An E-Transformation Study Using The Technology - Organization - Environment Framework
An E-Transformation Study Using The Technology - Organization - Environment Framework
An E-Transformation Study Using The Technology - Organization - Environment Framework
Bled eConference
eMergence:
Merging and Emerging Technologies, Processes, and Institutions
June 4 - 6, 2007; Bled, Slovenia
Abstract
Aviation information in the cockpit and on the ground was almost entirely paper
based until a decade ago, when a digital future became apparent. This digital
future requires industry transformation, which is influenced by the technological,
organizational and environmental (TOE) context. This study uses an adapted
e-business TOE framework to analyze drivers, facilitators, inhibitors and benefits
of e-transformation and also presents challenges and key lessons learned.
1 Introduction
Although the possibility of a digital cockpit became apparent a decade ago,
aeronautical information in the air and on the ground is still largely paper based.
However, the digital cockpit is starting to become commonplace. This study
investigates the digital transformation of the aviation industry and the influence of
the technological, organizational and environmental (TOE) context. Using the
TOE framework, we seek theoretical answers to the following research questions:
What are the drivers and benefits of the e-transformation?
What challenges accompany the digital transformation?
What are the facilitators and inhibitors of e-transformation?
We also analyze the challenges and present lessons learned.
2 Technology–Organization–Environment (TOE)
framework
The original technology–organization–environment (TOE) framework was
developed for the adoption of innovations (Tornatzky & Fleischer, 1990). IS
researchers have used the TOE framework to analyze EDI, open systems and e-
business adoption (Chau and Tam 1997, Iacovou, Benbasat and Dexter 1995,
Kuan and Chau 2001, Zhu et al. 2002, 2003). The model in this study in Figure 1
adapts the TOE framework (Tornatzky & Fleischer, 1990) and the derived e-
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Judy E. Scott
business model (Zhu et al. 2002, 2003) to analyze e-transformation. In the next
three sections, the paper examines the relevant research literature on the
technological context, organizational context and the environmental context.
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An e-Transformation Study Using the Technology–Organization–Environment Framework
In the following sections, we apply the TOE model and the literature to
e-transformation in the aviation industry and conclude with lessons learned and
implications for research and practice.
deck‟ also promises advances in efficiency and taxiway and flight deck safety
(Allen 2003, Flight Safety Foundation 2005, Hughes 2004). There are three EFB
configurations: Class 1 which is portable, Class 2 which is semiportable, and
Class 3 which is installed avionics (Allen 2003, FAA 2003, Hughes 2004).
5 Technological context
This section analyzes the information technology infrastructure competence and
e-business know how relevant in the airline industry.
6 Organizational context
The transformation impacts most airline industry employees, especially pilots and
ground operations staff. Organizational culture and organizational change
processes illustrate the process of e-transformation.
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An e-Transformation Study Using the Technology–Organization–Environment Framework
Additionally, pilots complain that maintaining their bags by hand filing up-to-date
information is tedious and time-consuming. This labor and the added weight of
the flight bag itself add to the cost of each flight. Also the expense of printing
paper documents and distributing them to pilots adds significant costs.
Nevertheless, pilots might not be enthusiastic about using an EFB. According to
some experts, the proliferation of EFB features and vendors creates human factors
and training issues (Allen 2006). An ethnographic study reveals that a completely
paperless cockpit might not be advantageous (Nomura, Hutchins and Holder
2006). Paper is an integral feature of using new technologies and plays important
social interaction roles in crew coordination, message confirmation, note-taking,
and information affordance. The target of design activity should be the cognitive
functions performed in the flight deck. Concerns include the aviation expertise
level of young pilots when too much automation keeps them from getting
involved in deep tasks and understanding deeply about the airplane‟s behavior in
any flight context. Instead, the ideal solution would allow paper to complement
the digital products and services. Similar to brick-and-click synergy (Gulati &
Garino 2000, Ranganathan, Goode & Ramaprasad 2003), paper and digital
products have potential synergy.
7 Environmental context
Environmental influences on e-transformation are competitive pressure, the
regulatory environment and lack of customer readiness.
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An e-Transformation Study Using the Technology–Organization–Environment Framework
8 Integration of Technology–Organization–Environment
The three contexts are inter-related in the airline industry. Similarly, environments
such as EDI and open systems, which have been analyzed using the TOE
framework, find interdependencies among the technological, organizational and
environmental contexts. For example, organizational readiness for EDI in small
firms depends on their financial readiness and technological readiness to attain the
required level of IT sophistication (Iacovou, Benbasat and Dexter 1995). In the
airline industry, readiness for e-transformation depends on financial readiness to
invest in the EFB. Organizational culture and change processes will determine
organizational readiness to adopt the EFB innovation and transform the industry.
Information technology infrastructure competence and e-business know-how will
determine technological readiness. Such readiness will affect the airline industry
environment overall.
9 Lessons Learned
Many of the lessons learned are generalizable and applicable to e-transformation
for other industries.
Drivers for industry e-transformation stem from the need to control costs,
competitive pressure and technological opportunities. The manual chart
maintenance process is too labor intensive and time consuming.
Competitive pressure motivates cost reduction and increased operational
efficiency. Organizations also want to leverage technological
opportunities.
The electronic deliverability, information intensity, customizability,
aggregation effects drivers leverage inherent characteristics of airline
information and services (Andal-Ancion, Cartwright & Yip 2003)
Benefits of e-transformation include streamlined flight services operations
and efficiency from electronic access to documents, displays of charts and
calculation of performance figures (Allen 2003, Flight Safety Foundation
2005, Hughes 2004). Reduced fuel and maintenance costs are from less
paper on board, which saves weight to enable better fuel consumption and
reduces clutter to enable better use of limited space (Allen 2003, Intel
2005, Nomura and Hutchins 2006, Search Asia Travel Tips 2006,
Seidenman and Spanovich 2006). Taxiway and flight deck safety improves
from taxi positional awareness and video flight deck entry surveillance
(Allen 2003, Flight Safety Foundation 2005, Hughes 2004, Intel 2005,
Seidenman and Spanovich 2006, Thomas 2006).
Paper can complement the digital products and services (Nomura,
Hutchins and Holder 2006). Paper is an integral feature of using new
technologies and plays important social interaction roles in crew
coordination, message confirmation, note-taking, and information display.
Organizations need to prepare for technological innovation. To realize the
benefits including new revenue opportunities, cost savings and increased
efficiency, organizations need to change their strategy, culture and
processes.
Management needs to communicate the new vision to prepare employees
for the change.
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10 Conclusion
The TOE analysis of e-transformation reveals that the airline industry has
successfully begun its journey. Driven by the need to control costs for
maintenance of chart manuals, the industry has started to shift the distribution
process to electronic delivery. At the same time, competitive pressures and
improving technological competence and e-business know-how have driven the
industry to start adopting the EFB and other digital products and services.
However, prior to 2003 the transformation was slower than expected, partly
because the FAA and regulatory environment was cautious about safety issues and
not ready for radical change. The expected demand for the EFB is expected to
explode in 2008 with the introduction of the next generation of airplanes, which
incorporate the EFB in their design (Seidenman and Spanovich 2006). Challenges
include developing the IT infrastructure, optimizing new digital processes and
cultural transformation. Organizations in the industry need to be ambidextrous to
leverage their stability and domain expertise while moving towards a flexible
digital paradigm.
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