bluuebunny/crossref_metadata_2025 huggingface dataset:
Applying Quantitative Marketing Techniques to the Internet
Authors: Montgomery Alan L.
Published: December 2003

Quantitative models have proved valuable in predicting consumer behavior in the offline world. These same techniques can be adapted to predict online actions. The use of diffusion models provides a firm foundation to implement and forecast viral marketing strategies. Choice models can predict purchases at online stores and shopbots. Hierarchical Bayesian models provide a framework for implementing versioning and price-segmentation strategies. Bayesian updating is a natural tool for profiling users with clickstream data. A key challenge for practitioners of Internet marketing is to extract value from the huge volume of data that can be collected. These techniques illustrate how this information can be leveraged to create better decisions.
Process Management and Supply-Chain Integration at the Bose Corporation
Authors: Segars Albert H. , Harkness Warren J. , Kettinger William J.
Published: December 2003

The Bose Corporation has developed an approach to quality management that is driving the integration of manufacturing and selling across its supply chain. Instead of designing a path towards integrated process improvement, Bose has evolved through definable stages in achieving its view of processes and business relationships. In the early stages, managers commonly explore and discover process concepts informally. They acquire a sense of urgency, achieve early successes, and develop a leadership coalition. As they better understand quality management in the context of the organization, managers formalize their efforts and share them widely. Credible management communication and top management support are important. Finally, managers link the process thinking created within the organization with process efforts of the business coalition. At this stage, mobilizing a business coalition and creating a compelling business case are important. Bose's experiences provide a guide for process improvement within the organization and across the supply chain.
Using Cyclic Planning to Manage Capacity at ALCOA
Authors: Schmidt Edie , Dada Maqbool , Ward James , Adams Duane
Published: December 2003

ALCOA makes aluminum-tubing products to order. The product lines' success caused a backlog of customer orders and long customer lead times. This problem was exacerbated by frequent machine breakdowns at a bottleneck operation. ALCOA implemented cyclic planning to improve capacity management. The results were immediate and dramatic. Over eight months, output increased by over 20 percent, almost eliminating the backlog of customer orders. The cyclic-planning implementation resulted in additional benefits throughout the organization, including improved workforce planning and better machine maintenance scheduling.
A Call Center Uses Simulation to Drive Strategic Change
Authors: Saltzman Robert M. , Mehrotra Vijay
Published: December 2003

A large, customer-focused software company relied on simulation modeling of its call center operations in launching a new fee-based technical-support program. Prior to launching this rapid program, call center managers were concerned about the difficulty of meeting a proposed guarantee to paying customers that they would wait less than one minute on hold. Managers also wanted to know how the new program would affect the service provided to their existing base of regular, nonpaying customers. We quickly developed an animated simulation model that addressed these concerns and gave the managers a good understanding for the impact on system performance of changes in the number of customers purchasing the rapid program and in the number of agents. The one-minute guarantee would be fairly easy to achieve, even if the percentage of callers in the rapid program became quite high. Managers also gained confidence that, with appropriate staffing levels, they could successfully implement the new program, which they soon did.
Combinatorial and Quantity-Discount Procurement Auctions Benefit Mars, Incorporated and Its Suppliers
Authors: Hohner Gail , Rich John , Ng Ed , Reid Grant , Davenport Andrew J. , Kalagnanam Jayant R. , Lee Ho Soo , An Chae
Published: December 2003

Simple auctions neglect the complex business constraints required by strategic sourcing. The Mars-IBM team created a procurement auction Web site 〈www.number1traders.com〉 that enables buyers to incorporate complex bid structures (such as bundled all-or-nothing bids and quantity-discounted bids) and business constraints into strategic-sourcing auctions. Outcomes in such auctions must lead to win-win solutions to sustain long-term relationships between procurer and suppliers. These factors are as important or more important than price. The Mars procurement auction Web site supports several alternatives to simple auctions that help match its needs as procurer and the capabilities of suppliers by incorporating optimal bid selection subject to constraints based on business rules in a dynamic environment. The ability to consider geographic, volume, and quality factors helps both parties. Feedback from participant suppliers has highlighted the benefits of time efficiency, transparency, and fairness. Although they reflect just one side of the benefits ledger, the monetary benefits to Mars (a $14 billion company) and to its suppliers are significant.
Optimizing Rhenania's Mail-Order Business Through Dynamic Multilevel Modeling (DMLM)
Authors: Elsner Ralf , Krafft Manfred , Huchzermeier Arnd
Published: December 2003

Rhenania, a German direct mail-order company, turned its catalog mailing practices around within one year and consequently moved up in market position from number 5 to number 2. A dynamic multilevel modeling (DMLM) approach uses elasticities to determine the optimal frequency of catalog mailings, a customer-segmentation approach allows for optimization of mailings, and a recency, frequency, monetary-value (RFM) segmentation in combination with a chi-square automatic interaction detection (CHAID) algorithm determines when customers should receive a reactivation package—as opposed to a catalog—to optimize mailing efficiency further. The DMLM approach was so effective that Rhenania acquired two competitors (one a subdivision of Springer Verlag).
Applying Operations Research Techniques to Financial Markets
Authors: Board John , Sutcliffe Charles , Ziemba William T.
Published: December 2003

OR techniques are applied to nonportfolio problems in financial markets, such as the equity, debt, and foreign exchange markets and the corresponding derivatives markets. Finance problems are an excellent application area for OR researchers. OR techniques are used to value financial instruments, identify market imperfections, design securities, regulate markets, evaluate and control risks, model strategic problems, and understand the functioning of financial markets. Mathematical programming is probably the most widely applied OR technique, but Monte Carlo simulation methods are of increasing importance. With the improvements in the real-time availability of data and the power of computers, the role of OR techniques in financial markets can only increase.
Models for Improving Team Productivity at the Federal Reserve Bank
Authors: So Kut C. , Tang Christopher , Zavala Robert
Published: December 2003

To compete with other check-processing services, the Federal Reserve Bank (FRB) needs new mechanisms for providing low-cost, high-quality service to its customers. Specifically, the FRB must have the right supply of workers at the right time to handle uncertain check arrivals and complete processing them on time. We developed one deterministic optimization model and one simulation model that are valuable for managing teams. The first model, corroborated by a pilot study, confirms that the FRB can achieve higher productivity by changing from a serial-line configuration to a team structure. The second model enables managers to configure different teams and their work schedules effectively. The FRB in Los Angeles used these two models as a planning tool in reconfiguring its check-processing unit in 2000. Implementing these two models at the Los Angeles branch of the FRB saves $1 million annually and increases productivity by 24.3 percent.
Detecting Abnormal Pricing in International Trade: The Greece-USA Case
Authors: Pak Simon J. , Zanakis Stelios H. , Zdanowicz John S.
Published: December 2003

Government authorities, international lending agencies, and private sector firms try to detect abnormal pricing in international trade. Abnormal prices in international trade may indicate capital flight, import-duty fraud, income-tax evasion, or money laundering. We developed a framework for filtering all annual trades between two countries, which includes thousands of harmonized commodity codes and millions of import-export transactions. It produces a prioritized list of commodities traded at potentially abnormal prices and can help auditors to identify such items ranked according to likelihood of abnormal pricing. We estimated the economic impact of over invoiced imports to Greece from the United States and underinvoiced exports from Greece to the United States. These transactions shift as much as $400 million in income annually out of Greece to the US (and well over $5.5 billion out of Greece to all other countries or about four percent of the GDP of Greece), lowering the level of taxable income and the tax liability of firms operating in Greece, thus increasing the public deficit and reducing domestic investments. The treasury of Greece is losing an estimated $1.4 to $2 billion revenues annually from worldwide trade shifted income. By auditing only the top 25 income-shifting items with the US (identified through a pricing filter), the Greek treasury could capture about 3/4 of the income shifted from exports and over 1/2 of the income shifted from all imports.
Book Reviews
Authors: Lev Benjamin
Published: December 2003

The range of books reviewed is wide, covering theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems (no software is reviewed). In addition, we include books in other fields that emphasize technical applications. Publishers who wish to have their books reviewed should send them to Professor Benjamin Lev. We list the books received; not all books received can be reviewed because space is limited. Those who would like to review books are urged to send me their names, addresses, and specific areas of expertise. We commission all reviews and do not accept unsolicited book reviews. Readers are encouraged to suggest books that might be reviewed or to ask publishers to send me copies of such books.

The authors or editors of the books reviewed in this issue are Valerie Belton, Theodor J. Stewart, Sunil Chopra, Peter Meindl, and Peter Winker.
Teaching the Costs of Uncoordinated Supply Chains
Authors: Munson Charles L. , Hu Jianli , Rosenblatt Meir J.
Published: December 2003

Supply-chain management has become a prominent area for teaching and research. Academics and managers realize that communication and coordination among members of a supply chain enhance its effectiveness, creating financial benefits to be shared by the members. We have collected numerical examples covering (1) location decisions, (2) centralized warehousing, (3) lot sizing with deterministic demand, (4) demand forecasting, (5) pricing, and (6) lot sizing with stochastic demand in a newsvendor environment. The examples are suitable for classroom use, and they illuminate the rewards supply-chain members can obtain by eliminating naturally occurring supply-chain inefficiencies and the costs of not doing so.
CROSS: A Multicriteria Group-Decision-Making Model for Evaluating and Prioritizing Advanced-Technology Projects at NASA
Authors: Tavana Madjid
Published: December 2003

Evaluating and prioritizing advanced-technology projects is a particularly difficult task for the staff at the Kennedy Space Center (KSC) shuttle project engineering office. Because the evaluation process is complex and unstructured, decision makers (DMs) must consider vast amounts of diverse information concerning safety, systems engineering, cost savings, process enhancement, reliability, and implementation. Intuitive methods developed in the past have helped them to use large volumes of information in evaluating projects. However, these intuitive methods do not provide a structured framework for systematic evaluation. CROSS (consensus-ranking organizational-support system) is a multicriteria group-decision-making model that I implemented successfully at KSC to capture the DMs' beliefs through sequential, rational, and analytical processes. CROSS uses the analytic hierarchy process (AHP), subjective probabilities, the entropy concept, and the maximize-agreement heuristic (MAH) to enhance the DMs' intuition in evaluating sets of projects.
Practice Abstracts
Authors: Keefer Donald L.
Published: December 2003

Practice Abstracts carries short reports of specific current or recent OR/MS projects. Often these reports are based on existing documents, such as internal reports or company newsletters. We hope that these abstracts will be accessible, interesting, and valuable to practitioners in other organizations. Contributions should be sent for evaluation to the editor of “Practice Abstracts,” Donald L. Keefer, Department of Supply Chain Management, Arizona State University, Box 874706, Tempe, Arizona 85287-4706 [don.keefer@asu.edu]
Teaching OR/MS Using Discussion Leadership
Authors: Corner James , Corner Patricia Doyle
Published: December 2003

The number of OR/MS courses offered has declined in the last 15 years. Academics and practitioners have debated how to reverse this trend to insure the managerial relevance of OR/MS courses. We use a teaching technique, discussion leadership, designed to augment the managerial relevance of OR/MS topics that is a variant of case teaching. It is nondirective and focused on management as problem solving. Discussion leadership also helps students develop managerial skills, including strategic thinking, communication, conflict resolution, logic, and visualization of links between technical solutions and competitive advantage. We particularly recommend it for teaching MBA and executive students. The synergy between the use of cases with their descriptions of managerial problems and the discussion leadership approach yields real benefits.
Newsvendors Tackle the Newsvendor Problem
Authors: Koschat Martin A. , Berk Glorian L. , Blatt Jeffrey A. , Kunz Nancy M. , LePore Michael H. , Blyakher Sam
Published: December 2003

In 1998, the retail sales and marketing division of Time Inc., the largest publisher of consumer magazines in the US, reviewed its newsstand distribution principles and procedures for its magazines. This review affected the three major distribution decisions: the evaluation of each magazine's national print order, the wholesaler allotment procedure, and the store distribution process. For this three-echelon distribution problem, we had to adapt well-known formal solutions so that they could be implemented within the constraints of the magazine distribution channel. The revised process, referred to as Time Inc.'s Draw Management Program, has generated incremental profits in excess of $3.5 million annually.
Book Reviews
Authors: Lev Benjamin
Published: December 2003

The range of books reviewed is wide, covering theory and applications in operations research, statistics, management science, econometrics, mathematics, computers, and information systems (no software is reviewed). In addition, we include books in other fields that emphasize technical applications. Publishers who wish to have their books reviewed should send them to Professor Benjamin Lev. We list the books received; not all books received can be reviewed because space is limited. Those who would like to review books are urged to send me their names, addresses, and specific areas of expertise. We commission all reviews and do not accept unsolicited book reviews. Readers are encouraged to suggest books that might be reviewed or to ask publishers to send me copies of such books.

The authors or editors of the books reviewed in this issue are Yakov Ben-Haim, Saul I. Gass, Carl M. Harris, Nancy Hyer, and Urban Wemmerlöv.
How US Air Force Space Command Optimizes Long-Term Investment in Space Systems
Authors: Brown Gerald G. , Dell Robert F. , Holtz Heath , Newman Alexandra M.
Published: December 2003

United States Air Force Space Command spends billions of dollars each year acquiring and developing launch vehicles and space systems. The space systems in orbit must continually meet defensive and offensive requirements and remain interoperable over time. Space Command can launch additional space systems only if it has a launch vehicle of sufficient capability. Space planners using space and missile optimization analysis (SAMOA) consider a 24-year time horizon when determining which space assets and launch vehicles to fund and procure. A key tool within SAMOA is an integer linear program called the space command optimizer of utility toolkit (SCOUT) that Space Command uses for long-range planning. SCOUT gives planners insight into the annual funding profiles needed to meet Space Command's acquisition goals. The 1999 portfolio of 74 systems will cost about $310 billion and includes systems that can lift satellites into orbit; yield information on space, surface, and subsurface events, activities, and threats; and destroy terrestrial, airborne, and space targets.
Early Detection of High-Risk Claims at the Workers' Compensation Board of British Columbia
Authors: Urbanovich Ernest , Young Ella E. , Puterman Martin L. , Fattedad Sidney O.
Published: December 2003

We developed a combined decision-analysis and logistic-regression approach for identifying high-risk claims at the Workers' Compensation Board of British Columbia (WCB). The early detection of such claims and subsequent intervention is likely to reduce their eventual cost and to speed up worker rehabilitation. High-risk claims are extremely costly to the WCB; for the approximately 321,000 short-term disability claims with injury dates between 1989 and 1992, high-risk claims accounted for $1.2 billion (64 percent) of the total payment of $1.8 billion, even though they constituted only 4.2 percent of the claims. We developed separate logistic regression models for each injury type. We found that the age of worker and number of workdays lost were predictive of high-risk status. We used decision analysis to develop a classification rule that has high out-of-sample predictive power. The WCB has incorporated these results in a claims-profiling scorecard, which identifies claims needing early intervention. We estimate that our method saves the WCB $4.7 million annually.
Soquimich Uses a System Based on Mixed-Integer Linear Programming and Expert Systems to Improve Customer Service
Authors: Angel Ana María , Taladriz Luis Alberto , Weber Richard
Published: December 2003

Determining what fertilizer mix to apply to certain soils is complicated and time consuming. Experts vaguely describe the complex relationships among the influencing parameters, such as fertilizer, soil, weather characteristics, and the previous and target yields. Farmers expect fast and reliable recommendations for fertilizer mixes that will meet their needs at low prices. Like buyers of many products, they take the quality of the products for granted. What differentiates providers is the service they offer their customers. Recognizing this fact, Soquimich S.A., a fertilizer producer, initiated development of a system that would automatically determine optimal fertilizer blends. We developed a hybrid tool using expert system technology and mixed-integer linear-programming models that increased fertilizer sales. Our initial highly sophisticated preliminary version of the system proved unsatisfactory because farmers could not always provide the necessary input and users did not know how to use and maintain the system. Our final simplified version of the system was successful and is being extended to other regions in Chile and in other countries.
The Analytic Hierarchy Process at Dar Al-Hekma, Saudi Arabia
Authors: Bahurmoz Asma M. A.
Published: December 2003

I designed and implemented a multicriteria group-decision-making model based on the analytic hierarchy process to select the best candidates to send overseas to do graduate studies and eventually become teachers at the newly created Dar Al-Hekma women's college in Jeddah, Saudi Arabia. Thus, scientific application of an OR method has proved to be robust in a highly political environment. Users do not need to understand the sophisticated, albeit transparent, theory that underlies the methodology. The model is user friendly and relies on simple constructions that conform with what people actually do using logic and discussion to express their opinions in a collective effort to make a decision. Its outcome creates public trust in the management of the college.
SES Americom Maximizes Satellite Revenues by Optimally Configuring Transponders
Authors: Tyagi Rajesh , Bollapragada Srinivas
Published: December 2003

SES Americom Inc. will launch AMC-12, the first of its new generation of communication satellites, in early 2004. This satellite has 24 highly sophisticated transponders, each of which can serve up to three markets simultaneously. By changing the configuration of the transponders, we can alter the markets they serve, thereby adjusting the capacity available by market. We developed a pricing- and contract-management system to maximize the revenues that AMC-12 generates. The system tracks signed contracts and projected demands over the life of the satellite, and recommends optimal configurations for the satellite's 24 transponders each month to maximize revenues. We modeled the transponder-configuration problem as a mixed-integer program and developed efficient heuristics for solving the problem. We implemented our algorithms in a Microsoft Excel-based system with a Visual Basic user interface. SES Americom is using the system to manage over $2 billion in revenues. We plan to adapt the system for use in other satellites with similar technology to be launched in the future.
GE's Energy Rentals Business Automates Its Credit Assessment Process
Authors: Bollapragada Srinivas , Ganti Prasanthi , Osborn Mark , Quaile James , Ramanathan Kannan
Published: December 2003

GE Energy Rentals, a business unit of General Electric Power Systems (GEPS), uses an automated Web-based application to assess customers' credit worthiness. GE's Global Research Center developed the system using quantitative business modeling and decision-support-system design. The system uses a model for credit decisions that captures the thought process expert credit analysts use to assign credit lines to customers. In addition, the system provides users with the analytics and reasons underlying credit decisions. It has enhanced productivity and efficiency by speeding up credit approvals. In addition, by providing a standard platform for credit approvals, it ensures consistency in the process of assessing and approving credit. The system has decreased costs by eliminating a credit-analyst position despite growth in the business and has also saved over 60 percent of the costs per credit decision. We are adapting this approach for other GEPS business units.
Delta Optimizes Continuing-Qualification-Training Schedules for Pilots
Authors: Sohoni Milind G. , Bailey T. Glenn , Martin Kristi G. , Carter Helen , Johnson Ellis L.
Published: December 2003

Delta Air Lines periodically trains its cockpit crew members to maintain their flight qualifications. The negotiation of the new pilot working agreement (PWA) in June 2001 introduced a short and stringent planning cycle and a new training-pay structure that affects operating costs. The downturn in airline business after September 11, 2001 forced Delta to reduce its workforce and to modify its requirements for scheduling pilot training. To mitigate Delta's exposure to costs and to automate the scheduling process under a rigid planning time line, we developed and deployed an automated optimization system, CQOPT, that builds and assigns training schedules based on individual pilot's requirements. The primary objectives of CQOPT are to minimize overall operating costs and maximize training assignments. Shortly after CQOPT's deployment in May 2002, the planning cycle dropped from several days to a few hours. Delta expects to save $7.5 million in annual operating costs by using CQOPT to schedule continuing qualification (CQ) training for its pilots.
What's Wrong with “What's Wrong With”
Authors: Ackoff Russell L.
Published: December 2003

People meet many (if not most) proposed changes of systems with answers to the question, “What's wrong with the suggestion?” This focus prevents the implementation of many potentially innovative changes. An alternative question is preferable: “How can we improve the proposed changes?” The answers can lead to the design of an improvement in a system's behavior, for example, improvements to the public school system resulting from the proposed school vouchers and changes to the national health-care system.
OR/MS Content and Visibility in AACSB-Accredited US Business Programs
Authors: Albritton M. David , McMullen Patrick R. , Gardiner Lorraine R.
Published: December 2003

In 1997, an INFORMS task force published the results of a study measuring the damage done to operations research/management science (OR/MS) content in business schools after the Association to Advance Collegiate Schools of Business (AACSB) removed OR/MS from its requirements in 1991. Their results were not encouraging. To investigate the current status of OR/MS, we conducted two related analyses to profile both the overall visibility of OR/MS in AACSB-accredited business schools and the content and delivery of existing MBA courses. Our results show small visibility (less than 10 percent) in terms of departments, programs, and concentrations. Approximately 40 percent of the schools studied, however, show one or more courses devoted to OR/MS. We found evidence of widespread use of computer modeling in MBA courses by both instructors and students. MBA students, however, appear to have low levels of involvement in constructing OR/MS applications and presenting their results. Finally, we found instructors' attitudinal responses regarding their MBA teaching experiences to be remarkably positive.
The Moderating Effects of Structure on Volatility and Complexity in Software Enhancement
Authors: Banker Rajiv D. , Slaughter Sandra A.
Published: December 2003

The cost of enhancing software applications to accommodate new and evolving user requirements is significant. Many enhancement cost-reduction initiatives have focused on increasing software structure in applications. However, while software structure can decrease enhancement effort by localizing data processing, increased effort is also required to comprehend structure. Thus, it is not clear whether high levels of software structure are economically efficient in all situations. In this study, we develop a model of the relationship between software structure and software enhancement costs and errors. We introduce the notion of software structure as a moderator of the relationship between software volatility, total data complexity, and software enhancement outcomes. We posit that it is efficient to more highly structure the more volatile applications, because increased familiarity with the application structure through frequent enhancement enables localization of maintenance effort. For more complex applications, software structure is more beneficial than for less complex applications because it facilitates the comprehension process where it is most needed. Given the downstream enhancement benefits of structure for more volatile and complex applications, we expect that the optimal level of structure is higher for these applications. We empirically evaluate our model using data collected on the business applications of a major mass merchandiser and a large commercial bank. We find that structure moderates the relationship between complexity, volatility, and enhancement outcomes, such that higher levels of structure are more advantageous for the more complex and more volatile applications in terms of reduced enhancement costs and errors. We also find that more structure is designed in for volatile applications and for applications with higher levels of complexity. Finally, we identify application type as a significant factor in predicting which applications are more volatile and more complex at our research sites. That is, applications with induction-based algorithms such as those that support planning, forecasting, and management decision-making activities are more complex and more volatile than applications with rule-based algorithms that support operational and transaction-processing activities. Our results indicate that high investment in software quality practices such as structured design is not economically efficient in all situations. Our findings also suggest the importance of organizational mechanisms in promoting efficient design choices that lead to reduced enhancement costs and errors.
Knowledge Base Decomposition to Facilitate Verification
Authors: Sarkar Sumit , Ramaswamy Mysore
Published: December 2003

We examine the verification of large knowledge-based systems. When knowledge bases are large, the verification process poses several problems that are usually not significant for small systems. We focus on decompositions that allow verification of such systems to be performed in a modular fashion. We identify a graphical framework, that we call an ordered polytree, for decomposing systems in a manner that enables modular verification. We also determine the nature of information that needs to be available for performing local checks to ensure accurate detection of anomalies. We illustrate the modular verification process using examples, and provide a formal proof of its accuracy. Next, we discuss a meta-verification procedure that enables us to check if decompositions under consideration do indeed satisfy the requirements for an ordered polytree structure. Finally, we show how the modular verification algorithm leads to considerable improvements in the computational effort required for verification as compared to the traditional approach.
How Do We Understand a System with (So) Many Diagrams? Cognitive Integration Processes in Diagrammatic Reasoning
Authors: Kim Jinwoo , Hahn Jungpil , Hahn Hyoungmee
Published: December 2003

In order to understand diagrammatic reasoning with multiple diagrams, this study proposes a theoretical framework that focuses on the cognitive processes of perceptual and conceptual integration. The perceptual integration process involves establishing interdependence between relevant system elements that have been dispersed across multiple diagrams, while the conceptual integration process involves generating and refining hypotheses about a system by combining higher-level information inferred from the diagrams. This study applies a diagrammatic reasoning framework of a single diagram to assess the usability of multiple diagrams as an integral part of a system development methodology. Our experiment evaluated the effectiveness and usability of design guidelines to aid problem solving with multiple diagrams. The results of our experiment revealed that understanding a system represented by multiple diagrams involves a process of searching for related information and of developing hypotheses about the target system. The results also showed that these perceptual and conceptual integration processes were facilitated by incorporating visual cues and contextual information in the multiple diagrams as representation aids. Visual cues indicate which elements in a diagram are related to elements in other diagrams; the contextual information indicates how the individual datum in one diagram is related to the overall hypothesis about the entire system.
Research Report: Modeling the Incidence of Postrelease Errors in Software
Authors: Westland J. Christopher
Published: December 2003

Error search and correction are major contributors to software development cost, yet typically uncover only a small fraction of software errors. Postrelease errors, i.e., those that are only observed after a system is released, threaten a variety of potential failures and consequences, each with low individual probability of occurrence. The combined effect of postrelease errors can and often does result in a significant rate of occurrence of these potential failures, with unpredictable consequences and severity. One particular source of postrelease errors that has received extensive publicity is the year 2000, or Y2K, error. The modeling in this research report suggests that testing probably needs to be conducted over more than half of the useful life of a system in order to discover even one-third of the total errors in the system. It suggests that short product lifecycles, lifetime testing, and effective feedback loops for error reporting are necessary to assure reliable software.
Research Commentary: An Agenda for Information Technology Research in Heterogeneous and Distributed Environments
Authors: March Salvatore , Hevner Alan , Ram Sudha
Published: December 2003

Application-driven, technology-intensive research is critically needed to meet the challenges of globalization, interactivity, high productivity, and rapid adaptation faced by business organizations. Information systems researchers are uniquely positioned to conduct such research, combining computer science, mathematical modeling, systems thinking, management science, cognitive science, and knowledge of organizations and their functions. We present an agenda for addressing these challenges as they affect organizations in heterogeneous and distributed environments. We focus on three major capabilities enabled by such environments: Mobile Computing, Intelligent Agents, and Net-Centric Computing. We identify and define important unresolved problems in each of these areas and propose research strategies to address them.
Determinants of Perceived Ease of Use: Integrating Control, Intrinsic Motivation, and Emotion into the Technology Acceptance Model
Authors: Venkatesh Viswanath
Published: December 2003

Much previous research has established that perceived ease of use is an important factor influencing user acceptance and usage behavior of information technologies. However, very little research has been conducted to understand how that perception forms and changes over time. The current work presents and tests an anchoring and adjustment-based theoretical model of the determinants of system-specific perceived ease of use. The model proposes control (internal and external—conceptualized as computer self-efficacy and facilitating conditions, respectively), intrinsic motivation (conceptualized as computer playfulness), and emotion (conceptualized as computer anxiety) as anchors that determine early perceptions about the ease of use of a new system. With increasing experience, it is expected that system-specific perceived ease of use, while still anchored to the general beliefs regarding computers and computer use, will adjust to reflect objective usability, perceptions of external control specific to the new system environment, and system-specific perceived enjoyment. The proposed model was tested in three different organizations among 246 employees using three measurements taken over a three-month period. The proposed model was strongly supported at all points of measurement, and explained up to 60% of the variance in system-specific perceived ease of use, which is twice as much as our current understanding. Important theoretical and practical implications of these findings are discussed.
Research Commentary: Technology-Mediated Learning—A Call for Greater Depth and Breadth of Research
Authors: Alavi Maryam , Leidner Dorothy E.
Published: December 2003

Universities and corporate training facilities have been investing in information technologies to improve education and training at an increasing rate during the past decade. Many new companies are emerging to provide tools and services to enable the effective design of IT-based learning solutions. Although research on technology-mediated learning has increased in recent years, it still lags behind developments in practice. This essay suggests potential research avenues in the area of technology-mediated learning. It seeks to motivate greater depth of research into the question of how technology enhances learning. This question requires an explicit consideration of relationships among technology capabilities, instructional strategy, psychological processes, and contextual factors involved in learning. The essay also recommends attention to a greater breadth of research questions, including issues of how technology-mediated learning affects program design and what structures and processes universities can employ to facilitate innovation.
Alignment Between Business and IS Strategies: A Study of Prospectors, Analyzers, and Defenders
Authors: Sabherwal Rajiv , Chan Yolande E.
Published: December 2003

Alignment between business strategy and IS strategy is widely believed to improve business performance. This paper examines the impact of alignment on perceived business performance using Miles and Snows popular classification of Defender, Analyzer, and Prospector business strategies. A priori theoretical profiles for these business strategies are developed using Venkatraman's (1989a) measure of business strategy. Theoretical profiles for IS strategies are developed in terms of four types of systems—operational support systems, market information systems, strategic decision-support systems, and interorganizational systems. Empirical data from two multirespondent surveys of 164 and 62 companies, respectively, are analyzed. Results indicate that alignment affects perceived business performance but only in some organizations. Alignment seems to influence overall business success in Prospectors and Analyzers but not in Defenders. Implications for future research and practice are discussed.
A Foundation for Flexible Automated Electronic Communication
Authors: Moore Scott A.
Published: December 2003

In this paper the author describes a formal language for communication based on linguistics—more specifically, a theory of natural language communication and models of natural language conversations. The language has a small number of general message types that are formally defined by their intended effects on the recipient. For each message type he defines a standard automated method of responding that depends only on the message type and is independent of the message's content. For more complex conversations he provides methods for responding that do depend on the content. In this system, a message's sender—automated or human—constructs and sends a message knowing that he cannot know, but can only predict, how it will be interpreted. The agent receiving the message interprets it and then uses it as a basis for inferring how he should respond. The message interpretation mechanism for this language is reusable, modular, and shared by all applications. The benefit of this communication system is that it makes the communication infrastructure more flexible, easier to modify, easier to expand, and more capable.
The Impact of E-Commerce Announcements on the Market Value of Firms
Authors: Subramani Mani , Walden Eric
Published: December 2003

Firms are undertaking growing numbers of e-commerce initiatives and increasingly making significant investments required to participate in the growing online market. However, empirical support for the benefits to firms from e-commerce is weaker than glowing accounts in the popular press, based on anecdotal evidence, would lead us to believe. In this paper, we explore the following questions: What are the returns to shareholders in firms engaging in e-commerce? How do the returns to conventional, brick and mortar firms from e-commerce initiatives compare with returns to the new breed of net firms? How do returns from business-to-business e-commerce compare with returns from business-to-consumer e-commerce? How do the returns to e-commerce initiatives involving digital goods compare to initiatives involving tangible goods? We examine these issues using event study methodology and assess the cumulative abnormal returns to shareholders (CARs) for 251 e-commerce initiatives announced by firms between October and December 1998. The results suggest that e-commerce initiatives do indeed lead to significant positive CARs for firms' shareholders. While the CARs for conventional firms are not significantly different from those for net firms, the CARs for business-to-consumer (B2C) announcements are higher than those for business-to-business (B2B) announcements. Also, the CARs with respect to e-commerce initiatives involving tangible goods are higher than for those involving digital goods. Our data were collected in the last quarter of 1998 during a unique bull market period and the magnitudes of CARs (between 4.9 and 23.4% for different subsamples) in response to e-commerce announcements are larger than those reported for a variety of other firm actions in prior event studies. This paper presents the first empirical test of the dot com effect, validating popular anticipations of significant future benefits to firms entering into e-commerce arrangements.
Technology Requirements and Work Group Communication for Telecommuters
Authors: Belanger France , Collins Rosann Webb , Cheney Paul H.
Published: December 2003

As organizations implement more and more distributed work arrangements such as telecommuting, there is a need to understand the determinants of success of this new work setting. This research investigated three variables believed to impact outcomes in telecommuting: the availability of information system technology, the availability of communication technologies, and the communication patterns of telecommuters within their work groups. Two perspectives are used in this study. The direct effects of these three variables on perceived productivity, performance, and satisfaction were tested. A second perspective, based on the concept of fit and contingency theory, posits that successful telecommuting outcomes, measured by perceived productivity, performance, and satisfaction, are predicted by interactions between these independent variables. The study was conducted by surveying multiple respondents from different organizations who were members of work groups in which some or all employees were telecommuters. The results indicate that technology variables positively impact productivity, performance, and satisfaction of telecommuters, while the interaction between the technology variables is significant in predicting perceived productivity. Work group communication, as measured by the centrality of individuals, negatively affects perceived productivity and performance. The paper presents a discussion of the theoretical significance of these findings, and offers recommendations for future research.
The Effects of Time Pressure on Quality in Software Development: An Agency Model
Authors: Austin Robert D.
Published: December 2003

An agency framework is used to model the behavior of software developers as they weigh concerns about product quality against concerns about missing individual task deadlines. Developers who care about quality but fear the career impact of missed deadlines may take “shortcuts.” Managers sometimes attempt to reduce this risk via their deadline-setting policies; a common method involves adding slack to best estimates when setting deadlines to partially alleviate the time pressures believed to encourage shortcut-taking. This paper derives a formal relationship between deadline-setting policies and software product quality. It shows that: (1) adding slack does not always preserve quality, thus, systematically adding slack is an incomplete policy for minimizing costs; (2) costs can be minimized by adopting policies that permit estimates of completion dates and deadlines that are different and; (3) contrary to casual intuition, shortcut-taking can be eliminated by setting deadlines aggressively, thereby maintaining or even increasing the time pressures under which developers work.
Research Report: Richness Versus Parsimony in Modeling Technology Adoption Decisions—Understanding Merchant Adoption of a Smart Card-Based Payment System
Authors: Plouffe Christopher R. , Hulland John S. , Vandenbosch Mark
Published: December 2003

The Technology Acceptance Model (TAM) has received considerable research attention in the IS field over the past decade, placing an emphasis on the roles played by perceived ease-of-use and perceived usefulness in influencing technology adoption decisions. Meanwhile, alternative sets of antecedents to adoption have received less attention. In this paper, sets of antecedent constructs drawn from both TAM and the Perceived Characteristics of Innovating (PCI) inventory are tested and subsequently compared with one another. The comparison is done in the context of a large-scale market trial of a smart card-based electronic payment system being evaluated by a group of retailers and merchants. The PCI set of antecedents explains substantially more variance than does TAM, while also providing managers with more detailed information regarding the antecedents driving technology innovation adoption.
Research Commentary: Introducing a Third Dimension in Information Systems Design—The Case for Incentive Alignment
Authors: Ba Sulin , Stallaert Jan , Whinston Andrew B.
Published: December 2003

Prior research has generated considerable knowledge on information systems design from software engineering and user-acceptance perspectives. As organizational processes are increasingly embedded within information systems, one of the key considerations of many business processes—organizational incentives—should become an important dimension of any information systems design and evaluation, which we categorize as the third dimension: incentive alignment. Incentive issues have become important in many IS areas, including distributed decision support systems (DSS), knowledge management, and e-business supply chain coordination. In this paper we outline why incentives are important in each of these areas and specify requirements for designing incentive-aligned information systems. We identify and define important unresolved problems along the incentive-alignment dimension of information systems and present a research agenda to address them.