The author systematically examines one of the important issues of information — establishing the market price. He introduces the concept of «search» — where a buyer wanting to get a better price, is forced to question sellers. The article deals with various aspects of finding the necessary information.

Economics of Information

This paper defines an information system design theory ISDT to be a prescriptive theory which integrates normative and descriptive theories into design paths intended to produce more effective information systems. The nature of ISDTs is articulated using Dubin's concept of theory building and Simon's idea of a science of the artificial. An example of an ISDT is presented in the context of Executive Information Systems EIS. Despite the increasing awareness of the potential of EIS for enhancing executive strategic decision-making effectiveness, there exists little theoretical work which directly guides EIS design. We contend that the underlying theoretical basis of EIS can be addressed through a design theory of vigilant information systems. Vigilance denotes the ability of an information system to help an executive remain alertly watchful for weak signals and discontinuities in the organizational environment relevant to emerging strategic threats and opportunities. Research on managerial information scanning and emerging issue tracking as well as theories of open loop control are synthesized to generate vigilant information system design theory propositions. Transformation of the propositions into testable empirical hypotheses is discussed.

Building an Information System Design Theory for Vigilant EIS

This paper summarizes the current state of the art and recent trends in software engineering economics. It provides an overview of economic analysis techniques and their applicability to software engineering and management. It surveys the field of software cost estimation, including the major estimation techniques available, the state of the art in algorithmic cost models, and the outstanding research issues in software cost estimation.

Software engineering economics

Executive Information System implementation in organisations in South Africa and Spain: A comparative analysis

As the business environment becomes more complex and dynamic, it becomes increasingly vital for top executives to scan the information environment to identify strategic threats and opportunities. This article seeks to understand the strategic scanning behaviors of top executives in order to provide some guidelines for the possibility of designing computer-based systems to support and enhance these scanning processes. The characteristics of the strategic scanning process are investigated through an empirical study of 37 chief executive officers of small to medium-sized high technology companies. Results show that they are very systematic scanners when it comes to strategic information, and that their information sources are limited, mostly personal, and external to the organization. This suggest that a computer-based system for strategic scanning would probably have to be a customized personal system, not tightly coupled to the organizational information system.

Personal Information Systems for Strategic Scanning in Turbulent Environments: Can The CEO Go On-Line?

The paper suggests enhancements to executive information systems (EIS) aimed at reducing equivocality associated with the managerial activities of scanning, communicating, and delegating based upon mathematical models from the field of semiotics. Prior research has shown that these activities are significant components of managerial behavior. They are similar in that each entails the use of abbreviated messages to transfer information which represents a much larger body of knowledge. This paper investigates factors affecting equivocality in these activities and constructs an upper bound on the degree to which they can reduce equivocality. >

http://ieeexplore.ieee.org/iel2/882/4724/00184137.pdf

Theoretical foundations for the design of executive information systems in equivocal environments

The author investigates factors which affect entropy in the managerial activities of communicating, scanning, and delegating, and suggests ways that executive support systems (ESS) can ameliorate this entropy. These three activities are similar in that they require the transfer via abbreviated messages of information representing a much larger body of knowledge. Prior research has shown this to be among the central activities of corporate executives. In the current research, models of representation from semiotics are invoked, and applied to the construction of an upper bound for the entropy reduction arising from the conduct of these activities. Implications of the results are discussed for computer-based executive support systems. >

High entropy ESS

Expert systems provide automated vehicles for providing advice, and enacting decisions which are commonly associated with human 'experts'. This research investigates calibration of expert systems to bring them in line with end user expectations. Calibration is typically involved in initial learning and setup of the knowledge base. Little research exists to provide insight into how much calibration to perform, or effective approaches to calibration. The research develops a short run comparative static analysis of expert systems development which focuses on expertise. The potential user of an expert system will demand a certain level of expertise and the potential provider of an expert system will be able to provide a certain level of expertise, depending on the sophistication of the expert system provided. The level of expertise provided depends, in part, on how well it is calibrated to the needs of the end user. Since calibration may require significant additional expenditures, as well as require a change in the life cycle approach used to develop expert systems, the decision to calibrate may incur significant additional costs in expert systems implementation. The research finds that only in certain situations is calibration justified. >

Calibration of expert systems

The author investigates software quality in a market setting. He points out that imperfections in reputation place downward pressure on a product's price and lower the average quality of the delivered software. Testing, verification, and validation improve quality only when reputation is important to end users, when demand satiation is low, and when the marginal cost of improving quality is low in comparison with the improvement in quality. As firms improve total quality control, testing, verification, and validation become less relevant, until they may actually become counterproductive. Where complex products are produced, high quality may lower marginal costs of software, and this is shown to provide an accelerator effect that enhances other competitive strategies. Warranties can ameliorate the underprovision of quality by improving software reputation. But even with warranties, the authors shows that software developers will tend to underprovide quality. >

Software quality: a market perspective

A cost and value analysis framework for IT investment choice is presented which offers an alternative to existing ad hoc models arising from traditional accounting and financial analysis. It resolves certain problems in determining value and cost chains which arise from the complex relationships underlying the implementation and cost justification of IT investments. These complexities limit the accuracy and usefulness of traditional accounting models which are based on a linear, matrix-based model of a firm's activities. The formal decision models developed in this paper should help information systems professionals regain credibility in IT investment decision making-a prospect which promises to be increasingly important in the information-intensive and frugal corporate environments of the 1990s. >

http://ieeexplore.ieee.org/iel2/449/7026/00284255.pdf

J.C. Westland

Papers

Theoretical foundations for the design of executive information systems in equivocal environments

High entropy ESS

Calibration of expert systems

Software quality: a market perspective

Object oriented value and cost analysis for information technology investments