Operational and Innovation Collaboration and Cloud Computing

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Operational and Innovation Collaboration and Cloud ComputingE. Loukis (eloukis@aegean.gr) N. Kyriakou (nkyr@aegean.gr) K. Pazalos (kpaz@aegean.gr)

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StructureIntroductionLiterature ReviewResearch HypothesesData and MethodResultsConclusionsFuture Research

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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**.

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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 costsConversion of related capital investments to operating costsProvision of practically infinite computing resources available on demandProvision of flexible cost-effective computing capacity to support growth IT services quality improvement

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Cloud Computing (3/3)Benefits to Firms:Flexibility to Respond to Fluctuating IT loadsFocus on core competenciesQuick and low cost development of new Information Systems to support innovationsReduction of IT related barriers to entry of new firmsQuick and low cost access to new technologiesCloud Computing Risks:Service availabilityPerformance risksData security risks (e.g. lack of control of, unauthorized access to or modification of firms data resources)Economic Risks (associated with hidden costs and also CC services provider lock-in)

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

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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 ecosystemsFirms take advantage of collaboration with other firmsInnovation design and implementation has become open and collaborativeCollaboration is now supported by a variety of platforms and software

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Literature Review (2/2)There has been some empirical research concerning the effects of various factors on CC adoption1st 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)

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Research HypothesesResearch hypotheses concerning the Cloud Computing Adoption:H1: The extent of firms operational collaboration with other firms is positively associated with its propensity for CC adoptionH2: The use of ICT for supporting firms operational collaboration with other firms is positively associated with its propensity for CC adoptionH3: Innovation collaboration with other firms is positively associated with propensity for CC adoptionH4: The use of ICT for supporting firms innovation collaboration with other firms is positively associated with its propensity for CC adoption

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Data and Method (1/3)Data676 enterprises6 European Countries (Germany, France, Italy, Poland, Spain, England)e-Business Market W@tche-Business Survey 2009MethodSomers DKendalls tau-b

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Data and Method (2/3)Dependent VariableProp_CloudPropensity to adopt Cloud Computing

Independent VariablesOperational CollaborationGeographic Scope of SalesGeographic Scope of ProcurementElectronic Operational CollaborationUse of SCM systemsElectronic Sharing of Information on Inventory Levels with SuppliersElectronic Orders from CustomersElectronic Invoicing

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Data and Method (3/3)Independent VariablesInnovation CollaborationInvolvement of other firms in product/service innovationsInvolvement of other firms in process innovationsElectronic Innovation CollaborationUse of Software Applications to Collaborate with other firms for product/service or process innovations

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Results (1/3) All CasesIndependent VariableSommers DKendall tau-bResearch HypothesisOperational CollaborationGeographic Scope of Sales0.0110.013H1Geographic Scope of Procurement0.0160.018H1Electronic Operational CollaborationUse of SCM systems0.1900.190H2Electronic sharing of information on inventory levels with suppliers0.0520.052H2Electronic Orders from Customers0.0530.054H2Electronic invoicing0.1240.131H2Innovation CollaborationInvolvement of other firms in product/service innovations0.1300.131H3Involvement of other firms in process innovations0.1620.166H3Electronic Innovation CollaborationUse of software applications to collaborate with other firms for product/service or process innovations0.1530.153H4

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Results (2/3) Small FirmsIndependent VariableSommers DKendall tau-bResearch HypothesisOperational CollaborationGeographic Scope of Sales-0.069-0.084H1Geographic Scope of Procurement-0.003-0.004H1Electronic Operational CollaborationUse of SCM systems0.1100.110H2Electronic sharing of information on inventory levels with suppliers0.0900.091H2Electronic Orders from Customers0.1130.117H2Electronic invoicing0.1900.208H2Innovation CollaborationInvolvement of other firms in product/service innovations0.1170.118H3Involvement of other firms in process innovations0.2160.220H3Electronic Innovation CollaborationUse of software applications to collaborate with other firms for product/service or process innovations0.1190.120H4

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Results (3/3) Medium & Large FirmsIndependent VariableSommers DKendall tau-bResearch HypothesisOperational CollaborationGeographic Scope of Sales0.0410.044H1Geographic Scope of Procurement0.0140.015H1Electronic Operational CollaborationUse of SCM systems0.2160.217H2Electronic sharing of information on inventory levels with suppliers0.0090.009H2Electronic Orders from Customers-0.008-0.007H2Electronic invoicing0.0430.045H2Innovation CollaborationInvolvement of other firms in product/service innovations0.1120.113H3Involvement of other firms in process innovations0.0930.095H3Electronic Innovation CollaborationUse of software applications to collaborate with other firms for product/service or process innovations0.1590.160H4

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Research HypothesesResearch hypotheses concerning the Cloud Computing AdoptionH1: The extent of firms operational collaboration with other firms is positively associated with its propensity for CC adoption (REJECTED)H2: The use of ICT for supporting firms 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 firms innovation collaboration with other firms is positively associated with its propensity for CC adoption (SUPPORTED)

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ConclusionsInnovation 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 activitiesNot in their critical every day operationsCC increases the capabilities and flexibility of existing ICT support of innovation oriented collaboration and highly sophisticated forms of operational collaboration

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Further ResearchInvestigation 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

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Thank You!E. Loukis (eloukis@aegean.gr) N. Kyriakou (nkyr@aegean.gr) K. Pazalos (kpaz@aegean.gr)