Systems thinking and simulation to help IT/Software professionals to visualize knowledge assets evolution according to digital solutions implementation

Mención Internacional en el título de doctorThis doctoral thesis presents the SIPAC-framework, a methodological proposal created to systemically guide and help software engineers and information technology professionals in the process of proposing a customized technological solution, specifically oriented to propose software or IT solutions that provides business value supported on the status of intangible knowledge assets of organizations, and from this, drive the achievement of the strategic goals that define the organizational operation. To achieve this, the SIPAC-framework comprises three layers clearly differentiated but intimately interrelated and co-dependent on each other: a methodological layer, a mechanisms layer and a technological layer inclusive of the technological artifacts to be used. 1. The methodological layer comprises the SIPAC methodology itself, inspired by Peter Checkland's soft systems approach, but adapted to, from an engineering point of view, addressing the situation given by the underlying knowledge of an organization, which it is usually unstructured and disordered, and whose understanding fits to be addressed as a complex problem. The SIPAC-framework guides the professional in the process of identifying such knowledge, structuring it in knowledge assets, organizing such assets according to the identity of the organization, characterizing them according to their quality and the impact they have in achieving the strategic objectives, exploiting them to propose an appropriate technological solution and envisaging possible future scenarios based on what can happen to them as a consequence of the decision making about the technological solution to be implemented. 2. The mechanisms layer comprises the constructs necessary to be able to carry out the subjacent activities of the methodological layer, mainly a model of identification and valuation of intangible knowledge assets, a model of characterization of the assets according to their quality and impact, a Markovian model of prediction of the re-characterization of intangible knowledge assets, and an instance-based learning model implementation of decisions on the implementation of technological solutions. 3. The technological layer constitutes the artifacts to be used during the deployment of the methodology to support its methodological processes. In detail, this layer presents an instrument for collecting information on the knowledge of a company and its structuring into knowledge assets, a web application for the management of such information through a database, an agent-based model that implements both the automatic characterization of the knowledge assets from the information stored in the database, as well as the simulation and prediction of the behavior of said assets as a product of the decisions made regarding technological implementations. The SIPAC framework has been used in a total of 11 small and medium enterprises, by means of teams of 2-4 software engineers each, who have been in charge of doing the deployment in two different time stages: an initial audit carried out in the pre-project phase and prior to the decision of technological implementation; and an audit carried out after the implementation of the technological solution. The interaction of said professionals with the interested parties by the companies (stakeholders) has been discontinuous, limited to specific audits, interviews and validations on the information and models built. This work has derived in the methodological proposal that constitutes the SIPAC-framework, with its mechanisms and technological artefacts, and whose impact can be evidenced in several aspects: • The effective elicitation and characterization of organizational knowledge of the participating companies. • The success of the goals-aligned digital solution implementation proposals, which is evidenced by the improvement in organizational knowledge assets’ state. • The effective predictive power of the SIPAC-framework’s simulation module. • The satisfaction of software engineers and IT professionals by both the process of d • The improvement of the profession of software engineers and professionals of information and communication technologies, by providing them with an innovative approach that leads them to demonstrate to their clients the knowledge they have, in what state they are, how they can improve and what can happen if they decide to improve it. • The emergence of organizational information that is traditionally hidden and incomprehensible, usually reserved for its management by expensive consultants and the experience of a few; all at a minimum cost, maximizing the visualization of the information and minimizing the complexity of its interpretation. • This thesis is a starting point for the development of the body of knowledge on the valuation of knowledge assets in technological environments as a tool to achieve the strategic goal of an organization. In addition, this work leaves open the way for the future development of decision-making models based on value, as well as the evolution of the presented model, ideally in a single patentable technological device.eploying the methodology and the results obtained.Esta tesis doctoral presenta SIPAC-framework, una propuesta metodológica creada para sistémicamente guiar y ayudar a los ingenieros de software y profesionales de las tecnologías de la información en el proceso de proponer una solución tecnológica customizada, orientada a proporcionar valor a las organizaciones y soportada en los activos intangibles de conocimiento de las organizaciones, de manera que se pueda, a partir de esto, impulsar la consecución de los objetivos estratégicos que dirigen su funcionamiento. Para conseguir esto, el SIPAC-framework comprende tres capas claramente diferenciadas, pero íntimamente interrelacionadas y codependientes entre sí: una capa metodológica, una capa de mecanismos y una capa tecnológica o de artefactos tecnológicos de soporte a ser usados. 1. La capa metodológica comprende la metodología SIPAC en sí misma, inspirada en el enfoque de sistemas blandos de Peter Checkland, pero adaptada a, desde un punto de vista ingenieril, abordar la situación dada por el conocimiento subyacente en una organización, el cual usualmente está desestructurado y desordenado, y cuya comprensión debe ser abordada como un problema complejo. SIPAC-framework guía al profesional en el proceso de identificar tal conocimiento, estructurarlo en activos de conocimiento, organizarlos en función de la identidad de la organización, caracterizarlos en función de su calidad y el impacto que estos tienen en la consecución de los objetivos estratégicos, explotarlos para proponer una adecuada solución tecnológica y visualizar posibles escenarios futuros en función de lo que puede pasar con ellos como consecuencia de la toma de decisiones sobre la solución tecnológica a implementar. 2. La capa de mecanismos comprende los constructos conceptuales necesarios para poder llevar a cabo las actividades de la capa metodológica, principalmente un modelo de identificación y valoración de activos intangibles de conocimiento, un modelo de caracterización de los activos en función de su calidad e impacto, un modelo markoviano de predicción de la re-caracterización de activos intangibles de conocimiento, y una implementación del modelo basado en instancias (IBL-model) sobre las decisiones estratégicas con respecto a la implementación de soluciones tecnológicas. 3. La capa tecnológica se constituye por los artefactos utilizados durante el despliegue de la metodología para soportar sus procesos. En detalle, esta capa presenta un instrumento de recolección de información sobre el conocimiento de una empresa y su estructuración en activos de conocimiento, un aplicativo web para la gestión de dicha información por medio de una base de datos, un modelo basado en agentes que implementa tanto la caracterización automática de los activos de conocimiento a partir de la información almacenada en la base de datos, como la simulación y predicción del comportamiento de dichos activos como producto de las decisiones de implementación tecnológica tomadas. El SIPAC-framework se ha usado en un total de 11 pequeñas y medianas empresas, por medio de equipos de entre 2 y 4 profesionales de la ingeniería del software cada uno, que han estado a cargo de hacer el despliegue metodológico en dos estadios de tiempo diferentes: una auditoría inicial llevada a cabo en la fase de pre-proyecto y con anterioridad a la decisión de implementación tecnológica; y una auditoría llevada a cabo con posterioridad a la implementación de la solución tecnológica. La interacción de dichos profesionales con los interesados por parte de las empresas ha sido discontinua, limitándose a auditorías concretas, entrevistas y validaciones sobre la información y modelos construidos. Este trabajo ha derivado en la propuesta metodológica que constituye el SIPAC-framework, con sus mecanismos y artefactos tecnológicos, y cuyo impacto se puede ver en varios aspectos: • La elicitación y caracterización efectiva del conocimiento organizativo de las empresas participantes. • El éxito que han tenido las propuestas de implementación de solución tecnológica alineadas con los objetivos, lo que se evidencia por la mejora en el estado de los activos organizativos de conocimiento. • El efectivo poder predictivo del módulo de simulación del SIPAC-framework. • La satisfacción de los ingenieros de software y los profesionales de TI, tanto por el proceso de implementación de la metodología como por los resultados obtenidos. • La mejora de la profesión de los ingenieros de software y profesionales de las tecnologías de la información y la comunicación, al dotarles de un enfoque innovador que les conduce a evidenciar ante sus clientes el conocimiento que tienen, en qué estado se encuentra, cómo lo pueden mejorar y lo que puede ocurrir si deciden mejorarlo. • La emergencia de información organizativa que tradicionalmente está oculta e incomprensible, usualmente reservada a costosas consultoras y a la experiencia de unos pocos; todo a un coste mínimo, maximizando la visualización de la información y minimizando la complejidad de su interpretación. Esta tesis es un punto de partida para el desarrollo de la base de conocimiento sobre la valoración de activos de conocimiento en entornos tecnológicos como herramienta para conseguir los objetivos estratégicos de una organización. Además, este trabajo deja abierto el camino para el futuro desarrollo de modelos de toma de decisiones basados en el valor, así como la evolución del modelo presentado, idealmente en un solo artefacto tecnológico patentable.Programa de Doctorado en Ciencia y Tecnología Informática por la Universidad Carlos III de MadridPresidente: Raúl Álvaro Espejo Ballivian.- Secretario: José María Álvarez Rodríguez.- Vocal: Stefano Armeni

An instance-based-learning simulation model to predict knowledge assets evolution involved in potential digital transformation projects.

Software engineering professionals must consider the appropriate technological solutions to meet their client’s needs and the organisational impact. The decision to implement a solution is not explicitly based on how it empowers the knowledge assets. Organisational knowledge assets are the foundation of the knowledge economy and a key element in evaluating the health of an organisation. This paper provides software engineers with a simulation model which illustrates the decision-making process for the implementation of technological solutions based on an evaluation of their client’s knowledge assets and how such assets impact and are impacted by the deployment of a solution. We use an agent-based approach and implement an instance-based learning model (a cognitive approach) to represent scenarios for experience-based decisions. 11 case studies were used to train the prediction engine and validate the usefulness of the model in generating scenarios and nurturing decision-making and user experiences.pre-print1537 K

Comparing the value revelance of R&D reporting in Germany: standard and selection effects

On the basis of accounting and market data for firms and groups listed on German stock exchanges between 1997 and 2003, we show that the value relevance of R&D information under German accounting standards can be superior to that provided by US-GAAP and IAS. The results, obtained while dynamically controlling for partial freedom of firms to choose a standard in a modified Q model, show that the risk of IAS/US-GAAP misinforming investors during "bear market" periods is more relevant than their comparative advantage over the prudence principle of the German Commercial Code in "bull market" periods. Using the approach chosen for this study, it is possible not only to draw a clear dividing line between standard and selection effects but also to disentangle them along theoretical lines more clearly than in earlier studies. --Accounting standards,standard selection,R&D,value relevance,Germany

Social Capital, R&D and Industrial Districts

The main idea behind this paper is that social capital is not, as generally suggested by the socio-economic literature, an individual attitude towards something which does not imply privately appropriable economic benefits. Actually, SC might and should be interpreted as a public component of an investment which implies private and public benefits entangled with each other. In order to put forward this idea, a dynamic theoretical model that assumes social capital as the public component of the impure public good R&D is developed. It shows that the ‘civic culture’ of the district area in which the firm works is not sufficient as an incentive to increase its investment in social capital, because this investment strictly depends on the economic convenience of investing in the impure public good. Social capital /networking dynamics might positively and complementarily evolve only if the opportunity cost of investing in innovation is sufficiently low. We consequently focus our attention on a specialized industrial district located in the Emilia Romagna region – the biomedical district of Mirandola (Modena) – characterised by a strong pattern of innovative activity. Using a proxy for innovative activity as dependant variable, we observe that R&D and networking/social capital arise as complementary driving forces for innovation outputs. When empirical evidence confirms that this complementarity plays a key role, and consequently strong links exist between market and non-market dynamics relating to firms, the role for policy actions targeted to social capital is larger. The policy effort should be targeted toward both market and non-market characteristics taken together, rather than solely to the production of (local) public goods (social capital) or innovation inputs as independent elements of firm processes. The input of SC alone is not sufficient to ensure innovation and growth: economic incentives matter. On the other hand, whenever SC dynamics are crucial for R&D private investments, the effect of economic incentives depends on the presence and degree of their complementarity.Social capital, R&D, Technological innovation, Industrial districts

From the Theory of the Firm to FDI and Internalisation: A Survey

This paper surveys recent contributions on the Internalisation issue, based on different theories of the firm, to show how the make-or-buy decision, at an international level, has been assessed through the opening up of the “black box” - traditionally explored by the theorists of the firm – and the simultaneous endogenization of the market environment – as in the International Economics tradition. In particular, we consider three Archetypes – Grossman-Hart-Moore treatment of hold-up and contractual incompleteness, Holmstrom-Milgrom view of the firm as an incentive system, Aghion-Tirole conceptualisation of formal and real authority in organisations – and show how they have been embedded in industry and general equilibrium models of FDI to explain the boundaries of global firms.FDI, Internalisation, International Economics, Incomplete contracts

Microeconomic Policies in the New Economy

Competition policy, Technology policy, Network industries

A new evaluation approach to City Logistics projects A business-oriented Agent-Based model

Supplying goods to urban areas is a fundamental economic process because the majority of the world population lives and buys goods in cities. Freight distribu-tion activities in urban areas account for roughly 40% of supply chain costs and 60% of supply chain CO2 emissions. Moreover, surging e-commerce trends shape the urban freight transportation arena, increasing its complexity and the pressure on private actors. Thus, urban freight transportation activities generate negative externalities, but are relevant to a great amount of enterprises that compose the economic and social fabric. In this context, City Logistics (CL) emerged as a comprehensive concept driv-ing solutions to reduce negative externalities while interfering as little as possible with private actors’ operations and profitability. CL scholars and practitioners are facing several issues arising from e-commerce and population growth. In particu-lar, logistics service providers are called to optimize their operations in order to increase the speed of delivery. At the same time however, CL is dealing with technological and systemic innovation that might enhance optimization capabili-ties and network usage. As a response to the changing environment and within the mandate of CL paradigm, local authorities and private actors have invested on a wide range of initiatives. The variety of approaches adopted and stakeholders involved, at multiple governmental levels, are responsible for a mixed landscape of CL experiences across different regional contexts. Furthermore, despite their relatively large dif-fusion, CL initiatives often fail in taking up after a first pilot implementation, unable to reach paying customers after public subsidies are removed. Therefore, un-derstanding the major business aspects that underline the reasons for adopting CL initiative by private stakeholders is key to a more long-term vision on CL implementation and assessment. Previous research has given little attention to understanding the commercial and business aspects of CL projects before actually designing and implementing them, even though CL scholars have ascertained that evaluation methodologies need to encompass all aspects relevant issues for CL schemes. Several methodol-ogies have been proposed since the inception of CL with the evaluation objective in mind. However, they fall short in different ways. For instance, qualitative methods adopt a short-term feasibility approach to CL evaluation, and the subjec-tive evaluation of quantitative outcomes may potentially influence the ranking between different alternatives. On the other hand, modelling techniques need high quality data to simulate traffic flows and consumers’ demand, but fail short to ad-dress other important decision-making factors related to the business model of stakeholders. Research opportunities therefore lie in mixing the advantages of quantitative and qualitative approaches to include stakeholders in quantitative ex-ante evaluation of CL projects. My thesis will try to answer to the following research questions. -Research question 1: What is the state-of-art of CL projects modelling and evaluation meth-ods/frameworks? -Research question 2: How can an integrated qualitative-quantitative framework for CL evaluation be conceived? -Research question 3: How can a new evaluation framework effectively integrate a business-oriented view of CL systems? The first objective of this thesis is to highlight advantages and disadvantages of assessment methodologies with respect to the integration of the business mo-tives of CL actors into non-project specific, a long-term view on CL project as-sessment. The second objective of this work is to define a theoretical framework for designing and assessing CL projects business models on a qualitative level. To this end, CL systems are here compared to business ecosystems, which are a network of interrelated business entities. In the framework, CL actors can play multi-ple roles, and their decisions are based on their objectives, information, and con-straints. The business model of a business entity within the system is the set of the roles it plays, the business and operative relationships formed with other business entities, and the monetary and intangible values exchanged through these relationships. New quantitative methods are needed for a more sound representation of the patterns emerging from the different behaviours of agents. Hence, the third objective is to build an agent-model proposal for modelling, simulating and ultimately evaluating CL projects business model. In agent-based modelling, each actor can be modelled as an agent possessing objectives and decision-making attributes. Agents act autonomously and their interactions are defined formally by means of ontologies and model narratives built as a representation of real-life system. Finally, an experiment design will be constructed to provide insights on an ex-isting case study related to the introduction of automated parcel locker station. Two CL ecosystem configurations are modelled together in order to simulate the decision to adopt a new logistics service by potential customers. Then, the effect of the decision regarding the allocation of marketing and R&D budget is also evaluated. From the simulation runs, it becomes clear that the outcome for each ecosystem configuration in terms of profits and customers is strongly influenced by the decisions taken within the other configuration. In summary, this thesis provides a first modelling and simulation tool for as-sessing the implications of business model decisions within specific CL business ecosystems. For instance, the strategic decision to adopt a service proposed by a CL company is associated with the evaluation of intangible benefits offered by such company. Moreover, the modelling tool highlights the links between such strategic decisions and the operative ones, such as vehicle routing or inventory policies. Therefore, it proves that qualitative approaches can be used to integrate all stakeholders, while quantitative modelling provide a simulation environment to test long-term effects of different scenarios. However, this study has some limita-tions. For instance, more strategic decisions should be included in the model to investigate endogeneity stemming from agents’ actions. Furthermore, the implica-tion on the business ecosystem of the value of information are not assessed. Finally, the scope of the computational experiment should be widened to include a per-formance evaluation phase, which would then lead to more decision-making by the agents. Further research is aimed at using the tools developed in the thesis to understand how to drive retailers to change their attitude towards CL by under-standing and designing value proposition that might appeal to them. Moreover, the implications of the entrance of new CL players one traditional ones’ business model need to be explored more deeply from the strategic perspective of power relations

The business model: Theoretical roots, recent developments, and future research

The paper provides a broad and multifaceted review of the received literature on business models, in which we attempt to explore the origin of the construct and to examine the business model concept through multiple disciplinary and subject-matter lenses. The review reveals that scholars do not agree on what a business model is, and that the literature is developing largely in silos, according to the phenomena of interest to the respective researchers. However, we also found some emerging common ground among students of business models. Specifically, i) the business model is emerging as a new unit of analysis; ii) business models emphasize a system-level, holistic approach towards explaining how firms do business; iii) organizational activities play an important role in the various conceptualizations of business models that have been proposed, and iv) business models seek not only to explain the ways in which value is captured but also how it is created. These emerging themes could serve as important catalysts towards a more unified study of business models.Business model; strategy; technology management; innovation; literature review;