc. Linderman (2004) claimed that, "Quality management
practices that promote monitoring and feedback of customer information allow knowledge to be created".
Practices such as customer relationship and workforce management. Therefore, we propose the
following proposition:
Proposition1: Quality management practices that are related to customer satisfaction can affect the
knowledge creation process.
2.2 QM and knowledge storage/retrieval
One of the quality management values is management by facts. This means that all the decisions should
be based on documented facts (Lagrosen and Lagrosen, 2006). This concept relies on practices and
tools that are used in different QM practices and techniques such as quality information, the idea bank,
flowcharts, and decision making tools. This value is a base for documenting culture and is considered as
a facilitator for the use of organizational memory, such as databases and repositories. Hence, the
following proposition is formulated:
Proposition2: Quality management practices affect the knowledge storage/retrieval process.
2.3 QM and knowledge transfer
One of the principals of quality management is establishing teams (Molina et al., 2006). According to
Linderman et al. (2004), teams begin to develop ideas to resolve quality problems. These team meetings
are a place in which knowledge is transferred. There are also other practices such as process
management and product/service design that use some specific tools like SPC, cause and affect analysis
and statistical charts, which lead to transfer knowledge from a separate part of the organization to other
parts. Training and education are also important factors of QM. Such practices and tools transfer
knowledge from individuals to individuals (e.g. team meetings in process management practice) or from
individuals to group (e.g. educations in workforce management). Thus, the following proposition could be
formulated:
Proposition3: Quality management practices and tools affect the knowledge transfer process
2.4 QM and knowledge application
To apply knowledge management, Demsetz (in Alavi and Leidner, 2001) identified three steps of the
knowledge integration process: first, directives or a set of rules, standards, and procedures; second,
organizational routines or interaction protocols, and process specification; and third, self-contained task
teams or teams of individuals with prerequisite knowledge for problem solving (Alavi and Leidner, 2001).
As mentioned earlier, teams facilitate developing new ideas to resolve quality problems (see Linderman
et al., 2004). System flowcharts and process flowcharts are QM tools, which identify what scope of
information is required to do work or what codes and standards govern the work (Shearer, 1994). Also
the main aim of process management practice is to reduce process variation to reduce reworks and
make stable process. Therefore, this study proposes that:
Proposition4: Quality management practices and tools affect the knowledge application process
2.5 Senior management commitment
Senior management commitment is a necessary condition for the implementation of quality management
(Gitlow, 2001). This commitment is one of the values of quality management implementation and, as
Lagrosen and Lagrosen (2006) said, "leaders can excel if only their hearts are into their quality journey
and they have a determination to carry it through". Quality management is a long-term strategy for
gaining competitive advantage and improving overall performance. It aims to improve quality and
productivity. Therefore, senior managers who are committed to improve quality and productivity through
QM are more likely to invest in knowledge management. As a result:
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Amir Honarpour and Ahmad Jusoh
Proposition 5: Top management commitment to QM will affect the acceptance of implementing KM
3. Conclusion
In conclusion, the implementation of knowledge management can be conceptualized as quality
management practices. The conceptual model proposes that the commitment of senior managers, quality
management practices which promote monitoring and feedback of customer information, management by
facts, teamwork, problem solving tools and process orientation work can improve the success of
knowledge management implementation. The next step in this investigation is to develop a survey to
examine the model and its proposed relationships.
References
Akhavan, P., Jafari, M. and Fathian, M. (2005) Exploring Failure-Factors Of Implementing Knowledge Management
Systems In Organizations, Journal of Knowledge Management Practice
Alavi, M. Leidner, D. (2001) Knowledge Management and Knowledge Management System: Conceptual Foundations
and Research Issues, MIS Quarterly, Vol. 25, No. 1, pp: 107-136
Abadesco, V. (2004) Training knowledge worker,Asian Productivity Organization, Tokyo
Chong, A. Y., Ooib, K., Linc, B. and Tehb, P. (2010) TQM, knowledge management and collaborative commerce
adoption: A literature review and research framework, Total Quality Management, Vol 21, No. 5, pp: 457–473
Choo, A. S., Linderman, K. W. and Schroeder, R. G. (2007) Method and context perspectives on learning and
knowledge creation in quality management, Journal of Operations Management, Vol 25, pp: 918–931
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Construction and Validation of eSchool Success Model
Hesbon Nyagowa 1 , Dennis Ocholla 1 and Stephen Mutula 2
1 University of Zululand, South Africa
2 University of Botswana, Botswana
nyagowa_hesbon@yahoo.co.uk
docholla@pan.uzulu.ac.za
MUTULASM@mopipi.ub.bw
Abstract: DeLone and McLean (1992) IS Success Model has been widely adapted in evaluating success of many
different information systems including e-commerce, e-learning and knowledge management systems. Adapting the
D&M IS success model requires re-specification to suit specific systems. The re-specified models tend to introduce
new dimensions and therefore new measuring instruments that call for empirical validation. In the current study
evaluating NEPAD eSchool pilot programme in Kenya, a distinct new dimension was added to the D&M IS success
model and the net-benefit dimension measure was re-defined to capture the objectives of NEPAD eSchool
programme. The study specified seven dimensions to eSchool system: infrastructure quality, information content and
communication quality, technical personnel service quality, training effectiveness, extent and exploitative use, user
satisfaction and net-benefits. The eSchool success model was conceptualised theoretically and subsequently
validated empirically using data collected from 776 students and teachers in six schools which have implemented
NEPAD eSchool system. The data was split into two to facilitate implementation of both exploratory factor analysis
(EFA) and confirmatory factor analysis (CFA). The first half of the data set was used in performing principal
component analysis on one new dimension (training effectiveness) and the re-specified dimension (net-benefit). The
second half of the data set was used in confirmatory factor analysis to test the goodness-of-fit of the eSchool
success model in evaluating eSchool success. This paper discusses the eSchool success model construction, its
validation outcome and the contribution of the study to IS evaluation. This is part of a study in progress.
Keywords: eSchool, eSchool success model, validation of eSchool system, validation, IS evaluation
1. Introduction
1.1 eSchool as an Information System (IS)
In its original patent, the eSchool teaching system has four sub-systems; students’ sub-system, teachers’
sub-system, library sub-system and administration sub-systems (Nobles et al., 1989) all interfaced such
that user groups are restricted to modules and content relevant for their roles. Information system
consists of computers, communication networks, instructions (application modules), stored files, people
and procedures. ISs are characterized in organizational work system (Alter, 2008) and serve as
information management tools. They therefore enable user groups to engage in retrieval of data, sharing
of data, manipulation of information, and transmission of information. ESchool system enables students
and teachers to share information through communication network inbuilt in the computer systems,
facilitate storage, sharing and retrieval of data by users and user groups.
Specifically, eSchool systems are designed to avail content relevant to curriculum, sharing of class work
materials between teachers and students, students & students, and teachers & teachers’, retrieval of
curriculum support materials from other data bases, communication between users, and management of
student data within the school network. Teaching, learning and education management is therefore
accorded an alternative platform in eSchool system. These characteristics of eSchool systems qualify
them as information system as defined in Alter (2008).
1.2 Justification of need for eSchool evaluation
Implementing eSchool system has three major cost components; infrastructure development, content
development and upgrading of ICT expertise of students and teachers. In addition to ICT expertise
upgrading, teachers require retraining on pedagogical approaches that reduce their direct involvement in
the learning process (Hennessy, Ruthven & Brindley, 2005) as sage-on-the-stage to facilitators. ESchool
infrastructure, content and human skills development require high capital outlay that needs
rationalization. To ascertain sustainability and success of an information system, evaluation mechanism
should be put in place to give indicators of its success and re-strategizing the implementation to improve
the success rate.
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Hesbon Nyagowa et al.
Traditionally, IS programmes have had evaluation inbuilt as part of IS development cycle (Gremberen,
2001). The theories and practices behind the traditional evaluations have tended to be specific to the
programme and they deploy varied non-standardized tools which deny IS community opportunity to
compare evaluation outcomes (DeLone & McLean, 1992; Petter, DeLone & McLean, 2008). Studies
which have used similar evaluation models such as DeLone and McLean (1992) IS success model have
concentrated on one or two dimensions of the model. Absence of methodological comparability limits the
trend in knowledge growth particularly in extension and generalization of knowledge (Petter, DeLone and
McLean, 2008) in new environment. It is in this respect that Petter, DeLone and McLean (2008) urged IS
success evaluation researchers to use validated instruments in measuring success of any IS.
Proliferation of eSchool systems has been experienced in many countries in the recent past (Simpson,
Payne & Condie, 2005; Condie & Livingston, 2007; Ya’Acob, Nor & Azman, 2005; UNICT Task Force,
2005). The force behind this trend is the high expectations organizations have placed on the potentials of
eSchool system; studies converge on the possible benefits of eSchools which include productivity
improvement in the education sector, imparting lifelong learning skills to students and creating team work
skills amongst students through collaboration between different learning communities (EL-Halawany &
Huwail, 2008). To safeguard against moribund projects, eSchool researchers should seek dependable
success evaluation model and instruments.
The current study conceptualized an eSchool success evaluation model based on DeLone and McLean
(1992) IS success model. The theoretically conceptualized model was empirically validated to establish
consistency and stability using factor analysis. This poster presents the conceptualized model and the
results of its validation.
2. Methods
2.1 Conceptualization of eSchool success model
Following analysis of several IS success evaluation studies, DeLone and McLean (1992) developed an IS
success model which has seven dimensions namely; system quality, information quality, intention to use,
use, user satisfaction, individual impact and organization impact (DeLone & McLean, 1992). The model
has been validated (ICIS, 2007; Wu & Wang, 2006; Bokhari, 2005; Seddon & Kiew, 1994; Roldan & Leal,
2003) and augmented (Pitt, Watson & Kavan, 1995; DeLone & McLean, 2003; Adeyinka, 2009; DeLone
& McLean, 2008). In its present form D&M IS success model’s seven dimensions are schematically
represented in figure 1.
Information
Quality
System Quality
Service Quality
Intention to Use
Use
User Satisfaction
Net Benefit
Figure 1: D&M IS success model’s seven dimensions (source: DeLone and McLean (2003))
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Hesbon Nyagowa et al.
DeLone and McLean IS success model (2003) has widely been accepted in many evaluation studies
(Molla & Licker, 2001; Ong, Chorng-Shyong & Lai, Jung-Yu, 2004; Adeyinka, 2009) but each study has
had to re-specify the model to suit the system being studied. Underpinning on extant literature, the
current study conceptualized a seven dimensional eSchool success model. ESchool users (students and
teachers) are introduced to eSchool use when they have very limited exposure to ICT literacy. Teachers
in particular, were previously trained on pedagogies which had not anticipated integration of ICT in
teaching and learning. Invariably, retraining of teachers on pedagogies consistent with eSchool
requirements and imparting to both teachers and students ICT skills give them positive attitude to
eSchool and may play a big role in the success of eSchool. The current study therefore conceptualized
training effectiveness as a necessary dimension to eSchool success model. As training impacts on
attitude, and intention to use IS is an attitudinal construct, the current study dropped the dimension
‘intention to use’ in the D&M IS success model. Further, in eSchool, availability of content relevant to
curriculum will to a great extent influence its adoption and use in teaching and learning. The current study
therefore conceptualized that content should be given prominence more so for the fact that sustainability
of eSchool partly rely on availability of content. Lastly, the study argues that accruing measurable
benefits from eSchool may on its own drive more investment in eSchool thus causal relationship between
‘net-benefit and eSchool infrastructure quality. The conceptualized eSchool success model is
represented in figure 2.
E-school
infrastructure Quality
Content and
Communication
Quality
Service Quality of
Technical
Department
Training for Use
Effectiveness
Figure 2: Modified D and M model for eSchools
2.2 Validation design
Use
Teacher and Learners
Satisfaction
Ha
Net Benefit
The current study was implemented using NEPAD eSchool project pilot in Kenya as a case. NEPAD e-
Africa Commission is piloting eSchool system in 17 African countries including Kenya. The eSchools
have computers with local area network (LAN) and wide area network (WAN) established through V-SAT
connection to the internet. The project has training component for users. The main objectives of NEPAD
eSchool include improving the quality of graduating students. This would be evident in the extent to which
students are better prepared to fit well in the modern work life. The modern work life is intensive in
computer use and therefore students should be enabled to acquire computer skills, develop team work
skills through collaborations and lifelong learning skills. Developing lifelong learning skills require learners
to engage in self directed learning which is achieved through practicing acquisition of learning materials
independently.
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Hesbon Nyagowa et al.
The populations for the study were the six secondary schools:Chevakali High school in Western
Province; Maranda High School in Nyanza Province; Menengai Mixed Secondary School in the Rift
Valley Province; Isiolo Girls Secondary School in Eastern region; Mumbi Girls Secondary School in
Central Province; and Wajir Girls Secondary School in North Eastern region. The other part of the
population was users of the eSchool systems in the six schools. The six schools altogether had a
population of 4,936 (1,887 F and 3,049 M) students with 250 teachers. A sample of 1,508 users was
identified using stratified random techniques. Stratification was based on school population, class size in
the different levels (years 9, 10, 11 and 12 of education) and gender (for co-education schools). A
response rate of 51.4% was realized.
Data collected was cleaned and entered into SPSS programme. Reliability and validity of the dater was
assessed. Reliability was assessed using Cronbach Alpha while validity was tested using factor analysis
applying principal component analysis.
3. Results
3.1 Reliability
Test alpha obtained from first half of the data was found to be very closely associated with confirmatory
alpha obtained from second half of the data as shown in table 1 and figure 3.
Table 1: Test and confirmatory alpha
Dimension Test Alpha Confirmatory Alpha
Infrastructure Quality 0.6592 0.704
Information Content and Communication Quality 0.7448 0.7416
Service Quality 0.7182 0.754
Training Effectiveness 0.3962 0.4818
Extent and Exploitative Use 0.7893 0.7766
User Satisfaction 0.916 0.9071
Figure 3: Scatter plots of test and confirmatory alpha
Net Benefits 0.8519 0.822
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3.2 Validity
Hesbon Nyagowa et al.
Scree plot revealed an elbow at a point lying between ordinate 5 and 9 as in figure 4. This confirmed
existence of at least seven components to the eSchool success model as conceptualized.
Eigenvalue
Figure 4: Scree plot
16
14
12
10
8
6
4
2
0
1
Scree Plot
5
9
13
17
21
Component Number
25
29
3.3 Construct and factor loading
Extraction table was drawn to identify the measurement items which fall under same factor. The mean
factor loading was found to range between 0.4786 and 0.6625 as shown in table 2 and which is
considered acceptable for exploratory study.
Table 2: Mean factor loading
Factor Mean Alpha
Infrastructure Quality 0.5586
Information Content and Communication Quality 0.6176
Service Quality 0.5687
Training Effectiveness 0.4787
Extent and Exploitative Use 0.5534
User Satisfaction 0.6835
Net Benefits 0.6625
4. Conclusion and recommendation
4.1 Conclusion
Confirmatory alpha for the data was generally high above 0.65 with the exception of ‘training
effectiveness which is a new dimension in IS success under exploration. Scree plot confirmed existence
of at least seven dimensions to the eSchool success model conceptualized. The item factor loading to the
dimensions had a mean above 0.4 which is considered good construct validity for sample size of 200
(Hair et al., 1998). Agreement between theoretical conceptualization and empirical validation is therefore
strong enough to support suitability of the eSchool success model for evaluating other eSchool systems.
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37
41
45
49
53
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4.2 Recommendation
Hesbon Nyagowa et al.
Of the seven dimensions, the training effectiveness achieved lowest item mean factor loading of 0.4787.
Some items loading to this dimension were much lower. Since training effectiveness measurement
instrument was exploratory, it would benefit the IS evaluation community to contribute towards refinement
of the construct and its measurement. The study could not collect data from students who have
completed schooling in eSchools and therefore could not measure the all the anticipated benefits of
eSchool. It is recommended that future studied include graduates of eSchools to shed more lights on the
benefits of eSchool. Lastly, with the good agreement between conceptual model and empirical testing,
more studies should consider adopting the eSchool success model to determine its validity.
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