End-to-End (E2E) solutions: an exploration of value conversion contingencies in a developing country

Abstract

The business value of IT literature has a number of limitations: the IT productivity paradox is known to exist in developing countries but the literature on the factors that explain the causes of such IT productivity paradox (i.e. value conversion contingencies) is non-existent. In particular there is a scarcity of empirical research measuring the value of digital business capabilities, a limited number of research studies at the business process level, and a lack of exploratory research. In addition, a shift from stand-alone IT implementation to End-to-End (E2E) Solutions is apparent in organisations due to the extension of business process across organisational boundaries and the emergence of breakthrough technologies. However, extant literature on E2E Solutions focuses solely on the conceptual and implementation issues. The objective of this research is to investigate the derivation of business value from E2E Solutions in developing countries. The study examined the E2E loan process in nine commercial banks in Bangladesh. The research focused on; how E2E Solutions deliver business value and how the derivation of business value from E2E Solutions is impacted by value conversion contingencies. The study reveals that E2E Solutions are evident as Single Point Processing, Single Point Data Entry, Integrated Database, and Automated and Integrated Processes. The study revealed that E2E Solutions deliver value by improving nine aspects of core processes as well as the coordination and communication process; processing time, risk assessment, administrative task, processing cost, communication, coordination, document sharing, controlling and monitoring. The empirical evidence shows that E2E Solutions improve processes, which in turn improve organisational performance. However, not all process improvements have an impact on organisational performance. Furthermore, these process performance aspects are impeded by eight value conversion contingencies; Senior Management Ability, Complementary Resources, Software Misfits, Integration, Customer Readiness, Information Infrastructure, IT Infrastructure and Regulatory Environment.