Ten years ago, we presented the DeLone and McLean Information Systems (IS) Success Model as a framework and model for measuring the complex-dependent variable in IS research. In this paper, we discuss many of the important IS success research contributions of the last decade, focusing especially on research efforts that apply, validate, challenge, and propose enhancements to our original model. Based on our evaluation of those contributions, we propose minor refinements to the model and propose an updated DeLone and McLean IS Success Model. We discuss the utility of the updated model for measuring e-commerce system success. Finally, we make a series of recommendations regarding current and future measurement of IS success.

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The DeLone and McLean Model of Information Systems Success: A Ten-Year Update

An important part of our information-gathering behavior has always been to find out what other people think. With the growing availability and popularity of opinion-rich resources such as online review sites and personal blogs, new opportunities and challenges arise as people now can, and do, actively use information technologies to seek out and understand the opinions of others. The sudden eruption of activity in the area of opinion mining and sentiment analysis, which deals with the computational treatment of opinion, sentiment, and subjectivity in text, has thus occurred at least in part as a direct response to the surge of interest in new systems that deal directly with opinions as a first-class object.

This survey covers techniques and approaches that promise to directly enable opinion-oriented information-seeking systems. Our focus is on methods that seek to address the new challenges raised by sentiment-aware applications, as compared to those that are already present in more traditional fact-based analysis. We include material on summarization of evaluative text and on broader issues regarding privacy, manipulation, and economic impact that the development of opinion-oriented information-access services gives rise to. To facilitate future work, a discussion of available resources, benchmark datasets, and evaluation campaigns is also provided.

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Opinion Mining and Sentiment Analysis

On robust estimation of the location parameter

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The Theory of Industrial Organization

How do computers contribute to business performance and economic growth? Even today, most people who are asked to identify the strengths of computers tend to think of computational tasks like rapidly multiplying large numbers. Computers have excelled at computation since the Mark I (1939), the first modern computer, and the ENIAC (1943), the first electronic computer without moving parts. During World War II, the U.S. government generously funded research into tools for calculating the trajectories of artillery shells. The result was the development of some of the first digital computers with remarkable capabilities for calculation—the dawn of the computer age. However, computers are not fundamentally number crunchers. They are symbol processors. The same basic technologies can be used to store, retrieve, organize, transmit, and algorithmically transform any type of information that can be digitized—numbers, text, video, music, speech, programs, and engineering drawings, to name a few. This is fortunate because most problems are not numerical problems. Ballistics, code breaking, parts of accounting, and bits and pieces of other tasks involve lots of calculation. But the everyday activities of most managers, professionals, and information workers involve other types of

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Beyond Computation: Information Technology, Organizational Transformation and Business Performance

We analyze how online reviews can be used to evaluate product differentiation strategy based on the theories of hyperdifferentiation and resonance marketing. Hyperdifferentiation says that firms can now produce almost anything that will appeal to consumers and can manage the complexity of diverse product portfolios. Resonance marketing says that informed consumers will only purchase products that they actually truly want. When consumers become more informed, firms that provide highly differentiated products should experience higher growth rate. We construct measures of product positioning based on online ratings and find supportive evidence using craft beer industry data. In particular, we find that the variance of ratings and the strength of the top quartile of reviews play a significant role in determining which new products grow in the marketplace (resonance). It is more important that some consumers love you than it is that most consumers like you.

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When Online Reviews Meet Hyperdifferentiation: A Study of Craft Beer Industry

Several authors have argued that because modern computing and communications technologies reduce buyer search costs and other market inefficiencies, there should be intense price competition between sellers in electronic markets. This paper examines this prediction using data on the airline ticket offerings of online travel agents (OTA). We find that different OTAs offer tickets with substantially different prices and characteristics when given the same customer request. Some of this variation appears to be due to product differentiation -different OTAs specialize by systematically offering different tradeoffs between ticket price and ticket quality (minimizing connections, depart or return when requested). However, even after accounting for differences in ticket quality, ticket prices vary by as much as 18% across OTAs. In addition, OTAs return tickets that are strictly inferior to the ticket offered by another OTA for the same request between 2.2% and 28% of the time suggesting that this price dispersion is not a modeling artifact. We conclude that this market is not characterized by perfect competition, but find that OTAs engage in both horizontal product differentiation and price discrimination in addition to simply having some degree of random inefficiency. Our results further suggest that product differentiation is an important component of strategy for electronic markets, even in goods with relatively simple and unambiguous product descriptions.

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The Nature of Competition in Electronic Markets: An Empirical Investigation of Online Travel Agent Offerings

This paper proposes using nonlinear mixed-integer programming to solve the customized bundle-pricing problem in which consumers are allowed to choose up to N goods out of a larger pool of J goods. Prior work has suggested that this mechanism has attractive features for the pricing of information and other low-marginal cost goods. Although closed-form solutions exist for this problem for certain cases of consumer preferences, many interesting scenarios cannot be easily handled without a numerical solution procedure. In this paper, we investigate the efficiency gains created by customized bundling over the alternatives of pure bundling or individual sale under different assumptions about customer preferences and firm cost structure, as well as the potential loss of efficiency caused by pricing with incomplete information about consumer reservation values. Our analysis suggests that customized bundling enhances sellers' profits and enhances welfare when consumers do not place positive values on all goods, and that this consumer characteristic is much more important than the shape of the valuation distribution in determining the optimal pricing scheme. We also find that customized bundling outperforms both pure bundling and individual sale in the presence of incomplete information, and that customized bundling still outperforms other simpler pricing schemes even when exact consumer valuations are not known ex ante.

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Customized Bundle Pricing for Information Goods: A Nonlinear Mixed-Integer Programming Approach

The business value of information technology (IT) has been debated for a number of years. Some authors have found large productivity improvements attributable to computers, and casual observation suggests that IT has generated some benefits for consumers. However, others continue to question whether computers have had any bottom line impact on business performance. In this paper, we argue that productivity, consumer value and business performance are actually separate questions and that the empirical results on IT value depend heavily on which question is being addressed and what data are being used. Applying methods based on economic theory, we are able to test the relevant hypotheses for each of the three questions, using recent firm-level data on IT spending by 367 large firms. Our findings indicate that computers have led to higher productivity and created substantial value for consumers, but that these benefits have not resulted in measurable improvements in business performance. We conclude that while modeling techniques need to be improved, these results are consistent with economic theory, and thus there is no inherent contradiction between high productivity, high consumer value and low business performance.

https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1142&context=icis1994

The Three Faces of IT Value: Theory and Evidence

Interest in innovative health care delivery models has increased due to measures such as the Aordable Care Act, which is designed to expand insurance coverage and contain health care costs. The goal of these innovations is to increase physician productivity without sacricing quality of care. One innovation that has been forwarded as a low-cost alternative to physician oce visits is \e-visits," or secure messaging between patients and physicians via patient portals. We evaluate the eect of e-visit adoption on patient health and physician productivity using a six-year panel dataset from a large primary care provider in the United States. The main challenge in evaluating e-visits is that there could be unobservable selection: in particular,

Lorin M. Hitt

Papers

When Online Reviews Meet Hyperdifferentiation: A Study of Craft Beer Industry

The Nature of Competition in Electronic Markets: An Empirical Investigation of Online Travel Agent Offerings

Customized Bundle Pricing for Information Goods: A Nonlinear Mixed-Integer Programming Approach

The Three Faces of IT Value: Theory and Evidence

Patient Portals in Primary Care: Impacts on Patient Health and Physician Productivity*