Designing information systems for eBusiness networks: The return of productivity paradox

Abstract

In this paper we discuss productivity paradox and the origin of business value of ICTinvestments, especially as we see that the present approaches in building ICT-based value networksof companies raises new productivity problems. The findings indicate that the organizations can reapthe benefits of ICT-investments in terms of productivity only by managing the long term processchange both at operational and management levels to match the organizational capacity andcompetitive position. This is achieved not by building information systems only, but by balancingautomational, informational and transformational effects in the business context. We analyze threealternative approaches for information systems development against this backdrop: softwareengineering, business process redesign and reversed quality life cycle (RQLC by Nurminen &Forsman, 1994). There is growing evidence in favor of RQLC in designing and implementing intra-organizational systems, so we apply its ideas in the design of inter-organizational information systems(IOSs). In the inter-organizational context the importance of building of trust, creating standards, andneed for openness for new type of business partners will become vital in controlling the number of relationships and adaptation processes. Finally, building on the ideas above we synthesize a model for building an inter-organizational information systems ecology.