i-Transformation in Swiss Companies: a Decision-Support Tool for Small and Midsize Enterprises Fabrice Holzer University of Applied Sciences – Western Switzerland (HES-SO | Valais) Switzerland

Motivation, problem area “ If you can’t measure it, you can’t manage it.” Samuel Palmisano, CEO, IBM SMEs managers are “in the drivers’ seat” However… Do they really have the map? Do they drive profit and performance with IS? Are they able to accurately measure their success?

“ If you can’t measure it, you can’t manage it.”

Samuel Palmisano, CEO, IBM

SMEs managers are “in the drivers’ seat”

However…

Do they really have the map?

Do they drive profit and performance with IS?

Are they able to accurately measure their success?

Research Objectives Building an easy-to-use decision-support tool for : Improving SMEs investment decisions … IS investments should be directed for maximum ROI. Taking better advantage of their existing IS resources… Improve business process within existing technologies Benchmarking the performance… Yes, but measuring the right things (highly branch related)

Building an easy-to-use decision-support tool for :

Improving SMEs investment decisions …

IS investments should be directed for maximum ROI.

Taking better advantage of their existing IS resources…

Improve business process within existing technologies

Benchmarking the performance…

Yes, but measuring the right things (highly branch related)

Research approach, M ethodology Review of recent literature and best practices Venkatraman’s Strategic Alignment Model (SAM) Forrester Research method based on an IT-maturity index Osterwalder and Pigneur e-business framework Building a model of decision-support tool Analyzing enterprise’s current IS-investments (9 categories) Analyzing their impact on four major business dimensions (converted into 4 easy-to-use KPIs) Product value-added (PAV) Customer relationship (CR) Infrastructure/Operations (I/O) Financials (FI)

Review of recent literature and best practices

Venkatraman’s Strategic Alignment Model (SAM)

Forrester Research method based on an IT-maturity index

Osterwalder and Pigneur e-business framework

Building a model of decision-support tool

Analyzing enterprise’s current IS-investments (9 categories)

Analyzing their impact on four major business dimensions (converted into 4 easy-to-use KPIs)

Product value-added (PAV)

Customer relationship (CR)

Infrastructure/Operations (I/O)

Financials (FI)

Research approach, M ethodology IS-investments (9 categories) Strategic Information Systems (SIS) Management Information Systems (MIS) Office Automation Systems (OAS) Decision Support Systems (DSS) Expert Systems (ES) Group Support Systems (GSS) Knowledge Work Systems (KWS) Executive Information Systems (EIS) Transaction Processing Systems (TPS)

IS-investments (9 categories)

Strategic Information Systems (SIS)

Management Information Systems (MIS)

Office Automation Systems (OAS)

Decision Support Systems (DSS)

Expert Systems (ES)

Group Support Systems (GSS)

Knowledge Work Systems (KWS)

Executive Information Systems (EIS)

Transaction Processing Systems (TPS)

Research approach, M ethodology Four major business dimensions Product value-added (PAV) Increase/decrease of product margin (%) Customer relationship (CR) Increase/decrease of marginal sales turnover (%) Infrastructure/Operations (I/O) Operational cost savings (%) Financials (FI) Net Return On Investment

Four major business dimensions

Product value-added (PAV)

Increase/decrease of product margin (%)

Customer relationship (CR)

Increase/decrease of marginal sales turnover (%)

Infrastructure/Operations (I/O)

Operational cost savings (%)

Financials (FI)

Net Return On Investment

Proposal of the following assessment grid Research approach, M ethodology

Proposal of the following assessment grid

A simple matrix ( based on the BCG growth share matrix ) 4 types of strategies suggested A1 Cash cows: Strategy => Milk A2 Stars: Strategy => Invest B1 Dogs: Strategy => Drop B 2 Question marks: Strategy => Invest or drop/outsource Research approach, M ethodology

A simple matrix ( based on the BCG growth share matrix )

4 types of strategies suggested

A1 Cash cows: Strategy => Milk

A2 Stars: Strategy => Invest

B1 Dogs: Strategy => Drop

B 2 Question marks: Strategy => Invest or drop/outsource

Major O utcomes /Results Case Study: a Swiss SME in the transportation sector A Financial Management System (in 2003) (Office Automation Systems OAS) A Geographical Localization System (in 2005) (Strategic Information Systems SIS)

Case Study: a Swiss SME in the transportation sector

A Financial Management System (in 2003)

(Office Automation Systems OAS)

A Geographical Localization System (in 2005)

(Strategic Information Systems SIS)

Major O utcomes /Results Case Study: a Swiss SME in the transportation sector Both IS results fall into the quadrant A2 for all four dimensions According to the model it is recommended to further invest in these systems

Case Study: a Swiss SME in the transportation sector

Both IS results fall into the quadrant A2 for all four dimensions

According to the model it is recommended to further invest in these systems

Conclusion and outlook Limitations of the method essentially due to the small sample of SME’s committed at this day based on a benchmark app roach -> value of the tool proportional to the number of users of the system (for each sector of activities ) In a near future … to offer a benchmark "cockpit" able to compare the results of each enterprise with competitors -> necessary steps towards optimal level of technology implementation.

Limitations of the method

essentially due to the small sample of SME’s committed at this day

based on a benchmark app roach -> value of the tool proportional to the number of users of the system (for each sector of activities )

In a near future …

to offer a benchmark "cockpit" able to compare the results of each enterprise with competitors -> necessary steps towards optimal level of technology implementation.