CEU Business School
BUSI 527T Managing the Digital Firm
1.5 credit
Fall Semester, 2015/2016
Instructor
Classroom
Instructor’s Office
Office hours
Tel
Fax
E-mail
Faculty Coordinator
: Tibor Vörös
:
: CEU Business School, Room 317
: Thursday 13.00-14.00 & by appointment
: +36 1 887 5017
: +36 1 887 5005
: vorost@business.ceu.edu
:
Table of Contents
1
PREREQUISITES .................................................................................................. 2
2
REQUIRED TEXT AND READINGS .................................................................. 2
3
COURSE DESCRIPTION ..................................................................................... 2
4
COURSE OBJECTIVES ........................................................................................ 3
5
HOW THE CLASS SESSIONS WILL BE CONDUCTED .................................. 3
6
COURSE OUTLINE AND SESSION ASSIGNMENTS ...................................... 3
7
GRADING .............................................................................................................. 5
7.1
Assignments .................................................................................................... 5
7.2
Project Element ............................................................................................... 6
7.3
Grades.............................................................................................................. 7
8
ACADEMIC INTEGRITY..................................................................................... 8
9
INTERNET LIBRARY RESOURCES .................................................................. 8
10
LEARNING OUTCOMES ................................................................................. 8
11
BRIEF BIO OF THE INSTRUCTOR ................................................................ 9
1
1
PREREQUISITES
Computer literacy and basic office software skills are assumed. Applicants are
recommended to complete Managament Science (quantitative skills), Managing
Information Systems or an IT for Managers class before applying to this course.
Proof of completion of other basic IT/IS courses, or specific long-term practice on
IT/IS area may be acceptable, please contact the instructor. Knowledge domains &
skills required: basic quants (e.g. mean, median, descriptive statictics), office
software & data analysis intro skills (e.g. pivot tables & using MS Excel for
analysis), information systems (information, database etc.).
NOTE: due to simulation elements, the minimum number of students for the
course to start is 12. Maximum is 30.
2
REQUIRED TEXT AND READINGS
Additional readings, papers and up-to-date articles will be provided as needed.
Recommended reading
E. Brynjolfsson & A. McAfee: The Second Machine Age: Work, Progress, and
Prosperity in a Time of Brilliant Technologies
3
COURSE DESCRIPTION
Managing the Digital Firm is a complex subject, primarily concentrating on a
phenomenon born about 20 years ago and accelerating further ever since – namely
the Digital Firm. The term refers to modern organizations responding to the rapid
changes of environment by using digital approaches as enablers.
The Digital Firm in this context is characterized by
 Digitally enabled relationships with customers, suppliers and employers
 Core business processes are accomplished and/or heavily supported by digital
solutions
 Digital management of key corporate assets
The above desciption may be carried to the extremes by identifying a fully digital
firm as a firm that uses Web and Internet-based tools and protocols to create a firm
without media breaks. This is not necessarily applicable to all enterprises: however,
firms of a certain size and competing at a certain level have to realize that the above
characteristics together form the basis for rapid sensing and responding to changes.
2
Managing the Digital Firm will provide the
opportunity for students to consider realworld examples in which information
communication technologies play an
important role in problem solving and
decision making. The course content includes
theories, principles and foundation issues,
but mostly concentrates on more practical
themes. Throughout the course, case studies
will be presented and discussed for effective
use. The course lectures will concentrate on
business related issues and discuss problems
from the management’s perspective.
4
COURSE OBJECTIVES
The aims of this course are to enable students to
 explore the effects of the digital firm at global and local level;
 understand the changes introduced by the digital firm concept;
 review concepts and changes at a personal level.
Main topics
 Processes in the Digital Firm: analysing, modifying, updating processes
 Measuring & analyzing: working with data
 Current trends in the digital firm concept
5
HOW THE CLASS SESSIONS WILL BE CONDUCTED
The course is a combination of lectures and problem solving, tutorial and discussion
sections. Active participation in the problem solving discussions is the key element
in mastering the subject. Depending on software/hardware availability, practical
computer lab sessions will be included.
As in several other subjects, students are encouraged to read IT/IS journals. Students
may volunteer to give short presentations and analysis of news containing interesting
subject-related cases. Good presentation and analysis of interesting examples will be
rewarded in the evaluation of the students’ work.
Depending on availability and course schedule, an invited guest will be present from
either a consultant (e.g.BCG, Gartner) or a technology company (e.g. Microsoft,
Oracle, Spotfire, Tableau).
6
COURSE OUTLINE AND SESSION ASSIGNMENTS
In this section you will find a week-by-week schedule for this module. Please note
that there are sometimes unforeseen circumstances, such as staff illness, that may
necessitate some changes to this schedule (e.g. order of topics). The staff will make
every effort to communicate these changes to you in good time via the notice board
generally. Topics may change throughout the term, depending on latest
changes/inventions in the information communication technology sector.
Due to the nature of the course, final changes (eg. presentation/in-class test) will be
communicated on the first lecture. Any topic changes will be discussed at that time
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and details communicated. Reading Pack articles will be extensively used to
underline or further detail topics. At the end of each lecture the additional material
required for the next lecture will be specified.
Lect. No
Topic
1.
4th Dec,
14.0017.00
Introduction: the digital firm.
Organizations, processes, products.
Information flow. What is information?
How does the digital firm changes the
economy?
2.
4th Dec,
18.0021.00
Understanding the digital firm
concept. Structured & unstructured
information. Presenting information.
Analyzing data. Information flow,
decision making flowcharts etc. Invited
lecturer: Balazs Vedres, CEU Network
Science.
G1: Digital firm: Changes in processes.
Simulation: Service Center. 2/3-rounds
simulation with roleplay (Business
Managers, Service Managers, Helpdesk,
Technical Specialists). Processes and
process development for information
flow. Information flow diagrams.
Debriefing simulation. Information flow
diagrams.
3.
5th Dec,
09.0012.00
4.
5th Dec,
13.0016.00
Additional material,
chapters, comments
Read: Technology is
Wiping Out Companies
Faster than Ever
Read: The Second
Machine Age ch 1
Read: Capgemini
Interview with E
Brynjolfsson & A
McAfee
Read: Ford & Firestone
case study (will be
provided with questions
2 weeks prior to the
class).
Watch: Hans Rosling:
Let my dataset change
your mind
Consulting exercise
and/or BI class.
Class will be grouped (
G1 and G2).
G1 completes the service
center simulation (realtime, non computer
based), while G2
completes the data
analysis.
Check Wayne L.
Winston: Data Analysis
and Business Modeling
G2: Digital firm: Working with
information. Pivot tables, predictions & for the class (2010
scenarios in decision making (MS Excel
edition will be provided
based).
free).
G1: Digital firm: Analyzing data. Pivot Class will be grouped in
tables, predictions & scenarios in
Group1 and Group2.
decision making (MS Excel based).
G2 completes the service
center simulation (realG2: Digital firm: Changes in processes. time, non computer
Simulation: Service Center. 2/3-rounds
based), while G1
simulation with roleplay (Business
completes the data
Managers, Service Managers, Helpdesk,
analysis.
Technical Specialists). Processes and
Check Wayne L.
process development for information
Winston: Data Analysis
4
flow. Information flow diagrams.
Debriefing simulation. Information flow
diagrams.
5.
6th Dec,
09.0012.00
6.
10th Jan,
13.0016.00
7
and Business Modeling
for the class (2010
edition will be provided
free).
The AI: pros, cons, future of the
digital conomy. What is an artificial
intelligence? Advantages &
disadvantages, pros & cons. Neural
networks and other technical approaches.
What is happening to the economy?
Presentations (project, see below)
PLEASE NOTE: if the
class runs in an intensive
weekend format, you will
have approx. one month
after the weekend to
complete the project and
present findings.
GRADING
Item
Assignments
Project (max. 3 ppl in a group)
7.1
Contribution to Final Grade
50%
50%
Assignments
An assignment usually consists of a case study and specific questions. The case study
length is usually 5-10 pages and the solution is no longer than 3-5 pages.
Assignments may be group-based or individual, and may be completed in or outside
class. Usually ~3 assignments form the basis for 50%, each of them representing 1520%. Please see below the envisaged assignments for this class, though depending
on the number of participants, these items may change.
Assignment 1: Ford & Firestone Case Study
The assignment is a 5-page case study, that will be available 2-weeks prior to the
class. Question will be posted during the class session, you will have to answer the
questions in teams during class.
Assignment 2: Analyzing Data
The assignment is a management report based on a dataset. The dataset will be
available as an MS Excel file and will be available 2 weeks prior to the class. Form
min. 2 – max 3. member teams, analyze the data and submit the management report.
This exercise is provided as to be completed during the 3hr session for G1, while G2
is completing the simulation and vice versa – however, you may complete it earlier
if you wish to do so. Submission deadline is Saturday for both G1 & G2.
Sample exercise (it may change)
QuickSupplies is a successful distributor of office and IT products. QuickSupplies
CEE is the regional branch of the multinational: QuickSupplies expanded to CEE 2
years ago. QuickSupplies is planning to cover the CEE and surrounding region
within 5 years. The main sales channel is via salespeople: the website only provides
list prices and contact information (due to channel conflict issues). Salespeople visit
5
individual stores, networks, chain stores and sell office products: sometimes these
sales are of very limited quantity, other times the contracts may cover a longer time
period and result in higher value sales or in recurring sales.
You have been hired as Regional Manager for QuickSupplies CEE, as the main HQ
is not happy with the current results. Up till this point the four sales employees were
managed from the HQ, but their work was generally unsupervised. Evaluation was
revenue based and salespeople worked on a fixed salary basis (25,000 euro / year),
except for a quarterly bonus of 2,500 euro (given if revenue is above 2.5M euro in
the quarter). You have received an email from the execs saying that next year the
bonus criteria would be increased to 3.5M euro.
You received last year (dated to 2006) data of your salespeople (Betty, George, Jill,
Joe): now it’s your chance to decide what to tell them or what kind of changes to
implement in your sales strategy. As a newcomer, you have very limited information:
you have to rely on the data you have just received from the IT Department. Your
assistant is at complete loss when you tell her/him the word ‘pivot table’, so your
only option is to analyse the data yourself. You have a couple of hours till the
meeting: you have to outline changes you would like to implement or issues you
would discuss with your salespeople. An action plan would also help establishing
your position. At least one additional executive from the HQ will be present when
you talk to your sales people.
Assignment 3: Simulation Participation
Participating in the helpdesk simulation.
7.2
Project Element
Evaluate the digital firm concept at your organization. As an example, you may
evaluate the information flow (specific to a target), information pieces and how they
are being used either at your or at other management levels. Identify opportunities
to update or enhance the process, pinpoint missing elements. In this work you should
refer to: level of digital enablers in the process, information flow diagram, KPIs (if
appropriate) etc. The work should include: introduction and background, currently
working (manual or partly digital) process, recommended changes (digital enablers,
enhancement, better information integration etc.), risks & obstacles. Present at least
three scenarios for solutions / enhancements (e.g. cost based, complexity based).
Obviously, you might not be able to solve the problem completely. Nevertheless you
have to act as an external consultant for your company, identifying problems, and at
least attempting to envisage a possible solution. Identify company-specific risks as
well (eg HQ may not allow, change management issues etc). Please do NOT use
enhancements or approaches which were introduced in the past (even if you were
the project manager). Try to identify a CURRENTLY lacking process. You may
reflect on your experience in the risks section.
Depending on the selected topic, a 10-15 page PDF is expected and a short, max. 10
minutes presentation which is going to be presented in the classroom. If, due to
company rules&regs, you are not allowed to present the full paper, at least discuss
the key elements of your work in a generic setting: in this case, please notify your
instructor in advance. Due to the nature of the exercise, a small group (max. 3ppl) is
recommended. In unique cases it can be done individually. Accordingly, a more
complex solution and a more detailed presentation is expected from teams.
6
Typical examples from past years:
 Promotion campaigns are not analysed for effectiveness based on sales data.
Project target: describe the process to connect sales data output to promotion
planning.
 Procurement process is too long and cumbersome. Project target: apply
digital enablers to speed up procurement process.
 Management receives late and erroneous reports. Project target: identify key
bottlenecks and propose solutions.
 Cash cycle is not optimized. Project target: identify departments having
information about the cash cycle (receivables / dues / etc) and describe how
they can be connected.
 Document management is lacking. Project target: look at current document
management approaches. Discuss storage, versioning etc. Evaluate critical
volume and discuss key requirements.
 Consumers use retail and price comparison sites for online shopping.
Compare and analyze customer habits and discuss advantages &
disadvantages of large e0retailers & their ecosystem (e.g. Amazon) and
price comparison sites.
7.3
Grades
A: Outstanding
Flawless work of extraordinarily high standard: shows thorough understanding of
all work covered in class and demonstrates considerable research of both practical
and theoretical nature. Presentation of a very high quality meeting both academic
and professional practitioner criteria. Excellent and appropriate use of English
language. Shows considerable creativity, covers several issues outside the classroom
material and justifies all assertions.
A-: Excellent
Excellent work: some minor flaws and omissions can be found. The arguments,
conclusions and justifications are still sound.
B+: Very good
Very good work: showing strong evidence of understanding and some research of
both theoretical and practical fields. May have small flaws in the presentation, but
generally these errors do not distract the reader from the meaning of the work. The
argument may be incomplete.
B: Good
Appropriate, though generally a medium quality work: shows a good attempt at
understanding the principles and concepts involved. Good use of the prescribed
reading and preferably describes some research. The argument is likely to have
serious omissions or errors.
B-: Satisfactory
Satisfactory: a genuine attempt is made to tackle the question, but falls short in a
number of areas. Presentation and use of English may be relatively poor. Lack of
attention to details and missing research.
C+: Minimum pass
Borderline: little evidence of understanding of the concepts involved. Also little
evidence of work.
F: Fail
Has not demonstrated sufficient understanding of the topic to allow a pass grade and
credit to be awarded. Serious misunderstandings, insufficient analysis and
evaluation.
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Grading Scale
Points (%)
96-100
90-95
85-89
80 - 84
75-79
60-74
0-59
Grade
A
AB+
B
BC+
F
The above table serves as a generic example of the scaling applied: in line with the
CEU GSB grading policies the instructor reserves the right to adjust the scale, that
is, to grade on a "curve", should he find that significantly more than the usual number
of students would not pass the course under the indicated grading scale or should the
distribution of the grades represent an unrealistic pattern.
8
ACADEMIC INTEGRITY
The Business School expects all students to adhere to the fundamental principles
of academic integrity in any and all behaviors associated with their course work
and otherwise, as stated in the CEU Honor Code. (See Student Handbook).
9
INTERNET LIBRARY RESOURCES
See your Student Manual for details.
10 LEARNING OUTCOMES
Core Learning Area
Interpersonal
Communication Skills
Technology Skills
Cultural Sensitivity
and Diversity
Quantitative
Reasoning
Critical Thinking
Ethics and
Responsibility
Management
Knowledge and Skills
Learning Outcome
Demonstrate competence in effective writing and oral
communication in relationship to Digital Firm-related issues. To
enable effective communication with decision makers and endusers.
Students will be encouraged to use various software pieces,
depending on availability.
Students will have increased understanding and acceptance of
diversities of viewpoints. Emphasis will be given to the
prescriptions on cultural and organizational contexts, i.e. there is
no one best solution: several different solutions can be built on the
same basis.
Quantitative reasoning in relationship to a particular business or
project plan is very important for managers, the course will
include some examples.
Students will be encouraged to question the applicability of digital
firm solutions to a particular business goal: emphasis is also
placed both on advantages and limitations.
Demonstrate the ability to understand key concepts and principles
of the natural, social and behavioral sciences, and apply these
appropriately.
The Digital Firm is a concept for management to understand in
order to compete in a global environment.
8
11 BRIEF BIO OF THE INSTRUCTOR
Tibor Vörös has over 15 years of experience both in academic and corporate
environments. He has worked in various management areas (knowledge management,
decision making, business intelligence, information systems) as practitioner, and also
researched these topics and evaluated corresponding frameworks from the theory point
of view. Mr Vörös is holding an MSc in Maths, Physics and Information Technology
and currently working at the CEU Business School as Senior Lecturer. His research
work ranges from social media to cultural and strategic issues for corporations. More
recently Mr Vörös spent considerable time on various business simulations and created
unique storyboards to help students experience real life problems in classroom
situations. Current research work concentrates on the relationship of culture and
technology. CEEMAN has selected Mr Voros as the winner of the Innovation in Course
Design category for the CEEMAN Champions’ Award 2010. Mr Vörös also took part
in various industry campaigns, including the Microsoft Business Productivity
Infrastructure Optimization campaign or the Cloud Business Transformation approach.
Specialties
Business simulations, cross-cultural approaches, business intelligence, IT
management, cloud business transformation
9