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ON IT GOVERNANCE STRUCTURES AND THEIR EFFECTIVENESS IN COLLABORATIVE ORGANIZATIONAL STRUCTURES. Presented by: Jon Heales Authors Acklesh Prasad, Peter Green, and Jon Heales. Presentation Outline. Motivation Research Objective Theoretical Basis Hypothesis Research Design Results
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ON IT GOVERNANCE STRUCTURES AND THEIR EFFECTIVENESS IN COLLABORATIVE ORGANIZATIONAL STRUCTURES Presented by: Jon Heales Authors Acklesh Prasad, Peter Green, and Jon Heales
Presentation Outline • Motivation • Research Objective • Theoretical Basis • Hypothesis • Research Design • Results • Contributions • Directions for Future Research • Limitations • Conclusion
Motivation • Key to business success today – bring disparate resources together and leverage the synergy between these resources • Organizations are forming new alliances using a shared IT-based platform • The result - Collaborative Organizations Structures (COS) • COS - alliances developed with IT resources as their backbone • The proliferation of web 2.0 tools – Enterprise 2.0
Motivation • IT governance for COS is important to sustain the collaborative alliance • IT Governance for COS – a move away from within-organization structures to across-organizations structures • Are current suggested IT governance structures suitable for COS? • Need for a different set of IT governance structures • IT governance structures of COS must be effective to ensure its sustainability
Research Question • “What type of IT governance structures are important for management of IT resources in COS and how do we ascertain the effectiveness of these IT governance structures?”
Theoretical Basis • The dynamic capabilities approach • Understanding the synergy between IT governance capabilities in organizations • The resultant Dynamic IT governance structures • Dynamic structures – able to fit and respond to changing business environment – common for IT-backed collaborative structures like COS • Understanding the synergy between dynamic IT governance capabilities between COS alliance partners. • Result – IT governance structures for COS- a shared approach
Our Approach with Theory • Theory informs on the nature of the COS IT governance structures • But we need to understand on the makeup of these IT governance structures.
Research Design - Part 1 • An interpretive approach to obtaining a deeper understanding of the makeup of IT governance structures for COS • Sourcing information from the key stakeholders of successful COS or related alliance structures • 16 semi-structured interviews • Interpretation of interview transcripts • Result - key themes of IT governance structures for COS
Research Design – Stage 2 • Survey Approach • Instrument Development and Testing • Online and Paper based survey • Contacts – parties to COS, retailer, logistics, payment facilitation • 118 valid responses • Diagnostics showed no issues with data
Discussion • IT-based alliances like COS require different IT governance structures • The decisions on IT has impact to all parties of the alliance • The suggested governance structures for COS are effective • They contribute to alliances key IT-related competencies, sustains their IT-related capabilities • This subsequently contributes to business value at the process and the firm level.
Contributions • Provides a way to govern IT resources that build the collaborate alliances • The governance effectiveness assessment approach will ensure sustainability of COS because there is a mechanism to evaluate the alliances IT-related decisions and efforts. • Effective IT governance structures are important for the today’s dynamic alliances • Motivates practice to take a holistic approach towards their IT-related decision making
Directions for future research • Focusing on specific parties of COS – payment providers, logistics may provide a deeper understanding • Nature of IT resources for COS • Organizational readiness for being part of COS
Research Limitations • A modest yet adequate dataset to test model • Including the demographics on the alliance partners could strengthen our understanding of IT resource utilization in COS
Conclusion • This study offers insights on the need for co-created IT governance structures to manage the IT resources with COS. • The proliferation of rich web 2.0 tools means organizations will increase their intensity of commitment into COS. • We envisage our effort will encourage other researchers add to this body of knowledge to ensure organizations are continually updated on ways to leverage their investment in the IT resources.
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