nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2006‒09‒30
seven papers chosen by
Walter Frisch
University Vienna

  1. Has the European ICT sector a chance to be competitive ? By Christian Genthon; Godefroy Dang Nguyen
  2. Value Creation through ICT Integration in Merger & Acquisition Processes By Larsen, Michael Holm
  3. Forecasting using Bayesian and information theoretic model averaging: an application to UK inflation By George Kapetanios; Vincent Labhard; Simon Price
  4. Poss On-line (Personalisation of Self-Service Solutions across On-line platforms) By Nielsen, Janni; Nielsen, Lene; Jespersen, Mikkel; Hansen, Ole Smith-
  5. Innovative Work Practices, Information Technologies and Working Conditions: Evidence for France By Philippe Askenazy; Eve Caroli
  6. Impact Of It In The Danish Banking Industry, With Specific Illustrations From The Nordea Group And Lån & Spar Bank By Bjørn-Andersen, Niels
  7. Embedding complementarity in HCI methods and techniques By Nielsen, Janni; Yssing, Carsten; Levinsen, Karin; Clemmensen, Torkil; Ørngreen, Rikke; Nielsen, Lene

  1. By: Christian Genthon (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II]); Godefroy Dang Nguyen
    Abstract: The ICT sector is featured by technical progress, convergence and systems integration. This leads to risks of monopolization regimes at the core with higher competition regimes at the periphery. Moreover, some specific component of the system may be essential for its evolution. In particular, networking to some extent creates the system, while software (notably operating systems) is the “glue” which holds it together. In this context, the European ICT industry is potentially smashed between the cost advantages of Asian countries such as China, and the inventiveness and dynamism of the US industry. The way out of this difficult situation is to create in Europe the conditions of restoring knowledge accumulation. By concentrating on an ambitious project of open source software production in embarked and domestic systems, Europe could reach several objectives: to make freely accessible an essential facility of networks, to stimulate competition, to help reaching the Lisbon objectives and to restore the European competitiveness in ICT.
    Keywords: information and communications technologies ; industrial policy ; competition regimes ; knowledge based society ; open source
    Date: 2006–09–19
  2. By: Larsen, Michael Holm (Department of Informatics, Copenhagen Business School)
    Abstract: As deals are becoming more complex, and as technology, and the people supporting it, are becoming key drivers of merger and acquisition processes, planning of information and communication technologies in early stages of the integration process is vital to the realization of benefits of an Merger & Acquisition process. This statement is substantiated through review of literature from academics as well as practitioners, and case exemplifications of the financial service organization, the Nordea Group.
    Keywords: ICT Integration; Mergers & Acquisitions; Nordea Group
    JEL: H00
    Date: 2006–09–18
  3. By: George Kapetanios; Vincent Labhard; Simon Price
    Abstract: In recent years there has been increasing interest in forecasting methods that utilise large data sets, driven partly by the recognition that policymaking institutions need to process large quantities of information. Factor analysis is a popular way of doing this. Forecast combination is another, and it is on this that we concentrate. Bayesian model averaging methods have been widely employed in this area, but a neglected alternative approach employed in this paper uses information theoretic based weights. We consider the use of model averaging in forecasting UK inflation with a large data set from this perspective. We find that an information theoretic model averaging scheme can be a powerful alternative both to the more widely used Bayesian model averaging scheme and to factor models.
  4. By: Nielsen, Janni (Department of Informatics, Copenhagen Business School); Nielsen, Lene (Department of Informatics, Copenhagen Business School); Jespersen, Mikkel (Department of Informatics, Copenhagen Business School); Hansen, Ole Smith- (Department of Informatics, Copenhagen Business School)
    Abstract: The project on Personalisation of Self-service Solutions across On-line Platforms (POSS ON-LINE) focuses on users, clients, and self-service solutions. It is based on the understanding that clients and users are different and have different goals, and that self-service takes place in different contexts, on different platforms, and within different applications and this requires development of complementary approaches and solutions. Traditionally the tools used to predict user behaviour build on users leaving traces of their actions. However, new application and developments for existing applications do not gather traces, and new ways of profiling the user is needed. To digitalise e.g. public services such as TOLD & SKAT to meet citizen’s needs is a huge challenge because the user’s context has to be taken into account. As the tracking tools are not sufficiently refined (1,4,14) pushing of information to users with the aim of increasing sales, e.g. AMAZON, still leaves much to be wished for. Despite the fact that the user profile, which the system generates, is continuously updated through user’s interaction with the system (15), e.g. Personalised application may both service the client and the user. The system gathers data about the user, which enables the client to push information to the user. Personalisation enables graphic user interface design that is personalised and relevant to the individual user and invites the user to get access to information with less strain. Personalisation of self-service solutions is promising and IT companies are experiencing an increase in the clients’ demands. At the same time the development of solutions moves within a shorter and shorter time span. Hence the process of innovations is paced and there is an increasing need of new ways of looking at the process of development. However, we lack methods to predict user behaviour without having to deal with huge amounts of data and data from both quantitativ data as well as life world observations are required.
    Keywords: None
    JEL: O30
    Date: 2005–09–19
  5. By: Philippe Askenazy (Paris Sciences Economiques and IZA Bonn); Eve Caroli (University Paris X, EconomiX and Paris Sciences Economiques)
    Abstract: We investigate the impact of new work practices and information and communication technologies (ICT) on working conditions in France. We use a unique French dataset providing information on individual workers for the year 1998. New work practices include the use of quality norms, job rotation, collective discussions on work organization and working time flexibility. Working conditions are captured by occupational injuries as well as indicators of mental strain. We find that workers involved in the new practices face working conditions that are significantly worse than those of workers in non innovative work practices. But, the picture is mixed for ICT that seem to make the workplace safer and less risky.
    Keywords: new work practices, technology, working conditions, occupational injuries
    JEL: J28 L23
    Date: 2006–09
  6. By: Bjørn-Andersen, Niels (Department of Informatics, Copenhagen Business School)
    Abstract: Danish banks have traditionally been in the absolute forefront globally as regards the automation and introduction of IT since the mid 60’ies. But when the e-commerce opportunities emerged in the late 90’ies, the majority of the Danish banks resisted the development. They saw no reason to be the prime movers in cannibalising their own key competitive advantage, the 2.500+ retail-outlets (branches) placed on all the best locations on corners of the shopping streets1. However, once pure Internet banks were introduced in 1998 - 2000, all major banks (and the computing centres servicing the smaller banks) launched massive initiatives to bring the brick-and-mortar banks back into the driver seat using Internet banking. At the end of 2003 more than 30% of all Danish bank customers are using Internet. This development in the banking industry is illustrated using two cases. The first is one of the most ambitious attempts at creating a Nordic based large international financial service company, capable of spearheading the transition to the digital economy - the case of Nordea. This bank is in the midst of various transformation processes across the organisation due to several years of multiple cross boarder mergers and acquisitions, new composition of the group executive management, increasing thrives towards automation of business processes to reduce costs, and different innovations involving a change of the roles of value network partners. The other case is Lån & Spar Bank, which is one of the smaller Danish banks, who have its basic IT services done at a joint computing centre owned with many other smaller banks, but have its own IT development for strategic purposed done in-house in close collaboration with the business units. This bank has been in the forefornt in adopting new IT-solutions. This report consists of an analysis of the background for the development of the Danish banking sectors, the key processes in the Danish banking industry, the environmental and policy actors influencing the development, the e-commerce readiness in the Danish banking sector, the diffusion of e-commerce, and finally the impact on efficiency, industry structure and competition. The main results are that there are more Danish financial institutions having Internet technologies and Internet applications than in the other nine countries in the GEC survey. Furthermore, we suspect that they have had it for a longer period on average than found elsewhere in the sample. However, when we compare the figures in the GEC-survey on the ‘ Use of Internet for the different business processes’, and ‘On-line support’, the number of Danish financial institutions having Internet applications is not higher than in the other countries.
    Keywords: None
    JEL: O30
    Date: 2006–09–20
  7. By: Nielsen, Janni (Department of Informatics, Copenhagen Business School); Yssing, Carsten (Department of Informatics, Copenhagen Business School); Levinsen, Karin (Department of Informatics, Copenhagen Business School); Clemmensen, Torkil (Department of Informatics, Copenhagen Business School); Ørngreen, Rikke (Department of Informatics, Copenhagen Business School); Nielsen, Lene (Department of Informatics, Copenhagen Business School)
    Abstract: Differences in cultural contexts constitute differences in cognition, and research has shown that different cultures may use different cognitive tools for perception and reasoning. The cultural embeddings are significant in relation to HCI, because the cultural context is also embedded in the techniques and the tools that we apply. We lack a framework for discussing what and who we are, when we talk about a person as the user of an ICT system that has to be designed, developed and implemented. As a framework, we suggest a theory of complementary positions that insists on solid accounts from all observer posi-tions in relation to perspective, standpoint and focus. We need to develop com-plementary theories that embed complexity, and we need to reflect critically upon forty years of dominance by rationalistic, empirical understandings of the user as illustrated in the literature and practice within the HCI paradigm in system development.
    Keywords: Nona
    JEL: H00
    Date: 2006–09–18

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