• Title/Summary/Keyword: Strategic use of IT

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Factors Influencing Strategic Use of Information Technology and Its Impact on Business Performance of SMEs

  • Kim, Moon-Koo;Jee, Kyoung-Yong
    • ETRI Journal
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    • v.29 no.4
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    • pp.497-506
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    • 2007
  • In this paper, we study the relationship between factors influencing the strategic use of IT and business performance by conducting a survey of small and medium-size enterprises (SMEs). From the results of our survey we came to several conclusions which are presented here. First, IT investment has a significant impact on the strategic use of IT, and the strategic use of IT has a significant impact on business performance. Second, SME investment in IT and strategic use of IT are influenced by both the intensity of competition in the market environment and partnership with other organizations. Third, the support from the management group in SMEs is a core factor for IT investment and strategic use of IT. Finally, for SMEs to use IT strategically and successfully, it is necessary to combine members' participation with a flexible organizational structure and culture.

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Mediating Effect of Strategic Use of Information Systems in the Relationship of IT Competency and Organizational Performance (IT역량과 조직성과의 영향관계에서 IS 전략적 활용의 매개효과분석)

  • Choi, Sangmin;Moon, Taesoo
    • The Journal of Information Systems
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    • v.23 no.2
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    • pp.67-90
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    • 2014
  • Today, the company is trying to improve for business performance through the optimization of corporate resources. Most companies set up new strategy for obtaining competitive advantage for survival in rapid changes of the global business environment. IT has an important role to reduce cost and to increases business performance such as increasing sales, improving business skills and corporate image, etc. in the corporate environment. The development and use of IT resource is recognized as essential in connection with the business strategy. Most companies tried to establish the strategic use of information systems to gain competitive advantage. IT resource management is not clear in a tangible result of the business. The purpose of this study is to find out the relationship between IT competency and organizational performance through the mediating effect of strategic use of IS. IT competency consists of IT human resource, IT infrastructure, and IT vendor management. In direct relationship between three IT competence factors and organizational performance, the results of multiple regression analysis showed that IT human resource and IT vendor management are important determinants to influence organizational performance. The additional analysis for mediating effect of strategic use of IS showed that it has mediated the relationship between IT competency factors and organizational performance. This results give us an implication, not only the importance of IT competency development, but also the importance of strategic alignment of strategic use of IS with business strategy.

A Study on the Effects of Organizational Intelligence Quotient and CIO's Management Roles on Strategic Application of Information Systems (OIQ와 CIO의 경영자 역할이 정보시스템의 전략적 활용에 미치는 영향 연구)

  • Kim, Han-Sung;Chae, Myoung-Sin
    • The Journal of Information Systems
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    • v.17 no.3
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    • pp.255-287
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    • 2008
  • This study examined the relationship among constructs that impact on strategic use of IS(Information Systems). Independent variables were OIQ(Organizational Intelligence Quotient) and role of CIO(Chief of Information Officer) as a top manager, and dependent variable are strategic use of IS. The dependent variable has three-sub constructs: 1) IT infrastructure flexibility; 2) operation-orientation; and 3) market-orientation. Seven research hypotheses derived from the research model, and were empirically tested using the PLS (Partial Least Squares) method. The research results confirmed that both OIQ and CIO's roles have strong impact on organizations' strategic use of IS. Communication and business network among the sub-constructs of OIQ have effect on strategic use of IS. CIO's role as a top manager was found to be significant. CIO's role as a resource allocator and innovator among the CIO's roles showed significant influence on strategic use of IS. OIQ was also significantly related to CIO's role as a top manager. This study suggests practical implications and insights to the enterprises which aim to apply IT strategically.

Strategic Use of Fashion: A View from Sociology of Culture (문화사회학적 시각에서 본 패션의 전략적 사용)

  • Choi, Set-Byol;Jin, Ki-Nam
    • Journal of the Korean Society of Clothing and Textiles
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    • v.31 no.9_10
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    • pp.1342-1351
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    • 2007
  • Using a data set drawn from 1419 college students, this study analyzes what implications clothing or fashion has on self-expression or image management in Korean society and who are more likely to use fashion as a image management tool in the process of interacting with others. Employing Pierre Bourdieu's concept of capital, we discuss three theories concerning correspondence between class and fashion: the theory focusing on economic capital in emphasizing the correspondence; the theory focusing on cultural capital in emphasizing the correspondence and the theory emphasizing relationships between fashion and other factors rather than class. Based on the theoretical examination, we select independent variables that can be grouped into status/class variables, or economic capital variables(such as subjective status, income, father's education, father's occupation) and socio-cultural variables, or cultural capital variables(such as possession of cultural capital, desire for upward mobility). Upon regressing strategic use of fashion on independent variables, we find that both status/class variables and socio-cultural variables are statistically significant in explaining the strategic mobilization of fashion for one's image production or social success. It shows that class as a form of economic capital has important effects on the strategic use of fashion, and cultural capital also has effects independent of economic capital.

A Study on the Effects of IT Use on the Manufacturing Flexibility (정보기술 사용이 제조유연성에 미치는 영향에 관한 연구)

  • 이경희;정상철
    • Journal of Information Technology Applications and Management
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    • v.11 no.2
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    • pp.81-99
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    • 2004
  • Manufacturing flexibility has strategic position in improving competitive advantage as a mechanism that responses environmental uncertainty. Thus this study aims at recognizing strategic meaning of manufacturing flexibility in enhancing the competitive advantage and measuring manufacturing flexibility and ultimately analyzing the effects of IT use on the manufacturing flexibility. Consequently we proved that IT use have an effect on manufacturing flexibility and manufacturing flexibility has an effect on competitive advantage in this study The results of this study are as follows. First, information acquisition and decision support by IT use has a significant effect on enhancing the manufacturing flexibility and manufacturing flexibility has a significant effect on improving the competitive advantage. Theses results are also means that IT use to support AMT usage is more important than AMT itself in the achieving manufacturing flexibility.

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A Portfolio Model for National IT R&D Strategy Project Selection Methods

  • Ryu, Dong-Hyun;Lee, Woo-Jin
    • Journal of information and communication convergence engineering
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    • v.9 no.5
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    • pp.491-499
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    • 2011
  • In this paper, we offer a new strategic portfolio model for national IT R&D project selection in Korea. A risk and return (R-R) portfolio model was developed using an objectively quantified index on the two axes of risk and return, in order to select a strategic project and allocate resources in compliance with a national IT R&D strategy. We strategize using the R-R portfolio model to solve the non-strategy and subjectivity problems of the existing national R&D project selection model. We also use the quantified evaluation index of the IT technology road map (TRM) and the technical level reports (TLR) for the subjectivity of project selection, and try to discover the weights using the analytic hierarchy process (AHP). In addition, we intend to maximize the chance for a successful national IT R&D project, by selecting a strategic portfolio project and balancing the allocation of resources effectively and objectively.

How User's Participation in Feasibility Study Enhances Use of Business Intelligence Systems

  • Kim, Nam Gyu;Kim, Sung Kun
    • Journal of Information Technology Applications and Management
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    • v.24 no.3
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    • pp.1-21
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    • 2017
  • Business Intelligence (BI) system is a strategic tool that presents an analytical perspective about business and external environments. Even though its strategic value was well known, users often avoid using it or adopt it ceremonially. In fact, over 50 per cent of BI projects worldwide are reported to end in failure. Such an unexpectedly lower success rate has been a key issue in BI studies. In order to enhance a proper use of information systems, MIS field provided a number of theoretical constructs. One example is Goodhue & Thompson's Task-Technology Fit (TTF). In addition, internalization, the degree to which people make their own effort to modify behavior, was recently suggested as another important determinant of use. Though in MIS community both TTF and internalization proved to be a key determinant of system use, there has been not much study aiming to discover antecedents influencing these constructs. In this study we assert that user participation should be highlighted in BI projects. Especially, we emphasize user participation at the phase of feasibility study that is mainly conducted to determine whether a BI system is essentially necessary and practicable. Our research model employs participative feasibility study as a major antecedent for TTF and internalization that consequently will lead to user satisfaction and actual use. This model was empirically tested on 121 BI system users. The result shows that user participation in feasibility study is positively associated with TTF and internalization, each being related to user satisfaction and system use. It implies that, if an organization has BI users get involved in strategic feasibility study phase, the BI system would turn out to fit users' tasks and, furthermore, users would put more efforts spontaneously in order to use it properly.

A Refined Strategic Canvas of Blue Ocean Strategy Based on the Business Evolution (비즈니스 진화에 기초한 블루오션 전략캔버스의 개선에 관한 연구)

  • Song, Chang-Yong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.35 no.3
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    • pp.210-216
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    • 2012
  • Recently, it is not sufficient that contemporary firms satisfy customers to be really successful, they must create new value. To do so, many firms focus on the blue ocean strategy. The blue ocean strategy proposed the strategic canvas as a main tool for identifying the opportunities for value differentiation. It is easy to understand and for the use, but has weakness that is a unclear procedure to make it done. To complement its weak point, this study proposes a refined strategic canvas based on the concept of the business evolution that comes from a discontinuous evolution trend of 5 stages known as customer expectation.

Clients' Strategic Choices to Mitigate Their Dependence on Vendors in IT Outsourcing : Resource Dependence and Opportunism Prospects (정보기술 아웃소싱에서 고객이 전문업체에 대한 의존도를 줄이기 위한 전략적 선택에 관한 연구 : 자원의존 및 기회주의 이론 관점에서)

  • Lee, Jae-Nam
    • Journal of Information Technology Services
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    • v.7 no.1
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    • pp.167-193
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    • 2008
  • Clients' outsourcing strategies noted in the IT outsourcing literature generate varying levels of client dependence on vendors. This study investigates clients' efforts to mitigate such dependence by utilizing multiple vendors. We use the theoretical lenses of resource dependency and opportunism to study this phenomenon. Specifically. we consider degree of outsourcing, duration of contract, and externalization of control as strategic choices that engender vulnerabilities that clients seek to offset by using multiple vendors. This study then considers the basis of the outsourcing relationships, clients' satisfaction with the relationships. and clients' IT workforce size as conditions that induce clients' concerns about vendor opportunism. This study argues that these conditions can exacerbate clients' experience of vulnerability. further encouraging clients' use of multiple vendors. The research model developed is tested in a survey of firms in South Korea. Results suggest a strong impact of outsourcing strategic choices on the number of vendors used by clients. The anticipated moderating effects of opportunism were only weakly supported by the data though. Theoretical and practical implications of the results are considered and suggestions for future research are offered.

Development of an Strategic Model for the Selection of a National IT R&D Strategic Project (국가 IT R&D 전략과제 선정 모형개발)

  • Ryu, Dong-Hyun;Park, Jeong-Yong;Lee, Woo-Jin
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.15 no.3
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    • pp.501-509
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    • 2011
  • In this paper, we offer a new strategic Portfolio Model for national IT R&D project selection in Korea. A risk and return (R-R) Portfolio Model was developed using an objectively quantified index on the two axes of risk and return, in order to select a strategic project and allocate resources in compliance with a national IT R&D strategy. We strategize using the R-R Portfolio Model to solve the non-strategy and subjectivity problems of the existing national R&D project selection Model. We also use the quantified evaluation index of the IT technology road map (TRM) and the technology level Survey (TLS) for the subjectivity of project selection, and try to discover the weights using the analytic hierarchy process (AHP). In addition, we intend to maximize the chance for a successful national IT R&D project, by selecting a strategic Portfolio project and balancing the allocation of resources effectively and objectively.