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(1)

Information, Organization,

and Management

Unit 5: Potential and Limitations of ICT

Prof. Dr. Martin Hepp

http://www.heppnetz.de

[email protected]

http://www.heppnetz.de/teaching/img/

(2)

Overview

• Computer Systems, Models, and the Real

World

(3)

Formalization: Importance and Limits

• Formalization as a precondition of ICT

• Algorithms: Sequence of processing steps

that solves a given problem

• Alternative means for

formalization/modeling/representation

– Human language (problem: actor- and

context-bound)

– Data Models

– Ontologies

(4)

Computer Systems, Models, and the Real

World

Phenomenon P1

Phenomenon P2

Abstraction

for P1

Abstraction

for P2

Space of Possible

Transformations

Algorithm

Model

(5)

The Critical IT / Process Divide

Business Experts’ Perspective (“Reality”?)

IT Implementation Perspective

(Models of Reality)

Process

Implementation

Querying the

(6)

Querying the Process Space

“In which of our food

manufacturing

machines are we

processing meat or

raw eggs?”

“Do we have a cost

approval process for

items below $ 200?”

“How many inventory

management methods

are currently in use?”

Process Models

Process Instances

(7)

Manipulating the Process Space

“We need to set up a billing process for our new Internet TV

service”

Programming

(Web) Service

Composition

and Orchestration

Customizing of COTS

Packages (e.g. SAP)

(8)

Levels of Semiotics

• Semiotics: Scientific research of objects and

functions of communication processes

• Three levels:

– Syntactic: Analysis of signals and relationship

between signals

– Semantic: Analysis of signals and their meanings

– Pragmatic: Analysis of signals and their effects

• Example

(9)

Syntactic Level

• Signals and relation between signals

• Formal rules determining the structure

(e.g. grammars)

• Example: XML Schema Definition,

Backus-Naur Form (BNF)

(10)

Semantic Level

• Relation between signals and meanings

(designata)

• Message: requires semantic agreement

• Example: Ontologies are such semantic

agreements

(11)

Pragmatic Level

• Relation between signs and their effects

• Intended and actual effects

• Example: Ordering a book by sending a

message „1 pcs of ‚Information,

Organization, and Management‘“

(12)

Problem 1: Modeling Costs

• Models can be used to delegate the

execution of a formal process to a

machine.

• This may save resources.

• However, creating a model consumes

resources.

• The total savings do not automatically and

always outweigh the modeling costs.

(13)

A real problem...

Supporting long tail of business processes

ad hoc processes

(14)

Problem 2: Blurry means for specifying

the intended meaning

• Many modeling notations and languages

are not very expressive

• Misunderstandings possible and frequent

– e.g. semantics of cardinality constraints in

ERM

(15)

Status Quo: Lack of Formal Semantics

CH:

Altitude relative to the

sea level of the

Mediterranean Sea.

D:

Altitude relative to the

sea level of the North

Sea.

Gap: 27 cm

Errors in Control

Software for the

(16)

Information Systems and Representation

• Hard- and Software, and mental

models of actors (users) as

representations

of

– objects (e.g. individuals, machines),

– happenings (e.g. events), and

– abstractions (e.g. social fictions).

• A large deal of challenges in

Information Systems research

can be reduced to

managing

the creation and maintenance

of representations

– between reality and the systems

– between systems

– between systems and their users

Actor 3

Actor 3 Actor 4

Actor 4

Actor 4

Actor 1

Actor 1 Actor 2

Actor 2

Actor 2

Computer Computer Computer

(17)

The Root of the Problem:

Weak Ties between Reality and

Abstractions of Reality

Model of Reality

Data

Processes

Reality

Weak, informal treaty

Symptoms:

• We can hardly validate whether a given ER model is correct

• We face difficulties making sure that the customization of SAP myERP

matches the business needs of a given enterprise

Treaty not accessible

to computers

(18)

Model of Reality

Data

Processes

Reality

Reality := Reality + (relevant) Models of Reality

IT represents reality and is part of

reality

(19)

Consequences

• Unspotted semantic mismatches

• Broken processes and costly exceptions

A lot of human labor for maintaining

the treaty between reality and IT and

between IT and IT.

– Slow

– Costly

(20)

Problem 3: Model Perspicuity

• If multiple business entities or individuals

are involved, there need to be continuous

agreement that model represents reality

properly.

(21)

IMG - Unit 4 21

Radical Constructivsm

(22)

Model

Community creating the Model

Modeling

Model Usage

The Model Perspicuity and Agreement

Bottleneck

(23)

Problem 4: Dynamics and Evolution

• The world is subject to conceptual dynamics

– new types of goods

– new requirements

– new laws and regulations

• We may not be able to yield a model fast

enough to keep pace with change.

• It is hard to spot whether a given model

(abstraction) is compatible with the current state

of the world.

(24)

IMG - Unit 4 24

Time

Conceptual Entities

in the Real World

Conceptual elements

in the model

Initial Engineering Lag

Maintenance Lag

Number of

Co

ncep

tu

a

l Enti

tie

s

t

0

Initial domain

t

1

model

t

2

Updated model

Elements missing

in the model

(25)

Coverage of a Fictious Intel CPU Ontology 1/1997 - 1/2002

Maintenance every 360 days plus 7 days lead time

0 20 40 60 80 100 01/1997 01/1998 01/1999 01/2000 12/2000 12/2001 O n tol ogy C o v e rage i n % MM/JJJJ

(26)

Degree

of Detail and Expressiveness

C

onc

ep

tual

D

yn

am

ic

s

Possible

Models

Possible Models

(27)

Problem 5: Computability

• Many typical business problems can be

formalized, but cannot be executed at

reasonable computational costs.

• This holds even for rather simple

challenges.

• Example: Traveling Salesman Problem

• Also, in business contexts, the time for

computing a result may not be available.

(28)
(29)

Example: Tool Path Optimization (2)

Simple ordering of

hole coordinates by X- and Y-axis.

Same layout – optimized for

shortest tool route:

80% shorter -> ~ 80% production

time saved

Examples (C) 2004 by Paul McGuire, taken from http://www.geocities.com/ptmcg/drill/index.html

(30)

Example: Yield Management for Airlines

• At what price should

you offer an

available seat?

• Influenced by

– General demand

– Special events at

target destination

– Alternative travel

connections

– Etc.

(31)

Thank you!

The slides of today‘s class will be available

at

http://www.heppnetz.de/teaching/img/

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