The necessary alignment between technology innovation effectiveness and operational effectiveness
Ricardo Santa
School of Law and Business, Charles Darwin University, Casuarina Campus, Darwin NT
Mario Ferrer
Faculty of Business and Informatics, Central Queensland University, Rockhampton QLD
Phil Bretherton
School of Law and Business, Charles Darwin University, Casuarina Campus, Darwin NT
Paul Hyland
Queensland University of Technology, Brisbane QLD
PP: 155
Abstract
Organisations are increasingly investing in complex technological innovations such as enterprise information systems with the aim of improving the operations of the business, and in this way gaining competitive advantage. However, the implementation of technological innovations tends to have an excessive focus on either technology innovation effectiveness (also known as system effectiveness), or the resulting operational effectiveness; focusing on either one of them is detrimental to the long-term enterprise benefits through failure to achieve the real value of technological innovations.
The lack of research on the dimensions and performance objectives that organisations must be focusing on is the main reason for this misalignment. This research uses a combination of qualitative and quantitative, three-stage methodological approach.
Initial findings suggest that factors such as quality of information from technology innovation effectiveness, and quality and speed from operational effectiveness are important and significantly well correlated factors that promote the alignment between technology innovation effectiveness and operational effectiveness.
Keywords
technological innovation, system effectiveness, operational effectiveness, information systems alignment, performance objectives
Article Text
Innovative organisations are those that are able to use innovation to improve their practices, processes, systems or services (Tidd et al 2001). Organisations are faced with competitive pressures to improve efficiency and productivity through technological innovation (Ifandoudas & Chapman 2006). In addition, organisations need to respond to market changes through product or service innovation as performance improvement is derived, in large measure, from innovation (Tidd et al 2001).
Many service organisations are investing substantial resources in technological innovation such as enterprise information systems (EIS) to reengineer their processes, but the extent to which these technology innovations assist organisation to improve the operational performance is not yet well understood (Mabert et al 2003).
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