effect of digital innovation on the contents of business

EFFECT OF DIGITAL INNOVATION ON THE CONTENTS OF BUSINESS INFORMATICS CURRICULA Pere Tumbas1, Predrag Matkovic1, Sanja Tumbas2, Marton Sakal1 1

University of Novi Sad, Faculty of Economics Subotica (SERBIA) 2 University of Liechtenstein, Vaduz (LIECHTENSTEIN)

Abstract In recent years, new digital technologies have significantly changed the way we live and work, as well as the way organizations operate. These new technologies caused the need for a serious approach to modification of higher education processes in the areas of business, especially business informatics. If they are to effectively direct strategies of modern organizations in the changed environment, managers, as key products of education in these areas, first and foremost must understand the occurring transformations (what is driving them, where they are headed). In addition to that, managers themselves need to become digital innovators, actively involved in these changes. Relatively inexpensive, easy-to-use digital infrastructure consisting of computers, mobile devices, broadband network connections, application platforms, etc. creates an opportunity for all business professionals to be a part of the innovation process and contribute to the success of their organizations. Digital innovations that are embodied in or enabled by information technologies (IT) are very broadly defined and include products, processes and business models. Such innovations require an analytical approach to both core and elective courses of business informatics curricula, as well as to and their purposeful modification. This paper briefly presents the characteristics of digital innovation as the basis for changes of curricula in the field of business informatics. Content of courses made necessary by digital innovations are particularly highlighted. A detailed analysis of competences and course contents was carried out based on a selection of existing curricula in this area that are implemented within several highest ranked universities in Europe. Lastly, this paper presents a preliminary proposal of an up-to-date business informatics curriculum which is in line with trends initiated by digital innovation. Keywords: business informatics, digital innovation, curriculum.

1

INTRODUCTION

Business informatics is interdisciplinary in its nature. It can be summarized as a socio-technological and business-oriented discipline with certain influx of engineering and technical sciences. The need for interdisciplinary, i.e. multidisciplinary approach in curricula development is confirmed by numerous developed fields of applied informatics. Changes in traditionally technical disciplines have made a significant impact on all disciplines that business informatics originated from, and consequently on business informatics itself. Over past two decades, emerging technologies have caused significant changes in nearly all aspects of everyday life. Similarly, university processes have not remained immune to these changes. Today's dynamic business environment necessitates permanent adjustment of curricula to match the challenges of emerging technologies. In order to successfully match the content of curricula with the present business needs, a continuous assessment of professional, internal and accreditation standards, national and regional programs and stakeholders' needs is required. The authors of this paper have reached a conclusion that the above listed sources of information that curriculum development or redesign is based on should undoubtedly be extended to the field of digital innovation. This paper is concerned with the influence of digital innovation on curriculum development. The paper consists of three chapters. The first chapter - Research Background - provides an overview of present scientific papers on the phenomena of IT innovation, with particular emphasis on factors that influence organizations' capabilities to adopt IT innovation in its early stage, while the second chapter Characteristics of Business Informatics Curricula - covers their specifics and core elements. The following chapter - Importance of Digital Innovation to the Continuous Improvement of Business Informatics Curricula - proposes a procedure for incorporating emerging digital innovation in business

Proceedings of ICERI2014 Conference 17th-19th November 2014, Seville, Spain

2278

ISBN: 978-84-617-2484-0

informatics curricula with the aim of increasing their quality, which is afterwards reflected in a brief conclusion.

2

RESEARCH BACKGROUND

The Information Systems discipline has a long tradition in studying the phenomena of IT innovation [1]. There are various definitions of innovation in general, but one of the first definitions in IS research was coined by Swanson [2] and refers to the novel organizational application of an information system. This stream of literature, often dubbed as IS/IT innovation comprises of both adopter and diffusion studies [3],[4]. Adopter studies focus on characterizing organizations that are more likely to innovate with information technologies [4]. Some of these factors point out characteristics that influence the success of organizations to adopt IT, such as structure [5], knowledge mechanisms [6], size of IT department [7], leadership style [8], the environment [9] and others. Another core interests of adoption studies lies in the process through which the usage of technology spreads from initial awareness of decision makers to complete institutionalization or assimilation of the technology in the organizational context [10],[11]. Diffusion studies zoom into types of IT artifacts [12], contributing to a better understanding of IT systems that are carefully characterized along various features. These characteristics are for example the complexity of a technology [13],[14], usefulness [15], social approval [16], institutional and regulative environment [17] and others. Another feature of IT/IS innovation studies is that there is a strong interest in the role of the IT department [2],[18]. Moreover, often IT executives are the decision makers around which the topic further evolves [19],[20]. IT experts as decision makers are rational decision makers seeking economic efficiency and control [21], while some studies point out the relevance of gaining legitimacy by imitation [22],[23]. This implies that a certain pro innovation bias is inherent to these studies [24]. Thus, the process of IT innovation is often depicted as steered and rolling out in stages, while drift is undesirable [25]. Recently, innovation studies in IS research look beyond the decision to adopt. The research stream on digital innovation is grounded on the basic idea that innovation lies in recombining things that already exist and generating novelty [26],[27]. The ubiquitous nature of IT [28] and constant striving for organizational innovation [27] continuously urge higher education to rethinking the curriculum of Information systems and Business majors [29]. Nowadays, digital technologies are tightly entangled with the areas of new product development (NPD) [30],[31] or marketing [32],[33]. IS research turns towards studies of digital components embedded into new products such as cars [34]. Moreover, digital tools triggering innovative interorganizational arrangements in various industries [35],[36]. Also, the wide spread usage of social media [37] directs the interest of the research community towards generating value and building communities [38]. As opposed to the traditional view of IT/IS innovation, recent studies point into the non-linear pattern of innovation diffusion [39] and bottom-up innovation trends [40]. The innovators are located in various departments outside of the IT [41] or in a network of interorganizational ecosystems [42].

3

CHARACTERISTICS OF BUSINESS INFORMATICS CURRICULA

The term business informatics is widely used in academic and business milieu of the Germanspeaking world. It is a literal translation of the German word ‘Wirtschaftsinformatik’, and as such, frequently appears in other, predominantly European, areas outside German-speaking countries. In the English-speaking world, expressions information systems and information management are used more frequently. Business informatics is a combination of management and information technology, or in other words, „business informatics combines and complements explicitly the domains of informatics and business studies. Informatics is primarily concerned with the technology of information and communication systems, while business studies focuses on management functions” [43]. Business informatics is interdisciplinary by nature, which means that it combines object of research, research goals, methods and procedures of other scientific disciplines. What makes Business informatics an independent scientific discipline are its object of research, goals, methods and procedures that differ from goals, methods and procedures of disciplines it originated from. Business

2279

informatics scientific objectives are primarily focused on analysis, design and management of business information systems, which is clearly unique to business informatics [44]. Such definition of Business informatics positions business information systems as the central object of its research. Throughout the course of its development, basic scientific methods and procedures used in Business Informatics research have evolved. This has resulted in specific characteristics of research in the field of business informatics. Analysis of business informatics curricula [43] has revealed that there are following distinct groups of courses: 

Fundamentals in Informatics;



Business and Economics;



Information Systems;



Integration and Enterprise Engineering; and



Domain-specific career electives.

A group of courses related to information systems is typical for each business informatics curriculum and will therefore be the subject of analysis of this paper. Group of subject related to Information Systems can further be divided into following basic thematic areas [45]: Foundations of Information Systems, Data and Information Management, Enterprise Architecture, IS Project Management, IT Infrastructure, Systems Analysis and Design, and IS Strategy, Management, and Acquisition. Topi et al. [45] have presented contents of basic thematic areas thru a list of topics given in the following text, which determine the scope of business informatics and at the same time reveal its specific. Foundations of Information Systems deal with the following topics: Characteristics of the Digital World; Information systems components; Information systems in organizations; Globalization; Valuing information systems; Information systems infrastructure; The Internet and WWW; Business intelligence; Enterprise-wide information systems; Development and acquisition; and Information systems ethics and crime. Data and Information Management deals with the following topics: Database approach; Types of database management systems; Basic file processing concepts; Physical data storage concepts; File organization techniques; Conceptual data model; Logical data model; Relations and relational structures; Relational database design; Mapping conceptual schema to a relational schema; Normalization; Physical data model; Database languages; Data and database administration; Transaction processing; Using a database management system from an application development environment; Use of database management systems in an enterprise system context; Data/information architecture; Data security management; Data quality management; and Business intelligence. Enterprise Architecture deals with the following topics: Service oriented architecture; Enterprise architecture frameworks; Systems integration; Enterprise resource software; Monitoring and metrics for infrastructure and business processes; Green computing; Virtualization of storage and systems; The role of open source software; Risk management; Business continuity; Total cost of ownership and return on investment; Software as a service; Enterprise data models; Data / information architecture and data integration; Content management; Audit and compliance; System administration; IT control and management frameworks; and Emerging technologies. IS Project Management deals with the following topics: Introduction to Project Management; Project management terminology; The Project Management Lifecycle; Managing Project Teams; Managing Project Communication; Project Initiation and Planning; Managing Project Scope; Managing Project Scheduling; Managing Project Resources; Managing Project Quality; Managing Project Risk; Managing Project Procurement; Project Execution, Control & Closure; and Managing Project Control & Closure. IT Infrastructure deals with the following topics: Core computing system architecture concepts; Core computing system organizing structures; Core technical components of computer-based systems; Role of IT infrastructure in a modern organization; Operating systems; Networking; Organizing storage on organizational networks; Data centers; Securing IT infrastructure; The role of IT control and service management frameworks (COBIT, ITIL, etc.) in managing the Organizational IT infrastructure; Ensuring business continuity; Grid computing; Cloud computing, computing as a service; System performance analysis and management; and Purchasing of IT infrastructure technologies and services.

2280

Systems Analysis and Design deals with the following topics: Identification of opportunities for ITenabled organizational change; Business process management; Analysis of business requirements; Structuring of IT-based opportunities into projects; Project specification; Project prioritization; Analysis of project feasibility Fundamentals of IS project management in the global context; Using globally distributed communication and collaboration platforms; Analysis and specification of system requirements; Different approaches to implementing information systems to support business requirements; Specifying implementation alternatives for a specific system; Impact of implementation alternatives on system requirements specification; Methods for comparing systems implementation approaches; Organizational implementation of a new information system; and Different approaches to systems analysis & design: structured SDLC; unified process/UML; agile methods. IS Strategy, Management, and Acquisition se include following topics: The IS function; IS strategic alignment; Strategic use of information; Impact of IS on organizational structure and processes; IS economics; IS planning; Role of IS in defining and shaping competition; Managing the information systems function; Financing and evaluating the performance of information technology investments and operations; Acquiring information technology resources and capabilities; Using IS/IT governance frameworks; and IS risk management.

4

IMPORTANCE OF DIGITAL INNOVATION TO THE CONTINUOUS IMPROVEMENT OF BUSINESS INFORMATICS CURRICULA

Continuous improvement of a business informatics curriculum has become a necessity. It is performed due to an increasingly dynamic business environment, and also due to the need to keep curriculum content up-to-date. There are several areas that can be considered key points in the analysis phase of the curriculum development process [46]: 

Professional standards (ACM standards, IEEE standards, Euro-Inf standards);



Departmental standards;



Requirements of regional accrediting bodies;



Literature review of best practices;



Survey of regional and national programs; and



Stakeholders needs (requirements).

In addition to these areas of analysis, we believe that it is of utmost importance to analyze the possibilities of applying digital innovation in the development/redesign of a business informatics curriculum. Fichman et al. [29] distinguish three types of innovating and four stages in the innovation lifecycle. The three types of innovation include product innovation, process innovation and business model innovation, whereas the innovation cycle is divided into the following distinct stages – discovery, development, diffusion and impact. Innovative digital product is such a product or service that is either embodied in IT or enabled by IT, and is recognized by a particular community or market as an actual new product or service. Innovative digital products may appear in different forms, ranging for example from a new ERP or CRM solution within an organization, to new consumer products, such as smartphones with new features and capabilities [29]. Innovative digital process can be defined as an entirely new way to carry out an activity or a group of activities within an organization, and which is embodied in or enabled by IT [29]. It is obvious that such processes will be supported by digital products that even may not be innovative. An innovative business model has lately been increasingly recognized as the third type of innovation. It denotes a business model that represents a „significantly new way of creating and capturing business value that is embodied in or enabled by IT“ [29]. Application of digital innovation in the redesign of any curriculum can be observed form two perspectives, specifically as the application of digital innovation in the redesign of curriculum content and as application of digital innovation in the improvement of the curriculum realization process. If we

2281

are focusing on the application of digital innovation aimed at redesigning curriculum content, it is necessary to answer following questions for each topic within existing courses: 

Is there digital innovation that significantly influences content of the topic?



What phase of lifecycle is this digital innovation currently in?



What risks are associated with the choice to introduce new content based on improvements supported by such digital innovation in the curriculum?

When analyzing possible application of digital innovation in the curriculum realization process redesign, it is crucial to answer the following questions: 

Is there digital innovation that significantly influences curriculum implementation?



What phase of lifecycle is this digital innovation currently in?



What risks are associated with the choice to introduce new methods of curriculum implementation based on improvements supported by such digital innovation?

This approach makes a clear logical demarcation between the content of the curriculum and the realization of the curriculum content, therefore both are considered equally important. If we look at the example of an online learning business model, it is clear that it represents a digital business model that facilitates a new way of curriculum content realization. Open Yale Courses, developed by Yale University, may serve as an example of application of such digital business model. By developing an innovative way of realizing content of selected courses from certain curricula, Yale succeeded in improving is competitiveness. In contrast, if we examine the topic Managing Project Communication within IS Project Management, it is clear that the introduction of a new collaboration tool developed for smartphones would change the content of the topic itself, as well as the content of the course and the curriculum. It can be concluded that digital innovation represents an important element of analysis in the curriculum redesign process, and that specifics of a business informatics curriculum remain in its content. If digital innovation is omitted from the analysis, there is a real danger of curriculum becoming obsolete, and the institution that implements it losing its competitiveness.

5

CONCLUSION

This article briefly presents various authors’ diverse approaches to IT and digital innovation, as well as the basic distinction of these two notions. Key specifics of business informatics curricula in relation to those based on information systems are particularly elaborated on. Upon a detailed analysis of universities’ business informatics curricula and their contents, the authors presented the most common classification of courses, which encompasses the following five groups: Fundamentals in Informatics; Business and Economics; Information Systems; Integration and Enterprise Engineering; and Domain-specific career electives. The paper also includes a detailed overview of the content associated with the group Information Systems, which consists of numerous thematic areas: Foundations of Information Systems, Data and Information Management, Enterprise Architecture, IS Project Management, IT Infrastructure, Systems Analysis and Design, and IS Strategy, Management, and Acquisition. Particular emphasis was put on digital innovation and the importance of incorporating it into business informatics study programs during the course of curriculum development or redesign using two approaches: application of digital innovation for the purpose of reshaping curriculum content and the application of digital innovation aimed at redesigning the process of curriculum realization. Implementation of both aspects of digital innovation in curriculum development is of vital importance. In order to achieve competitiveness of a business informatics study program and maintain its contemporaneity, it is essential to continuously explore possibilities for improving competencies with regard to digitalization. It is necessary to identify areas in which digital innovation can influence the development of subject specific competences: information systems competences, project work competences, business competences and specialized ICT field competences [47],[48].

ACKNOWLEDGEMENTS This work was supported in part by the Provincial Secretariat for Science and Technology Development under the Grants 114-451-3724/2011-01.

2282

REFERENCES [1]

Sidorova, A., Evangelopoulos, N., Valacich, J., & Ramakrishnan, T. (2008). Uncovering the Intellectual Core of the Information Systems Discipline. MIS Quarterly 32(3), 467-482.

[2]

Swanson, E. B. (1994). Information Systems Innovation Among Organizations. Management Science 40(9), 1069-1092.

[3]

Fichman, R. G. (2004). Going Beyond the Dominant Paradigm for Information Technology Innovation Research: Emerging Concepts and Methods. Journal of the Association for Information Systems 5(8), 314-355.

[4]

Fichman, R. G. (2000). The Diffusion and Assimilation of Information Technology Innovations, in Framing the Domains of IT Management, R. W. Zmud (ed.), Pinnaflex Education Resources, Inc., 105-127.

[5]

Bunker, D., Kautz, K.-H. & Nguyen, A. L. T. (2007). Role of value compatibility in IT adoption. Journal of Information Technology 22(1), Nature Publishing Group, pp. 69–78.

[6]

Attewell, P. (1992). Technology Diffusion and Organizational Learning: The Case of Business Computing. Organization Science 3(1), 1–19.

[7]

Tornatzky, L. G., Fleischer, M. & Chakrabarti, A. K. (1990). The processes of technological innovation, Lexington Books, p. 298.

[8]

Armstrong, C. P., Sambamurthy, V. (1999). Information Technology Assimilation in Firms: The Influence of Senior Leadership and IT Infrastructures. Information Systems Research 10(4), 304-327.

[9]

Iacovou, C. L., Benbasat, I. & Dexter, A. S. (1995). Electronic Data Interchange and Small Organizations: Adoption and Impact of Technology. MIS Quarterly 19(4), 465-485.

[10]

Fichman, R. G.& Kemerer, C. F. (1997). The Assimilation of Software Process Innovations: an Organizational Learning Perspective. Management Science 43(10), 1345-1363.

[11]

Fichman, R. G. (2001). The Role of Aggregation in the Measurement of IT-Related Organizational Innovation. MIS Quarterly 25(4), 427-455.

[12]

Orlikowski, J. W. & Iacono, C. S. (2001). Research Commentary: Desperately Seeking the ‘IT’ in IT Research--A Call to Theorizing the IT Artifact. Information Systems Research 12(2), 121134.

[13]

Cooper, R. B. & Zmud, R. W. (1990). Information Technology Implementation Research: A Technological Diffusion Approach. Management Science 36(2), 123-139.

[14]

Rogers, E. M. (2003). Diffusion of Innovations, 5th Edition, Free Press, p. 576.

[15]

Moore, G. C. & Benbasat, I. (1991). Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation. Information Systems Research 2(3), 192222.

[16]

Tornatzky, L. G. & Klein, K. J. (1982). Innovation Characteristics and Innovation AdoptionImplementation: A Meta-Analysis of Findings. IEEE Transactions on Engineering Management 29(1), 28-45.

[17]

King, J. L., Gurbaxani, V., Kraemer, K. L., McFarlan, F. W., Raman, K. S. & Yap, C. S. (1994). Institutional Factors in Information Technology Innovation. Information Systems Research 5(2), 139-169.

[18]

Fuller, M. K. & Swanson, B. E. (1992). Information Centers as Organizational Innovation: Exploring the Correlates of Implementation Success. Journal of Management Information Systems 9(1), 47-67.

[19]

Wang, P. & Ramiller, N. C. (2009). Community Learning in Information Technology Innovation. MIS Quarterly 33(4), 709-734.

[20]

Wang, P. (2010). Chasing the Hottest IT: Effects of Information Technology Fashion on Organizations. MIS Quarterly 34(1), 63-85.

2283

[21]

Wang, P. (2009). Popular Concepts beyond Organizations: Exploring New Dimensions of Information Technology Innovations. Journal of the Association for Information Systems 10(1), 1-30.

[22]

Jeyaraj, A., Balser, D. B., Chowa, C. & Griggs, G. M. (2008). Organizational and Institutional Determinants of B2C Adoption under Shifting Environments. Journal of Information Technology 24(3), 219-230.

[23]

Kaganer, E., Pawlowski, S. D. & Wiley-Patton, S. (2010). Building Legitimacy for IT Innovations: The Case of Computerized Physician Order Entry Systems. Journal of the Association for Information Systems 11(1), 1-33.

[24]

Aanestad, M. (2011). Information Systems Innovation Research: Between Novel Futures and Durable Presents, in Researching the Future in Information Systems, IFIP Advances in Information and Communication Technology, M. Chiasson, O. Henfridsson, H. Karsten, and J. I. DeGross (eds.), (Vol. 356) Berlin, Heidelberg: Springer, pp. 27- 41.

[25]

Ciborra, C. U. (2000). From Control to Drift: The Dynamics of Corporate Information Infastructures. (Vol. 21) Oxford University Press, p. 246.

[26]

Brynjolfsson, E. & McAfee, A. (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies, (1st ed.) W. W. Norton & Company, p. 320.

[27]

Yoo, Y., Boland, R. J., Lyytinen, K. & Majchrzak, A. (2012). Organizing for Innovation in the Digitized World. Organization Science 23(5), 1398-1408.

[28]

Lyytinen, K. J., Yoo, Y., Varshney, U., Ackerman, M., Davis, G., Avital, M., Robey, D., Sawyer, S. & Sorensen, C. (2004). Surfing the Next Wave: Design and Implementation Challenges of Ubiquitous Computing. Communications of the Association for Information Systems 13(1), 40.

[29]

Fichman, R. G., Dos Santos, B. L. & Zheng, Z. E. (2014). Digital Innovation as a Fundamental and Powerful Concept in the Information System Curriculum. MIS Quarterly 38(2), 329-353.

[30]

Nambisan, S. (2003). Information Systems as a Reference Discipline for New Product Development. Management Information Systems Quarterly 27(1), 1-18.

[31]

Yoo, Y. (2012). The Tables Have Turned: How Can the Information Systems Field Contribute to Technology and Innovation Management Research?. Journal of the Association for Information Systems 14(5).

[32]

Day, G. S. (2011). Closing the Marketing Capabilities Gap. Journal of Marketing 75(4), 183-195.

[33]

Deans, C. P. (2011). The impact of social media on c-level roles. MIS Quarterly Executive 10(4), 187-200.

[34]

Hylving, L., Henfridsson, O. & Selander, L. (2012). The Role of Dominant Design in a Product Developing Firm’s Digital Innovation. Journal of Information Technology Theory and Application 13(2), 5-21.

[35]

Baxter, R. J. & Berente, N. (2010). The process of embedding new information technology artifacts into innovative design practices. Information and Organization 20(3-4), 133-155.

[36]

Boland, R. J., Lyytinen, K. & Yoo, Y. (2007). Wakes of Innovation in Project Networks: The Case of Digital 3-D Representations in Architecture, Engineering, and Construction. Organization Science 18(4), 631-647.

[37]

Culnan, M. J. & Patrick, M. J. (2010). How Large U.S. Companies Can Use Twitter and Other Social Media to Gain Business Value. MIS Quarterly Executive (9).

[38]

Faraj, S., Jarvenpaa, S. L. & Majchrzak, A. (2011). Knowledge Collaboration in Online Communities. Organization Science 22(5), 1224-1239.

[39]

Yoo, Y., Lyytinen, K. & Boland, R. J. (2008). Distributed Innovation in Classes of Networks, in Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS), Waikoloa, January, pp. 58–58.

[40]

Vaast, E. & Kaganer, E. (2013). Social media affordances and governance in the workplace: An examination of organizational policies. Journal of Computer-Mediated Communication 19(1), 78-101.

2284

[41]

Henfridsson, O. & Yoo, Y. (2013). The Liminality of Trajectory Shifts in Institutional Entrepreneurship. Organization Science (Published online: December 23).

[42]

Gal, U., Blegind J. T. & Lyytinen, K. (2014). Identity Orientation, Social Exchange, and Information Technology Use in Interorganizational Collaborations. Organization Science 25(5), 1372-1390.

[43]

Helfert, M. (2008). Business Informatics: An Engineering Perspective on Information Systems. Journal of Information Technology Education 7, 223-245.

[44]

Winter, R. (2009). What in Fact is Fundamental Research in Business and Information Systems Engineering? Business & Information Systems Engineering 1(2), 192-198.

[45]

Topi, H., Valacich, J., Wright, R., Kaiser, K., Nunamaker, Jr., J. F., Sipior, J., & de Vreede, G.-J. (2010). IS 2010: Curriculum Guidelines for Undergraduate Degree Programs in Information Systems. Communications of the Association for Information Systems, 959-428

[46]

Curriculum Development using the ADDIE Model, A Whitepaper from the Learning House, Inc., Rev. 10/2011.

[47]

Tumbas, P., Sedlak, O., Matković, P. (2008). Teaching Informatics in Economics and Management Degrees and ECTS Experiences. Proceedings of the 2nd International Technology, Education and Development Conference (INTED). Valencia - Spain: The International Academy of Technology, Education and Development (IATED).

[48]

Tumbas, P., Sedlak, O., Matković, P. (2009). Impact of the New Economy on Business Informatics Education. In W. Kouwenhoven (Eds.), Advances in Technology, Education and Development (pp. 123-146). Vienna - Austria: InTech.

2285