IN 5210 IS theory Eric Monteiro www.idi.ntnu.no/~ericm Background - - PowerPoint PPT Presentation

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IN 5210 IS theory Eric Monteiro www.idi.ntnu.no/~ericm Background - - PowerPoint PPT Presentation

Jan 26, 2023 248 likes •705 views

IN 5210 IS theory Eric Monteiro www.idi.ntnu.no/~ericm Background 2 3 Technological determinism? 4 Investments & employment US: investments in IT grew annually by 20% in 1990 US: employment 2m (1992), 3.5m (2000) 5 Recent

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IN 5210 IS theory

Eric Monteiro

www.idi.ntnu.no/~ericm

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Background

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Technological determinism?

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Investments & employment

  • US: investments in IT grew annually by 20% in 1990
  • US: employment 2m (1992), 3.5m (2000)
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Recent Norwegian statistics (SSB)

Source: ssb.no

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Macro =/= micro effects

  • Macro- but not micro effects and vice versa
  • ’Productivity paradox’:

$ Productivity + - ? Project champion Training

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Source: DN, 3. Nov. 2016

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Transformation, not ”effects”

  • Difficult to document causal effects of ICT investments (cf.

Technology determinism)

  • Hence: HOW does organizational transformation happen with

ICT?

  • Complementary, not direct effects:

– Customer interaction – Subcontractor interaction – Internal communication and collaboration

  • Exaggerate short-term, underestimate long-term transformation
  • IS (Information Systems) is also this latter, micro-oriented focus

ie attention to sociotechnical interplay

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Sociotechnical: use of technology

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Use/utility/value: functional vs symbolic

  • Technology used for more than

utility, purpose

  • Display outwards
  • Identity
  • Fashion, design
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Ex.: Mobile talk text camera music calender browse email games social media news gps health/move

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”Use” of technology

  • Seen
  • Touched
  • Tried
  • Some use
  • Used a lot
  • Used selected functions
  • Used all functions
  • In routine use

… all is ”use” ?!

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Ex.: possible vocabular ?

What: purpose, situation When: frequency What: function

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”Getting the job done”

Milkshake

Source: C Christensen on getting the job done

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Designing technology

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Ex.: payment platforms

  • Banks:

– Accounts/ transactions – Debit cards

  • Credit card companies

– Digitalization of the card

  • Telecom

– Charged as teleservices

  • Mobile phone

– In-app payment – mCash, Vipps, ...

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Dominant design: not technical superior

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”Young men of nerves”

”Young men of nerves”

speed

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”Young men of nerves”

”Young

men of nerves”

Large wheel

Air in tires speed

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The others

Children, women, elderly

Safety

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The others

Air in tires

Children, women, elderly

safety springs

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Compromise

Young men stort forhjul Air in tires Children, women, elderly speed safety fjæring

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Uptake, diffusion of technology

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S-curve diffusion vs Leapfrog

Ex.: Mpesa

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Critique: no dynamics (artefact)

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Ex.: Lotus Notes Statoil (1992- )

1994 1996 1998 20.000 10.000 5.000 $ ISO 9000 Norne

As the hull was lowered to the 99m mark, rumbling noises were heard followed by the sound of water pouring into the unit. A cell wall had failed and a serious crack had developed, and sea water poured in at a rate that was too great for the deballasting pumps to deal with. Within a few minutes the hull began sinking at a rate of 1m per minute. As the structure sank deeper into the 220m fjord, the buoyancy chambers imploded and the rubble struck the floor of the fjord creating a 3.0 magnitude record in a local seismograph station

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Platforms & ecosystems

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A ’platform’

  • What is it?
  • Why does it matter?
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Elements of a platform ecosystem

Apps Apps Apps Apps

Interfaces

Shared infrastructure Ecosystem Environment End-users End-users End-users Competing ecosystem

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Network externalities

  • External to

user/technology relation

  • Tied to network of
  • ther users

I C T

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Lock-in

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  • Same-side vs cross-side effects
  • Ex.: iOS & Apps (cross-side)
  • Ex: traffic, cars (same-side)

Network externalities

. . .

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Chicken-or-egg

  • How to bootstrap?
  • Non-linear effects
  • Collective action: 1 + 1 = 2 ?

– Bandwagon effect – game theory

  • Ex: crossing a street (non-linearity)
  • Ex: traffic junction (coordination)
  • Subsidize?
  • Ex 1.: Public goods (=platforms) paid by

government (roads, infrastructure,…)

  • Ex 2.: cross-side network externalities
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Evoluton in platforms

  • Differentiate from competitors
  • Create value

– Valuable? – Rare?

  • Sustain value

– Inimitable? – Non-substitutable?

  • Resources: capabilities, functionality, user base, apps, patents,

reputation, ....

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Ex.: Schlumberger’s Ocean platform

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Subsidizing: how much, how long?

  • Pdf: readers for free, premium for editing/ sharing/

commenting/..

  • Logic of network externalities: size is everything
  • Facebook ”growth is everything”
  • Content is king (youtube)
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BBC, nov 2016

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Conclusion

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Learning outcomes

  • Historic background of ICT/ digitalization
  • Effects of ICT on employment, investments
  • Sociotechnical understanding of use, uptake, diffusion of ICT
  • Conceptualizing platforms and ecosystems