I303: Organizational Informatics

Readings and schedule for Organizational Informatics for fall 2005.
1:25 pm Monday and Wednesday.
Professor Jean Camp

The Course in a Nutshell

August 29

Introduction and course overview

Today we handle who, when, and why. We will introduce ourselves. I will define course policies. I will provide information about the project, about grade distribution, etc.
This course is about ICTs, organizations and your role in the organization. The course has three primary elements.
First, the readings and lectures where the minimum critical topics for literacy in organization informations are introduced. The readings and lectures will focus primarily on theory, particularly looking at organizations through the lens of economics.
Second, the discussion section. There will be some readings during the discussion section, primarily those that apply to the practical training part of the course.
Third is the practical training. The project is an experience in team management. It includes writing a workplan, implementing the work plan, and filling out an evaluation of your peers. Most of you are attending this University to broaden your horizons and increase your employment-relevant skills. This project, properly executed, will do both. At the end of the project you should have a considerably expanded knowledge of your subject, improved presentation skills, and an extremely cursory introduction to project management. Regular deadlines during the semester are intended to force the groups not to wait until the last moment to complete the project.

Organizational Models

An organization can be considered a single entity, a collection of competing subsets, a group of self-optimizing individuals, a machine following a process, or a cultural entity. In the first section of this course we will examine each of those models. For three of the models the reading will be Essence of Decision. This book is about the interaction of nation states rather than the interactions of businesses. However, in terms of the descriptions of three of these models there is no other reading that is short but informative. There are more tedious readings, and readings made terse by assumptions of the education of the reader. Therefore, the classic by Allison will be used to discuss the issues. I will provide a very short introduction to rational choices, and then examine the limits of rationality. We return to the limits of rationality topic in Economics and Uncertainty.

 

Aug 31 Session 1: Organizations as Single Rational Beings

Questions to consider during reading

There are three models of organizations: individual rational actors, collections of groups or stakeholders, and as groups of political individuals with their own visions and power struggles.

Readings


Allison "Essence of Decision", The Rational Actor, pp. 13 26.
Tversky and Kahneman, "Rational Choice and the Framing of Decisions" in Rational Choice, Hogarth and Reder, eds., pp. 67-94.

 

Sept. 5 Session 2: Organizations as Compilation of Stakeholders

Questions to consider during reading

Organizations are not always entirely rational. Ironically, the rational organization understands itself as being created by a group of components, and tries to construct mechanisms to create effective interactions between the components. Understanding the components of the organization can prevent the creation of perverse incentives.

Reading


Allison, Essence of Decision, Model II: Organizational Behavior, pp. 143-160.

 

Sept. 7 Session 3: Organizations as Competing Individuals

Questions to consider during reading

Individuals share power. They differ about what must be done. Differences matter.

Reading


Allison, Essence of Decision, Model II: Organizational Behavior, pp. 143-160.

 

Information in the Organization

While I am traveling, Dr. Kalpana will add a discussion of data as a function or expression of an organization.The topics are use of data in an organization. Consider, for example, the use of the same data in the B2B and B2C realm. In one case, consumer data may define what to produce. In the other, the data will define a marketing campaign.
Sept. 12 Session 1: Electronic Records Management

Questions to consider during reading

To what extent are data and its uses shaped by an organization? How can examining an organization assist in determination of the needed data?

Readings

Electronic Records: http://www.privacyrights.org/fs/fs8a-hipaa.htm

 

Sept. 14 Session 2: Data Warehousing

Questions to consider during reading

How do organizations evaluate data once it is available.

Readings

Power, D. J. Decision Support Systems Hyperbook. Cedar Falls, IA: DSSResources.COM, HTML version, Fall 2000, accessed on August 24, 2005 at URL http://dssresources.com/dssbook/. Chapter 1.

 

Organizational Models Continued

More conceptual models of organizations. Each of these applies to most organizations in difference decision contexts. Determining the context of a debate can help you win internal debates.
Sept. 19 Session 4: Organizations as Policy Constructs

Questions to consider during reading

From where do organizations come? Is it just the cooperation of a many people? Economic forces? Group psychology? Indeed, business are presented in media and academy as distinct and clear opposites from government. Yet in fact their interaction is quite deep and profound. Government plays a critical role in creating markets and businesses just as the environment plays a critical role in creating ecosystems and species.

Readings

Deborah Spar Ruling the Waves pp. 1-22, p.124-289

 

Sept. 21 Session 5: Organizations as Cultures

Questions to consider during reading

Americans spend most of their waking hours are work. Workplaces are not neutral or free from emotion. Workplaces have their own cultures, some of which are successfully cultured by management.

Readings

Morgan, Gareth (1997) "Ch. 7 : Organizations as Cultures" in Images of Organization. London: Sage, pages 119-145.
Ullman, Ellen. (1997) Close to the Machine, pp 17-27;95-121

Recommended Additional Reading

Van Mannen, J. (1991) "The Smile Factory: Work at Disneyland." In Frost, P.J., L.E. Moore, M.R. Louis, C.C. Lundberg and J. Martin (eds.): Reframing Organizational Culture.

 

Sept.26 Session 6:Organizations as Machines

Questions to consider during reading

Why is IT important in an organization? Are ICTS inherently valuable? If not, how do ICTs illustrate their value.

Reading


John Mendonca, Organizational Impact, The Internet Encyclopedia ed. Hossein Bidgoli, John Wiley & Sons (Hoboken, New Jersey) 2003. Vol. 2, pp 832 - end.

 

The Behavioral Component

A short discussion on how individuals in an organization behave, and how economics alters that behavior. Do you ever consider leaving Informatics? Is there an airline you refuse to use? In Informatics are the people with whom you refuse to work?
Sept. 28 Session 1: Games Companies Plays

Questions to consider during reading

What happens when an organization is broken? How do the people that make up organizations choose to function or fail to function in an organization?

Readings

Frank and Cook, The Winner-Take-All Society Chapter 1 (p. 1-22)
R. Hirschman, Exit, Voice, and Loyalty. Chapters 1, 2, 3, and 8 (pp. 1-20, 21-29, 30-43, 106-119) Davenport, Thomas H. 1995. The Fad That Forgot People. Fast Company 1 pp. 70. http://www.fastcompany.com/online/01/reengin.html

 

Oct. 3 Session 2: The Human in the Organization

Questions to consider during reading

How are on-line discussions and organizations distinct from off-line organizations? Does an organization or process change by virtue of replicating it in electronic form? How are people and interactions different on email? How did you handle this information overload?

Readings


Davis, J., Farnham, S., Jensen, C. (2002). Decreasing Online Bad Behavior. In Extended Abstracts of CHI 2002, Minneapolis, April 2002.http://research.microsoft.com/scg/papers/Bad Behavior CHI 2002.pdf

Recommended Additional Reading

Connections New Ways of Working in the Networked Organization By Lee Sproull and Sara Kiesler MIT Press, 1991, 212 pages.

The Organization of the ICT Market

The ICT market has distinct sectors. In a later class the CFO of MadDoc Software will discuss the game sector in more detail. Here, we want to begin to unpack the ICT market.
Oct. 5 Session 1: Telecom Market Basics

Questions to consider during reading

What is convergence? How have historical technologically-dependent decisions created perverse incentives in telecommunications?

Readings

Telecommunications Regulation: An Introduction by Econommides of the Stern School. (CAP = competitive access provider is the same as a CLEC. A CLEC is a phone company _other_ than the original phone company. Cable companies are CLECs. CLEC stands for competitive local exchange carrier. )
Laudon & Traver, "E-commerce" second edition. pp. 136 - 162

Optional Readings

W. Russell Neuman, Lee W. McKnight and Richard Jay Solomon, The Gordian Knot:Political Gridlock on the Information Highway Chapter 1.

 

Oct. 10 Session 2: Information Market Basics

Questions to consider during reading

How is content presentation different on the network?

Readings

Kalakota & Whinston, Electronic Commerce pp 251-282. Addison Wesley (Boston, MA)

Optional Readings

Gupta, Stahl & Whinston, Pricing of Services on the Internet http://cism.bus.utexas.edu/alok/pricing.html

 

Why were they wrong? Why has there not been per-use pricing?

 

Decision - Making Tools in Economics

Economics has developed a series of tools that are widely used in daily business analysis. This section of the course will introduce a few of those tools, and focus on the potential of these tools to enable analytical insights.
Oct. 12 Session 1: No Course Meeting
Upload bibliographies by midnight. Please upload in pdf to preserve formatting.

 

Oct. 17 Session 1: NPV and Discounted Cash Flow

Questions to consider during reading

Net present value is a way of deciding if we are better off investing money today or saving money to invest tomorrow. Overview of examples. A simple example of a decision tree in class.

Readings

http://www.duncanwil.co.uk/invapp.html Luehman, What's It Worth?: A General Manager's Guide to Valuation HBR May - June pp. 133-141

 

Guest Speaker Mark Lutchen

Oct. 19 Session 2:IT & Human Capital

Questions to consider during reading

Hman beings are a critical element in an organization. How do we make assumptions about human as well as organizations in ICTs?

Readings

Please see the PWC White Paper on Human Capital on the OnCourse web site.

 

Oct. 24 Session 3: Economics and Uncertainty

Questions to consider during reading

Every person experiences uncertainty. Now that uncertainty is merely personal but in the future your uncertainty and decisions may play a role in decision-making. Think about your own decisions and how you have fallen to these habits.

Readings

Tversky and Kahneman, "Judgment Under Uncertainty: Heuristics and Biases" Science, vol. 185, 1974, pp. 1124-1131.
M. G. Morgan , B. Fischhoff , A. Bostrom Risk Communication : A Mental Models Approach pp 1-18, pp 34-62.

 

Oct. 26 Session 4: Productivity

Questions to consider during reading

Why and how have IT altered organizations? It seems inherently obvious that it is more productive to send an email than write, print and deliver an email. Where and what are the productivity gains?

Readings

Erik Brynjolfsson, The Productivity ParadoxCommunications of the ACM, Volume 36 , Issue 12.
Try the ACM Portal

Information Economics

The session above provided a rudimentary overview of economic tools. In this section the focus is on the unique features of the information market.
All Hallows Eve Session 1: Digital is Different

Questions to consider during reading

Fundamental assumptions underlie market economics. How does digital challenge those assumptions?

Readings

Delong and Froomkin (1997) The Next Economy? Internet Publishing and Beyond: The Economics of Digital Information and Intellectual Property. Edited by B Kahin and H Varian. Cambridge, MA MIT Press. http://www.law.miami.edu/~froomkin/articles/newecon.htm

 

Nov. 2 Session 2: IT in Organizations
The economics of information are different and therefore the markets in information goods also vary widely.

Questions to consider during reading

Why is IT important in an organization? Are ICTS inherently valuable? If not, how do ICTs illustrate their value.

Reading


Carr, Nicholas G., "IT Doesn't Matter"Harvard Business Review, May 2003.

 

Capstone Preview by Dr. Dennis Groth

Nov. 7 The Capstone

Questions to consider during class

The capstone, like this class, is intended to provide a real-life experience. Dr. Groth will introduce and discuss the capstone.

Readings

There are no readings.

 

Guest Speaker Shaun McDermott

Nov. 9 Games are Serious Business

Questions to consider during class

The speaker for this class is the Chief Financial Office for Mad Doc Software

Readings

There are no readings.

 

Nov. 14 Session 3: Interconnection and Network Effects

Questions to consider during reading

Feedback is a critical concept in the economics of networks and in network-based competition.

Reading

Noam, Interconnecting the Network of Networks, MIT Press, 2001. pp. 1-25.

Optional Reading

The Economics of Networks, by Nicholas Economides, International Journal of Industrial Organization, Vol. 16, no. 4, pp. 673-699 (October 1996). Available on-line

 

Nov. 16 Session 4: Lock-in and feedback

Questions to consider during reading

Network economics implies feedback. Feedback can cause lock-in. How easy will it be for you to get a new email? A new phone?

Readings

W. B. Arthur, "Competing Technologies, Increasing returns and Lock-in by Historical Events", The Economic Journal, Vol 99, Issue 394, pp116-131
P. A. David "Clio and the Economics of Qwerty" The American Economic Review, Vol 75, Issue 2, Papers and Proceedings of the 97th Annual Review of the American Economic Association, May 1985, pp. 332-337.

 

Nov 21 Session 5: Versioning

Questions to consider during reading

What is versioning? How does digital change versioning? Does beer taste differently from a keg than from a can?
MLS listings on-line http://www.realtor.com and http://www.targetmls.com/
Amazon.com and www.barnes and noble.com and www.reiters.com

Readings

Information Rules, Shapiro, Carl. & Varian, Hal, , Harvard Business School Press, (Boston, MA) , c1999, pages 53-81

 

Nov 23 -- Break

 

Nov. 28 Session 6: Intermediation

Questions to consider during reading

What is disintermediation? Re-intermediation? How does a bookstore inherently bring together certain business lines by virtue of physical location? Think about your favorite sites or consider this sites:
The Hunger Site -- http://www.thehungersite.com -- could this work off line?

Readings

Laudon & Traver, "E-commerce" second edition. pp. 136 - 162
Whinston & Kalakota, "Electronic Commerce" pp. 21 - 23

 

Information Ownership

Information is unique because the ownership structure is extremely fluid. Who owns which elements of an information good is a critical question.

 

Nov. 30 Session 1: Security and Competition

Questions to consider during reading

What are the goals of security in theory? How does this differ from how it is used in practice? Would the security strategies discussed in Anderson work with open code?

Readings

Ross Anderson, Cryptography and Competition Policy: Issues with Trusted Computing, http://www.cl.cam.ac.uk/ftp/users/rja14/tcpa.pdf
Schneier, 2002 Computer Security: Its the Economics, Stupid: Economics and Information Security Workshop, Berkeley, CA. http://www.sims.berkeley.edu/resources/affiliates/workshops/econsecurity/econws/18.doc

Optional Readings

L. Jean Camp Basic Cryptography Chapter 3. You may purchase the book or select the material from the on-line version. However, if you choose Print after going to the on-line version Trust and Risk you will print the entire book. Also note that this is the free and thus not edited version.

 

Dec 2 --Student Presentations

 

Dec 5 --Student Presentations

 

Dec 7 --Student Presentations

 

Dec. 12 Session 2: P2P and Knowledge Management

Questions to consider during reading

Reputation systems are used for ratings, for p2p download controls, for knowledge management. reputation systems can be considered micro payment systems, knowledge management systems or access control systems. What, then, is a reputation system and what is a p2p system?

Readings


Ronald Tidd, Knowledge Management, pp. 431-442. The Internet Encyclopedia ed. Hossein Bidgoli, John Wiley & Sons (Hoboken, New Jersey) 2003.

Optional Readings


Balthazard & Potter, Groupware, pp. 65- 75. The Internet Encyclopedia ed. Hossein Bidgoli, John Wiley & Sons (Hoboken, New Jersey) 2003.
http://www.ljean.org/files/P2P.pdf
Chapter 16: Peer-to-peer as disruptive technologies, Accountability http://www.freehaven.net/doc/oreilly/accountability-ch16.html

 

Exam Period --Student Presentations