Towards Value-based Design Patterns for Inter-Organizational Control

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Consumer perceived value

Consumer perceived value:The development of amultiple item scaleJillian C.Sweeney a,*,Geoffrey N.Soutar ba Faculty of Economics and Commerce,University of Western Australia,Perth,WA 6009,Australiab Graduate School of Management,University of Western Australia,Perth,WA 6009,AustraliaAbstractValue creation is widely discussed in the practitioner literature and is often a part of organizations’mission statements and objectives.It is seen by many commentators as the key to long-term success,with Albrecht (1992,p 7)arguing that “the only thing that matters in the new world of quality is delivering customer value.”Despite this emphasis,little research has addressed the value construct itself and there is no well-accepted value measure,even in the retail environment in which customers evaluate products before purchase.The present research project describes the development of a 19-item measure,PERVAL,that can be used to assess customers’perceptions of the value of a consumer durable good at a brand level.The measure was developed for use in a retail purchase situation to determine what consumption values drive purchase attitude and behavior.Four distinct,value dimensions emerged that were termed emotional,social,quality/performance and price/value for money.The reliability and validity of the scale was assessed in a prepurchase situation,using exploratory and conﬁrmatory analyses.All four value dimensions were found to help signiﬁcantly in explaining attitudes and behavior.The scale was also tested in a postpurchase situation and found to be both reliable and valid in this context as well.The PERVAL scale has a variety of potential applications and can serve as a framework for further empirical research in this important area.©2001by New York University.All rights reserved.1.IntroductionPerceived value,a strategic imperative for producers and retailers in the 1990s,will be of continuing importance into the twenty-ﬁrst century (Vantrappen,1992;Woodruff,*Corresponding author.Tel.:ϩ61-9-380-1438;fax:ϩ61-9-380-1004.E-mail addresses:jsweeney@.au (J.C.Sweeney),gsoutar@.au (G.N.Soutar).PergamonJournal of Retailing 77(2001)203–2200022-4359/01/$–see front matter ©2001by New York University.All rights reserved.PII:S0022-4359(01)00041-0204J.C.Sweeney,G.N.Soutar/Journal of Retailing77(2001)203–2201997;Forester,1999).Indeed,from a retailing perspective,Hartnett(1998,p21)noted that“when[retailers]satisfy people-based needs,they are delivering value,which puts them in a much stronger position in the long term,”while Burden(1998,p2)commented that“successful retailers increasingly target their offers towards two consumer catego-ries:those with an emphasis on value and those for whom time pressure is the key.”This move to value in retailing seems to be a global phenomenon as“the most compelling [Asian retail]opportunities are at the value end of the market given that consumers in Asia today are...much more value conscious than they were in the mid-1990s”(Treadgold,1999,p45).If it is true that retail customers are“value-driven”(Levy,1999),then managers need to understand what customer’s value and where they should focus their attention to achieve this needed market place advantage(Woodruff,1997).Despite value’s importance,however, there has been relatively little empirical research to develop an in-depth understanding of the concept.Even less research has focused on specifying its domain or on developing a practical and operational perceived value scale.The present paper outlines the development of such a scale and begins with a brief discussion of the origins of the consumption value construct before discussing the present study.Zeithaml(1988,p14)has suggested that perceived value can be regarded as a “consumer’s overall assessment of the utility of a product(or service)based on percep-tions of what is received and what is given.”She referred to this assessment as a comparison of a product or service’s‘get’and‘give’components.The most common such deﬁnition of value is the ratio or trade-off between quality and price(e.g.,Chain Store Age,1985;Cravens,Holland,Lamb&Moncrieff,1988;Monroe,1990),which is a value-for-money conceptualization.Clearly,these two components(quality and price)have different and differential effects on perceived value for money.Zeithaml(1988)argued that some consumers perceive value when there is a low price,others perceive value when there is a balance between quality and price.Thus,for different consumers,the components of perceived value might be differentially weighted.Additionally,Zeithaml(1988)found that some consumers obtained value from all relevant‘get’and‘give’components,leading to her deﬁnition of perceived value.Other authors have also suggested that viewing value as a trade-off between only quality and price is too simplistic(e.g.,Schechter,1984,Bolton&Drew,1991).Porter (1990,p37),for example,talked about providing“superior value to the buyer in terms of product quality,special features,or after-sale service.”These views suggest that existing value constructs are too narrow and that dimensions other than price and quality would increase the construct’s usefulness.A more sophisticated measure is needed to understand how consumers value products and services and the present study was an attempt to create such a measure.The following section of this article outlines a conceptual framework for the suggested measure while subsequent sections discuss the process through which the scale was devel-oped and tested while theﬁnal section note some of the study’s theoretical and managerial implications.2.A conceptual frameworkConsumer research has evolved from a focus on the cognitive aspects of decision making to include intrinsic aspects,so that an object or experience can be seen to be valued for its own sake.Holbrook and Hirschman (1982),for example,argued for an experiential perspective that included the symbolic,hedonic and esthetic aspects of the consumption process.They suggested that the existing information processing perspective implied products were largely judged through utilitarian criteria,based on how well a product or service serves its intended purpose or performs its proper function.An experiential perspective views products or services through hedonic criteria,based on an appreciation of the good or service for its own sake.Other researchers (e.g.,Batra &Ahtola,1990)supported the presence of distinct utilitarian and hedonic components,which have been referred to as ‘thinking and feeling’dimensions.In particular,Babin,Darden and Grifﬁn (1994)developed a speciﬁc measure of shopping value that includes utilitarian and hedonic components,while Richins (1994)created a ‘possession rating scale.’While her scale included utilitarian and hedonic components,it related to possessions people already own.Indeed,many of the possessions examined were sentimental objects,such as photograph albums.This is in contrast to the present study,which was concerned with measuring perceptions of value of consumer durable goods prior to,as well as soon after,purchase as an aid to understanding consumers’decision processes and choice behavior.A broader theoretical framework of perceived value was developed by Sheth,Newman and Gross (1991a,1991b),who regarded consumer choice as a function of multiple ‘con-sumption value’dimensions and that these dimensions make varying contributions in different choice situations.They suggested ﬁve dimensions (social,emotional,functional,epistemic and conditional value),relating speciﬁcally to the perceived utility of a choice,whether at the decision to buy level (buy or not buy),at the product level (product type A or product type B)or at brand level (brand A or brand B).Their work provides the best foundation for extending existing value constructs as it was validated through an intensive investigation of the variety of ﬁelds in which value has been discussed,including economics and social and clinical psychology.Functional value was seen to be the key inﬂuence on consumer choice.However,Sheth et al.(1991b)found the other value dimensions were also inﬂuential in some situations.For example,while functional and social value dominated the decision as to whether to use ﬁltered or unﬁltered cigarettes,emotional value was key to the decision to smoke.It is clear that different value dimensions may be important depending on the decision level (e.g.,buy/not buy or buy brand A/brand B),as well as on the type of product or service being considered.2.1.Value dimensions are inter-relatedSheth et al.(1991a,p 12)argued that value dimensions are independent as they “relate additively and contribute incrementally to choice.”However,prior research suggests that the hedonic and utilitarian components of attitude may be related (e.g.,Osgood,Suci &Tannenbaum,1957).For example,the purchase of an attractive carpet is likely to increase the chances of a favorable emotional as well as a favorable functional response.Conse-205J.C.Sweeney,G.N.Soutar /Journal of Retailing 77(2001)203–220206J.C.Sweeney,G.N.Soutar/Journal of Retailing77(2001)203–220quently,value dimensions may not be independent.Indeed,many other multidimensional constructs,including organizational commitment(Mowday,Steers&Porter,1979),well-being at work(Warr,1990),retail service quality(Dabholkar,Thorpe&Rentz,1996)and communication-evoked mental imagery(Babin&Burns,1998),have been found to have separate but correlated dimensions.Consequently,the value dimensions developed in the present study were allowed to be interrelated.2.2.Perceived value is different from satisfactionPerceived value has been widely discussed at a generic level(e.g.,providing value), particularly in the practitioner literature and can easily be confused with satisfaction(e.g., meeting customers’needs).However these constructs are distinct.While perceived value occurs at various stages of the purchase process,including the prepurchase stage(Woodruff, 1997),satisfaction is universally agreed to be a postpurchase and postuse evaluation(e.g., Hunt,1977;Oliver,1981).As a consequence,value perceptions can be generated without the product or service being bought or used,while satisfaction depends on experience of having used the product or service.In addition,satisfaction has been conceptualized as a unidimen-sional construct,largely due to the assumption that it varies along a hedonic continuum from unfavorable to favorable(Westbrook&Oliver,1991)and to its conceptualization as a consequence,outcome or summary variable in comparison to value,which is antecedent to it(Parasuraman,1997).In contrast,we conceptualize value as a multidimensional constructs.2.3.The proposed scaleAs mentioned above,Sheth et al.’s(1991a,1991b)model provides a strong foundation from which to build a perceived value scale.However,these authors argued that functional value was created by attributes such as reliability,durability and price.Theﬁrst two of these attributes have often been seen as aspects of quality and,in other value models,quality and price are held to have separate inﬂuences on perceived value;quality having a positive and price a negative effect(e.g.,Dodds,Monroe&Grewal,1991).Consequently,it could be argued that price and quality are functional subfactors that contribute separately to perceived value and that they should be measured separately.We began our study,therefore,by including potentially separate price and quality dimensions in the value construct.The aim was to develop a useful,parsimonious and practical scale that could be easily applied in a variety of purchase situations.The initial stages of the development of such a perceived value scale(called PERVAL)are discussed in the following section.3.The scale development processThe evidence already discussed suggests that there are distinct aspects of consumption value.The present section describes the process used to establish the content for these dimensions and to validate the scale psychometrically and theoretically.The process followsChurchill’s (1979)approach for developing measures of multiple-item marketing constructs.After the development of an initial set of items,two scale puriﬁcation stages were under-taken.While the ﬁrst stage used a student sample,the second stage used a more diverse sample of consumers.3.1.The development of an initial set of itemsIn the ﬁrst phase of the research we explored the ideas and opinions that consumers held about consumption value.Six focus groups were conducted among adult consumers in a major Australian city.Ten people attended each session.Respondents,balanced between male and female,were from a range of occupations such as white and blue collar,home duties and retired people.They were aged from 25to 59years.This diversity of focus group members was planned to represent buyers of the products discussed in the various sessions with the key purpose of the sessions to generate items measuring consumption values.A different product was used in each session to stimulate participant thinking in different directions.The goods used included clothing and durable goods.During the trial group interview,it became clear that asking consumers why they valued a particular brand,such as Panasonic,when considering a purchase evoked a greater range of value items than asking why they valued a certain product type,such as stereo or mono television.For this reason consumers were asked for their opinions about the values associated with brands,rather than product types.Group members were asked a series of questions to provoke thought about consumption value.Items generated tended to be attributes of the brand.For example,color,looks,comfort,features,price and reliability were mentioned.Following this,respondents were asked why these aspects were important to them in an attempt to better understand the underlying beneﬁts the “aspects”provided since beneﬁts would be more useful in developing generic consumption value items.As a consequence of this exploratory phase,it was found that many of the items produced were generic.After taking account of identical or equivalent items,a total of one hundred and seven consumption value statements were retained for further evaluation.Nine academic colleagues evaluated the items obtained from the focus groups to ensure they were representative of the scale’s domains.To assist,we gave each judge a description of each of the six value dimensions based on Sheth et al.’s (1991a)discussion and included the two suggested functional subdimensions of quality and price.The use of experts as judges of a scale’s domain has been commonly used in marketing (e.g.,Zaichowsky,1985;Babin &Burns,1998).Items that seven or more of the nine judges classiﬁed as representative of a speciﬁc value dimension were kept for further scale development.This resulted in ninety-two items being retained from the one hundred and seven item originally assessed.The high proportion retained suggests that the experts had little difﬁculty in classifying the various items into common value dimensions.Of interest,all judges categorized the item “this product offers value for money,”which has sometimes been used as a single item perceived value measure,into the price dimension.None of the items generated were judged to reﬂect epistemic value,which relates to the 207J.C.Sweeney,G.N.Soutar /Journal of Retailing 77(2001)203–220208J.C.Sweeney,G.N.Soutar/Journal of Retailing77(2001)203–220surprise or novelty aspect of a product,or to conditional value,which refers to the condi-tional effects of a speciﬁc situation on value perceptions.Epistemic value relates to a product’s capacity to arouse curiosity,offer novelty or satisfy a desire for knowledge and may be important for consumers who are considering new experiences.This is particularly likely in the case of experiential services such as holidays,adventures or even shopping trips (Sheth et al.,1991a;Babin,Darden&Grifﬁn,1994)and is possibly less important when considering the purchase of a durable good.Sheth et al.(1991a)described conditional value as being derived from temporary func-tional or social value,hence it is arises when situational factors,such as an illness or some speciﬁc social situation,moderate the perceived value-outcome process.Hence conditional value can be described as a speciﬁc case of other types of value.Conditional value was seen as less critical in the present study as the aim was to develop a general value measure. Consequently these two aspects were not included and the perceived value scale was based on four dimensions,quality,price,emotional value and social value,with quality and price being seen as subcomponents of functional value,as suggested earlier.Following a pilot survey of the accepted items with twelve students,seven items were eliminated as they were seen to be too product speciﬁc or repetitive.In all,34functional items(17quality,15price),29social and22emotional items were retained as the initial basis for a perceived value scale.One of the prime considerations in scale development is the adequacy with which a speciﬁed domain of content is sampled.The focus group approach used to generate items and the variety of goods discussed in these groups suggests that the scale has content validity.3.2.Data collection,stage oneWe used an initial quantitative procedure to reduce the number of items and to examine the resulting scale’s psychometric properties.Speciﬁcally,in theﬁrst two stages,value was examined in an in-store prepurchase situation.A total of273third year or postgraduate students at three Australian universities participated in theﬁrst quantitative stage of the research by responding to a questionnaire containing the total set of85items.Each student was asked to recall a situation in a shop in the last three months when they had looked at a particular durable product,which they could identify by brand and price,but which they had not bought.The product could have been an item that were thinking of buying or something that they had no intention of buying,either because they couldn’t afford it,didn’t need it or disliked it.The variation in behavioral intentions regarding the product was important,since it was expected that a similar variation in perceived value would result,increasing the ability to properly test the scale.Four weeks later an identical‘retest’questionnaire,in which students were asked to re-evaluate the same product,was administered to130of these students.To enable an assessment of convergent,discriminant and criterion related validity of the constructs,respondents were asked to answer a series of additional items derived from the literature during both stages.For example,two items selected to represent social value were adapted from Bearden,Netemeyer,and Teel’s(1989)‘Consumer Susceptibility to Interper-sonal Inﬂuence’scale.Respondents evaluated all items on a seven-point Likert type scale,ranging from strongly disagree (1)to strongly agree (7).3.3.Item reduction and exploratory investigation of dimensionality,stage oneSeventeen items were deleted from the scale as they had test-retest correlations of less than 0.50,suggesting they generated more noise than information.During the retest students were also asked to state whether any of the items were inappropriate or irrelevant.We asked this to overcome potential irritation or social reaction caused by some of the social value statements,such as “would make people appreciate me more.”Five items from the social and emotional dimensions were deleted for this reason.In all,63items were retained that represented aspects of functional,emotional and social value.Following this outcome and,as recommended by Churchill (1979),we further reduced the scale by investigating coefﬁcient alpha and plotting the item-to-total scale correlations for each dimension.Items that produced a sharp drop in the plotted pattern were eliminated.After this,33items remained.To this point,we had not checked for a possible overlap of items across dimensions.With this in mind,we undertook a four-dimensional principal components analysis with varimax rotation.A clear factor pattern emerged.After the iterative deletion of a small number of items that had their highest loading on an incorrect factor or an almost equal loading on more than one factor,24items remained.A further exploratory principal components analysis was undertaken on this reduced item set that revealed a clear factor pattern.13.4.Reliability and validity of scale—stage oneHaving established the four dimensions of the scale,we conducted a conﬁrmatory factor analysis.As suggested by Bollen (1989),a null model,in which no factors were considered to underlie the observed variables,correlations between observed indicators were zero and the variances of the observed variables were not restricted,was tested against a series of models,namely:Y A one factor model (suggesting that the observed variables represent a single valuedimension)Y A three factor model (in which price and quality are suggested to represent a singlefunctional dimension rather than two dimensions,in addition to the emotional and social value dimensions)Y A four factor model (in which the dimensions are as proposed in the earlier discussion)The results,shown in Table 1,support the proposed four-factor solution,comprising the quality,price,emotional and social value dimensions.Not only did this model have the lowest ␹2and highest adjusted goodness of ﬁt index,but also the highest noncentrality index (RNI).This index was developed as an unbiased estimator of the Bentler-Bonnett CFI and is recommended for the comparative analysis of models (McDonald &Marsh,1990;Bagozzi &Heatherton,1994).Further,the improvements over the three factor,one factor and null models were signiﬁcant.209J.C.Sweeney,G.N.Soutar /Journal of Retailing 77(2001)203–220The discriminant validity of the four dimensional scale was investigated in two ways.First,the test that the correlation between constructs is signiﬁcantly less than one was used (Bagozzi &Heatherton,1994).In practice this test requires an examination of the conﬁdence interval surrounding the estimate.Should the correlation plus or minus two standard errors include the value one,discriminant validity is not supported.The highest correlation between dimensions was 0.71(between the emotional and quality scales).The associated conﬁdence interval was 0.65to 0.77.Hence discriminant validity was supported for all pairs of dimensions.Second,Fornell and Larcker’s (1981)discriminant validity test was conducted.This test requires that,when taking any pair of constructs,the average variance extracted for each construct should be greater than the squared structural path coefﬁcient between the two constructs.In the present case these requirements were met for all pairs of constructs,with the average variance extracted ranging from 0.71to 0.77.This exceeded the squared path coefﬁcient in all cases,since the maximum value of the squared path was 0.50.These results support the distinction of the constructs included in the model,even when measurement error is considered.In addition,high levels of reliability were achieved,the reliability of the individual scales ranging from 0.82to 0.91.Convergent validity is also supported as the average variance extracted clearly exceeded 0.50for all dimensions (Fornell &Larcker,1981).Convergent and discriminant validity were also assessed through an examination of the correlations of the four dimensions,represented by factor scores,with alternative measures of functional,emotional and social value that were included in the questionnaire.This analysis supported the convergent and discriminant validity of the scale.The scale also behaved as expected in that correlations between the dimensions and measures of related constructs,such as likelihood of purchase,were signiﬁcant and positive,supporting criterion-related validity.Correlations in stages 1and 2were similar,hence only the results from stage 2are shown (Table 4).These initial results supported the proposed four dimensional model of perceived value.Although these results provided evidence of reliability,construct validity and criterion-relatedTABLE 1Comparative Analysis of Models of Various Dimensionalities—Stage OneModel␹2DF AGFI a RNI Null2097.23360.25n.a.One factor767.86270.550.64Three factor242.44240.810.89Four factor 38.14210.960.99Stage Two Model␹2DF AGFI a RNI b Null1990.16360.15n.a.One factor644.40270.420.68Three factor229.02240.770.90Four factor24.68210.96 1.00aAdjusted goodness of ﬁt index is denoted by AGFI and the relative non-centrality index by RNI.b RNI ϭ{(␹2n -df n )-(␹2-df)}/(␹2n -df n )-where n is the null model.210J.C.Sweeney,G.N.Soutar /Journal of Retailing 77(2001)203–220validity they were based on a student sample.The24-item instrument was therefore re-examined using an independent and more diverse second data set,as recommended by Churchill(1979).3.5.Data collection,stage twoA telephone survey was conducted among adults aged18and over in the Perth Metro-politan area in Western Australia.Telephone numbers were selected at random and calls made in the evening and weekends to avoid a bias against working adults.The same,in-store prepurchase situation was used as in stage one of the study.Respondents were asked to think of a situation in a shop in the last three months or so,when they had looked at a particular durable product.A wide variety of durable goods were selected by respondents,including clothing,footwear,furniture,cars,computers,sports goods and household appliances.A total of875respondents were approached,210of these refused to participate,resulting in an effective response rate of76%.Of the remaining665,362failed to qualify because they could not clearly recall such a purchase situation.This left303interviews for use in the second stage of analysis.Two thirds of the sample was female,and almost two thirds were between18and44years of age.This corresponds to the proﬁles of shoppers surveyed in previous studies in Western Australia(e.g.,Sweeney,Soutar&Johnson,1999).The main objective of the second stage was to evaluate the robustness of the24-item scale intended to measure perceived value.The procedure involved several steps,similar to those used in stage one.3.6.Scale puriﬁcation—stage twoThe item-to-total correlations were calculated for the four dimensions.As in theﬁrst stage, items that created a sudden drop in the plotted item to total scale correlation patterns were dropped.Following this,an exploratory principal components analysis was conducted of the remaining items.At this stage the scale was reduced to19items.An exploratory factor analysis of the remaining19items revealed a stable structure of four dimensions that can be described as follows:Emotional value the utility derived from the feelings oraffective states that a product generatesSocial value(enhancement of social self-concept)the utility derived from the product’s ability to enhance social self-conceptFunctional value(price/value for money)the utility derived from the product due to the reduction of its perceived short term and longer term costsFunctional value(performance/ quality)the utility derived from the perceived quality and expected performance of the product211J.C.Sweeney,G.N.Soutar/Journal of Retailing77(2001)203–220212J.C.Sweeney,G.N.Soutar/Journal of Retailing77(2001)203–220TABLE2Summary of Final Results from Exploratory Factor Analysis—Stage TwoItem Quality Emotional Price Social has consistent quality0.820.280.21is well made0.790.310.260.23 has an acceptable standard of quality0.760.380.20has poor workmanship(*)0.760.250.26would not last a long time(*)0.760.20would perform consistently0.700.310.22is one that I would enjoy0.370.800.28 would make me want to use it0.320.770.26 is one that I would feel relaxed about using0.370.760.21would make me feel good0.320.740.210.36 would give me pleasure0.350.710.33 is reasonably priced0.90offers value for money0.300.82is a good product for the price0.330.350.76would be economical0.250.72would help me to feel acceptable0.83 would improve the way I am perceived0.83 would make a good impression on0.260.290.74 other peoplewould give its owner social approval0.260.60 Eigen value9.53 2.22 1.47 1.00 (*)reverse scoredPercentage of variance extracted by the four factors was75%Note:Loadings of less than0.20are not shown to improve readabilityIn both stages one and two,the item“this product offers value for money”clearly related to the price dimension.Correlations between this item and the other dimensions were extremely low.While the loadings of this single item onto the price factor in exploratory factor analysis were0.72and0.82in stages one and two respectively,loadings on other dimensions were far lower.The maximum loading of this item on other dimensions was0.30,on the quality factor in stage2.3.7.Reliability and validity ofﬁnal scale—stage twoThe exploratory factor analysis of the19items is shown in Table2.A clear four-factor structure is evident.Once again,the suggested four-factor scale structure was compared to the three factor, single factor or null models using a conﬁrmatory factor analysis approach(Table1). Although the␹2value for the four factor model was signiﬁcant,the four factor model created a signiﬁcant improvement over the three factor,one factor and null models.Otherﬁt indices, in particular the RNI,indicated that the four-factor solutionﬁt the data well.。

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ADissertation, Louisiana State UniversityRasmusson, E., (1997) Cause and Effect, Sales and Marketing Management, 7, 96Ross J., Stutts, M., & Patterson, L., (1991) Tactical Considerations for the Effective Use of Cause-Related Marketing. The Journal of Applied Business Research, 7,2, 58-64Ross J., Patterson, L., & Stutts, M.,(1992) Consumer Perceptions of Organizations that Use Cause-Related Marketing. The Journal of the Academy of Marketing Science, 20,1, 93-97Sanchez, C., M. (2000) Motives for Corporate Philanthropy in El Salvador: Altruism and Political Legitimacy. The Journal of Business Ethics, 27, 363-375 Skowronski, J., & Carlston, D., (1989) Negativity and Extremity Biases in Impression Formation: A Review of Explanations. Psychological Bulletin, 105,1, 131-142Smith, C., (1994) The New Corporate Philanthropy. Harvard Business Review, May-June 105-116Solomon, M.,(1999) Consumer Behavior, Fourth Edition, Prentice Hall.Stayman, D., Alden, D., & Smith, K., (1992) Some Effects of Schematic Processing on Consumer Expectations and Disconfirmation Judgments, Journal of ConsumerResearch, 19, 240-255Stendardi, E., (1992) Corporate Philanthropy: The Redefinition of Enlighten Self-nterest.The Social Science Journal, 29,1, 21-30Tokarski, K., (1999) Give and Thou Shall Receive. Public Relations Quarterly, 44,2 34-40Tybout, A., Calder, B., & Sternthal (1981) Using Information Processing Theory to Design Marketing Strategies. Journal of Marketing Research, 38, 73-79 Ulmer, R. & Sellnow, T., (2000) Consistent Questions of Ambiguity in Organizational Crisis Communication: Jack in the Box as a Case Study. Journal of BusinessEthics, 25,2, May 143-155Urbany, J., Bearden, W., & Weibaker D., (1988) The Effect of Plausible and Exaggerated Reference Price on Consumer Perceptions and Price Search, Journal of Consumer Research, 15,1, June, p95 111Varadarajan, P.R., & Menon, A., (1988) Cause-Related Marketing: A Coalignment of Marketing Strategy and Corporate Philanthropy, Journal of Marketing, 52, 58-74 Wansink, B., (1989) The Impact of Source Reputation on Inferences About Unadvertised Attributes, in Advances in Consumer Research, 16, Surll, T., ed. Provo, UT:Association of Consumer Research 399-406Williams, R. & Barret, J.D., (2000) Corporate Philanthrophy, Criminal Activity, and Firm Reputation: is There a Link?, Journal of Business Ethics, 26, August 341-350Wright, P., (1986), Schemer Schema: Consumers’ Intuitive Theories About Marketers’ Influence Tactics, in Advances in Consumer Research, 13, Lutz, R., ed. Provo,UT: Association of Consumer Research 1-3Zaichkowsky, J., (1985), Measuring the Involvement Construct, Journal of Consumer Research, 12, December 341-353APPENDIX A: EXPERIMENTAL STIMULIProactive General ReebokReebok Releases its New Lineand Philanthropic Initiative(AP Newswire) Reebok announces the release of its newest line of athletic shoes. Reebok executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. Additionally, Reebok executives announced a million dollar contribution to the American Health Institute as part of it philanthropic activity. Reebok’s CEO stated; “helping to improve society is a core value at Reebok.”Proactive Directed ReebokReebok Releases its New Lineand Philanthropic Initiative(AP Newswire) Reebok announces the release of its newest line of athletic shoes. Reebok executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. Additionally, Reebok executives announced a million dollar contribution to the African-American Health Institute as part of it philanthropic activity. Reebok’s CEO stated; “helping to improve society is a core value at Reebok.”Control ReebokReebok Releases its New Line(AP Newswire) Reebok announces the release of its newest line of athletic shoes. Reebok executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries.Proactive General AccentAccent Releases its New Lineand Philanthropic Initiative(AP Newswire) Accent, a new brand of athletic shoe designed to compete with leading brands, announces the release of its latest line. Accent executives are very excited a bout their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. Additionally, Accent executives announced a million dollar contribution to the American Health Institute as part of it philanthropic activity. Accent’s CEO stated; “helping to improve society is a core value at Accent.”Proactive Directed AccentAccent Releases its New Lineand Philanthropic Initiative(AP Newswire) Accent, a new brand of athletic shoe designed to compete with leading brands, announces the release of its latest line. Accent executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. Additionally, Accent executives announced a million dollar contribution to the African-American Health Institute as part of it philanthropic activity. Accent’s CEO stated; “helping to improve society is a core value at Accent.”Reactive General AccentAccent Releases its New Linein the Midst of Racial Scandal(AP Newswire) Accent, a new brand of athletic shoe designed to compete with leading brands, announces the release of its latest line. Accent executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Accent’s excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Accent officials promise a statement very soon.Accent Responds to Racial Scandal(AP Newswire) Accent CEO announced that the company fired the six senior executives involved in racial discrimination practices at Accent. The CEO added that he does not believe that the action of the six individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Accent organization, however Accent must take responsibility and apologize to the employees that were effected. Additionally, he stated the Accent would make a million dollar contribution to the American Health Institute.Reactive Directed AccentAccent Releases its New Linein the Midst of Racial Scandal(AP Newswire) Accent, a new brand of athletic shoe designed to compete with leading brands, announces the release of its latest line. Accent executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Accent’s excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Accent officials promise a statement very soon.Accent Responds to Racial Scandal(AP Newswire) Accent CEO announced that the company fired the six senior executives involved in racial discrimination practices at Accent. The CEO added that he does not believe that the action of the six individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Accent organization, however Accent must take responsibility and apologize to the employees that were effected. Additionally, he stated the Accent would make a million dollar contribution to the African-American Health Institute.Control No Scandal AccentAccent Releases its New Line(AP Newswire) Accent, a new brand of athletic shoe designed to compete with leading brands, announces the release of its latest line. Accent executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries.Control Scandal AccentAccent Releases its New Linein the Midst of Racial Scandal(AP Newswire) Accent, a new brand of athletic shoe designed to compete with leading brands, announces the release of its latest line. Accent executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Accent’s excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Accent officials promise a statement very soon.Accent Responds to Racial Scandal(AP Newswire) Accent CEO announced that the company fired the six senior executives involved in racial discrimination practices at Accent. The CEO added that he does not believe that the action of the six individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Accent organization, however Accent must take responsibility and apologize to the employees that were effected.APPENDIX B : PILOT STUDY QUESTIONNAIRESReebok GeneralQuestionnaireA. While considering the information contained in the news release, please answer the following questions regarding Reebok brand athletic shoes.1. Compared to other brands of athletic shoes Reebok is of very high quality.Strongly disagree Strongly agree1 2 3 4 5 6 72. Reebok consistently performs better than all other brands of athletic shoes.Strongly disagree Strongly agree1 2 3 4 5 6 73. If you were considering the purchase of a pair of athletic shoes, how likely is it that you would purchase Reebok?Highly unlikely Highly likely1 2 3 4 5 6 74. Reebok is a socially responsible company.Strongly disagree Strongly agree1 2 3 4 5 6 75. I can always count on Reebok brand of athletic shoes for consistent high quality.Strongly disagree Strongly agree1 2 3 4 5 6 76. Reebok is a good corporate citizen.Strongly disagree Strongly agree1 2 3 4 5 6 77. Rate the probability that you would buy Reebok’s if you were considering the purchase of athleticshoes.Not at all probable Very probable1 2 3 4 5 6 78. Reebok is a company that benefits society.Strongly disagree Strongly agree1 2 3 4 5 6 7B. Please circle the appropriate response regarding the new release you read.1. In the news release was there a donation to a charity directed toward African Americans?yes no2. In the news release was there a donation made in response to a scandal?yes no3. To what extent was the philanthropy in the new release directed toward African-Americans?To no extent To a great extent1 2 3 4 5 6 74. To what extent was the philanthropy a part of the response to the scandal?To no extent To a great extent1 2 3 4 5 6 7C. These last questions are for classification purposes only.1. What is you gender? (please circle one)Male FemaleWhat is your ethnic background? (please check one)African-American _______Asian-American _______Caucasian-American _______Hispanic-American _______Other (please specify) _______Accent GeneralQuestionnaireA. While considering the information contained in the news release, please answer the following questions regarding Accent brand athletic shoes.1. Compared to other brands of athletic shoes Accent is of very high quality.Strongly disagree Strongly agree1 2 3 4 5 6 72. Accent consistently performs better than all other brands of athletic shoes.Strongly disagree Strongly agree1 2 3 4 5 6 73. If you were considering the purchase of a pair of athletic shoes, how likely is it that you would purchase Accent?Highly unlikely Highly likely1 2 3 4 5 6 74. The company that markets Accent brand athletic shoes is a socially responsible company.Strongly disagree Strongly agree1 2 3 4 5 6 75. I can always count on Accent brand of athletic shoes for consistent high quality.Strongly disagree Strongly agree1 2 3 4 5 6 76. The company that markets Accent brand athletic shoes is a good corporate citizen.Strongly disagree Strongly agree1 2 3 4 5 6 77. Rate the probability that you would buy Accent’s if you were considering the purchase of athleticshoes.Not at all probable Very probable1 2 3 4 5 6 78. The company that markets Accent brand athletic shoes is a company that benefits society.Strongly disagree Strongly agree1 2 3 4 5 6 7B. Please circle the appropriate response regarding the new release you read.1. In the news release was there a donation to a charity directed toward African Americans?yes no2. In the news release was there a donation made in response to a scandal?yes no3. To what extent was the philanthropy in the new release directed toward African-Americans?To no extent To a great extent1 2 3 4 5 6 74. To what extent was the philanthropy a part of the response to the scandal?To no extent To a great extent1 2 3 4 5 6 7C. These last questions are for classification purposes only.1. What is you gender? (please circle one)Male FemaleWhat is your ethnic background? (please check one)African-American _______Asian-American _______Caucasian-American _______Hispanic-American _______Other (please specify) _______APPENDIX C: MAIN STUDY EXPERIMENTAL STIMULIProactive General ConverseConverse Releases its New Lineand Philanthropic Initiative(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. Additionally, Converse executives announced a million dollar contribution to the American Health Institute as part of it philanthropic activity. Converse’ CEO stated; “helping to improve society is a core value at Converse.”Proactive Directed ConverseConverse Releases its New Lineand Philanthropic Initiative(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. Additionally, Converse executives announced a million dollar contribution to the African-American Health Institute as part of it philanthropic activity. Converse’ CEO stated; “helping to improve society is a core value at Converse.”Reactive General ConverseConverse Releases its New Linein the Midst of Racial Scandal(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Converse’ excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Converse officials promise a statement very soon.Converse Responds to Racial Scandal(AP Newswire) Converse CEO announced that the company fired the six senior executives involved in racial discrimination practices at Converse. The CEO added that he does not believe that the action of the six individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Converse organization, however Converse must take responsibility and apologize to the employees that were effected. Additionally, he stated the Converse would make a million dollar contribution to the American Health Institute.Reactive Directed ConverseConverse Releases its New Linein the Midst of Racial Scandal(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Converse’ excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Converse officials promise a statement very soon.Converse Responds to Racial Scandal(AP Newswire) Converse CEO announced that the company fired the six senior executives involved in racial discrimination practices at Converse. The CEO added that he does not believe that the action of the six individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Converse organization, however Converse must take responsibility and apologize to the employees that were effected. Additionally, he stated the Converse would make a million dollar contribution to the African-American Health Institute.Control No Scandal ConverseConverse Releases its New Line(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries.Control Scandal ConverseConverse Releases its New Linein the Midst of Racial Scandal(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Converse’ excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Converse officials promise a statement very soon.Converse Responds to Racial Scandal(AP Newswire) Converse CEO announced that the company fired the six senior executives involved in racial discrimination practices at Converse. The CEO added that he does not believe that the action of the six individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Converse organization, however Converse must take responsibility and apologize to the employees that were effected.Reactive General Converse Study 2Converse Releases its New Linein the Midst of Racial Scandal(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Converse’ excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Converse officials promise a statement very soon.Converse Responds to Racial Scandal(AP Newswire) Converse CEO announced that the company would make a million dollar contribution to the American Health Institute. The CEO added that he does not believe that the action of the individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Converse organization, however Converse must take responsibility and apologize to the employees that were effected.Reactive Directed Converse Study 2Converse Releases its New Linein the Midst of Racial Scandal(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Converse’ excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Converse officials promise a statement very soon.Converse Responds to Racial Scandal(AP Newswire) Converse CEO announced that the company would make a million dollar contribution to the African-American Health Institute. The CEO added that he does not believe that the action of the individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Converse organization, however Converse must take responsibility and apologize to the employees that were effected.Control Scandal Converse Study 2Converse Releases its New Linein the Midst of Racial Scandal(AP Newswire) Converse Inc. announces the release of its latest line of athletic shoes. Converse executives are very excited about their new adjustable cushion technology that makes this new line extremely responsive and lightweight, cutting down on potential injuries. However Converse’ excitement was dampened when a number of their senior managers admitted to racial discrimination against African-American employees when confronted with recordings of some high level meetings that surfaced. Converse officials promise a statement very soon.Converse Responds to Racial Scandal(AP Newswire) Converse CEO announced that he does not believe that the action of the six individuals in question in any way reflect the values or beliefs of the thousands of men and women in the Converse organization, however Converse must take responsibility and apologize to the employees that were effected.。

CBM-SOMA-SCA

AgendaComponent Business Modeling (CBM)–Drivers: specialization, cost reduction, differentiation, need for flexibility –Concepts–EngagementsService Oriented Modeling and Architecture (SOMA)–From business services to SOA services–Process demoService Component Architecture (SCA)–SOA programming modelPhases of External SpecializationStages of Internal SpecializationStructural Change Is Required to Achieve Further Cost ReductionsTypical initial cost reduction measures (Type 1)–Hiring freeze–New IT project budget freeze–Termination of sub-contracting agreements–Voluntary departure plans–Early retirementTypical advanced cost reduction initiatives (Type 2)–Relocation of resources/applications–Central vs. decentralized IT governance–Strategic alignment & prioritization–Maintenance/process outsourcing–Process optimizationType 1 RationalizationType 2 Structural Change“Transform Fixed into Variable Costs”CostCostDrive down costEliminate duplicate systems, buildonce and leverage, improve time tomarket Provide a flexible business model React to market changes morequicklyIncrease revenueCreate new routes to market, createnew value from existing systems Reduce cycle times and cost for external business partners Move from manual to automated transactions, facilitate flexibledealings with business partnersIntegrate across the enterpriseIntegrate historically separatesystems, facilitate mergers andacquisitions of enterprises Reduce risk and exposure Improve visibility into business operationsEach represents a SOA valueproposition Common Business Challenges Facing Enterprises Today Demand the Fusion of Business and ITWhat is a Business Component ?CBM FrameworkMake internal and external specialization practical by organizing activities by accountability level and competencyOperations Management ? Analysing by Four V’s: volume, variety, variation, visibility etc. ’Operations and Process Management’, Slack et.al, 2006Example CBM Map from Retail SectorHeat Maps Identify “Hot”Areas to Exploit Business ValuePhases of CBM Analysis11CBM – SOMA – SCA© 2008 IBM Corporation12CBM – SOMA – SCA© 2008 IBM CorporationThere are two levels of deploying CBM, that are both supported by the CBM frameworkMajority of present CBM assignments use component maps to ‘Classical’ organization– Analyze and frame client issues from a new dimension – Identify and prioritize areas for improvementComponent map need not to correspond to any existing organizational structure Implementation horizon is typically 0 to 2 yearsTransformation Incremental or full fledged Evaluation criterion ‘differentiation’ often as facilitatorComponentized organizationNew organizational paradigm as CBM end vision: the organization is a set of components that are networked together– Internally: the networked organization – Externally: the value networkInterfaces between components have a physical component (services, products) and a technological component (real time connectivity) Implementation horizon is typically 3 to 5 years13 CBM – SOMA – SCA © 2008 IBM CorporationScenario: Improve customer service and operational efficiencyBusiness challenge: U.S. division of a global insurance group seeking an operating model that increases flexibility while freeing up capital.CBMOutcomes: Identified overlaps and redundancies to reduce the cost of running and maintaining the number of applications by as much as 70%. Improved customer service and could save the company an estimated US$200M. Connected independent agents into its central system to speed delivery of policy quotes. Next step: Design and implement a Service-Oriented Architecture (SOA) to help consolidate costly, redundant applications. SOMAApproach: Used Component Business Modeling (CBM) to determine which applications deliver the most value to the business and streamline processes that can be refined, consolidated or eliminated.14CBM – SOMA – SCA© 2008 IBM CorporationAgendaComponent Business Modeling (CBM)– Drivers: specialization, cost reduction, differentiation, need for flexibility – Concepts – EngagementsService Oriented Modeling and Architecture (SOMA)– From business services to SOA services – Process demoService Component Architecture (SCA)– SOA programming model15CBM – SOMA – SCA© 2008 IBM CorporationBusiness and the Supporting IT Environment Must be Componentized to Support FlexibilityFlexible BusinessTransformation Business Process Outsourcing Mergers, Acquisitions & Divestitures RequiresComposable Processes (CBM)Component Business ModelingFlexible ITOn demand Operating Environment Service Oriented Architecture (SOA)DevelopmentSoftware DevelopmentInfrastructureManagementInfrastructure ManagementComposable Services (SOA)Integration16CBM – SOMA – SCA© 2008 IBM CorporationThe use of new design techniques, combined with current approaches and appropriate standards, is the most successful way to define servicesReasons for SOMAComponent Business Modeling (CBM)SOMAService-oriented architecture (SOA)KPI MetricsFlows / ActivitiesUse CasesOOADBusiness AnalysisBPEL WSDLInformation TechnologyObject-Oriented Analysis and Design (OOAD) is necessary to define object-oriented systems and component-based development is used to define component-based architectures Service-oriented modeling is necessary to build a serviceoriented architecture– SOMA builds on current techniques– Domain Analysis – Functional Areas grouping – Variability-Oriented Analysis (VOA) – Process Modeling – Component-Based Development (CBD) – Object-Oriented Analysis and Design (OOAD)/Use Case ModelingMap AttributionProcesses ComponentsServices FrameworksPatternsStandards Programming ModelBPEL: Business Process Execution Language WSDL: Web Service Description Language SOMA: Service Oriented Modeling and Architecture17 CBM – SOMA – SCAService-oriented modeling introduces new techniques– Goal-Service Modeling – Service Model creation© 2008 IBM CorporationCBM and the industry modelsBusiness & Resource AdminBusiness and Resource PlanningNew Business DevelopmentSegment Analysis & Planning Acquisition PlanningCustomer Customer Sales Management & ServicingCustomer Portfolio & Analysis Credit Policy & Planning Customer Sales & Servicing PlanningProduct DeliveryProduct Operations PlanningProduct ServicesProduct Services PlanningAccount ServicesAccount Services PlanningBusiness Portfolio ManagementAsset & Liability Policy & PlanningFinancial ManagementFinance PoliciesDirectBusiness Policies & Procedures External Relations Business ArchitectureProduct Oversight Campaign ManagementCustomer Behavior & Models Relationship OversightSales/ Service Administration Case & Exception HandlingProduct Operations OversightProduct Services OversightAccount Services Oversight Fraud/AML DetectionRisk/Portfolio ManagementFinancial Control ReconciliationsControlBusiness Unit TrackingUnit Administration Human Resource ManagementEach CBM componentApplication is Audit/Assurance/Legal/ Processing Compliance responsible for business activities and processes Business Product CreditDevelopment & Deployment Market ResearchAdministration Relationship ManagementAuthorizationsDDA/CheckSpecific Processing Retail Lending Card-specific Processing Card Financial CaptureInventory Management Cash Inventory Market Information Correspondence Document Management & ArchiveCustomer Accounting Billing & Payments Collections & RecoveryConsolidated Book/Position Maintenance Securitization/ Syndication Inter-bank Account ManagementTreasury Financials Consolidation Accounting General LedgerExecuteSystems Development & Operations Fixed Asset RegisterBusiness processes and Facilities Product Collateral activities are automated Operation & Directory Handling Maintenance by business servicesMarketing Campaign These are supported Execution by collaborating fine Production Assurance grained services and (Help Desk) object interactions Contact/ Event HistoryTransaction ConsolidationTransaction Capture Services Sales Dialogue Handler Smart RoutingCustomer ProfileMerchant OperationsRewards Administration18CBM – SOMA – SCA© 2008 IBM CorporationSOA…Web Collaboration DevicePeople(Service consumers)Business ProcessExternalServices(Application & Information)Operational Systems(Application & Information Assets)ApplicationApplication Content Data RegistryConnectivity (Enterprise Service Bus) Infrastructure and Management for SOA SOA Governance and Lifecycle Management19 CBM – SOMA – SCA © 2008 IBM CorporationServices have a different level of granularity; they are aggregated to a business process (flexible workflows)Business ProcessLong running One or more persons interacting Multiple valid business process states Alternative workflows for nonnormal conditionsMember Requests an Rx Refill (Call Center IVR or Online) Request Denied Member Informed that Request has been Denied Rx Dept Processes Refill Request ApprovedPC Physician Approves or Denies Request (WS or Email)Member Informed that Refill is ReadyBusiness TransactionShort term, non-interactive One change of business state Consumes one or more enterprise service Targeted level of service reuse Loose coupling important May require compensationValidate Member is Authorized to Make RequestDetermine Member’s Coverages and Primary Care Physician WS EnabledSend Request Notification to pharmacyNot WS EnabledSend Request Notification to NotesFunction ServiceCollaborations to implement a single web service Collaborating apps encapsulated via web services Performance favored over loose coupling20 CBM – SOMA – SCAAuthorization Service Email Service Masters Service Patient Records Credit Verification Office Scheduling Email System HR Outpatient Service© 2008 IBM CorporationThe Process of Service-Oriented Modeling and Architecture21CBM – SOMA – SCA© 2008 IBM CorporationExample Case Study22CBM – SOMA – SCA© 2008 IBM CorporationScenario: Enable self-service using existing assetsBusiness challenge: Government agency required to comply with mandate to make 80 percent of its transactions “electronic” by 2007. Approach:SOMAOutcomes: By implementing suggested SOAbased solution, client complied with government mandate and completed project ahead of schedule. Error rates associated with manual adjustments to transmitted data were reduced from 25% to 6%. Employee productivity increased through online availability of submission data. Next step: Create customized IT roadmap to support new information services identified by SOA modelThe Service-Oriented Modeling and Architecture (SOMA) technique was applied to treat e-filing submissions as a shared service by building a robust, scalable SOA-based system linking external trading partners with new applications. The approach leverages existing IT assets and introduced new application capabilities.CIR23CBM – SOMA – SCA© 2008 IBM CorporationIBM Techniques to Help Accelerate Business InnovationBusiness priority Drive growth and achieve differentiation by leveraging core competencies IBM technique Component Business Modeling ServicesSMCBMOutcome Developing the business case for transformation by creating a logical representation of a business, making it easier to analyze business process performance and define differentiating components An SOA design recommendation that includes a detailed description of the SOA service model and solution architecture An IT process map of the activities and resources required to run the IT organization most effectively to support the organization’s business objectives An incremental roadmap for IT based on analysis of current and desired target state of IT infrastructure capabilities, business initiatives and goals© 2008 IBM CorporationDevelop a flexible set of business-aligned IT services that collectively fulfill an organization’s business processes and goals while leveraging existing IT assets Perform a holistic analysis of the IT function to make it run as an integrated and seamless part of the business Identify changes necessary to increase IT infrastructure flexibility and reduce costs, based on business goalsService-Oriented Modeling and ArchitectureSOMAComponent Business Modeling for the Business of ITCBM-BoITComponent Infrastructure RoadmapCIR24CBM – SOMA – SCAAgendaComponent Business Modeling (CBM)– Drivers: specialization, cost reduction, differentiation, need for flexibility – Concepts – EngagementsService Oriented Modeling and Architecture (SOMA)– From business services to SOA services – Process demoService Component Architecture (SCA)– SOA programming model25CBM – SOMA – SCA© 2008 IBM CorporationElements of a SOA Programming Model A good SOA programming model supports:– – – – – Services as abstract encapsulations of business function. Building, publishing, discovering and using services. Assembling solutions from loosely coupled services. Separation of concerns between business and infrastructure. Freedom to choose / mix implementations, protocols, policies, …Core Elements– Service Component – Business logic implementation of a service. – Service Assembly – Composition of components and services. – Service Data – Business data exchanged by services.26CBM – SOMA – SCA© 2008 IBM CorporationOpen Service Component ArchitectureDeveloped by OSOA, a consortium of industry vendors.Standardization effort under way at OASIS.Open-source SCA runtime available in Apache Tuscany.> 44,000 downloads since early 200727 CBM – SOMA – SCA © 2008 IBM CorporationService Oriented Architecture programming modelBusiness Business State Machines Machines Business Object Maps Business ObjectsBusiness ProcessesHuman Tasks TasksBusiness Rules RulesInterface MapsSelectorsRelationshipsBPEL + Extensions SCAService Component ArchitectureCommon Event InfrastructureWebSphere Application Server (J2EE Runtime)SCA in WebSphere Process Server v6Business Objects (SDO-based technology)Service Component Architecture (SCA)28CBM – SOMA – SCA© 2008 IBM CorporationGoals of the new programming modelJ2EE is too difficult – SCA, SDO significantly simplify the programming model Strong isolation between business logic and the technical infrastructure code Dramatically reduced learning curve for “classical” application developers Provides a client programming model allowing client access to service components SCA is a service oriented component model for business services that publish or operate on business data SCA provides a single abstraction for service types that may already be expressed as– – – – – Session beans Web Services Java class BPEL etc…29CBM – SOMA – SCA© 2008 IBM CorporationService Component: OverviewJava WSDL Port TypeJava WSDL Port TypeInterfaceReferenceJavaBPELState MachineBusiness RulesHuman TaskSelectorInterface MapsImplementation Types30 CBM – SOMA – SCA © 2008 IBM CorporationService Module: OverviewSCA SCAService ModuleExport Service Component Standalone ReferenceService ComponentSCAnon-SCAImportWire non SCA31 CBM – SOMA – SCA © 2008 IBM CorporationProgramming ModelModules are contain “wired” Service Components Service Components use SDOs for data Solutions are a collections of ModulesModule BWeb ClientModule AComponent ComponentExportComponentServicesExportImportWires I32InterfacesCBM – SOMA – n SCAReferencesSDO© 2008 IBM Corporationt eSCA Invocation PatternsSCA Export ComponentSCA ImportPseudo SynchronousAsynchronousCallback33CBM – SOMA – SCA© 2008 IBM CorporationWebSphere Integration Developer – Key FeaturesUsed in Component CreationBusiness ObjectsComponent InterfacesVisual SnippetsBusiness Event MonitoringAssemblyBusiness Processes Human TasksDiagramSelectors Mapping ComponentsExportsImportsBusiness State MachinesBusiness RulesComponents Wired in Assembly EditorResource AdaptorsWeb ServicesEJBsJavaJ2EE Artifacts© 2008 IBM Corporation34CBM – SOMA – SCAComponent Assembly EditorInterfaceReferenceImportModuleExport35 CBM – SOMA – SCA © 2008 IBM CorporationComposition - Business ProcessWS-BPEL compliant business process engine Simplified Process Editor– OptionalGeneric Business Process– Operations / Parameters – Service Implementation Details hiddenTransactions / Compensation36CBM – SOMA – SCA© 2008 IBM CorporationIntegration Developer: ConceptsModule Module ModuleShared Library Shared Library • Interfaces • Business Objects • Business Object Maps• Relationships37CBM – SOMA – SCA© 2008 IBM CorporationModuleBusiness Integration project type for developing SCA based applications Basic unit of deployment to the runtime environment– A module is packaged in an EAR fileContains the following artifacts– SCA resources and module assembly – J2EE projects – Java projects – Dependent librariesModule38CBM – SOMA – SCA© 2008 IBM CorporationHow to Build a Process Integration solution using BDDRun-time StatisticsRational RequisitePro Rational Portfolio ManagerUnderstand Risk, Project Costs, and ROIBusiness Measures ModelWebSphere Business ModelerCreate, Simulate & Analyze As-Is Business Model Create Observation Model with KPIs & export to MonitorWebSphere Integration Developer Choreographservices using BPEL, WSDL, etc.CIOIdentify and Manage Projects and ResourcesCreate, Simulate, Analyze and Optimize To-Be Business ModelIntegration DeveloperAssemble Solution (BPEL, Human Task Manager, Business Rules, etc)Project ManagerBusiness AnalystCreate Financial Reports & ROI EstimatesBPEL WSDLConfigure Human Task Manager (including Ad-Hoc) & ClientUMLRational Data ArchitectModel Relational Database Schemas Create & Manage System RequirementsRational Functional & Performance TesterTestRuntimeWebSphere Process Server WebSphere Portal WebSphere Business MonitorWSDL EARTesterDevelop Portlets (App UI and Monitor)Trace Requirements & Create System Use Case RealizationsModel & Implement Services, & expose as Web ServicesWSDL EARDeploy/RunRDB MappingData Architect ArchitectRational Software ArchitectMonitorJava DeveloperPortal DeveloperBusiness Operations AnalystDBAIBM Rational Team Unifying Platform39 CBM – SOMA – SCA © 2008 IBM CorporationMore InformationCBM– /services/us/imc/pdf/g510-6163-componentbusiness-models.pdfSOMA– Case Study – /abstracts/REDP4467.html?Open – Arctile – /developerworks/webservices/library/ws-soadesign1/40CBM – SOMA – SCA© 2008 IBM Corporation。

工商管理专业外文翻译--企业公民的阶段

外文原文Stages of Corporate CitizenshipBusiness leaders throughout the world are making corporate citizenship a key priority for their companies.1 Some are updating policies and revising programs; others are forming citizenship steering committees, measuring their environmental and social performance, and issuing public reports. Select firms are striving to align staff functions responsible for citizenship and move responsibility—and accountability—into lines of business. Vanguard companies are trying to create a broader market for citizenship and offer products and services that aim explicitly to both make money and make a better world.Amid the flurry of activity, many executives wonder what’s going on and worry whether or not their myriad citizenship initiatives make sense. Is their company prepared to take appropriate and effective actions on transparency, governance, community economic development, work-family balance, environmental sustainability, human rights protection, and ethical investor relationships?Is there any connection between, say, efforts in risk management, corporate branding, stakeholder engagement, supplier certification, cause related marketing, and employee diversity? Should there be? Studies conducted by the Center for Corporate Citizenship at Boston College suggest that the balance between confusion and coherence depends very much on what stage a company is in its development of corporate citizenship.Comparative neophytes, for instance, often lack understanding of these many aspects of corporate citizenship and have neither the expertise nor the machinery to respond to so many diverse interests and demands. Their chief challenges are to put citizenship firmly on the corporate agenda, get better informed about stakeholders’ concerns, and take some sensible initial steps.At the other extreme are companies that have already made a full-blown foray into citizenship. Their CEO is typically leading the firm’s position on social and environmental issues, and their Board is fully informed about company practices. Should these firms want to move forward, they might next try to connect citizenship to corporate branding and everyday employees through a “live the brand” campaign like those at IBM and Novo Nordisk or establish citizenship objectives for line managers, as DuPont and UBS have done.When it comes to making sense of corporate citizenship, much depends on what acompany has accomplished to date and how far it wants (and has to) go. The Center’s surveys of a random sample of American businesses find that roughly ten percent of company leaders don’t understand what corporate citizenship is all about. On the other end of the spectrum, not quite as many firms have integrated programs and are setting new standards of performance. In the vast majority in between, there is a wide range of companies in transition whose knowledge, attitudes, structures, and practices represent different degrees of understanding of and sophistication about corporate citizenship.Knowing at what stage a company is, and what challenges it faces in advancing citizenship, can clear up an executive’s confusion about where things stand, frame strategic choices about where to go, aid in setting benchmarks and goals, and perhaps speed movement forward.Stages of DevelopmentWhat does it mean that a company is at a “stage” of corporate citizenship?The general idea—found in the study of children, groups, and systems of all types, including business organizations—is that there are distinct patterns of activity at different points of development. Typically, these activities become more complex and sophisticated as development progresses and therefore capacities to respond to environmental challenges increase in kind. Piaget’s developmental theory, for example, has children progress through stages that entail more complex thinking and finer judgments about how to negotiate the social world outside of themselves. Similarly, groups mature along a developmental path as they confront emotional and task challenges that require more socially sensitive interaction and sophisticated problem solving.Greiner, in his groundbreaking study of organizational growth, found that companies also develop more complex ways of doing things at different stages of growth. They must, over time, find more direction after their creative start-up phase, develop an infrastructure and systems to take on more responsibilities, and then “work through” the challenges of over-control and red-tape through coordination and later collaboration across work units and levels.Development of CitizenshipThere are a number of models of “stages” of corporate citizenship. On a macro scale, for example, scholars have tracked changing conceptions of the role of business in society as advanced by business leaders, governments, academics, and multi-sectorassociations. They document how increasingly elaborate and inclusive definitions of social responsibility, environmental protection, and corporate ethics and governance have developed over recent decades that enlarge the role of business in society. Others have looked into the spread of these ideas into industry and society in the form of social and professional movements.At the level of the firm, Post and Altman have shown how environmental policies progressively broaden and deepen as companies encounter more demanding expectations and build their capability to meet them. In turn, Zadek’s case study of Nike’s response to challenges in its supply chain highlights stages in the development of attitudes about social responsibilities in companies and in corporate responsiveness to social issues. Both of these studies emphasize the role of organizational learning as conceptions of company responsibilities become more complex at successive stages of development, action requirements are more demanding, and the organizational structures, processes, and systems used to manage citizenship are more elaborate and comprehensive.What such firm-level frameworks have not fully addressed are the generative logic and mechanisms that drive the development of citizenship within organizations. Here we consider the development of citizenship as a stage-by-stage process where a combination of internal capabilities applied to environmental challenges propels development forward in a m ore or less “normal” or normative logic.Greiner’s model of organizational growth illustrates this normative trajectory. In his terms, the development of an organization is punctuated by a series of predictable crises that trigger responses that move the organization forward. What are the triggering mechanisms? They are tensions between current practices and the problems they produce that demand a new response from a firm. For instance, creativity, the entrepreneurial fire in companies in their first stage, also generates confusion and a loss of focus that can stall growth. This poses a “crisis of leadership” that is resolved—and a stage of orderly growth results—once the firm gains direction, often under new leadership and with more formal structures. A later tension between delegation and its consequences, sub-optimization and inter-group conflict, triggers a “crisis of control” and moves toward coordination. In development language, companies in effect “master” these challenges by devising progressively more effective and elaborate responses to them.The model presented here is also normative in that it posits a series of stages in thedevelopment of corporate citizenship. The triggers for movement are challenges that call for a fresh response. These challenges center initially on a firm’s credibility as a corporate citizen, then its capacities to meet expectations, the coherence of its many subsequent efforts, and, finally, its commitment to institutionalize citizenship in its business strategies and culture.Movement along a single development path is not fixed nor is attaining a penultimate “end state” a logical conclusion. This means that the arc of citizenship within any particular firm is shaped by the socio-economic, environmental, and institutional forces impinging on the enterprise. This effect is well documented by Vogel’s analysis of the “market for virtue” where he finds considerable variability in the business case for citizenship across firms and industries and thus limits to its marketp lace rewards. Notwithstanding, a company’s response to these market forces also varies based on the attitudes and outlooks of its leaders, the design and management of its citizenship agenda, and firmspecific learning. Thus, there are “companies with a conscience” that have a more expansive citizenship profile and firms that create a market for their good works.Dimensions of CitizenshipTo track the developmental path of citizenship in companies, we focus on seven dimensions of citizenship that vary at each stage:Citizenship Concept: How is citizenship defined? How comprehensive is it? Definitions of corporate citizenship are many and varied. The Center’s concept of citizenship considers the total actions of a corporation (commercial and philanthropic). Bettignies makes the point that terms such as citizenship and sustainability incorporate notions of ethics, philanthropy, stakeholder management, and social and environmental responsibilities into an integrative framework that guides corporate action.Strategic Intent: What is the purpose of citizenship in a company? What it is trying to achieve through citizenship? Smith observes that few companies embrace a strictly moral commitment to citizenship; instead most consider specific reputational risks and benefits in the market and society and thereby establish a business case for their efforts. Rochlin and Googins, in turn,see increasing interest in an “inside-out” framing where a value proposition for citizenship guides actions and investments. Leadership: Do top leaders support citizenship? Do they lead the effort? Visible, active, top level leadership appears on every survey as the number one factor drivingcitizenship in a corporation. How well informed are top leaders are about citizenship, how much leadership do they exercise, and to what extent do they “walk the talk”? Structure: How are responsibilities for citizenship managed? A three-year indepth study of eight companies in the Center’s Executive Forum on Corporate Citizenship found that many progressed from managing citizenship from functional “islands” to cross-functional committees and that a few had begun to achieve more formal integration through a combination of structures, processes, and systems.Issues Management: How does a company deal with citizenship issues that arise? Scholars have mapped the evolution of the public affairs office in corporations and stages in the management of public issues. How responsive a company is in terms of citizenship policies, programs, and performance?Stakeholder Relationships: How does a company engage its stakeholders? A wide range of trends—from increased social activism by shareholders to an increase in the number of non-governmental organizations (NGOs) around the world—has driven major changes in the ways companies communicate with and engage their stakeholders.Transparency: How “open” is a company about its financial, social, and environmental performance? The web sites of upwards of 80% of Fortune 500 companies address social and environmental issues and roughly half of the companies today issue a public report on their activities.Citizenship at Each StageThe model in Figure 1 presents the stages in the development of corporate citizenship along these seven dimensions. We illustrate each stage with selected examples of corporate practice. (Note, however, that we are not implying that these companies currently operate at that stage; rather, at the times noted, they were illustrative of citizenship at that development stage.) A close inspection of these companies reveals instances where they had a leading-edge practice in some dimensions but were less developed in others. This should come as no surprise. For example, the pace of a child’s physical, mental, and emotional development is seldom uniform. One facet typically develops faster than another. In the same way, the development of group and organizational capabilities is uneven. Firm-specific forces in society, industry dynamics, and other environmental influences feature in how citizenship develops within a firm.Stage 1. ElementaryAt this base stage, citizenship activity in a company is episodic and its programs are undeveloped. The reasons are straightforward: scant awareness of what corporate citizenship is all about, uninterested or indifferent top management, and limited or one-way interactions with external stakeholders, particularly in the social and environmental sectors. The mindset in these companies, and associated policies and practices, often centers on simple compliance with laws and industry standards.Responsibilities for handling matters of compliance in these firms are usually assigned to the functional heads of human resources, the legal department, investor relations, public relations, and community affairs. The job of these functional managers is to make sure that the company obeys the law and to keep problems that might arise from harming the firm’s reputation. In many cases, they take a defensive stance toward outside pressures—e.g., Nike’s dealings with labor activists in the early 1990s.Some corporate leaders, for example, have espoused economist Milton Friedman’s notion that their company’s obligations to society are solely to“make a profit, pay taxes, and provide jobs.”20 Others, particularly those heading smaller and mid-size businesses, comply willingly with employment and health, safety, and environmental regulations but have neither the resources nor the wherewithal to do much more for their employees, communities, or society.Former General Electric CEO Jack Welch is an exemplar of this principled big-business view. “A CEO’s primary social responsibility is to assure the financial success of the company,” he says. “Only a healthy, winning company has the resources and capability to do the right thing.”21GE’s financial success over the past two decades is unquestioned. However, the company’s reputation suffered toward the end of Welch’s tenure when it was revealed that that one of its business units had discharged tons of the toxic chemical PCB into the Hudson River. When challenged, Welch was defensive and pointed out that GE had fully complied with then existing environmental protection laws.This illustrates one of the triggers that move a company forward into a new stage of citizenship. Welch’s sta nce was plainly out of touch with changing expectations of corporate responsibilities and the contradiction between GE’s success at wealth creation and loss of reputation was palpable. Welch’s successor,Jeffrey Immelt, reversed this course, accepted at least partial financial responsibility for the clean up, and thereafter reprioritized citizenship on the company’s agenda.中文译文企业公民的阶段全世界的商界领袖都认为企业公民是他们公司的一个优先环节。

Physica A Statistical Mechanics and its Applications

International Journal of Project Management , Volume 28, Issue 3,April 2010, Pages 285-295Paul Bowen, Peter Edwards, Keith Cattell, Ian JayShow preview | Related articles | Related reference work articlesPurchase85Dynamics of R&D networked relationships and mergers and acquisitions in the smart card field Original ResearchArticleResearch Policy , Volume 38, Issue 9, November 2009,Pages 1453-1467 Zouhaïer M’ChirguiClose preview | Related articles | Related reference work articlesAbstract | Figures/Tables | ReferencesAbstractThis paper analyzes how the structure and the evolution of inter-firmagreements have shaped the development of the smart card industry. The aimis to establish a closer connection between the evolution of inter-firmagreements in the smart card industry and the patterns of change of technologyand demand in this new high-tech industry. Based on a proprietary databasecovering both collaborative agreements and mergers and acquisitions (M&As)occurring in this industry over the period 1992–2006, we find that the evolutionof technology and market demand shapes the dynamics of R&D networks andPurchaseM&As are likely to change the industry structure. We also find that a small group of producers – first-movers – still control the industry and technological trajectories. Their position arises not for oligopolistic reasons of marketstructure, but for technological and organizational reasons.Article Outline1. Introduction2. Theoretical background3. The smart card industry: delineating the boundaries and identifying the actors3.1. Defining the smart card3.2. The differentiated market(s)3.3. The actors3.4. The smart card oligopoly: a dual market structure4. Research methods4.1. Methodology4.2. SCIFA database5. Trends in inter-firm agreements and emergence of networks in the smart cardindustry6. The structure of the network6.1. Network evolution6.2. Major players and centrality7. ConclusionAcknowledgementsReferences86The role of industrial maintenance in the maquiladoraindustry: An empirical analysis Original Research ArticleInternational Journal of Production Economics, Volume 114,Issue 1, July 2008, Pages 298-307Shad DowlatshahiClose preview | Related articles | Related reference work articlesPurchaseAbstract | Figures/Tables | ReferencesAbstractThis study explored the role of industrial maintenance in the maquiladora industry. The maquiladora industry is a manufacturing system that utilizes the Mexican workforce and foreign investment and technology on the border region between the United States and Mexico. The issues related to industrial maintenance were studied through a survey instrument and 11 in-depth and extensive field interviews with experts of eight maquiladora industries in El Paso, TX and Juarez, Mexico. Based on an 86% response rate (with 131 usable questionnaires) and four major survey questions, statistical analyses were performed. The survey questions included: collaboration between the maintenance and other functional areas, likely sources of maintenance problems (equipment, personnel, and management), major common losses of maintenance problems, and the role of ISO certification in maintenance. Finally, additional insights and assessment of the results were provided.Article Outline1. Introduction1.1. Review of literature2. Evolution of and various approaches to maintenance3. Historical, operational characteristics and the importance of the maquiladora industry4. Research design4.1. Data collection4.2. The interviews with maquiladora managers5. Analyses of results5.1. Statistical analysis for question 15.2. Statistical analysis for question 25.3. Statistical analysis for question 3 5.4. Statistical Analysis for question 46.Conclusions and assessmentReferences87 A variable P value rolling Grey forecasting model forTaiwan semiconductor industry production OriginalResearch ArticleTechnological Forecasting and Social Change, Volume 72,Issue 5, June 2005, Pages 623-640Shih-Chi Chang, Hsien-Che Lai, Hsiao-Cheng YuClose preview | Related articles |Related reference work articlesAbstract | Figures/Tables | ReferencesAbstractThe semiconductor industry plays an important role in Taiwan's economy. In thispaper, we constructed a rolling Grey forecasting model (RGM) to predictTaiwan's annual semiconductor production. The univariate Grey forecastingmodel (GM) makes forecast of a time series of data without considering possible correlation with any leading indicators. Interestingly, within the RGM there is aconstant, P value, which was customarily set to 0.5. We hypothesized thatmaking the P value a variable of time could generate more accurate forecasts. Itwas expected that the annual semiconductor production in Taiwan should beclosely tied with U.S. demand. Hence, we let the P value be determined by theyearly percent change in real gross domestic product (GDP) by U.S.manufacturing industry. This variable P value RGM generated better forecaststhan the fixed P value RGM. Nevertheless, the yearly percent change in realGDP by U.S. manufacturing industry is reported after a year ends. It cannotserve as a leading indicator for the same year's U.S. demand. We found out thatthe correlation between the yearly survey of anticipated industrial productiongrowth rates in Taiwan and the yearly percent changes in real GDP by U.S. manufacturing industry has a correlation coefficient of 0.96. Therefore, we usedPurchasethe former to determine the P value in the RGM, which generated very accurate forecasts. Article Outline1.Introduction2. The semiconductor industry in Taiwan3. Rolling GM (1,1)4. Forecast Taiwan semiconductor production with RGM (1,1)5. Forecast Taiwan semiconductor production with variable P value RGM (1,1)6. ConclusionsAppendix A. AppendixA.1. 1998 Production forecast for the semiconductor industry under different PvaluesA.2. 1999 Production forecast for the semiconductor industry under different PvaluesA.3. 2000 Production forecast for the semiconductor industry under different PvaluesA.4. 2001 Production forecast for the semiconductor industry under different PvaluesA.5. 2002 Production forecast for the semiconductor industry under different PvaluesReferencesVitae88 Energy demand estimation of South Korea using artificial neural network Original Research ArticleEnergy Policy , Volume 37, Issue 10, October 2009, Pages4049-4054Zong Woo Geem, William E. Roper Close preview | Related articles | Related reference work articlesAbstract | Figures/Tables | ReferencesPurchaseAbstractBecause South Korea's industries depend heavily on imported energy sources (fifth largest importer of oil and second largest importer of liquefied natural gas in the world), the accurate estimating of its energy demand is critical in energy policy-making. This research proposes an artificial neural network model (a structure with feed-forward multilayer perceptron, error back-propagation algorithm, momentum process, and scaled data) to efficiently estimate the energy demand for South Korea. The model has four independent variables, such as gross domestic product (GDP), population, import, and export amounts. The data are obtained from diverse local and international sources. The proposed model better estimated energy demand than a linear regression model (a structure with multiple linear variables and least square method) or an exponential model (a structure with mixed integer variables, branch and bound method, and Broyden–Fletcher–Goldfarb–Shanno (BFGS) method) in terms of root mean squared error (RMSE). The model also forecasted better than the other two models in terms of RMSE without any over-fitting problem. Further testing with four scenarios based upon reliable source data showed unanticipated results. Instead of growing permanently, the energy demands peaked at certain points, and then decreased gradually. This trend is quite different from the results by regression or exponential model.Article Outline1. Introduction2. Artificial neural network model3. Case study of South Korea4. Results of linear regression model5. Results of exponential model6. Results of ANN model7. Validation of the ANN model8.Future estimation with different scenarios9. ConclusionsReferences89 Catching up through developing innovation capability: evidence from China's telecom-equipmentindustry Original Research ArticleTechnovation , Volume 26, Issue 3, March 2006,Pages359-368 Peilei FanShow preview | Related articles | Related reference work articlesPurchase90 Optimization of material and production to develop fluoroelastomer inflatable seals for sodium cooled fastbreeder reactor Original Research ArticleNuclear Engineering and Design , In Press, Corrected Proof, Available online 16 February 2011N.K. Sinha, Baldev RajShow preview | Related articles | Related reference work articlesPurchase Research highlights► Production of thin fluoroelastomer profiles by cold feed extrusion and continuous cure involving microwave and hot air heating. ► Use of peroxide curing in air during production . ► Use offluoroelastomers based on advanced polymer architecture (APA) for the production of profiles. ► Use of the profiles in inflatable seals for critical application of Prototype Fast Breeder Reactor. ► Tailoring of material formulation by synchronized optimization of material and production technologies to ensure that the produced seal ensures significant gains in terms of performance and safety in reactor under synergistic influences of temperature, radiation, air and sodium aerosol.91 The dynamic transfer batch-size decision for thin film transistor –liquid crystal display array manufacturing by artificialneural-network Original Research ArticleComputers & Industrial。

DDS(1)

Dynamic Mission Replanning
Image Processing & Tracking
DARPA PCES Capstone demo, 4/14/05, White Sands Missile Range
8
Tutorial on DDS
Douglas C. Schmidt
Case Study: QoS-enabled Publish/Subscribe Technologies for Tactical Information Management
Real-time Info to Cockpit Real-time Event Service Object Request Broker Tactical Network & RTOS
Problem: Net-centricity is afterthought 10 in platform-centric technologies
Goal is “better than best-effort,” subject to resource constraints… 12
Tutorial on DDS
Douglas C. Schmidt
Overview of the Data Distribution Service (DDS)
Applications
Interceptor Sys Cond Sys Cond Sys Cond Sys Cond
Applications
Interceptor
Middleware
Workload & Replicas
Local Resource Managers

通用GVDP英文5版

GVDP v5.0 Update
Don Smith
22MAY06
This document is for internal GM use only. Not to be duplicated or disclosed outside GM without approval of Don Smith 586-986-1983
• Mainstream Architecture Configuration/Packaging
• Load path Strategy • Key Architectural BOM Rows Selected • Baseline Powertrain Plan (Engine/Trans. Families, Drive Types) • Proportional Model(s) • Sourcing Strategy • Manufacturing Strategy
5
GVDP v5_Upd_trg.ppt/Don Smith/5/22/2006/version 6.0
Pre-VPI GVDP Overview
No Architecture Modifications
(outside of bandwidth)
(e.g. GMX211,GMX272, GMX386)
GVDP Pre-VPI Process Documentation v1.0 Released 06MAR06
(for more information go to: /gvdp/pre_vpi.html )
GVDP Post DSI v5.0 Released 06April06
INDEX
4
GVDP v5_Upd_trg.ppt/Don Smith/5/22/2006/version 6.0

Supply_Chain_Management

External Process Improvement
(Michael Hammer, HBR, Sept. 2001)
Scoping
• Identify the appropriate business process
to redesign
• Select a partner
Organizing
Supply Chain Management
Definition of Supply Chain
All the activities associated with the flow of goods and information from the raw materials stage to the end users. Materials and information flow both up and down the supply chain.
• Promote flow of information; dependable
logistics system; design for postponement
Alignment – create incentives for better performance
• Equitably share risks, cost, and gain of
End Users: Employers and Society Supply Chain Members: • Colleges and Universities • High Schools • Middle Schools • Elementary Schools and Pre-Schools • Families
Key Elements of SCM

基于本体和案例的可重构知识仓库系统研究

评语和决议
佟平同学的硕士学位论文针对企业知识管理仓库构建时如何满足不同应用需求的问题对知识仓库的可重构性进行了深入研究论文探索了基于本体技术构建知识仓库并实现可重构性的途径给出了具体实现方法在本体建模基础上提出了多类型知识集成的方法研究并改进了案例的相似性检索方法提出了一个用户界面的快速定制方案实现了一个基于本体的可重构知识仓库系统论文在知识仓库可重构性多类型知识集成等方面有一定创新论文表明作者已经掌握了计算机应用学科的基本理论专业知识和解决问题的方法答辩过程中回答问题正确经答辩委员会讨论投票认为佟平同学的学位论文已达到硕士学位论文要求一致同意通过其论文答辩并建议授予工学硕士学位
Key Words: Knowledge Management, Reconfigurable System, Ontology, CBD
4
上海交通大学学位论文原创性声明
本人郑重声明
所呈交的学位论文
是本人在导师的指导下
独立进行研究工作所取得的成果
除文中已经注明引用的内容外
本论文不包含任何其他个人或集体已经发表或撰写过的作品成果已在文中以明确方式
documents, is researched on. And a unified representation and reasoning method based on ontology for multi-type knowledge components is proposed. Ø Similarity-based Retrieval for Case Knowledge Several methods to increase retrieval ability such as definition of similar retrieval key words and setting of weight for retrieval conditions are given. And improvement and extension for Euclidean-Distance-based retrieval model is discussed.

China - DD

Kicking A China Business’ Tires – The ChecklistPart Four in our four part series on China due diligenceOp/Ed Commentary: Chris Devonshire-Ellis & Sabrina ZhangFeb. 9 – As we have discussed in our previous articles this week (see links to these articles at the end of this post), due diligence is perhaps one of the most important concepts that any investor in China needs to consider. Whether setting up for the first time, taking a look at internal practices after years of doing business on the mainland, or evaluating a company for acquisition or listings purposes, it is important to stay compliant with China and the global business community’s evolving regulations. This means making sure all Chinese documentation is current, accurate and authentic, all financials are properly reported and employee issues and other assets have been properly accounted for.The concepts presented here should not only be followed when considering investing in China (as they help to identify the real value of any potential China investment), but also should be used as a foundation for conducting reviews in companies already operating in China, where they can help to reduce risk and avoid the sorts of problems that can evolve when not enough attention is paid to internal issues.In this article, we summarize three forms of due diligence in checklist format: operational, financial and HR.Operational Due DiligenceForeign enterprises based in China often lack reliable operational information and the method of booking transactions by Chinese employees may not live up to the expectations of the parent company. One reason is the occasionally unique aspect of the business environment in China: administrative processes that are not transparent. This does not necessarily mean outright fraud is being committed, however lack of transparency in administrative processes can lead to a breakdown in transparency of business transactions, which can reduce management accounting strength and in turn lead to tax exposures or theft. The likelihood of being disappointed by the performance of local accounting and administrative staff can be reduced by conducting operational due diligence.This type of investigation can be a highly effective tool in helping understand exactly how a China entity works and can also prove effective in evaluating how well the current operations support future strategic objectives. The examination should include a detailed assessment of the following:• The functional operations of the business and the processes and systems supporting it• The inter-connectedness of these operations• The likely impact of operations on the future continued viability of the companyOperational due diligence completes the view of a company in areas not fully addressed by financial due diligence and can often be a very important tool in identifying the real administration and value of a China-based business. Financial due diligence typically verifies the company’s financial statement and the potential future sales and profitability, but chiefly uses historic patterns and trends as its base point. Operational due diligence goes much deeper in assessing a company’s functional operations and the interactions between them.One of the most fundamental issues that needs to be verified in operational due diligence is whether a company has been properly established and is a legal entity. Documents which need to be checked include:• Current and former business licenses plus all ancillary licenses and permits to operate• Constitutional documents of the company – and if any changes made have been properly reflected in the articles of association• Verification documents issued by the company’s bankers as regards to capitalization and bank account holdings• Other registration documents as issued by the appropriate government authorities and pursuant to the applicable laws and regulations, including tax registration as well as foreign exchange registration• Documents relating to the contribution of capital – for FIE’s this includes the valuation certificate which relates to in-kind contributions, the capital contribution verification report, and copies of the investment certificates that are issued to each investor by the FIE• Asset valuation reports – these must be ratified• Any documents that give evidence to any transfer of equity interest or shares• Documents evidencing any increase or decrease of registered capital or the total amount of investment• Documents that supply evidence to equity interest or shares being used as securities• Any other documents pertaining to approvals, licenses or permits required for the establishment and operation of the company or nay branches or subsidiariesThe examination of any of these documents should be done so while taking into consideration the context of other documents. This should allow for a full understanding of a business’ overall legal status. Such checks should be conducted each year and each aspect of compliance should be methodically checked.Organizational StructureThe organizational structure is a key point for the operational success of any business in China. Details that need to be checked:• All investors or shareholders in the business are mandated• The company’s external organization structure; this includes the details of all domestic and overseas subsidiaries, representative offices, branches, distribution centers, research operations and other associated enterprises, together with the appropriate documents evidencing their proper establishment and operations• The company’s internal organizational structure with an organizational chart disclosing the full names, age, remuneration and contract details of the members of any supervisory board, board of directors, senior management and other key personnel• Any company manuals or internal company rules or policies• Details of all meetings of the company organs such as the board of directors, general shareholders meetings or any supervisory board, as well as any committees including adopted resolutions in the last three years• Documentary evidence pertaining to all of the above, including copies of business licenses, constitutional documents (such as shareholder agreements), joint venture contracts and articles ofassociation, government approvals and registration documents• Other documentary evidence including minutes of all meetings of the company organs and adopted resolutions from the last three years, as well as letters of appointment and employment agreementsRisk AssessmentRisk assessment is vital. The four main categories of operational risk by international standards are: process-related; people related; systems-related; and external events. These are qualitative problems that can have a significant quantitative impact, and they tend to be the instigators of the conditions for the most serious mismanagement and endemic corporate corruption. Operational due diligence aims to assess the possibilities of these risks and their potential effects on the business.Key Operational FunctionsA company’s operational capabilities can be the basis of specific auditing and tests should be devised in order to measure the value chain. The steps involved in this will vary depending upon the company, but should involve an on-site analysis of the company’s daily business processes and of the systems supporting the business’ operations. This analysis should involve an evaluation of production capacity, raw material flows, inventory levels (especially when measured against purchasing and sales) and all other factors that are necessary for the business to conduct normal operations.Operational due diligence may also assist in assessing the possibilities and, from an operational point of view, administrative advantages of merging or centralizing already existing independent operations. How this is done is unique to each situation and if you have a combination of JVs, WFOEs and ROs, then it may make a lot of sense to try to bring all these into one holding operation in China for ease of management.External RelationshipsThese should extend to the businesses relationships with both buyers and suppliers, and checks completed against the highs and lows on both accounts. The insertion of beneficial relationships into this is very common. Are there buyers who receive preferential treatment in price or credit terms (or even debt)? Are there purchasers whose prices are not in line with market norms who may be selling to you at above market rates? Due diligence checks for these questions and comparisons to market norms can verify the transparency of your supply chain management and ensure the system is not beingabused.CompetitorsWe have come across cases in the past whereby orders into the foreign-invested enterprise are siphoned off to a “mirror” company. Often these are established by employees directly or their relatives. Usually such companies operate Chinese language-only web sites, and incoming orders are redirected to them.Checks need to be made against incoming orders and related documentation, with a random check of inquiries that did not result in a sale being followed through as part of an internal investigation with the potential buyer about where the order was ultimately placed. Checks should also be carried out on any documentation that may lead to a mirror company being parasitic on your incoming orders. In one case we found, an invoice had been presented for a Chinese domain name. It turned out to belong to Chinese employees of the foreign invested enterprise, who redirected orders to their own business. Annual loss of orders to this mirror company were in the region of US$4 million. Blame for poor sales by the FIE had been placed upon “competitive market conditions.” An experienced auditor completing administration checks will help identify any such fraud – and hopefully keep staff aware that checks against such practices are in place.Environmental ConsiderationsAs the Chinese government becomes more concerned about environmental issues in China and the damage that polluting companies cause, it is taking decisive steps to regulate and to ensure compliance with environmental standards. As a result, manufacturing businesses now need to take conscientious due diligence with regard to environmental liabilities. For example, a factory built on land that has been previously polluted may be required to clean up. The concept of “polluter pays” is not always followed in China. Assessing land quality – especially if new plots are to be purchased – is a prerequisite and assessing what potential liabilities may lurk beneath the soil is wise.Attention should be paid to the following:• What is the current environmental situation of the company? Has it had any environmental problems in the past or might it get any environmental problems in the future after the take-over? If yes, thenwhat types of counter-measures have been taken and what are the results of these?• Has the company stored or used any hazardous substances, raw materials, objects or has it been involved in any hazardous procedures?• Has the company paid any pollutant discharge fees over the last years?• What is the company’s policy regarding environmental issues?• Can the company provide any documentary evidence regarding information such as environmental impact assessments, licenses, approvals, permits, permissions, certificates, applications, registrations and notifications?• Can the company provide any reports on its environmental situation produced by (private and governmental) third parties over the last five years?The environment is still a developing issue in China. Expect over the next few years that regulations will become tighter and more strictly enforced, thus requiring further attention to due diligence.Corporate SecretarialIt is vital to remain in compliance in both accounting and the corporate secretarial (documentation) aspects of your business. A lack of attention to detail in paperwork alone can seriously jeopardize operations. Have trademarks and patents been registered in China? If not, get them done. If they have, was it an agent who registered it or the parent company directly? Check where ownership lies. Are all business licenses up to date? This should include annual renewals as well as other pertinent licenses and permits – export licenses, customs and SAFE (foreign currency) registrations.Financial Due DiligenceCopies of accurate financial accounts can sometimes be difficult to extract from your business. This is largely due to the fact that many businesses in China operate two sets of books – one internal, which shows their true position, and one official, which shows their “official” position. This is of course illegal, but is a common practice, as tax avoidance in China is rampant due to the relatively high level of income tax (25 percent) companies in China have to pay. Well-meaning staff, trying to save money for the company, can inadvertently cause serious compliance and potential liability problems, either through naivety or deliberate actions.The State Administration of Taxation (SAT) is also somewhat inefficient at making collections. Some of the SAT’s practices – such as making VAT liable on invoicing, not on collection – have also led to inappropriate financial reporting being the norm in many companies based in China. In such cases, sales income may for example be directed to the general manager’s personal bank account rather than the company account “to save on VAT” until the full income has been received. Well-meaning maybe, but illegal, and certainly a vehicle for potential fraud.If accounts are run in such a manner, this means that the official set of books as presented to the Chinese authorities and audited will not represent the true strength of the business. The SAT, if it finds out about such activities, has the right to levy late payment penalties of up to five times the amount due on any taxes paid later than should be properly administered. The SAT can also give staff leverage over an employer if the business is deliberately kept out of compliance. Such activities should be rooted out and accounts should reflect the true position, even if the tax burden increases. Operating a business without full disclosure in China is ultimately a false economy and should not be tolerated.Assessing Financial Statements and AuditsIt is advisable to contract a professional accounting practice that has experience with SOEs to assess the quality of the audited accounts as presented. A two-to-three day site visit by an experienced, impartial auditor should be enough to provide an opinion on whether accounts and financial statements presented are indeed a true statement of fact or whether there are areas within them that warrant further investigation or explanation.This needs to be handled with care and understanding. If it’s purely a business assessment that needs to be made as to the administrative transparency of the business, then to some extent a pragmatic approach to the staff reporting methodology may be taken as a first tier check. If this raises questions, depending on the nature of the matter, a more complete examination may be pertinent based on areas of concern. This can sometimes escalate into more serious cases and become a much more complex issue with far more serious implications.The SAT places all foreign-invested enterprises in China, including joint ventures, under Category 1 –the highest – in tax bureau monitoring and assessments. Administrative staff not aware of this fact and familiar with the corner-cutting common in many purely domestic businesses may not fully appreciate the difference between domestic and foreign-invested firms in this respect. It is wise to insist that staff work to the company’s administrative standards and not to ones they wish to impose.Taxes and Tax FilingsMost filings need to be conducted on a monthly basis, with audit annually. If these are not being conducted, then the business is not in compliance and will have an unpaid tax liability. Reporting should be to a professional standard and maintained. An inability to provide accounts, audited accounts or on-going documentation is a sign that all is not well.Taxes that need to be considered include:• Corporate income tax• Value-added tax• Consumption tax – additional turnover tax placed on luxury goods• Business tax – applicable to services not subject to VAT• Land value-added tax• Resource tax• Urban real-estate tax• Stamp duty• Motor vehicle and vessel acquisition tax – including taxes on usage and license plates• Deed tax – imposed on acquisition of land use rights and real propertyRepresentative Office TaxesOne should remember that representative offices are subject to business tax of approximately 9 percent of their expenses, which has to be calculated, filed and paid on a monthly basis. An annual audit is also required. On rare occasions, an RO can file for and obtain tax exempt status, but this must be approved by the local tax bureau beforehand. If taxes have not been paid, the tax bureau can fine you up to five times the total amount due plus the original amount, and in extreme cases, withdraw the business license.This can add up to a significant amount of money. In one case, a well-known international luxury goods brand in Shanghai had not paid taxes for over three years. With monthly overheads of someUS$8,000, the amount due was US$28,800 with late payment penalties potentially increasing that to US$172,800. The implications are serious. Non-payment of taxes by ROs is a serious matter and business should make sure that they are in compliance from day one. If not, a day of reckoning will arrive, and if the company wishes to remain in China, the tax bill will need to be met.Financial ReportingDifferences in China GAAP protocol and the standards of Chinese financial reporting make the discipline of analyzing and understanding Chinese company accounts an area in which both experience and specific China knowledge are vital.A Chinese balance sheet should detail, among other things, accounts receivable, other accounts receivable, fixed assets, construction in progress, accounts payable, other payable and payroll payable. Several typical weaknesses can creep into these accounts.Accounts receivable mainly deals with the transactions of the company. Two common weaknesses often occur: many businesses in China cannot prepare aging analysis due to poor communication between sales and finance; and it is common practice for businesses in China to attempt to hide sales to reduce taxable income, which means that many accounts receivables are often under-reported.A typical weakness in other receivables account is that many irrelevant transactions are often recorded. For example, there may be an internal loan between two related companies recorded into the other receivables and not listed as a transaction in the investment account.Often, self-established fixed assets are not included into the fixed assets account, and the relevant depreciation is not taken accordingly. In addition, the cost for establishing fixed assets is recorded in the expenses account or cost account but not capitalized. Some self-established fixed assets are often not recorded in a construction in process account nor later transferred to the fixed assets account. Original supporting documents related to construction in process are also sometimes not properly filed and documented.Sometimes enterprises will book irrelevant transactions in accounts payable. Finally, with payroll payable, there is often an ending balance in the payroll account, however many Chinese companies delay part or all of their employees’ salaries. Note that China GAAP can differ significantly from International Financial Reporting Standards (IFRS) and U.S. GAAP in several other areas as well.Depreciation of AssetsIn accordance with China GAAP, fixed assets related to production and operations of an enterprise with an estimated useful life of more than one year are capitalized. Other fixed assets (e.g. office furniture and equipment) above RMB2,000 with useful lives of more than two years should be capitalized. Under IFRS, enterprises have the discretion to determine a threshold above which expenditures are capitalized. Fixed assets are those tangible assets that are expected to be placed in service for more than one reporting period. Under U.S. GAAP, enterprises determine their own materiality threshold above which expenditure is capitalized, but must have a useful life of more than one year.Under China GAAP, cost is treated similar to IFRS except that it includes purchase taxes rather than non-refundable purchase taxes. Under international accounting standards, the cost of an item of property, plant and equipment comprises its purchase price, including import duties andnon-refundable purchase taxes, and any directly attributable costs of bringing the asset to working condition for its intended use. When carrying value under China GAAP, tangible fixed assets are stated at cost less accumulated depreciation. Subsequent revaluations are generally not allowed. While with IFRS, tangible fixed assets are stated at cost less accumulated depreciation. They may be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.Major overhauls should be expensed when incurred under China GAAP. However, if future economic benefit in excess of the originally assessed standard of performance can be demonstrated, then the amount not in excess of the fixed assets’ recoverable amount can be capitalized. It should be depreciated over the period between two major overhauls. Under IFRS, except when the enterprise has identified as a separate component of the asset, major overhauls are usually recognized as an expense when incurred as they are made to restore or maintain the future economic benefits that an enterprise can expect from the originally assessed standard of performance of the asset.Under U.S. GAAP, major overhauls are defined as repair expenditures that increase the value of the asset and extend its useful life longer than one year. As such, the major overhaul expense is capitalized. All other repair and maintenance costs are expensed as incurred. Many FIEs in China do not cater for depreciation and this only adds unnecessary expenditure against profitability if it is not properly booked into the accounts.HR Due DiligenceFor a company, adequately comprehending the HR environment, hiring appropriate people and managing them effectively is critical to maintaining a successful operation on the mainland. Unfortunately, mainly due to lack of reliable information in English (and the proliferation of unreliable information) as well as the rapidly changing nature of both the labor market, it is very difficult for foreign investors and managers to understand the overall situation in enough detail.Employment IssuesMake sure all payments and contributions have been made to the employees such as individual income tax and social insurance. Also ensure that all employment contracts are checked for non-compete and confidentially obligations that could give rise to liability on his or the employees part. Staff still have legal claim as employees of the business. Ensure that the head count and payroll match, and request a written statement from the HR department as to the matching of these.In cases where a labor union is involved, it is also wise to make sure you have identified the charter and payments that have been made to the union. The business has a liability of 2 percent of all staff salaries to be paid to union funds, so ensure you know what this is and that it matches up against payroll.Some other issues to consider:• Inheriting staff – one can pick up the entire welfare and pensions burden of a company’s personnel if they are transferred over to your company, backdated to the day they started work• Contracts – look into all contracts worth more than RMB100,000 or 5 percent of the company’s netassets, this would also include employment contracts, insurance, or any other material contract that is essential for the operation of the business and any of its subsidiariesSocial SecuritySocial security in China is a complex topic because it is organized on a regional level. The formal social security system only covers urban workers, and partially covers rural workers that have come to the cities to work (the so-called “floating population”).Monthly contributions to the social security system are determined from a base figure. In most cities it is calculated as follows: Social security base = Previous year’s total income / 1216.For new hires the starting salary may be used as the social security base during the first year.Note that the base figure for social security contributions is capped at 300 percent of the social average salary for the location in which the employee pays social security. Therefore any employees earning more than this amount will actually pay a smaller percentage of their salary in social security contributions (employers will also have a smaller percentage burden).The maximum base figures will generally be updated once per year for all employees. This often happens in May. Sometimes the government will also adjust the percentages to be contributed by employee and company at this time. Note that although the maximum base figures will usually be updated during the middle of the year, the calculation of the each individual employee’s base will be made based on their average salary during the period from January to December of the previous year.China’s social security system is made up of five different kinds of insurance, plus one mandatory housing fund. The insurances are as follows: Pension, unemployment insurance, medical insurance, occupational injury insurance, maternity insurance and the mandatory housing fund.Pensions for workers in China are financed by contributions from both the employee and the employer. The portion contributed by the employer is normally higher than the portion contributed by theemployee.Contributions to unemployment insurance are made by both the employee and the employer to this fund. In most cities the proportion is less than 1 percent of monthly salary, although in Shanghai the employer’s contribution is 2 percent. If an individual becomes unemployed this insurance will pay a fixed amount every month on the condition that contributions have been made on behalf of the employee for a continuous one year period prior to the application.Both employer and employee contribute to the medical insurance fund. Proportions vary considerably between cities, but generally the company will be expected to contribute between 5 percent to 12 percent of the employee’s monthly salary, while the employee will contribute around 2 percent. In the event an individual falls ill, they will go to the hospital and receive treatment. Usually the full amount of treatment fees will have to be paid to the hospital up front. At some date in the future a refund should be received from the insurance scheme for the portion that is covered.Contributions to the occupational injury fund are made by the employer. Usually the premium is between 0.5 percent to 2 percent of the monthly salary of the employee, depending on what kind of work is being carried out by the employee. In the event a worker experiences an injury at work, the employer will collect evidence of the incident and send it to the insurance company. For a company that has employees based in a number of cities around the country this means that the overall cost to the company for an employee earning RMB10,000 in one city may be quite different to someone on the same salary based in another city.Contributions to the maternity insurance fund are made by both the employer. Usually only the employer makes a contribution of 0.5 percent to 1 percent. Under this system a female employee generally takes around four months of maternity leave during the period prior to and after the birth of their first child. As an associated point, the company may not terminate the contract of the employee from point of pregnancy until the baby reaches one year of age. If another employee has been hired for the position in the interim period then this person must also be retained at least until the end of the period of that employee’s fixed-term contract.As its name suggests, the housing fund is designed to ensure that workers save some money in order to purchase a house or an apartment. The contributions are mandatory and come from both the employer。

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19th Bled Electronic Commerce Conference eValues Bled, Slovenia, June 2006

Towards Value-based Design Patterns for Inter-Organizational Control

Vera Kartseva, Joris Hulstijn, Yao-Hua Tan, Jaap Gordijn Vrije Universiteit, Amsterdam {vkartseva, jhulstijn, ytan}@feweb.vu.nl, gordijn@cs.vu.nl

Abstract We present control patterns: a framework for designing and analyzing inter-organizational control mechanisms, inspired by design patterns. A control pattern is a generic solution for some recurring control problem, applicable in a certain context. The patterns are based on internal control theory from the accounting and auditing fields, and on previous work on inter-organizational controls. The application of the patterns is supported by the e3-control methodology, which is based on the e3-value business modeling tool. The patterns are applied in a case study.

1. Introduction In e-commerce, enterprises increasingly organize themselves as value constellations: a collection of enterprises that cooperate to satisfy a consumer need, each utilizing their own specific expertise, products, and services (Sarkar et al 1998; Timmers 1998; Tapscott 2000). One of the prerequisites for cooperation is that participants must trust each other not to behave opportunistically, i.e. default on their agreements. Opportunistic behavior also exists in a single enterprise, for instance when an employee commits fraud. Typically, such behavior is addressed by organization controls: measures to prevent, detect or correct opportunistic behavior (Starreveld et al 1994; Ronmey and Steinbart 2003). In a single enterprise, opportunistic behavior and the design of controls can be addressed by a single decision authority in a hierarchical way. This is impossible in a value constellation, because individual enterprises keep decision authority to themselves. Consequently, in value constellations different types of controls have to be developed, and designing controls becomes more like a negotiation process between equals, than following directives from an authority.

This paper presents a methodology for the analysis and design of inter-organizational control mechanisms for value constellations. The approach is based on e3-control (Kartseva et al 2005b), which is a value-based modeling approach for the analysis and design of inter-organizational controls. Please note that e3-control itself is based on the e3-Vera Kartseva, Joris Hulstijn, Yao-Hua Tan, Jaap Gordijn 2 value methodology for the analysis and design of value constellations (Gordijn and Akkermans 2001; 2003).

There are several reasons for using a value-based modeling approach. First, the value perspective is conceptually close to Transaction Cost Economics, which studies safeguards against opportunistic behavior in contract relationships (Williamson 1979). Because the e3-value and e3-control methods can handle value, they are capable of making a cost-benefit analysis of control mechanisms. This involves a risk assessment, which is typically part of auditing practice. Second, control mechanisms are themselves services, with an additional price tag. That raises questions like: who is going to pay for a control mechanism, who is going to execute it, and how will it affect the business models of the parties involved? These questions are not particularly relevant from an internal control perspective, but in a value constellation controls may affect the profitability of participants, or may even lead to new business opportunities. Examples of inter-organizational control mechanisms that are offered as separate commercial services, are Escrow services (Hu et al 2004), and the Letter of Credit Procedure (ICC 1993). Third, many controls themselves have inherent value-aspects. For instance, a Letter of Credit is a control document that may also be traded and re-sold. As far as we know, the value modeling approach has neither been applied in internal control, nor in inter-organizational control.

We organize existing domain knowledge about inter-organizational controls by so called design patterns. Design patterns have been invented in architecture (Alexander 1979) and have been successfully applied in computer science (Gamma et al 1995) to reuse design knowledge for the construction of information systems. In general, a design pattern is a description of a general and accepted solution for some recurring problem, which is applicable in a certain context. We call our patterns control patterns. Until now, e3-control has focused on constructs to model and conceptualize inter-organizational controls. Practitioners also need guidelines how to construct such models. The contribution of this paper is therefore to present accepted knowledge about inter-organizational controls for value constellations in a systematic way, by means of control patterns.