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

IN 5210 IS theory Eric Monteiro www.idi.ntnu.no/~ericm

Background 2

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Technological determinism? 4

Investments & employment • US: investments in IT grew annually by 20% in 1990 • US: employment 2m (1992), 3.5m (2000) 5

Recent Norwegian statistics (SSB) Source: ssb.no 6

Macro =/= micro effects • Macro- but not micro effects and vice versa • ’Productivity paradox’: + - ? $ Productivity Project champion Training 7

Source: DN, 3. Nov. 2016 8

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 9

Sociotechnical: use of technology 10

Use/utility/value: functional vs symbolic • Technology used for more than utility, purpose • Display outwards • Identity • Fashion, design 11

Ex.: Mobile health/move gps email social media talk calender text browse news music camera games 12

”Use” of technology • Seen • Touched • Tried • Some use • Used a lot • Used selected functions … all is ”use” ?! • Used all functions • In routine use 13

Ex.: possible vocabular ? What: purpose, situation When: frequency What: function 14

”Getting the job done” Milkshake Source: C Christensen on getting the job done 15

Designing technology 16

Ex.: payment platforms • Banks: – Accounts/ transactions – Debit cards • Credit card companies – Digitalization of the card • Telecom – Charged as teleservices • Mobile phone – In-app payment 17 – mCash, Vipps, ...

Dominant design: not technical superior 18

”Young men of nerves” ”Young speed men of nerves” 19

”Young men of nerves” Large wheel ” Young men of speed nerves” Air in tires 20

The others Children, women, Safety elderly 21

The others Air in tires Children, safety women, elderly springs 22

Compromise stort forhjul Young speed men Air in tires Children, women, safety elderly fjæring 23

Uptake, diffusion of technology 24

S-curve diffusion vs Leapfrog Ex.: Mpesa 25

Critique: no dynamics (artefact) 26

Ex.: Lotus Notes Statoil (1992- ) 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 20.000 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 Norne 10.000 ISO 9000 5.000 $ 1994 1996 1998 27

Platforms & ecosystems 28

A ’platform’ • What is it? • Why does it matter? 29

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Elements of a platform ecosystem Environment Competing ecosystem Shared infrastructure Ecosystem Interfaces Apps Apps Apps Apps End-users End-users End-users 33

Network externalities • External to user/technology I C T relation • Tied to network of other users 34

Lock-in 35

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Network externalities • Same-side vs cross-side effects . . . • Ex.: iOS & Apps (cross-side) • Ex: traffic, cars (same-side) 37

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 38

Evoluton in platforms • Differentiate from competitors • Create value – Valuable? – Rare? • Sustain value – Inimitable? – Non-substitutable? • Resources: capabilities, functionality, user base, apps, patents, reputation, .... 39

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Ex.: Schlumberger’s Ocean platform 41

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) 42

BBC, nov 2016 43

Conclusion 44

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 45