Vol. 27, No. 11, November 2018, pp. 1893–1905 DOI 10.1111/poms.

12961
ISSN 1059-1478|EISSN 1937-5956|18|2711|1893 © 2018 Production and Operations Management Society

Research in Operations Management and Information

Systems Interface
Subodha Kumar*
Fox School of Business, Temple University, Philadelphia, Pennsylvania 19122, USA, [email protected]

Vijay Mookerjee
Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, Texas 75080, USA, [email protected]

Abhinav Shubham
Fox School of Business, Temple University, Philadelphia, Pennsylvania 19122, USA, [email protected]

wing to its multidisciplinary nature, the operations management (OM) and information systems (IS) interface distin-
O guishes itself from the individually focused perspective of both fields. The number and depth of contributions in this
department can help both disciplines advance to better address important theoretical and practical challenges of the busi-
ness world. In this paper, we study the characteristics of problems at the interface between OM and IS, and review past
work that has been instrumental in setting the tone and direction of research at this interface. We extend our discussion
to provide directions for future research at the OM and IS interface in the domains such as smart city management,
healthcare, deep learning and artificial intelligence, fintech and blockchain, Internet of Things and Industry 4.0, and social
media and digital platforms.
Key words: information systems; operations management; interface; future roadmap
History: Received: June 2018; Accepted: October 2018 by Kalyan Singhal, after 1 revision.

operations management solutions to infrastructure

1. Introduction and operations firms (McLellan 2017). Computer
Operations management (OM) and information sys- Economics, an established market research firm,
tems (IS) have had a long history of academic part- conducted another market survey of top firms in
nership, evidenced by the fact that many academic 2016. Out of the respondents surveyed, a very high
institutions support these functions within the same percentage (65%) reported an organizational
organization unit or department. These fields draw increase in IT spending on the Operations function
heavily from a common pool of methods in man- (McLellan 2017). These indicators, together with the
agement science (e.g., optimization, statistics, and anticipated growth in these areas, signal the
game theory) as well as from other reference disci- impending onus on the academic community to
plines such as economics, econometrics, sociology, dedicate time and effort to explore the interface
and psychology (Sidorova et al. 2008). In the busi- between these two functions. The OM and IS inter-
ness world, many successful IS applications are face needs to be better understood to guide the
operational in nature, with firms heavily depending future development of both these disciplines. In this
on information technology (IT) to improve opera- study, we review the opportunities to enhance and
tional efficiency (Bharadwaj et al. 2007). According strengthen the OM-IS interface and discuss current
to Gartner (2017), worldwide IT spending is and emerging areas of research.
pegged to reach over $3.7 trillion in 2018. The US
federal government alone allocated $95 billion in
the annual federal budget for IT spending for the
2. Intersecting Domains
fiscal year 2018, a 1.7% increase over the fiscal year Research at the interface of two disciplines can be
2017.1 Over 78% of this amount was classified as tricky. Purists will ask: Where is the contribution?
operational spending. Is it in OM or is it in IS? Without explicit support,
A recent Gartner survey on IT products and ser- interesting research at an interface could struggle to
vices highlights cloud-based Software-as-a-Service gain acceptance. It helps the interface to thrive if
(SaaS) enterprise products that provide IT based the boundaries of the participating disciplines are
1893
 Kumar, Mookerjee, and Shubham: Research in OM and IS Interface
1894 Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society

clearly defined and secure. When boundaries are ill 2.1. Using Information Systems to Solve
defined, identifying the interface becomes doubly Operations Management Problems
challenging. With this in mind, we begin with a Figure 1, shows three main domains where research-
brief discussion of the core problems in the OM ers have been able to solve OM problems using infor-
and IS areas. This affords a better understanding of mation systems: (i) information sharing across the
what lies at the interface. supply chain, (ii) healthcare, and (iii) omnichannel
The IS area studies problems where the use of IT retailing and recommender systems. We next explore
creates economic value for individuals and organiza- these domains in detail.
tions. A single study may emphasize a subset of the
essential ingredients of IS research, namely, IT, eco- 2.1.1. Information Sharing Across Supply
nomic value, and individuals/organizations. The first Chains. Traditionally, IS has contributed to OM by
dimension (IT) often lies at the center of gravity of IS supplying the information needed to make better
work. However, the IT is more interesting if it is peo- operational decisions. The most iconic work here is in
ple-centric with the potential to create economic the use of information sharing across the levels of a
value. Since the OM disciple addresses frequently supply chain (Cachon and Fisher 1997, 2000, Lee et al.
occurring (or operating) problems faced by individu- 1997). In their seminal paper, Lee et al. (1997) discuss
als/organizations and many successful IT applica- the bullwhip effect and the distortion of demand
tions in business are operational in nature, it is information as it travels upstream in the supply chain.
natural that IS and OM are increasingly becoming Their work points to the potential gain in efficiency
more dependent on one another to create value. from sharing information across the various levels of
From the academic perspective, and from avail- the supply chain. Following their work, there are
able literature on survey of the respective fields, it important contributions concerning the use of IS to
is easy to draw parallels between the kinds of prob- share information across all the levels of the supply
lems being focused on and the methodologies being chain. Notably, Cachon and Fisher (2000) show that IS
used in the OM and the IS fields. In the IS area, applications in inventory management result in cost
there has been an extensive debate to understand savings through lead-time and batch size reductions.
what the scope of the field should be. Researchers They further postulate that information sharing could
have argued from multiple viewpoints on the lead to more pronounced benefits in environments
diverse nature of the IS field, both in terms of the where demand is uncertain. Gavirneni et al. (1999)
diversity in reference disciplines (e.g., OM, account- demonstrate the benefit of information sharing to
ing, marketing, and finance) as well as plurality of manufacturers. Clark and Hammond (1997) study the
methodologies used by IS researchers. Although the benefit of prominent supply chain IT applications:
merits (or otherwise) of diversity on the IS field is a electronic data interchange (EDI) and vendor man-
much wider topic for discussion, our view is that aged inventory (VMI).
this diversity has greatly benefitted the research Better (e.g., more accurate, timely, etc.) information
conducted at the OM and IS interface because of can reduce inventory costs not just through superior
the support it lends to the wide variety of research information concerning demand and supply, but also
areas and problems that lie at the interface. Sidor- through better inventory tracking (e.g., RFID item tag-
ova et al. (2008) identify five main areas of research ging). Delen et al. (2007) explore the ‘information visi-
in IS: (i) IT and organizations, (ii) IS development, bility’ provided through the implementation of RFID
(iii) IT and individuals, (iv) IT and markets, and (v) technology in the supply chain. They discuss positive
IT and groups. The major themes of research as implications of the unparalleled information visibility
identified by the study especially in the areas of IT and granularity on supply chain efficiency. Whitaker
and organizations (supply chain management, et al. (2007) present the results of a field study of the
knowledge management, ERP, etc.) and IT and mar- RFID deployments and reported increasing accep-
kets (e-marketplaces, customer service, etc.) map tance of the technology and expectations of early
strongly onto core areas of research that belongs in returns from adopters. Hardgrave et al. (2013) con-
the OM field. We next explore the areas of intersec- duct an empirical study on the efficacy of RFID tech-
tions further. nology on reducing retail store inventory record
Figure 1 highlights the key areas and subareas that inaccuracy (IRI). They conclude that RFID brought
constitute the OM and IS interface. Researchers can varying levels of amelioration to the determinants of
contribute to the OM and IS interface in two ways: (i) IRI and brought about significant levels of IRI reduc-
using IS to solve OM problems, and (ii) applying OM tion in some categories of products.
techniques to solve IS problems. In the next subsec- Demirezen et al. (2016b, 2018) study information
tion, we discuss domains/problems involving the use sharing across partner firms. Using a differential
of IS to solve OM problems. games approach, they dynamically optimize the value
Kumar, Mookerjee, and Shubham: Research in OM and IS Interface
Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society 1895

Figure 1 Research Landscape of Operations Management–Information Systems Interface [Color figure can be viewed at wileyonlinelibrary.com]

Informaon Sharing Across

Supply Chain

Informaon Systems
Applicaons in Operaons Healthcare
Management

Omni-Channel Retailing and

Recommender Systems

Soware Project
Operaons Management and Management
Informaon Systems Interface
Cyber Security

Outsourcing
Operaons Management
Methods Applied to
Informaon Systems
Grid/Cloud Compung and
Telecommunicaons

Web and Mobile Adversing

Content Delivery Networks

of co-creation across partner firms in an information manufacturing, in the ecosystem, there is a huge area
sharing paradigm. Ghoshal et al. (2018) use a of yet untapped potential for both the industry and
duopolistic game-theoretic model to show that strate- academia. We discuss (in section 3.5) the emerging
gic data sharing across competitors may improve the research potential in Industry 4.0 and IoT domains.
profitability of both firms. More recently, information
technologies using Internet of Things (IoT) devices 2.1.2. Healthcare. There has been active work in
have improved the efficiency of manufacturing and the healthcare field from the OM and IS communities.
supply chain systems, and RFID has played a very big The industry is undergoing a period of rapid techno-
part in adoption of IoT across industries (Atzori et al. logical transition with the adoption of electronic
2010). The advent of IoT and similar information tech- health records (EHR) and the formation of health
nology backed advances in production methods has information exchanges (HIEs). Yaraghi et al. (2015)
advanced the idea of ‘Industry 4.0’ (Lasi et al. 2014). present an empirical model to understand adoption
With the inclusion of complementing technologies, and use of HIEs by Healthcare Providers (HPs). Their
such as cloud manufacturing and additive research sheds light on important motivating factors
 Kumar, Mookerjee, and Shubham: Research in OM and IS Interface
1896 Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society

underlying the adoption of HIEs. Further, Demirezen online and pick up in store (BOPS) strategy. Gao and
et al. (2016a) explore varying levels of participation of Su (2017) study the effects of BOPS strategy on store
heterogeneous HPs in HIEs. They use a game-theore- operations. Bell et al. (2018) study the impact of using
tic model to obtain the equilibrium decisions of an a showroom by online first retailers on the operational
HIE and HPs and show that additional incentives are efficiency of the retailer. Furthermore, Mehra et al.
needed from government agencies for the long-term (2018) study various competitive strategies by offline
sustainability of HIEs. They also present useful retailers to counter showrooming and propose new
insights for policy-makers to improve the participa- methods. Finally, and most recently, Kumar et al.
tion of HPs in HIEs: an important step toward (2018a) use transactions-level data from one of the lar-
improving the quality of healthcare delivery and gest omni-channel retailers in the United States to
reducing healthcare costs. study the impact of store opening on both online and
There has been important work in other interesting offline sales. As mobile channels and social media
areas of healthcare IS. For example, Angst et al. (2010) become an important part of omni-channel retailing,
study the diffusion of EMR technology across US hos- the above studies need to be re-examined to confirm
pitals due to the mimetic effects of social contagion. and extend extant findings. We expect to see more
Bhargava and Mishra (2014) study the effect of adop- such studies in the near future, and anticipate many
tion of EMR on the productivity of physicians. Their of them to be at the interface of OM and IS.
work presents interesting results that can help allay Another important research direction in the retail-
fears of productivity loss upon adoption of new tech- ing domain pertains to the use of recommender sys-
nology. There are multiple such examples of innova- tems to improve business outcomes. For example,
tive research in the area. The University of Texas at Ghoshal et al. (2015, 2018) utilize game-theoretic
Dallas’ Top 100 business school research ranking models to study the impact of recommender sys-
database shows that, in the last 10 years alone, the tems on the competition between personalizing and
Production and Operations Management Journal nonpersonalizing firms. They analyze how compet-
has published more than 30 articles in the area of ing firms can benefit from sharing data with one
healthcare. another. Furthermore, Demirezen and Kumar (2016)
Researchers have tackled a multitude of issues, present a mixed-integer-programming (MIP) formu-
such as patient scheduling and wait times, care qual- lation to optimize recommender systems for sub-
ity (Chen et al. 2018, Youn et al. 2016b), readmission scription-based firms. Interestingly, they consider
rates, care delivery methods, optimal provider selec- and analyze the impact of inventory on online
tion (Youn et al. 2016a), and sustainability (Rajapak- recommendations provided to consumers. The
she et al. 2015). Many of these studies have emergence of online movie/music streaming and
intersected with IS field. As several new technological the increasing use of online recommendations in
advances mature in the healthcare field, we can this area, provide several future research opportuni-
expect to see several new applications and research ties at the interface of OM and IS that could build
problems emerging in the field. For example, bioinfor- upon the above studies.
matics and medical image informatics have continued Essentially most of the problems studied in opera-
to develop steadily over the last decade in the indus- tions management occur frequently. This suggests
try (Guha and Kumar 2018). We expect to see similar that information can play a crucial role in maintaining
studies of impact in the academic domain in the near and updating state information pertaining to resource
future. levels, as well as pertaining to demand and supply
information.
2.1.3. Omnichannel Retailing and Recommender
Systems. Several applications in Omnichannel retail- 2.2. Applying Operations Management
ing have drawn the attention of the OM community. Techniques to Solve Information
Researchers have risen to this challenge and con- Systems Problems
tributed heavily in the area (Bell et al. 2018, Brynjolfs- In the reverse direction, the OM field offers many use-
son et al. 2009, Gallino and Moreno 2014, Gao and Su ful methods to solve operating problems in the IS
2017, Janakiraman et al. 2013, Kumar et al. 2018a, area. These problems have traditionally included soft-
Mehra et al. 2018). Over the past few years, interest- ware project management and the development and
ing research has been conducted in this area repre- maintenance of software systems (Feng et al. 2006,
senting both the OM and IS disciplines. For example, Kulkarni et al. 2009, Tan and Mookerjee 2005). More
Brynjolfsson et al. (2009) introduce a new set of meth- recent works include operational issues in cybersecu-
ods to study cross channel competition between rity, information systems outsourcing (Ji et al. 2016),
retailers. Gallino and Moreno (2014) empirically grid computing and telecommunications, web and
examine the impact of an implementation of buy mobile advertising and content delivery networks.
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Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society 1897

2.2.1. Software Project Management. Ji et al. similar to the decay in time in the value of a perish-
(2005) propose an optimal control model to optimize able inventory item.
the frequency of testing and integration activities As the cybersecurity function matures in organiza-
during software development. Feng et al. (2006) pre- tional settings, it will give rise to a host of managerial
sent a model to optimize when to start maintenance challenges that will require academic attention. There
in a development lifecycle as well as determine how has been considerable work done to light the path for
long the maintenance ought to last. Kulkarni et al. future academics interested in this domain. Notably,
(2009) develop a queuing model to optimize the Kannan and Telang (2005) explore the issue of vulnera-
allocation of resources to software maintenance bility disclosure in unregulated market settings and
effort. contrast it with a setting where a regulated infomediary
In another (but related) direction, Dawande et al. acts as a disclosing entity. They find that market-based
(2008a) use an MIP formulation to address the prob- approaches to vulnerability disclosure underperforms
lem of pair formation and rotation during the course in most cases with respect to maximizing social welfare
of a software project being developed using pair pro- when compared to infomediary-based approaches.
gramming techniques. They also propose a heuristic Gal-Or and Ghose (2005) explore security information
based on Genetic Algorithms. These ideas were sharing in federally supported information sharing and
enhanced in Dawande et al. (2008b) to propose and analysis centers (ISACs) and conclude that information
study the so-called “Maximum Commonality Prob- sharing yields greater benefits in more competitive
lem,” that attempts to find an optimal module to pro- industries. Arora et al. (2008) develop a framework to
grammer-pair assignment to complete a project analyze the optimal vulnerability disclosure policy by a
within a time constraint while maximizing the com- “social planner” with respect to the time of disclosure
monality across programmer-pairs to reduce the after a threat is initially identified. More recently, Sen
effort spent on integration tasks. They use a network- et al. (2018) use the data from three different sources to
flow-based approach in their analysis. Ji et al. (2011) investigate the impacts of (i) the perception of the vul-
propose an optimal control model to dynamically nerability discoverer about the software producer, (ii)
optimize lifetime value and enhancement of software the type of vulnerable software, and (iii) the severity of
products. Further, Fan et al. (2009) study short and the vulnerability, on a vulnerability discoverer’s choice
long-term competition between shrink-wrap software of disclosure timing.
providers and SaaS providers. As large software firms
like Microsoft move more toward cloud-based soft- 2.2.3. Outsourcing. In the area of outsourcing,
ware development and cloud-based applications,2 researchers have made efforts to model the impact
several novel research problems could emerge from that outsourcing in software development and man-
the above studies. agement can have on quality, especially with respect
to customer satisfaction and project performance.
2.2.2. Cybersecurity. The work on software sys- Narayanan et al. (2010) study project outcomes of 182
tem maintenance has spawned a more specialized unique outsourced projects from the perspective of
stream of work on the management of cybersecurity the client. They conclude that the effect of out-
systems. While traditional software systems mainte- sourcing on project performance is moderated by the
nance occurs because their quality naturally degrades following two factors: (a) the nature of the work, and
over time, the maintenance of cybersecurity systems (b) the maturity of the project. Similarly, Handley
occurs to guard against new attack strategies initiated (2016) develop a theoretical model to examine the
by hackers whose attack rate often depends on the impact of misaligned governance and outsourcing
current quality of the security system (Mookerjee capacity and capability of firm on the performance
et al. 2011). More recently, ideas from studies of per- indicators of the outsourced project. The study also
ishable inventory management have inspired models empirically validates theoretical results using a data-
of managed monitoring services in cybersecurity (Ji set containing project outcomes of 172 outsourced
et al. 2016). The basic idea in security monitoring is and 156 in-house projects.
that processes inside the perimeter of a firm are moni- The recent geo-political volatility has had a very
tored in real-time so that possible attacks can be strong impact on the market outlook for outsourcing.
detected and diffused before they can do much dam- An interesting challenge for academics is to study the
age. However, since security-monitoring resources evolution of the outsourcing industry as it encounters
are limited, it is necessary to divert limited resources these new challenges.
to processes that are most likely to do damage. The
link to perishable inventory is that as time passes and 2.2.4. Grid/Cloud Computing and Telecommuni-
a process does not show any symptoms of being mali- cations. The emergence of cloud computing provides
cious, it is less likely to be a source of attacks. This is a fertile domain for the study of operational issues
 Kumar, Mookerjee, and Shubham: Research in OM and IS Interface
1898 Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society

(e.g., capacity planning, pricing, resource scheduling, that is compatible with incentives. More recently,
real-time procurement of computing power, etc.) in Mookerjee et al. (2012, 2017) optimize the decisions of
the IS area (Buyya et al. 2002, Kumar et al. 2009). an Internet advertising firm to show or not to show
Online social media surfaces several challenges that ads to a user. The problem they study is faced by an
have benefited from network optimization and dis- Internet advertising firm (Chitika) that operates in the
covery methods studied in OM. More recently, ideas Boston area. Chitika contracts with publishers to place
of job-shop scheduling have been extended to address relevant advertisements over a specified period on
problems in the cloud-computing area. The cloud- publisher websites. Using the prediction of the proba-
computing problem is different from most traditional bility of a click, they develop a decision model that
scheduling problems because in the cloud, the goal is uses a threshold to decide whether to show an adver-
often to minimize the cost of renting virtual machines tisement to a visitor on a publisher’s website.
to meet the computing needs of an organization. The An emerging domain in the web advertising area is
cost of computing depends on the pricing structure ad exchanges (Muthukrishnan 2009). Balseiro et al.
offered by the cloud provider. The task scheduling (2014) propose a multiobjective stochastic control
problem for the cloud user and the pricing problem optimization problem to derive an efficient policy for
for the cloud provider are clearly related, since the online ad allocation in the presence of ad exchanges.
provider needs to consider the behavior of the cloud Further, Balseiro et al. (2015) study the second price
user while choosing the optimal pricing structure. auction mechanisms used in ad exchanges and the
Most recently, Li and Kumar (2018) propose a game- competition it yields. They propose that in the pres-
theoretic model to study competitive offering strate- ence of budgets constraints, the dynamic interactions
gies of service providers that offer cloud-based ser- between advertisers are better approximated by a
vices. fluid mean-field equilibrium. More recently, Balseiro
Another possible research direction in this domain and Candogan (2017) study the contracting policy
is studying the co-creation of data analytics tools/ between advertisers and intermediaries who run cam-
methodologies and cloud computing. Dutta et al. paigns on behalf of advertisers. They propose optimal
(2017) and Kumar et al. (2017b) provide a detailed contracting policy in a setting where advertisers’ bud-
review of the applications of OM-based data analytics gets and targeting criteria are private.
tools to solve problems in several related industrial In this domain, the following two areas provide
domains, including the field of telecommunications. promising directions for future research: (i) mobile
We believe that the operational and economic issues advertising, and (ii) behavioral advertising. Mooker-
in grid/cloud computing and telecommunications are jee et al. (2014) present a basic MIP model for optimiz-
fruitful areas for researchers who wish to contribute ing demand and supply in the mobile advertising
at the OM-IS interface. Future studies in this domain domain. Future researchers may extend this study by
may attempt to build on the above studies. incorporating more realistic and emerging issues in
this model. In the mobile In-app advertising, Aseri
2.2.5. Web and Mobile Advertising. Internet- et al. (2018) apply stochastic dynamic programming
based advertising is another productive area of methods to study the procurement of impression
research at the OM-IS interface. Initial work in this opportunities in mobile ad exchanges. Kumar (2016)
area has been on static web advertising, mainly con- provides a nice summary of past and future trends of
sidering banner ads (Dawande et al. 2003, 2005, web and mobile advertising, and presents several
Kumar et al. 2006). Kumar et al. (2007) extend these possible future research directions in this domain. In
studies for the dynamic optimization of web advertis- the domain of behavioral advertising, a recent study
ing based on real-time user response. Further, Fan by Kumar et al. (2018d) proposes an optimal insertion
et al. (2007) optimize strategies for providing digital policy considering real-time user behavior. Since this
media online with advertisements and/or subscrip- is the first such study in this domain, there are several
tion fees. In a similar direction, Kumar and Sethi possible extensions. This domain would become even
(2009) present an optimal control theory model for more interesting and promising for researchers with
finding pricing and advertising dynamically for web the emergence and growth of augmented/virtual/
content providers. Further, Feige et al. (2008) propose mixed reality devices that can capture user behavior
a combinatorial allocation mechanism with penalties more accurately in real time.
for banner advertising as a more efficient alternative
to negotiation-based mechanisms that inflate costs 2.2.6. Content Delivery Networks. Rising online
and result in suboptimal allocation. Nazerzadeh et al. traffic volume has led to several operational issues for
(2013) explore the idea of pay-per-action pricing content providers, such as increased latency and ser-
regime for web advertising. They use a sampling- ver outages because of demand surges. This has
based learning algorithm to develop a mechanism prompted the adoption of content delivery networks
Kumar, Mookerjee, and Shubham: Research in OM and IS Interface
Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society 1899

Figure 2 The Path Forward [Color figure can be viewed at wileyonlinelibrary.com]

(CDN) that optimally cache and deliver content based

on the regional demand. They are typically geograph-
3. The Path Forward
ically collocated with Internet service providers Beyond supply chain management, IS also plays an
(Hosanagar et al. 2008). Some of the big players in this important role in service operations. These include
area are Akamai, Limelight Networks, CDnet, etc. traditional roles such as web-based systems for cus-
Hosanagar et al. (2008) derive optimal pricing strat- tomer care provision, as well as more advanced roles
egy when the content provider’s traffic is Poisson dis- using artificial intelligence (A.I.) methods (e.g., pro-
tributed. Johar et al. (2012) extend this study by viding a natural language interface for service provi-
analyzing content provision in the presence of content sion) and knowledge-based Systems (e.g., providing
piracy. Their study sheds light on how a publisher access to past customer service solutions) (Bensous-
could leverage piracy to increase profits, even though san et al. 2009, Setia and Patel 2013). There are a num-
the pirate essentially encroaches on the demand for ber of new possible advanced applications of IS and
the publisher’s content. More recently, Chiang and IT tools to solve OM problems. We identify the fol-
Jhang-Li (2014) study the competition equilibriums in lowing key areas where the interplay of OM and IS
the content delivery and media streaming markets. functions is revolutionizing industries and organiza-
They identify conditions under which a content pro- tions (as also referenced in Figure 2): (i) smart city
vider should choose an incumbent CDN over an management, (ii) healthcare management, (iii) deep
Internet backbone provider (IBP) that has recently learning and artificial intelligence, (iv) fintech and
diversified into content delivery provision. The blockchain, (v) Industry 4.0 and Internet of things,
increasing growth of CDNs provides interesting and (vi) social media and digital platforms. We expect
future research directions at the interface of OM to see strong contributions pertaining to these areas in
and IS. the future. We now explore them in further detail.
 Kumar, Mookerjee, and Shubham: Research in OM and IS Interface
1900 Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society

3.1. Smart City Management that the introduction of doctors’ responses on an

With recent advancements in analytics and big data, online healthcare portal has a significant causal
‘Smart cities’ concept has grown from just being a impact on demand-side user perception of medical
buzzword to realizable goals. Smart Cities are com- services offered. They demonstrate that, due to infor-
posed of network connected and technologically mation asymmetry in healthcare, doctors use thought-
enabled urban surroundings that can be easily moni- ful online responses not only to interact socially with
tored and managed to drastically improve the quality patients, but also to signal their expertise. Even
of life for the city’s residents (Guha and Kumar 2018). though social media and online portals are becoming
This data-driven approach to city and infrastructure an integral part of healthcare management, there has
management can be easily complemented with been scant attention on analyzing the related opera-
research in areas such as performance monitoring tional issues. Hence, this is an interesting and useful
and process optimization. research domain for future researchers, especially for
One example of work in a related area is the paper those working at the interface of OM and IS.
by Kahlen et al. (2018). They explore the feasibility of
a virtual power plant (VPP) system composed of elec- 3.3. Deep Learning and Artificial Intelligence
tric vehicles (EVs). A VPP is a cloud-based system Another research area that is expected to grow in the
that aggregates power from distributed energy future includes the application of new computational
resources such as small biogas plants and rooftop techniques – especially on data intensive problems –
solar systems. It can then distribute power as per such as deep learning and Artificial Intelligence (AI)
demand through the grid to other grid connected con- to solve problems in service and production opera-
sumers. Kahlen et al. (2018) examine the possibility of tions. In a recent study, Choi et al. (2018) present mul-
using parked electric vehicles as a source of energy tiple use cases and examples of applications of
for such a VPP. They develop a mixed rental-trading machine learning and AI techniques in OM research.
strategy based on the decision of when an EV should The examples range from applications in forecasting
be made available as a rental and when should it be (Baughman et al. 2016, Ferreira et al. 2016, Liu et al.
discharging to the grid. We expect to see similar 2016), inventory management (Huang and Van Mie-
topics and solutions emanating from this research ghem 2014), detecting review manipulations (Kumar
stream in the near future. et al. 2018b), risk analysis, revenue management, and
marketing and supply chain management. These
3.2. Healthcare Management examples and studies provide a good foundation and
IS can make a profound impact on the operational framework for future research in this domain.
problems in the healthcare domain. As discussed in
section 2.1.2, new engaging challenges and opportuni- 3.4. Fintech and Blockchain
ties are encouraging researchers to take fresh According to Dan Schulman, C.E.O. of Paypal, over
approaches towards tackling new diverse set of prob- 2 billion individuals are without access to secure finan-
lems. Recent work in the area that may be influential cial services globally. In the U.S. alone, over 70 million
in shaping the research narrative in the near future individuals are not covered by institutional financial
include the examination of the impact of length of systems (Schulman and Kirkland 2017). This situation
stay (LoS) on the readmission rate by Oh et al. (2018). has necessitated disruptions in the financial industry
They also study the possible role of healthcare infor- using information technologies, commonly referred to
mation technology (HIT) in reducing the readmission as fintech. New technologies are helping re-envision a
rate. Another interesting area for exploration in the new financial ecosystem. Led by mobile digital pay-
healthcare management pertains to the operational ment systems and distributed ledger technologies via
problems associated with HIEs. As discussed earlier blockchains, the fintech industry is in a period of rapid
in section 2.1.2, some recent studies have analyzed the transition. Since the magnitude and direction of these
sustainability issues in HIEs and the adoption of technological disruptions is yet unclear, researchers
HIEs. More recently, Janakiraman et al. (2017) exam- need to carefully study the implications of these dis-
ine the impact of HIE participation and the doctor’s ruptions and inform the wider industry on where and
experience with the HIE on the treatment outcome, how these technological advancements could be har-
measured in terms of the 30-day readmission rate and nessed to optimally serve public interest.
the LoS. We expect to see similar topics being tackled Some of the research problems in this context, that
in the near future. need to be analyzed in the near future are as follows:
Finally, the recent emergence of online portals and (i) optimizing smart contracts in blockchains, (ii)
social media in healthcare would lead to several inter- designing a scaled blockchain and figuring out how
esting problems at the interface of OM and IS. For many computers are necessary to validate each trans-
example, a recent study by Khurana et al. (2018) find action, (iii) dividing up the validation of transactions
Kumar, Mookerjee, and Shubham: Research in OM and IS Interface
Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society 1901

efficiently to accelerates the process without sacri- They use several machine learning techniques, such
ficing security, and (iv) managing operations of cryp- as support vector machines, K-nearest neighbors, and
tocurrency, social trading, etc. logistic regression, to build meta classifiers that have
an increased accuracy in predicting deceptive
3.5. Industry 4.0 and Internet of Things reviews. Kumar et al. (2018c) also use the data from
According to Feng and Shanthikumar (2018), the yelp.com to empirically investigate online manage-
manufacturing industry is set to undergo a revolution ment response strategies in a digital platform.
enabled by adoption of path-breaking technological Mallipeddi et al. (2018a) use the twitter data to
advancements in device miniaturization and network empirically examine the effect of social media tone on
connectivity. This new ‘Internet-triggered’ revolution engagement. Mallipeddi et al. (2018b) extend this
(Feng and Shanthikumar 2018) is the Industry 4.0 phe- study to optimize selection and scheduling of influ-
nomenon as we know it. As discussed in section 2.1.1, encers in social marketing. Kumar et al. (2017a) study
the adoption of a number of complementary techno- a recent phenomenon of trademarking hashtags in
logical ecosystems is the primary reason behind this social media. They empirically investigate the impact
revolution. Industry 4.0 includes cyber-physical sys- of trademarking hashtags on social media engage-
tems involving: (a) IoT, (b) cloud computing, and (c) ment. Finally, Barron et al. (2018) present an empiri-
cognitive computing. One of the most significant tech- cal analysis to study the impact of continuous real-
nological directions is the IoT phenomenon. IoT time mobile feedback in the workplace, which is an
enables organizations to invest heavily in asset perfor- emerging phenomenon in performance reviews.
mance management systems, giving researchers the Another emerging area in the related domain that
opportunity to work with a significant amount of would require solving different operational problems
real-time data. According to a report from Business is on-demand economy and shared economy, including
Insider, there will be over 75 billion IoT devices by the ride hailing platforms such as Uber and Lyft.
the year 2020 (Danova 2013). We expect to see Recently, there has been increasing interest in solving
researchers applying machine learning techniques to operational problems arising in this domain, e.g., see
generate managerial insights from such large quanti- Banerjee et al. (2016), Cachon et al. (2017), Bai et al.
ties of data (Branstetter et al. 2018). (2018), Guda and Subramanian (2018), Guha et al.
Industry 4.0 is driven by four key disruptions:3 (i) (2018), and Taylor (2018). All of these studies, as well
the astonishing rise in data volumes, computational as the above-mentioned studies, provide an excellent
power, and connectivity; (ii) the emergence of analyt- foundation for future applications of OM tools to the
ics and business-intelligence capabilities; (iii) new problems emerging in social media and digital plat-
forms of human-machine interaction such as touch forms.
interfaces and augmented–reality systems; and (iv)
improvements in transferring digital instructions to
the physical world, such as advanced robotics and
4. Closing Thoughts
three-dimensional (3-D) printing. Each of these dis- The research in IS disciple mainly deals with the pro-
ruptions provides unique opportunities for OM and vision and use of IT-enabled systems to create value
IS researchers to solve emerging problems using ana- for individuals, organizations, and societies. Histori-
lytical, empirical, and behavioral methodologies. For cally, many successful applications of IS have been
example, the 3-D printing can affect manufacturing operational in nature. This suggests that IS applica-
processes, product design, as well as existing models tions must evolve with the developments in the OM
of revenue management. Similarly, drones can speed field. For the academic community, this means that
up product delivery that can lead to new models of there are increasing opportunities for research that lie
inventory holding, logistics, and pricing. The emer- at the intersection of these two fields.
gence of self-driving cars also provides interesting Aside from the featured areas in section 3 for future
research directions for both OM and IS researchers. research, there are several other possible pathways
that could elicit interest from academics in the near to
3.6. Social Media and Digital Platforms long term future. Notably, Sun and Xu (2018) explore
This is a relatively new field where OM tools can be the implications of ratings in service provisions where
applied to a variety of emerging problems. In this the service provider determines or influences the
domain, Qiu and Kumar (2017) conduct a field experi- effort level required from the client as well as their
ment to understand the voluntary knowledge provi- own input, Shamir and Shin (2018) study the informa-
sion and content contribution though a social media- tion sharing paradigm in trade association settings,
based prediction market. Furthermore, Kumar et al. Wang et al. (2018) study the impact of IT on port per-
(2018b) present a hierarchical supervised learning formance from the theoretical lens of resource-based
approach for detecting deceptive or false reviews. view and transaction cost economics, Granados et al.
 Kumar, Mookerjee, and Shubham: Research in OM and IS Interface
1902 Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society

(2018) empirically study the market impact of opaque Balseiro, S. R., O. Besbes, G. Y. Weintraub. 2015. Repeated auc-
third party channels, Elmaghraby et al. (2018) explore tions with budgets in ad exchanges: Approximations and
design. Management Sci. 61(4): 864–884.
a yet untapped area of liquidation markets for IT
Banerjee, S., R. Johari, C. Riquelme. 2016. Dynamic pricing in
equipment resellers, Ghasemkhani et al. (2018) ridesharing platforms. ACM SIGecom Exchanges 15(1): 65–70.
develop an optimal contracting models for peer-to- Barron, A., S. Kumar, T. Petrucci, L. Qiu, M. Rivera. 2018. Are
peer digital content distributors, Li et al. (2018) study annual performance reviews outdated? An empirical analysis
the optimal channel distribution strategy for enter- on continuous real-time mobile feedback in the workplace.
Available at https://ssrn.com/abstract=3199866 (accessed
prise software, Mehra and Saha (2018) explore the
date October 13, 2018).
tradeoffs in demand and cost in the practice of intro-
Baughman, A. K., R. Bogdany, B. Harrison, B. O’Connell, H. Pear-
ducing public betas by software developers, and three, B. Frankel, C. McAvoy, S. Sun, C. Upton. 2016. IBM
Bradley et al. (2018) study the joint effect of RFID and predicts cloud computing demand for sports tournaments.
EDI use on hospital performance. These bold new Interfaces 46(1): 33–48.
ideas augur well for the domain. Bell, D. R., S. Gallino, A. Moreno. 2018. Offline showrooms in
Omnichannel retail: Demand and operational benefits. Man-
In closing, we would like to note that research at agement Sci. 64(4): 1629–1651.
the OM-IS interface is not just an opportunity for indi- Bensoussan, A., R. Mookerjee, V. Mookerjee, W. T. Yue. 2009.
vidual researchers, rather it is something that needs Maintaining diagnostic knowledge-based systems: A control-
to be pursued for enhancing the two fields in what theoretic approach. Management Sci. 55(2): 294–310.
they study and how they study it. The IS field would Bharadwaj, S., A. Bharadwaj, E. Bendoly. 2007. The performance
benefit from research at the interface since it would effects of complementarities between information systems,
marketing, manufacturing, and supply chain processes. Inf.
widen the methods and the problems that are studied Syst. Res. 18(4): 437–453.
by IS researchers, whereas the OM field would benefit Bhargava, H. K., A. Mishra. 2014. Electronic medical records and
from interface research as it would bring new physician productivity: Evidence from panel data analysis.
challenges and situations where the ideas of opera- Management Sci. 60(10): 2543–2562.
tional efficiency can be improved. Bradley, R. V., T. L. Esper, J. In, K. B. Lee, B. C. Bichescu, T.
A. Byrd. 2018. The joint use of RFID and EDI: Implications
for hospital performance. Prod. Oper. Manag. 27(11): 2071–
Notes 2090.
1 Branstetter, L. G., M. Drev, N. Kwon. 2018. Get with the program:
https://www.whitehouse.gov/sites/whitehouse.gov/file
s/omb/budget/fy2018/ap_16_it.pdf (last accessed on Software-driven innovation in traditional manufacturing.
Management Sci., e-pub ahead of print. https://doi.org/10.
October 13, 2018).
2 1287/mnsc.2017.2960
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Brynjolfsson, E., Y. Hu, M. S. Rahman. 2009. Battle of the retail
nize-with-azure-and-containers/modernize-existing-apps-to- channels: How product selection and geography drive
cloud-optimized/what-about-cloud-native-applications (last cross-channel competition. Management Sci. 55(11):
accessed on October 13, 2018). 1755–1765.
3
https://www.mckinsey.com/business-functions/operations Buyya, R., D. Abramson, J. Giddy, H. Stockinger. 2002. Economic
/our-insights/manufacturings-next-act (last accessed on models for resource management and scheduling in grid
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one: A dynamic analysis of value co-creation. Prod. Oper. tion in on-demand economy: A differential games approach.
Manag., forthcoming. https://doi.org/10.1111/poms.12862. Working Paper, Temple University.
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data analytics and operations management. Routledge Compan- outsourcing capability impact performance. Prod. Oper.
ion for Production and Operations Management (POM). Taylor & Manag. 26(1): 134–155.
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experiments. Prod. Oper. Manag. 27(11): 1906–1927. Hosanagar, K., J. Chuang, R. Krishnan, M. D. Smith. 2008. Service
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long-term competition between providers of Shrink-Wrap Manag. 23(3): 333–347.
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Combinatorial Allocation Mechanism with Penalties for Ban- ference on Information Systems and Technology (CIST).
ner Advertising. Proceeding of the 17th International Confer- Janakiraman, R., E. Park, E. Demirezen, S. Kumar. 2017. The
ence on World Wide Web - WWW 08. Effects of Health Information Exchange Access on Healthcare
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Ferreira, K. J., B. H. A. Lee, D. Simchi-Levi. 2016. Analytics for an mal enhancement and lifetime of software systems: A control
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1904 Production and Operations Management 27(11), pp. 1893–1905, © 2018 Production and Operations Management Society

Kahlen, M. T., W. Ketter, J. van Dalen. 2018. Electric vehicle vir- Mallipeddi, R., R. Janakiraman, S. Kumar, S. Gupta. 2018a. The
tual power plant dilemma: Grid balancing versus customer Effects of Social Media Tone on Engagement: Evidence from
mobility. Prod. Oper. Manag. 27(11): 2054–2070. Indian General Election 2014. Available at https://ssrn.com/
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Khurana, S., L. Qiu, S. Kumar. 2018. When a Doctor Knows, it Framework for Analyzing Influencer Marketing in Social Net-
Shows: An Empirical Analysis of Doctors’ Responses in Q&A works: Selection and Scheduling of Influencers. Available at
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mal allocation of effort to software maintenance: A queuing ts-2017-18-what-the-surveys-tell-us/ (accessed date May 30,
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web content providers. Eur. J. Oper. Res. 197(3): 924–944. Mehra, A., S. Kumar, J. S. Raju. 2018. Competitive Strategies for
Brick-and-Mortar Stores to Counter “Showrooming”. Manage-
Kumar, S., V. S. Jacob, C. Sriskandarajah. 2006. Scheduling adver-
ment Sci. 64(7): 3076–3090.
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show: Using user profiling to manage Internet advertisement
value by optimal assignment of jobs to resources in grid com-
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puting. Eur. J. Oper. Res. 194(3): 856–872.
Mookerjee, R., S. Kumar, V. S. Mookerjee, C. Sriskandarajah. 2014.
Kumar, N., L. Qiu, S. Kumar. 2017a. A Hashtag is Worth a Thou-
Demand-supply optimization in mobile advertising. Proceed-
sand Words: An Empirical Investigation of Social Media
ings of the 24th Annual Workshop on Information Technolo-
Strategies in Trademarking Hashtags. Mays Business School
gies and Systems (WITS).
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formance based Internet advertisement Campaigns. Oper. Res.
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tions Management, Vol. 52. Routledge Companion for
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Kumar, A., A. Mehra, S. Kumar. 2018a. Why do stores drive
online sales? Evidence of underlying mechanisms from a mul- Narayanan, S., S. Balasubramanian, J. M. Swaminathan. 2010.
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(4): 508–521.
Kumar, N., D. Venugopal, L. Qiu, S. Kumar. 2018b. Detecting
review manipulation on online platforms with hierarchical Nazerzadeh, H., A. Saberi, R. Vohra. 2013. Dynamic pay-per-
supervised learning. J. Manag. Inf. Syst. 35(1): 350–380. action mechanisms and applications to online advertising.
Oper. Res. 61(1): 98–111.
Kumar, N., L. Qiu, S. Kumar. 2018c. Exit, voice, and response in
digital platforms: An empirical investigation of online man- Oh, J.-H. C., Z. E. Zheng, I. R. Bardhan. 2018. Sooner or later?
agement response strategies. Inf. Syst. Res., forthcoming. Health information technology, length of stay, and readmis-
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Kumar, S., Y. Tan, L. Wei. 2018d. When to Play Your Advertise- Qiu, L., S. Kumar. 2017. Understanding voluntary knowledge pro-
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