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’ The Value of Academic Research In addition to its intrinsic value, information-system research builds insights for practitioners one step at a time. BY GABRIELE PICCOLI AND ERICA L. WAGNER I n this article we seek to demonstrate the value of aca- demic research for practitioners and the contribution it makes to the work of others (such as IT professionals, software vendors, and consultants) engaged in solving mana- gerial challenges faced by hospitality practitioners. We dis- cuss and illustrate this proposition with examples from our own discipline: namely, information systems (IS). Vibrant IS research has influenced the role of information technology (IT) within contemporary business activities and decision- making practices. That said, we also note that it’s important to continue working toward realizing the full potential for academic research to contribute to practice. We believe that much more can and should be done to foster a partnership between academics and practitioners. We see this article as a contribution to the development of such a partnership. The dimensions of a true partnership mean that academ- ics must understand the practitioners’ issues and challenges, while practitioners must take some time to help set the re- search agenda and strengthen relationships with academe. Practitioners can accomplish this exchange in many ways, in- cluding serving on advisory boards, accepting invitations to give guest lectures, embracing requests for research access or volunteering their organizations as case study sites, and pro- viding their time and expertise even when these activities ap- pear to have no immediate payoff. In this paper we lay the foundations for dialogue and co- operation by explaining the process by which academic re- search is created, by describing the role that practitioners play in this process, and by showing how research can add value to practice. We clarify our position through examples of how IS research has benefited practice. 0 2003, CORNELL UNIVERSITY APRIL 2003 Cornell Hotel and Restaurant Administration Quarterly 29

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Page 1: The value of academic research

’ The Value of Academic Research

In addition to its intrinsic value, information-system research builds insights for practitioners one step at a time.

BY GABRIELE PICCOLI AND ERICA L. WAGNER

I n this article we seek to demonstrate the value of aca- demic research for practitioners and the contribution it makes to the work of others (such as IT professionals,

software vendors, and consultants) engaged in solving mana- gerial challenges faced by hospitality practitioners. We dis- cuss and illustrate this proposition with examples from our own discipline: namely, information systems (IS). Vibrant IS research has influenced the role of information technology (IT) within contemporary business activities and decision- making practices. That said, we also note that it’s important to continue working toward realizing the full potential for academic research to contribute to practice. We believe that much more can and should be done to foster a partnership between academics and practitioners. We see this article as a contribution to the development of such a partnership.

The dimensions of a true partnership mean that academ- ics must understand the practitioners’ issues and challenges,

while practitioners must take some time to help set the re- search agenda and strengthen relationships with academe. Practitioners can accomplish this exchange in many ways, in- cluding serving on advisory boards, accepting invitations to give guest lectures, embracing requests for research access or volunteering their organizations as case study sites, and pro- viding their time and expertise even when these activities ap- pear to have no immediate payoff.

In this paper we lay the foundations for dialogue and co- operation by explaining the process by which academic re- search is created, by describing the role that practitioners play in this process, and by showing how research can add value to practice. We clarify our position through examples of how IS research has benefited practice.

0 2003, CORNELL UNIVERSITY

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How Research Informs Practice Much academic research is concerned with ab- stracting from specific problems and contexts to develop generally applicable theories that help us understand the world.’ Thus, academic re- search is often concerned with broad-based ques- tions, the answers to which provide guidance in a wide array of situations and contexts. For ex- ample, strategic-management research is con- cerned with identifying the general reasons that

Academic researchers are required to reflect on the implications of innovations in an effort to distill knowledge that will stand the test of time and be applicable over a wide array of situations.

firms succeed or fail.2 By the same token, IS re- search is concerned with IT-based information systems, their management, and the determinants and effects of their successful use in organiza- tions. Academic research has a relatively long horizon and does not typically focus on the de- tails involved in immediate problem-solving ac- tivities. Instead, researchers extrapolate from spe- cific instances to make far-reaching and long-lasting statements about the nature of human and economic activities, the structures we create, and the socio-technical infrastructures that we employ to enable IS activities.

IS research is not concerned with technology itself (which is fast changing and quickly obso- lescent), but with the planning, design, develop- ment, implementation, management, and use of IT in organizations. Research attempts to uncover relationships that transcend the characteristics of a particular technology or organization, and it seeks to provide guidance for the management and use of existing and future information tech- nologies. A contribution of that kind is all the more important in a field like IS, where it is of

’ E.M. Phillips and D.S. Pugh, How to Geta Ph.D.: A Hand- bookfor Students and Their Supervisors (London: Open Uni- versity Press, 1998).

2 M.E. Porter, “Towards a Dynamic Theory of Strategy,” SmategicManagementJounal, Vol. 12 (1991), pp. 95-117.

paramount importance to develop a strong foun- dation for understanding and mastering the con- cepts that underlie the implementation of sys- tems in general, rather than specific information on the current trends and vendor products. Aca- demic research provides such a foundation and increases the long-term understanding of the role and effects of phenomena within multiple busi- ness and organizational contexts.

The types of questions addressed by academic researchers and the time horizon in which re- search can reasonably be expected to produce results are different from those relating to research produced by practicing professionals or consult- ants. Due to the nature of the practitioners’ in- terests and objectives, their work is generally con- cerned with immediate resolution of current problems in specific organizational contexts. Their studies are not intended to generate widely applicable principles that hold true across related problems and organizational contexts. Con- versely, academic researchers are required to re- flect on the implications of innovations in an ef- fort to distill knowledge that will stand the test of time and be applicable over a wide array of situations. Moreover, because academic research is independent and sheltered from the immedi- ate competitive pressures of the business envi- ronment its findings are generally unbiased.

To appreciate the value of academic research, one must understand the process by which it is produced, which is often unclear to those out- side of the academy. A research project generally begins with relevant questions (i.e., questions that hold promise for helping practitioners better manage some aspect of their operations or their enterprise), but the primary focus is on rigorous inquiry. The importance of rigor cannot be over- stated because research that lacks rigor should not be trusted. Readers of a research report can be only as confident of its accuracy and implica- tions as the degree of thoroughness and preci- sion of the research itself.

An important side effect of a focus on rigor is a trade-off with scope. The questions addressed by any single research project must be narrowly defined to allow for appropriate and systematic research designs, and allow for precision and depth of understanding. Such a narrow focus may at times mean that academic research reports,

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taken in isolation, appear to be irrelevant to prac- tice. Indeed, no single research project is likely to directly help practicing managers make a spe- cific business decision. It is the cumulative knowl- edge produced by a stream of research published in a series of reports-often written by different researchers with similar research interests while using different methodologies-that is relevant to practice and will help professionals effectively manage the challenges they face in their day-to- day operations. Thus, the utility of academic re- search can be appropriately evaluated only as a whole. When the research process is successful, practicing managers have access to valuable find- ings that they can confidently use because the findings are the product of a collection of rigor- ous and organized investigations.

Many examples illuminate how academic re- search has influenced business practice (see Ex- hibit 1 for some examples of IS research).

Research findings compiled over time inform practice in the following direct and indirect ways. First of all, textbooks represent a distillation of the accumulated knowledge in the discipline. Introductory information-systems books, for ex- ample, provide an organized synthesis of the ba- sic concepts and established relationships among IS components. Advanced textbooks explore nar- row domains in depth and generally relate aca- demic research findings and current practice in an effort to provide students with a sound foun- dation in the specific area of study. Leading uni- versities provide a similar blend of fundamental knowledge and current practice in executive- education programs. Trpically, executive-education sessions draw on the deep contextual expertise of participating managers and, facilitated by aca- demic subject-matter experts, seek to convert this expertise into concepts that will help managers overcome the managerial challenges and take advantage of available opportunities once they return to the field. In executive education, aca- demic research findings serve as sense-making tools that enable the group to combine unrelated field experiences into abstract models and into knowledge that is actionable in a number of busi- ness environments and technologies.

Perhaps the most direct way in which aca- demic research informs and serves ‘practice is through books and publications such as Cornell

Examples of academic IS research ideas that have influenced practice

Business-process reengineering (BPR) Productivity paradox

Decision-support systems (DSS) Socio-technical perspective

Duality of technology Strategic alignment

Entity-relationship modeling Technology-adoption model

Group support systems (GSS) Telecommuting

IS effectiveness measures Recognition of IS and IT as a

IS-user partnerships strategic resource

Hotel and Restaurant Administration Quarterly. Such professionally oriented writings provide a communication outlet linking academics and practicing managers. In the pages of such jour- nals, academics can distill their learning from multiple investigations and communicate their findings using accessible terminology and writ- ing styles. The emphasis is less on demonstrat- ing rigor and more on immediate relevance of the findings and ideas presented. Readers can place confidence in the authors’ claims, however, because of the review and editorial processes fol- lowed by these journals. In addition, practitio- ner journals generally feature contributions by academic researchers with an established record of rigorous research.

Academic research is qualitatively different from the work of practicing managers, consult- ants, trade-publication writers, and vendors. That distinctive character, however, makes academic research complementary to the others’ contribu- tions and, therefore, useful in helping practicing managers in their work and in educating current and future industry leaders.

IS Research Illustrations In the remainder of this article we focus on illus- trations of IS research. Information-systems re- search is devoted to understanding the determi- nants and consequences of successful planning, design, development, implementation, and use of IT-based information systems.3 Unlike the re-

3 Other terms are often used to describe what we are calling information systems, including: management-information systems (MIS), computer information systems (CIS), and information technology (IT).

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The topics of IS research

Category Examples

Information technology: How design issues drive the use of technology.

Computer systems: PC, client-server architecture Software: Data warehousing and packaged CRM

software

External environment: Environmental and societal influence on information systems design, imple- mentation, and use.

Economic sector: Hospitality Legal issues: Data ownership, customer privacy Political science: Trans-border data flow of customer

data

Organizational environ- ment: The reciprocal in- fluence of the organization on information systems design, implementation, and use.

IS management: Understanding, controlling, and being accountable for IT use within an organization.

IS development and op- erations: Focus on the ways in which systems are developed and then introduced into an organization.

IS use: Studying the interaction between the user and the information system.

Information systems: Focus on the design goals of the information system.

IS education and research: How to teach and research within the applied IS field.

Organizational characteristics: Chain environment Organizational functions: Hotel management Task characteristics: Customer loyalty Organizational dynamics: Power of IS to manage

chain relationships

Resource management: Data, personnel, hardware, software

Project management: Life cycle of IS IS planning: Approaches, methods Organizing IS: Infrastructure, service /S staffing: Occupations, professionals /S evaluation: Methods, criteria IS control: Methods, tools IS security: Data, artifacts, computer crime, and viruses /S-management issues: Success, failure, outsourcing

Development strategies: Implementation approaches- big bang, phased, prototyping

Lifecycle activities: Process and design of life cycle Development methods and tools: CASE tools, flowcharts Implementation: User participation, politics, education Operations: Input, data processing

Organizational use of IS: Competitive advantage, automation, integration

Users: Attitudes, behavior Type of IS support: Corporate, executive, guest Type of IS access: Direct, facilitated Type ofprocessing: On-line, batch, real-time

Types of IS: MIS, DSS, executive, enterprise-wide Application areas: PMS, CRS Components of IS: Interface, database, logic IS characteristics: Information presentation,

user interface

Education: Curriculum, literacy Research: Methodologies, frameworks, agendas

Adapted from: H. Barki, S. Rivard, J. Talbot, A Keyword Classification Scheme for IS Research Literature: An Update, MIS Quarterly, Vol. 17, No. 2 (June 1993). pp. 209-226.

lated discipline of computer science, IS research is not concerned with o&rnizing technology (e.g., processor architecture, programming-language de- sign and implementation, numerical analysis, or parallel computation), but instead with optimizing all of an information system’s components-tech- nology, people, organizational structure, and busi- ness processes. * For example, while computer- science research may be concerned with designing data-mining tools and pattern-recognition algo- rithms, IS researchers are concerned with under- standing how those technologies can be imple- mented to create business value for firms. Research questions of interest to IS researchers may include the following: What firms are best positioned to adopt the new technology to gain a competitive advantage? How should the adopting organization customize the technology and adapt its organ&- tional structure to fit its needs and best utilize the new tool? How can the firm use the technology to achieve business objectives? Who should use the technology? How should those individuals be trained and rewarded? (See Exhibit 2 for a compre- hensive list of the main IS research areas.)

In the broadest sense, the IS field is concerned with helping organizations f%ill their information- processing needs given the level of their IT invest- ment. More specifically IS researchers blend indus- try expertise with an understanding of IT so as to help practitioners get the most out of their invest- ments in information systems.

Decision-support Systems The influence of IS academic research on business practice is perhaps best illustrated through the de- velopment of the decision-support-system (DSS) concept, which originated in the 1970s from the work of Michael Scott Morton and Tom Gerrity, two faculty members at Massachusetts Institute of Technology.5 As conceptualized, DSSs support the intellectual resources of human decision makers through the design of computer models and the

* For a recent example, see: J. Schweisberger and A. Chatterjee, “Effective CRM Implementations,” Hospitality Upgrade, as viewed at www.hospitalityupgrade.com/(2002).

5 Many practitioners have been using spreadsheet models as DSSs for 20 years or more. See, for instance: John Patterson and Roy Alvarez, “Computer Systems for Food-Service Op- erations,” Cornell Hotel and Restaurant Administration Quarterly, Vol. 26, No. 1 (May 1985), pp. 132-141.

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simulation of real-tie experiences.’ Since their in- ception, DSSs continue to improve the quality of decisions by standardizing the process and logic informing managers’ choices and making system- atic the criteria for determining appropriate out- comes. Today, few managers would consider mak- ing important decisions without performing significant analyses. Such analyses are often sup- ported by decision-support systems, and in many cases the DSSs become strategic systems and a source of competitive advantage (see Exhibit 3).

The original DSS academic research catapulted the computer-based technology used in businesses from the automation of repetitive tasks to computer- mediated decision making. DSSs can be found as the basis for several information-system trends cur- rently in practice-including yield management, portfolio analysis, real-estate valuation, group- support systems, and executive-information systems (EIS) .

Today, DSS research continues and incorporates artificial-intelligence (AI) research focused on real- time decision-making support. For example, Forrest wrote that AI DSSs are being adopted by major commercial airline carriers in an attempt to reduce risks associated with managers’ experience-based decision making.7 The increasing complexity of business operations means that companies are de- signing information systems that complement hu- man judgment and standardize decision making in an attempt to create competitive advantage.* United Airlines implemented an AI DSS to support the operation of its 2,000 daily flights spanning five continents. The system provided real-time decision support related to the management of daily sched- ules by allowing for the delay, cancellation, and swapping of fights9

6 I?G.W. Keen and M.S. Scott Morton, Decision Support Systems: An Organizational Perspective (Reading, MA: Addison-Wesley, 1978).

‘J. Forrest, “A Functional Survey of Decision-support Sys- tems as Applied to Airline Operations Management,” (1997), as viewed at frontpage.hypermaU.com/jforresdDSS/ airline_decision.htm (on 1 l/25/2002).

a M. Porter, “Strategy and the Internet,” Harvard Business Review, March 2001, pp. 63-78.

9 A. Rakshit, N. Krishnamurthy, and G. Yu, “System Op- erations Advisor: A Real-time Decision-support System for Managing Airline Operations at United Airlines,” Inte$ices, No. 26 (March-April 1996), pp. 50-58.

DSS applications

Company DSS purpose

Air Product Vehicle assessment

Adapted from: www.umsl.edu/-sauter/DSS/DSS_Foundations.html

Information-systems Design The proliferation of technologically mediated decision making in businesses also highlights the important issues of design, implementation, and use of IT for achieving a successful system. It is now widely recognized that reaping the benefits of IT investments involves more than selecting and buying the appropriate computer system. Managers and consultants recognize that success- ful technology deployment requires the align- ment of IT with the organization’s structure, people, and business processes. Our conversa- tions with executives and chief information of- ficers clearly indicate that they see the IT func- tion as falling under the responsibility of the group in charge of delivering IS solutions (that is, IS professionals, functional managers, and executives) and not as part of the system build- ers’ domain. As the executives often have told us: “It is not about technology alone, but about the fusion of IT with people, processes, and or- ganizational structures.”

As mentioned earlier, our definition of infor- mation systems includes social and technical el- ements. This notion can be traced to academic re- search that focused on a general socio-technical perspective.” The Tavistock Institute in London first adopted this perspective in its studies of 1940s’ coal-mining operations, where research- ers argued that the successful introduction of

“T. Cornford and S. Smithson, Information System Project Research: A Student? Gbide (Basingstoke: Macmillan, 1996).

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Socio-technical components of an information system

Structure 4 b Technology

People 4 b Process

new technology into the mines required far more than technical elegance. l1 Making technology work in the coal mine required detailed atten- tion to the particular social situations in which the technology was being implemented. This re- sulted in the modification of organizational struc- tures and business processes, and it meant that employees reorganized themselves as teams (see Exhibit 4). This socio-technical perspective ex- plicitly underpinned the IS academic discipline at its inception12 and forms the conceptual basis for the field.

The consequence for businesses of the socio- technical perspective is seen in the methodologies used in IT projects. For example, it is common practice today for management consultants to analyze technical functionality along with social and organizational factors during the requirements- definition phase of IT projects. Participatory ap- proaches to system design have grown so effec- tive that users have become increasingly involved in the development of software, systems, and pro- cess-redesign efforts. Adopting a socio-technical perspective implies that an exclusive focus on ei- ther social issues or technical systems is unsatis- factory when the aim is to make IT work for the organization (e.g., ROI, revenue generation, cus- tomer service, new market ventures, knowledge creation). As such, many IT implementations today involve the analysis of standard work prac- tices and procedures that are embedded in an organization’s culture. This is more commonly referred to as business-process reengineering,

‘I See, for example: E.L. Trist, Organizational Choice: Ca- pabilities of Groups at the Coal Face under Changing Tech- nologies: The Loss, Rediscovery Q Transformation of a Work Tradition (London: Tavistock Publications, 1963).

r2 See: E. Mum ford, Systems Design: Ethical Tools for Ethical Change (Basingstoke: Macmillan, 1996); F. Land and R. Hirschheim, “Participative Systems Design: Rationale, Tools, and Techniques,” Journal ofApplied Systems Analysis, Vol. 10 (1983), pp. 91-107; E. Mumford and M. Weir, The ETHICS Method: Effective Technical and Human Imple- mentation of Computer Systems: A Work-design Exercise Book for Individuals and Groups (London: Associated Business Press, 1979); RI? Bostrom and J.S. Heinen, “MIS Prob- lems and Failures: A Socio-technical Perspective-Part I: The Causes,” MIS Quarterly, Vol. 1, No. 3 (1977), pp. 17- 32; and R.P. Bostrom and J.S. Heinen, “MIS Problems and Failures: A Socio-technical Perspective-Part II: The Application of Socio-technical Theory,” MIS Quarterly, Vol. 1, No. 3 (December 1977), pp. 11-28.

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which is the most common form of IT-enabled organizational change.

Business-process Reengineering Business-process reengineering (BPR) originated from the field research of two MIT researchers, Michael Hammer and James Champy, based on their work with several companies (including General Motors, Goodyear, Hewlett-Packard, IBM, and Kodak).13 Reengineering became a business phenomenon in the 199Os, and it still dominates many IT-enabled projects today. While sometimes accompanied by hype and criti- cized as an approach that legitimizes labor re- ductions by overhauling job responsibilities,‘4 BPR’s underlying ideas are crucial to business efftciency. At its core, BPR means revising exist- ing assumptions that constrain business processes and redesigning business tasks and processes. The notions of process focus and process-based change have helped to redress the balance of power be- tween the technical system and its employment within the organization. In addition, BPR high- lights the need for the IS professionals to be adept in change management, creative thinking, and organizational analysis, as well as in their tradi- tional technical skills.

The promises of BPR were initially difficult to achieve because many legacy systems (i.e., ex- isting computer systems) were functionally iso- lated (and remain so today), in contradiction to process-oriented business models. Few IT-design and -implementation efforts today are, however, conducted without a concerted effort to consider BPR and broad organizational agendas. Manage- ment, end users, IS professionals, and top lead- ers recognize IT-enabled change as fostering or- ganizational transformations that extend beyond a technological infrastructure.

I3 See: M. Hammer, “Reengineering Work-Don’t Auto- mate, Obliterate,” Harvard Business Review, Vol. 68, No. 4 (I990), pp. 104112; and M. Hammer and J. Champy, Reengineering the Corporation: A Manifesto for Business Revo- lution (New York: Harper Business, 1993).

t* M. Jones, “Don’t Emancipate, Exaggerate: Rhetoric, Re- ality, and Reengineering, ” in Transforming Organizations with Information Technology (A-49), ed. R. Baskerville, S. Smithson, 0. Ngwenyama and J.I. DeGross (North Hol- land: Elsevier, 1994), pp. 357-378.

Current IS Challenges in the Hospitality Industry The HITEC conference, the main gathering of IT hospitality professionals and vendors in the United States, celebrated its 30th anniversary in June 2002. The industry has made great strides in its use of technology during that time. Hotels widely use IT to distribute rooms, create operat- ing efficiencies, and support the creation of re- warding guest experiences. Despite those efforts a number of challenges remain-and new ones seem to accompany the adoption of each new innovation. While such challenges might at first glance appear to be merely technical issues, their scope and breadth extend far beyond the com- puter room, as demonstrated by the examples below.

Data management. One of the most promi- nent IT-based initiatives is for hospitality execu- tives to gain an understanding of customers and appropriately tailor the hospitality experience through customer-relationship management (CRM). Most executives and hoteliers recognize that intimately knowing each guest and being able to tailor the experience to a guest’s personal preferences contributes significantly to fighting the commoditization threat that we are facing as an industry.15

Although IT is the fundamental enabler of any CRM initiative, executives also recognize that purchasing and installing a CRM system is no panacea, as advances in technology bring chal- lenges along with their opportunities. (Note that we believe that a CRM system is in some ways a misnomer.16) In the case of CRM, challenges are

I5 See: G. Piccoli, B. Spalding, and B. Ives, “The Customer- service Life Cycle: A Framework for Improving Customer Service through Information Technology,” CornellHoteland Restaurant Administration Quarter&, Vol. 42, No. 3 (June 2001), pp. 38-45.

I6 Even though the phrase “CRM system” is often used to refer to computer applications designed to support CRM initiatives, we find the term to be inappropriate and mis- leading. Simply put, a CRM initiative is a managerial phi- losophy spanning functional areas-including (at mini- mum) operations, marketing, and IT-that is enabled by an IT infrastructure comprising multiple applications and infrastructure systems. Speaking of a “CRM system” is con- fusing because it reinforces the misguided notion that sim- ply introducing technology will ensure the success of CRM initiatives.

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often related to guest-data ownership and pri- vacy issues. When hotel chains implement CRM initiatives, it is unclear who retains ownership of the accumulated guest information. Is it the property owner, the property operator, or the brand (if the flag is owned by a third party)?”

Effective systems. The challenges associated with the development and implementation of

Academic research is an endeavor that is qualitatively different from the work of practitioners, consultants, trade-publication writers, and vendors.

information systems in the hospitality industry remain substantial despite recent improvements. Systems are challenged by a lack of end-user ac- ceptance and a limited understanding of their full functionality. The failure rate for IT projects in the hospitality industry in 2000 was estimated at 72 percent (down from 84 percent in 1994). The average cost overruns were estimated at 45 percent over budget (down from 189 percent in 1994), and the average time overrun was esti- mated at 63 percent. I8 In spite of the notewor- thy improvement, IT failure rates are staggering.

Strategic use of IT. Two questions surround- ing IT are whether (1) technology can provide competitive advantage, and (2) any technology- based competitive advantage can be sustained. The general hype surrounding new technologies and IT vendors’ marketing literature would sug- gest the answer to both questions is “yes.” Con- versely, skeptics are quick to point out that IT and its developers are freely available for hire in the marketplace. Thus, the skeptics conclude, IT developments are easily imitated and cannot be a source of sustainable competitive advantage. High-profile successes, such as that of Harrah’s

r’ For more in-depth exploration of the data-ownership co- nundrum, see: G. Piccoli, l? O’Connor, P. Capaccioli, and R. Alvarez, “Customer Relationship Management-A Driver for Change in the Structure of the U.S. Lodging Industry,” Working Paper #05-28-02, Cornell University Center for Hospitality Research, 2002.

I8 CIO Panel, HITEC 2001

Entertainment, clearly show the weakness of this argument, but sophisticated observers realize that both answers (affirmative and negative) are too general to be complete. The characteristics of the technology, the firm adopting the IT innovation, the structure of its value systems, and the poten- tial for preempting retaliation all contribute to create barriers to imitation and protect competi- tive advantage. l9 Considerably more research is needed to understand the nature of sustainable IT-based competitive advantage and, more gen- erally, the business value of IT

Business value of IT. As most practicing man- agers know, measuring and justifying an IT in- vestment are complicated. Few models and meth- odologies for predicting and measuring financial returns on technology investments are available. While return on investment is a crucial goal, however, recent research questions the appropri- ate point in the system life cycle when such return should be measured. For example, enterprise-resource-planning (ERR) technology is being adopted across industry sectors as a “pre- requisite business infrastructure necessary for op- erating within the 21st century.“20 But the scale of change accompanying such projects means that any cost savings are often deferred for several years. ” As a consequence, business operators have found it difficult to gauge the appropriate IT investments and have been unable to reap ap- propriate returns.22

Role of IT professionals. The role of IT pro- fessionals within the hospitality industry is chang- ing as the computing function takes on an in- creasingly central role. Furthermore, it can be argued that the positioning of the IT professional

I9 G. Piccoli, D. Feenp and B. Ives, “Creating and Sustain- ing IT-Enabled Competitive Advantage,” in Competing in the Information Age, ed. J. L&man (London: Oxford Uni- versity Press, 2002).

” T.H. Davenport, Mission Critical: Realizing the Promise ofEnterprise Syrtm (Boston: Harvard Business School Press, 2000).

a1 L.M. Hitt, D.J. Wu., and X. Zhou, “Investment in Enterprise-resource Planning: Business Impact and Pro- ductivity Measures,” ]ournal of Management Information Syrtems, Vol. 19, No. 1 (2002), pp. 71-98.

aa I? Brown and K. Stange, “Investment in Information Tech- nology: The Multibillion Dollar Game of Chance,” Hospi- tality Bwiness Review, Vol. 4, No. 1 (2002), pp. 28-38.

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within the organizational hierarchy is of grow- ing importance to business leaders hoping to guide interconnected stakeholders toward a firm’s strategic mission.

As the above discussion illustrates, the deploy- ment of IT to enable and support business ini- tiatives in the hospitality industry is still far from challenge free. Many individuals are involved in trying to integrate technology in all facets of hos- pitality operations and management. Leading the charge are industry IT professionals and execu- tives who believe in the promise of information systems. The professionals typically are talented individuals from diverse backgrounds who are faced with the day-to-day challenge of de- signing, developing, managing, and maintaining their organization’s IT infrastructure. In doing so, they become intimately familiar with their firm’s operational challenges and hoped-for so- lutions. The executives, on the other hand, have a vision of the future dominated by technology- effective businesses that are able to innovate quickly and apply information to secure and maintain a strong customer base and develop necessary products and services.

A third group works closely with IT profes- sionals. These are IT consultants, who are gener- ally hired because of their expertise in a particu- lar problem area (e.g., CRM) or in designing and developing particular systems. For example, large consulting firms are often strategically aligned with specific software vendors, enabling the con- sultants to become versed in the application of specific software tools. Many IT professionals welcome such expertise, but it also has potential to confine consulting interventions to the few technologies and business methodologies avail- able within their toolkits of expertise.

Trade publications and magazines serve the important purpose of documenting many of the challenges surrounding the use of IT in the in- dustry and illustrating successes and failures. The publications often attempt to collect and divulge the lessons learned and the wisdom accumulated by professionals and consultants through inter- views, case studies, and best-practices studies.

Vendors also contribute to seeking solutions to the hospitality industry’s IT challenges by way of the vendors’ investments in research and de- velopment, their participation in tradeshows and

educational sessions, and their assistance in matching their products and services to their customers’ problems and opportunities.

Academic researchers involved in IS research can provide useful complementary insights. As we have discussed, academic research is an en- deavor that is qualitatively different from the work of practitioners, consultants, trade-publi- cation writers, and vendors. Its distinctive char- acter makes it complementary to the contribu- tions of others, and therefore, useful in successfully managing the hospitality enterprise.

Conclusions The potential for successful and mutually ben- eficial partnerships between academic research- ers and practicing managers is great. This ar- ticle represents an attempt to start this important dialogue by showing, with the help of examples from the information systems (IS) research tra- dition, how academic research has aided prac- tice in the past and can continue to do so in the future.

Academics have generally not done a good job at making their work accessible to practi- tioners. Nor have academics been adept at communicating the value of their findings to practicing managers. But there are signs of change as an increasing number of researchers are working to build relationships with man- agers. A true partnership between academics and practitioners can be achieved only if man- agers are willing to contribute time and re- sources to academic inquiry. They must un- derstand that academic research is different from other forms of research and should not be judged by a standard of immediate useful- ness. This lack of understanding is apparent when firms decline to participate in a research project because decision makers see no imme- diate value for the firm. Aside from the argu- able moral obligation of helping to educate future generations of industry leaders, declin- ing to participate in research studies because of the lack of immediate applicability of re- sults stifles academic research and short cir- cuits its potential for making substantial fu- ture contributions. Conversely, helping a researcher to shape a research project so as to increase the likelihood of useful findings may

APRIL 2003 Cornell Hotel and Restaurant Administration Quarterly 37

Page 10: The value of academic research

FOCUS ON RESEARCH I IMPORTANCE AND PERFORMANCE

A Research Center Near You

Research centers in universities serve a valuable role in bridging the gap between research and practice. Typically, the research center has corpo- rate sponsors that provide guidance to academic researchers in return for valuable output in the form of reports, briefings, conferences, and other sponsored projects. Universities are investing in developing centers that match research talent and interests with industry problems in need of in- depth longitudinal analysis. This is a promising sign which suggests that academe is reaching out to practitioners, and that practitioners are lending their support.

Research centers that focus on the hospitality industry:

School

Cornell University

Research center

Center for Hospitality Research (www.hotelschool.cornell.edu/chr/)

University of New Orleans Hospitality Research Center (www.uno.edu/-hrt/hosresctr.htm)

Temple University STHM Research Center (www.temple.edu/STHM/research/rescenter.htm)

Purdue University The Purdue Tourism & Hospitality Research Center (www.cfs.purdue.edu/htm/pages/research/ resgthrc.html)

UMass-Amherst

UNLV

Center for Hospitality &Tourism (TRAM) (www.unix.oit.umass.edu/-tram/index.html)

Gaming Studies Research Center (gaming.unlv.edu/)

38 Cornell Hotel and Restaurant Administration Quarterly APRIL 2003

Note: The above list of research centers was compiled using a simple Google search on “hospitality” and “research center.” The list is not in- tended to be exhaustive.

also help to ensure that the research is indeed addressing a relevant issue.

One promising sign is the expansion of university-based research centers that focus on the specific needs of hospitality enterprises (see the sidebar on this page). This trend shows a com- mitment by universities to reach out and a con- comitant willingness of firms to lend their sup- port. Moreover, we believe that research centers are becoming increasingly attuned to practitio- ners’ needs. The Center for Hospitality Research at Cornell University, for instance, recently re- leased its annual report for 2002. A number of measures relating to industry-based research hit their high points in 2002, including the volume of published work (i.e., reports, working papers, research briefs, and multimedia resources), in- dustry support (e.g., number of sponsors and data providers), media coverage, sponsored research requests for proposals and awards, and volume of communication. Perhaps the most telling sta- tistic is the skyrocketing number of hits to the CHR website (www.hotelschool.cornell.edu/ chr). The site recorded a 438-percent year-over- year increase to 419,082 total unduplicated vis- its in 2002 and a strong indication of growing interest in the CHR’s work.

Industry and academe have complementary interests and can create value for each other through partnerships and strategic alliances. We see encouraging signs of cooperation between academics in leading institutions and forward- looking executives who have begun realizing the value of sharing expertise without having to re- linquish underlying agendas and principles that guide their primary domains. We encourage aca- demics and practitioners alike to develop dia- logues and support cooperation between indus- try and academe.

Gabriele Piccoli, Ph.D. (gp450cornell.edu; photo on far left), and Erica L. Wagner, Ph.D. (elw3BkornelLedu; photo on immediate left), are assistant professors at the Cornell University School of Hotel Administration.