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Extra info for Beryllium Technology for Fusion [2nd IPA Intl Wkshp]

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6 The Macro-level of the Model: Firm-Level Organizational Complements and IT Business Value The organizational complements we examined in the prior section were specific to a particular type of IT investment initiative. We now move from this micro-level to the macro-level and consider the organizational complements that generalize to an entire class of IT investments rather than a particular type of IT. We posit three categories of firm-level organizational complements: business strategy, IT capabilities, and organizational architecture.

Their participation is required to ensure that the right systems and features are chosen and to mobilize the organization. Cisco established 100% standardization at each level of their architecture: hardware, operating systems, databases, networking, and most applications. This allowed them unusual speed in rolling out new applications (essentially replacing all applications over a 2 year period) and integrating acquisitions (usually completed in 60–100 days). Cisco was able to successfully implement ERP in 9 months and replace most of the rest of their IT infrastructure in 2 years, which gives a clear indication of the strength of their IT human assets.

Devaraj and Kohli (2003) linked the extent of IT use in a hospital setting to operational performance improvements. Karimi, Somers, and Bhattacherjee (2007) studied the impact of the extent of ERP implementation (functional scope, geographic scope, organizational scope, etc. of the solution) on business process outcomes (such as process flexibility, 2 Deriving Business Value from IT Applications in Product Development 23 process efficiency). Similarly, Mishra, Konana, and Barua (2007) found that the extent of Internet use in procurement order initiation and completion had positive impact on the organization’s overall procurement performance.

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