Adoption of new online services in the presence of network externalities and complementarities


Electronic Commerce Research and Applications

janvier-février 2009, vol. 8, n°1, pp.3-15

Départements : Information Systems and Operations Management

Mots clés : Mixed-usage; Online services; Complementarities; Network externalities; Technology adoption; Punctuated equilibrium

Analysis and Optimization of a Combined Make-to-Stock and Make-to-Order Multiproduct Manufacturing System

K. Hadj Youssef, C. VAN DELFT, Y. Dallery

Journal of Applied Mathematics and Decision Sciences

2009, vol. 2009, n°ID 716059

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

We consider a single-stage multiproduct manufacturing facility producing several end-products for delivery to customers with a required customer lead-time. The end-products can be split in two classes: few products with high volume demands and a large number of products with low-volume demands. In order to reduce inventory costs, it seems efficient to produce the high-volume products according to an MTS policy and the low volume products according to an MTO policy. The purpose of this paper is to analyze and compare the impact of the scheduling policy on the overall inventory costs, under customer lead-time service level constraints. We consider two policies: the classical FIFO policy and a priority policy (PR) which gives priority to low volume products over high volume products. We show that for some range of parameters, the PR rule can significantly outperform the FIFO rule. In these ranges, the service level constraints are satisfied by the PR rule with much lower inventory costs.

Citizen Trust Development for E-Government Adoption and Usage: Insights from Young Adults in Singapore


Communications of the AIS

2009, vol. 25, n°31, pp.359-378

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Trust, which has been found to be a significant facilitator for the adoption and usage of new business paradigms like e-commerce, is relatively unexplored in the context of e-government. Using trust literature as the theoretical lens, we propose an e-government trust grid for the adoption and usage of e-government, comprising two dimensions: 'trust in government' and 'trust in Internet technology.' Based on their levels of trust in the two identified dimensions, nations can fall into one of four quadrants: Adversarial, Competitive, Cooperative, and Collaborative. Using focus groups and interviews with young adults in Singapore, we find that in recent years, Singapore is evolving from the cooperative (low trust in Internet technology and high trust in government) to the collaborative (high trust in Internet technology and high trust in government) quadrant. The study delineates a set of lessons learned from the Singapore experience for engendering citizen trust in e-government. These lessons for governments are: solicit feedback from citizens, demonstrate top leadership commitment and support, build institutional trust, cultivate IT literacy, and enact comprehensive and effective legal systems.

Competing technology options and stakeholder interests for tracking freight railcars in Indian Railways


Journal of Information Technology

décembre 2009, vol. 24, n°4, pp.392-400

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : RFID, GPS, Technology choice, Options, Railroad, India

This teaching case examines the implementation of a new technology for tracking individual freight railcars (wagons) by Indian Railways. After exploring multiple ‘technological options,’ the Indian Railways decided to undertake a pilot project based on time-tested Automatic Equipment Identification system using Radio Frequency Identification (RFID) technology. However, a number of other technological options are now available, which include EPC Gen2-based RFID systems, Global Positioning System solutions, Optical Character Recognition (OCR)-based systems, and manual hand-held data collection devices integrated with the current Freight Operations System. Each of these systems has its own advantages and limitations. Although Indian Railways officials are going ahead with the pilot project, they are uncertain as to the appropriate technological choice, given the wide range of available technology options. Further, they are faced with competing interests from different stakeholder groups (departments), who favor different technologies.

Entrepreneuriat familial et stratégies de pérennité. Conception au concept d'innovation prudentielle


Management International

2009, vol. 14, n°1, pp.25-41

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Innovation, Entrepreneuriat familial, Pérennité, Etude de cas Innovation, Family business, Sustainability, Case study

L’objectif de cette recherche est d’analyser les comportements en matière d’innovation d’entreprises familiales pérennes. Une analyse de données secondaires constituées de témoignages relatifs à l’innovation dansdes firmes familiales pérennes met en évidence la recherche constante d’arbitrage entre stabilité et renouvellement, et le poids des traditions agissant comme garde-fou des stratégies d’innovation. Puis, des choixstratégiques d’innovation réalisés par une entreprise familiale pérenne sont analysés en profondeur et permettent de spécifier le concept d’innovation prudentielle. Cette notion est ensuite précisée à l’aide de sept caractéristiques puisant toutes leur origine dans les traits communément acceptés des firmes familiales pérennes

ERP Competence-Building Mechanisms: An Exploratory Investigation of Configurations of ERP Adopters in the European and U.S. Manufacturing Sectors

A. MASINI, L. Van Wassenhove

Manufacturing & Service Operations Management

printemps 2009, vol. 11, n°2, pp.274-298

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

This paper contributes to the literature on enterprise resource planning (ERP) by pursuing two objectives. First, it identifies configurations of ERP adopters that have similar needs and develop similar competencies. Second, it tests the hypothesis that, to maximize benefits from their ERP projects, organizations should align their ERP competence-building mechanisms with the ERP needs that arise from their operational environment. The analysis of a sample of manufacturing companies that implemented ERP between 1995 and 2001 uncovers four distinct configurations representing different degrees of fit between needs and competence-building mechanisms: the frugal ERP, the extensive business process reengineering (BPR), the adaptive ERP, and the straitjacket. The results support our hypothesis and suggest that the consequences of a misfit between needs and competence-building mechanisms are more severe for companies that operate in complex and dynamic environments and have informal organizational structures than for firms with rigid structures that operate in simple and stable environments. Key Words: enterprise resource planning (ERP); operations strategy; information and communication technology; empirical research; cluster analysis

Incentive Contracts in Projects with Unforeseeable Uncertainty

S. SOMMER, C. Loch

Production and Operations Management

mars-avril 2009, vol. 18, n°2, pp.185-196

Départements : Information Systems and Operations Management

Mots clés : Incentives, Incomplete contracts, Unforeseeable uncertainty, Adjustment clause

Designing incentive contracts that constructively guide employee efforts is a particularly difficult challenge in novel innovation initiatives, where unforeseen events may occur. Empirical studies have observed a variety of incentive structures in innovation settings: "time and material contracts" (compensation for executing orders), "downside protection" (target-driven incentives with protection from unexpected risks), and "upside rewards" (additional remuneration for pursuing opportunities). This paper develops a model of incentives in presence of unforeseen events and offers a theoretical prediction of which of the empirically observed incentive structures should be used under which circumstances. The combination of three key influences drives the shape of the best incentive contract. First, the presence of unforeseeable uncertainty, or the occurrence of events that cannot possibly be foreseen at the outset. These may force a change in the project's plan, making pure target setting insufficient. Second, fairness concerns dictate that the employee's expected compensation cannot be shifted downward by unforeseen events, because it would cause demotivation, hostility, and defection. Third, management may not be able to observe the detailed actions of the employee (moral hazard) nor whether a positive or negative unforeseen event has occurred (asymmetric information).

Investimenti in ICT e performance aziendali: Un'analisi delle strategie di implementazione ottimali (ICT investments and firm performance: optimal implementation strategies)

A. MASINI, L. Van Wassenhove

Economia & Management

mars 2009, vol. 2

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

pas sous affiliation hecQuesto articolo offre un contributo alla letteratura sulla relazione tra investimenti in ERP (Enterprise Resource Planning) e performance attraverso l'analisi di un campione di clienti SAP nel settore manifatturiero. La ricerca esamina l'efficacia delle principali strategie di implementazione dei sistemi ERP in relazione ai bisogni delle imprese. I risultati suggeriscono l'esistenza di quattro gruppi omogenei di imprese che hanno bisogni simili e sviluppano competenze simili durante l'implementazione del software. Essi suggeriscono inoltre che, per massimizzare i benefici del sistema adottato, le imprese debbano allineare le competenze generate con i bisogni derivanti dal loro ambiente operativo. Appare anche evidente che le conseguenze di un mancato allineamento tra bisogni e le scelte progettuali operate durante l'implementazione del sistema siano più severe per le imprese con strutture organizzative informali che operano in ambienti complessi e dinamici, che per le imprese con strutture rigide che operano in ambienti semplici e stabili.

Managing Complexity and Unforeseeable Uncertainty in Startup Companies: an Empirical Study

S. SOMMER, C.H. Loch, J. Dong

Organization Science

janvier-février 2009, vol. 20, n°1, pp.118-133

Départements : Information Systems and Operations Management

Mots clés : Unforeseeable uncertainty, Complexity, New ventures, Empirical study, Selectionism, Learning

Novel startup companies often face not only risk, but also unforeseeable uncertainty (the inability to recognize and articulate all relevant variables affecting performance). The literature recognizes that established risk planning methods are very powerful when the nature of risks is well understood, but that they are insufficient for managing unforeseeable uncertainty. For this case, two fundamental approaches have been identified: trial-and-error learning, or actively searching for information and repeatedly changing the goals and course of action as new information emerges, and selectionism, or pursuing several approaches in parallel to see ex post what works best. Based on a sample of 58 startups in Shanghai, we test predictions from prior literature on the circumstances under which selectionism or trial-and-error learning leads to higher performance. We find that the best approach depends on a combination of uncertainty and complexity of the startup: risk planning is sufficient when both are low; trial-and-error learning promises the highest potential when unforeseeable uncertainty is high, and selectionism is preferred when both unforeseeable uncertainty and complexity are high, provided that the choice of the best trial can be delayed until its true market performance can be assessed

Managing Service Systems with an Offline Waiting Option and Customer Abandonment


Manufacturing & Service Operations Management

automne 2009, vol. 11, n°4, pp.644-656

Départements : Information Systems and Operations Management

Mots clés : service operations ; customer abandonment ; customer impatience ; reneging ; offline waiting ; choice models ; heavy traffic

Many service providers offer customers the choice of either waiting in a line or going offline and returning at a dynamically determined future time. The best-known example is the FASTPASS® system at Disneyland. To operate such a system, the service provider must make an upfront decision on how to allocate service capacity between the two lines. Then, during system operation, he must provide estimates of the waiting times for both lines to each arriving customer. The estimation of offline waiting times is complicated by the fact that some offline customers do not return for service at their appointed time. We show that when demand is large and service is fast, for any fixed-capacity allocation decision, the two-dimensional process tracking the number of customers waiting in a line and offline collapses to one dimension, and we characterize the one-dimensional limit process as a reflected diffusion with linear drift. The analytic tractability of this one-dimensional limit process allows us to solve for the capacity allocation that minimizes average cost when there are costs associated with customer abandonments and queueing. We further show that in this limit regime, a simple scheme based on Little's Law to dynamically estimate in line and offline wait times is effective