1. A discussant analysis of IT Innovation Persistence Douglas Peebles, Ph.D Director, University Alliances – Canada SAP AG

2. Introduction Flow of the discussion Per the recommendations sent out Feet and fences One foot rooted solidly in practice One foot rooted in academe A blended approach to the discussion

3. Motivation & Justification …1 Conflict in literature re: IT and firm performance IT and innovation Consistent with literature on “disappointments” in IT implementation Perhaps a tie-in between the two Opportunity to tie this with top-level support – Leads to leadership and strategy discussion

4. Motivation & Justification...2 Schumpeter’s business cycles applied to IT Consistent with IT fads Authors note importance of long-term approach Consistent with experience in practice Consistent with literature relating IT to strategy Consistent with literature relating IT to organizational theory & design In general, the linkage between IT and strategy or IT and Organizational theory & design is made by those in IT Need to link the IT to the other two from those bodies of literature Excellent examples of IT innovation Wal-Mart, Intel, Proctor & Gamble, FedEx

5. Motivation & Justification …3 Overall justification well founded Good examples of organizations Good draw on the IT literature Good connection with strategy Opportunity for bigger draw on literature in strategy and organizational theory

6. Theoretical support for the article Effective blend between scholarly and practice-based literature E.g., approach to defining “information technology innovation” Linkage to organizational theory Absorptive capacity (AC) Opportunity to expand into organizational design Opportunity to expand into leadership aspects to IT success Distinction between opportunistic and systematic IT innovation “GOTTA GET ME ONE OF THOSE” versus “HOW CAN IT MOVE THE ORGANIZATION FORWARD?” Implicit linkage to strategy with suggestion that AC and ITI being path dependent

7. Hypothesis development Hypothesis 1 flows from the literature that IT innovative firms are likely to continue being so Practitioners may not view this as being worth investigation. Hypothesis 2 ties with Gartner’s “Hype Cycle” Possible confusing wording: – That ITI would be weaker when environmental incentives are high, and stronger when environmental incentives are low Possible alternative approach: – That opportunistic innovation occurs when environmental incentives are high Hypothesis 3 has two parts That organizations tend to remain as they are in the IT innovator classification scheme – Practitioners may not view this as being worth investigation That switching from non-innovator to innovator is difficult – Very important to practitioners

8. Research method Practitioner versus academic Use of probit analysis Appropriate and understandable for academic audience Not likely clear to most practitioners

9. Analysis of results Analysis is clear Discussion of findings is effective Examples of Intel and Wal-Mart are effective to illustrate Academe versus practice Practitioners might wonder: – Is it surprising that innovators tend to remain as innovators? Does not invalidate the study however. – Practitioners often find such studies to be obvious – Practitioners often do not understand the academic need to validate “common sense” Need to scan environment Linkage to strategy is implicit Explicit linkage might contribute

10. Study conclusions Need for IT innovation is contingent on many factors Path dependency Achieving persistent / sustainable ITI not a trivial undertaking

11. Contribution to knowledge Need for managers to be aware that systematic ITI is complex Need to integrate IT and organization Opportunism in IT innovation is not sustainable Rising tides float all boats Tides also fall Expansion into strategy literature Sound contribution overall IT aspects Organizational aspects

12. Exposition Well presented Appropriate in its entirety for academic audience Practitioners would not find it as appropriate overall Message is important and relevant Method and hypotheses may not be appropriate for practitioners Overall, a very worthwhile undertaking.