operational and innovation collaboration and cloud computing

Operational and Innovation Collaboration

and Cloud ComputingE. Loukis ([email protected]) • N. Kyriakou ([email protected]) • K. Pazalos (

[email protected])

mailto:[email protected]




Structure

IntroductionLiterature ReviewResearch HypothesesData and MethodResultsConclusionsFuture Research

Cloud Computing (1/3)

*NIST: National Institute of Standards and Technology**Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J. & Ghalsasi, A. (2011). Cloud Computing – The Business Perspective. Definition Support Systems, 51(1), 176-189.

“A model for enabling ubiquitous, convenient, on-demand network access to as hared pool of computing resources (e.g., networks, servers, storage, applications, services) that can be rapidly provisioned and released with minimal management effort or service provider interaction*.

[…] computing services (both hardware and software) required by a firm are delivered by an external provider on

an on-demand basis over the Internet, independent of device and location; users pay for the service as an

operating expense, based on the real use of it, without having to make significant initial capital expenditures (e.g. for servers and software), and also without having to incur

operation, support and maintenance costs**.

”

Cloud Computing (2/3)Deployment Models:

Infrastructure as a Service (IaaS)

Platform as a Service (PaaS)

Service as a Service (SaaS)

Benefits to Firms:

Reduction of IT ownership and operation costs

Conversion of related capital investments to operating costs

Provision of practically infinite computing resources available on demand

Provision of flexible cost-effective computing capacity to support growth IT services’ quality improvement

Cloud Computing (3/3)Benefits to Firms:

Flexibility to Respond to Fluctuating IT loads

Focus on core competencies

Quick and low cost development of new Information Systems to support innovations

Reduction of IT related barriers to entry of new firms

Quick and low cost access to new technologies

Cloud Computing Risks:

Service availability

Performance risks

Data security risks (e.g. lack of control of, unauthorized access to or modification of firm’s data resources)

Economic Risks (associated with ‘hidden costs’ and also CC services provider ‘lock-in’)

Contribution

Effects of operational collaboration on CC adoptionEffects of innovation collaboration on CC adoption Effects of the use of ICT to support them on CC adoption

Literature Review (1/2)

Firms collaborate with other firms Firms expand their activities to wider geographical areasFirms tend to outsource production of partsMany stakeholders participate in complex business ecosystems

Firms take advantage of collaboration with other firms

Innovation design and implementation has become open and collaborativeCollaboration is now supported by a variety of platforms and software

Literature Review (2/2)There has been some empirical research concerning the effects of various factors on CC adoption

1st Stream of Cloud Computing adoption (Technology Acceptance Model - TAM)

Classical factors (perceived usefulness, perceived benefits, perceived ease of use, attitude, behavioral intention of future use)

Specific factors (security, trust)

2nd Stream of Cloud Computing adoption (Technology, Organization and Environment - TOE)

Technological factors (relative advantage, uncertainty, privacy risk, compatibility, observability, complexity, trialability)

Organizational factors (top management support, innovativeness, prior similar technology experience)

Environmental factors (competitive pressure, external support)

3rd Stream of Cloud Computing adoption (Synthesis of different theoretical frameworks)

Research Hypotheses

Research hypotheses concerning the Cloud Computing Adoption:

H1: The extent of firm’s operational collaboration with other firms is positively associated with its propensity for CC adoption

H2: The use of ICT for supporting firm’s operational collaboration with other firms is positively associated with its propensity for CC adoption

H3: Innovation collaboration with other firms is positively associated with propensity for CC adoption

H4: The use of ICT for supporting firm’s innovation collaboration with other firms is positively associated with its propensity for CC adoption

Data and Method (1/3)

Data 676 enterprises 6 European Countries

(Germany, France, Italy, Poland, Spain, England)

e-Business Market W@tch e-Business Survey 2009

Method Somers’ D Kendall’s tau-b


Dependent VariableProp_Cloud Propensity to adopt Cloud Computing

Independent VariablesOperational

CollaborationGeographic Scope of SalesGeographic Scope of Procurement

Electronic Operational

Collaboration

Use of SCM systemsElectronic Sharing of Information on Inventory Levels with SuppliersElectronic Orders from CustomersElectronic Invoicing


Independent Variables

Innovation Collaboration

Involvement of other firms in product/service innovationsInvolvement of other firms in process innovations

Electronic Innovation

Collaboration

Use of Software Applications to Collaborate with other firms for product/service or process innovations

Results (1/3) – All CasesIndependent Variable Sommer’s

DKendall tau-b

Research Hypothesis

Operational CollaborationGeographic Scope of Sales 0.011 0.013 H1

Geographic Scope of Procurement 0.016 0.018 H1Electronic Operational Collaboration

Use of SCM systems 0.190 0.190 H2Electronic sharing of information on

inventory levels with suppliers 0.052 0.052 H2

Electronic Orders from Customers 0.053 0.054 H2Electronic invoicing 0.124 0.131 H2

Innovation CollaborationInvolvement of other firms in product/service

innovations 0.130 0.131 H3

Involvement of other firms in process innovations 0.162 0.166 H3

Electronic Innovation CollaborationUse of software applications to collaborate

with other firms for product/service or process innovations

0.153 0.153 H4

Results (2/3) – Small FirmsIndependent Variable Sommer’s

DKendall tau-b

Research Hypothesis

Operational CollaborationGeographic Scope of Sales -0.069 -0.084 H1

Geographic Scope of Procurement -0.003 -0.004 H1Electronic Operational Collaboration



Electronic Orders from Customers 0.113 0.117 H2Electronic invoicing 0.190 0.208 H2






0.119 0.120 H4

Results (3/3) – Medium & Large Firms

Independent Variable Sommer’s D

Kendall tau-b

Research Hypothesis

Operational CollaborationGeographic Scope of Sales 0.041 0.044 H1

Geographic Scope of Procurement 0.014 0.015 H1Electronic Operational Collaboration



Electronic Orders from Customers -0.008 -0.007 H2Electronic invoicing 0.043 0.045 H2






0.159 0.160 H4

Research HypothesesResearch hypotheses concerning the Cloud Computing Adoption

H1: The extent of firm’s operational collaboration with other firms is positively associated with its propensity for CC adoption (REJECTED)

H2: The use of ICT for supporting firm’s operational collaboration with other firms is positively associated with its propensity for CC adoption (REJECTED)

H3: Innovation collaboration with other firms is positively associated with propensity for CC adoption (SUPPORTED)

H4: The use of ICT for supporting firm’s innovation collaboration with other firms is positively associated with its propensity for CC adoption (SUPPORTED)

Conclusions

Innovation oriented collaboration and ICT to support it reinforce CC adoptionOperational collaboration is not a driver of CC adoptionCC is a cost-effective means to support collaboration with other firms in their innovation development activities

Not in their critical every day operations

CC increases the capabilities and flexibility of existing ICT support of innovation oriented collaboration and highly sophisticated forms of operational collaboration

Further Research

Investigation of different forms of business collaboration (both operational and innovation oriented)Investigation of different categories of CC services (e.g. IaaS, PaaS, SaaS) in various sectoral and national contextsMore detailed measurement of the extent of CC services adoption than the binary one used in this studyIdentify moderators of the relationship between collaboration and CC adoption

Thank You!E. Loukis ([email protected]) • N. Kyriakou ([email protected]) • K. Pazalos ([email protected])


