Due to the growing need to continually generate customer value, firms must be flexible to address changing business environments and customer expectations. Although research has examined Information Technology (IT) flexibility, the nuances of IT flexibility in services have received limited attention. This study uses a three-stage roadmap to build digital service flexibility. First, using prior research on services and IT flexibility, we articulate three dimensions for digital services flexibility (DSF): core DSF, transaction DSF, and customer DSF. Second, we propose a theoretical customer-service value framework as a blueprint for service firms to align their strategies along these three DSF dimensions using four propositions. Third, for DSF to be applied in practice, we discuss contextual and situational embeddedness to support digital transformation for services. We use a practical application of DSF using a multi-year case study that aligns service innovations inside and outside a patient room in a hospital setting. The main contributions of this study lie in a) conceptualizing digital service flexibility and identifying its three dimensions, b) proposing a conceptual framework highlighting how firms can use DSF in alignment with their business strategy, and c) illustrating how the concept of DSF applies in a hospital setting.

The object-oriented methodology for systems analysis and design has generated considerable interest recently. Object-orientation represents a fundamental shift in focus from the traditional process-oriented approaches that have dominated software development for over two decades. Although there is anecdotal evidence to suggest that systems analysts experienced in process-oriented modeling approaches will find it difficult to apply objective-oriented methodologies, there is no empirical work investigating the relationship between a procedural mindset and an ability to learn and apply object-oriented concepts. Prior research in human problem solving, however, suggests that the efficacy of a systems analysis and design methodology should be judged in the context of the task to which it is applied. To explore the effects of prior experience and task characteristics on performance in systems analysis and design, we conducted an experiment in which two groups of subjects applied the object-oriented methodology to two types of tasks, one process-oriented and the other object-oriented. One group had significant prior experience in process-oriented methodologies, while the other group had no formal experience. Both groups were provided identical training in object-oriented analysis and design prior to the experiment. The results of the study suggest that both prior experience and task characteristics play a role in determining performance. The implications that follow for research and practice are discussed.

Introducing a new and innovative information technology into an organization creates both management challenges and opportunities. This article recounts the experiences of the Carrier Corporation, a major air-conditioning manufacturer, in introducing expert systems technology into its operations. Both the technology and the first application developed using it expanded well beyond their intended scope — from a back-office-type automation to becoming a competitive tool for Carrier. The authors monitored the system's evolution over a four-year time period. Both internal and strategic impacts of the technology on the corporation are assessed using a multi-dimensional evaluation model proposed in the literature. Finally, management insights and the lessons learned from Carrier's experiences are presented.