DTS - Week 4 (Matching)

Digital Governance

• Blockchains are decentralized databases with transparency, where new data is appended only if validated by participants.
• Data can't be deleted once recorded (immutability).
• Useful for secure information flows where trust between participants isn't guaranteed.
• Blockchain tech is useful for managing large intra- and inter-organizational networks.

Blockchain Trajectory

• Analysis: Evaluating the network, the participants' needs and existing tensions. Identifying the best possible governance form.
• Adoption: Understanding how blockchain is used and tailoring coordination/control mechanisms to the network structure and participant needs.
• Adjustment: Blockchain governance is dynamic and requires continuous monitoring of network dynamics for ongoing adjustments.

Blockchain Network Challenges

• Coordination: Managing interdependencies within and between organizations, crucial due to the high degree of interdependence in blockchain networks.
• Control: Assigning decision-making authority and dispute resolution within the network. This can be centralized or shared among multiple entities. This affects funding, future direction, and data access rules.

Governance Modes

• Chief: Blockchain coordination and control are handled internally by a single entity, typical for large corporations with internal blockchain initiatives. Strong internal coordination but may not always consider subsidiary needs.
• Clan: Internal coordination within the organization, but control is shared among participants. Promotes internal cooperation and solutions, but challenging for large-scale networks.
• Custodian: Centralized control over the blockchain network in one actor. Efficient for fast decisions, but can distance the network from important parties.
• Consortium: Joint coordination and control of blockchain activities among several organizations. Includes broad stakeholder involvement, but may face bureaucratic challenges.

Strategic Moves in Blockchain Governance

• Connecting: Extending the blockchain to involve external organizations.
• Isolating: Reducing external dependencies and concentrating on internal coordination activities.
• Loosening: Releasing control to other organizations in the governance structure. Encourages wider participation for shared decisions.
• Tightening: Centralizing control for faster implementation, but could discourage participation from external players impacting network growth.

Digital Governance Framework

• Analog: Centralized control, reliant on bilateral coordination, with trust based on relationships.
• Augmented: Distributed control with multilateral coordination, with trust incorporating human and algorithmic elements.
• Automated: Decentralized control, omnilateral coordination, governed by algorithmic incentives and trust in the system.

Research Agenda on Digital Governance

• Governance by Algorithms: Discusses the shift towards digital technologies for automated control and coordination, and considers cognitive, emotional, and organizational impacts on digital governance. Focus is on how to handle the increased use of digital technologies for decision-making and control.
• Governance of Algorithms: Investigates the responsibility, accountability, and cybersecurity implications in digital decision-making, including legal considerations and threats like cyberattacks. Focuses on who is responsible for actions within a networked system with automated control.

Big Data and Business Analytics

• Big Data: Large, complex data sets from various sources. Characterized by high volume, velocity, and variety.
• Big Data Management: Organizing, administering, and governing large volumes of structured and unstructured data for business intelligence. Aims to ensure high data quality and accessibility.

Key Implications of Big Data Management

• Privacy: Balancing data quality and user privacy, accounting for regulations and ethical considerations. Data quality sometimes needs data distortion to ensure privacy.
• Bias: Data sources are often biased, and representativeness issues in data can lead to inaccurate conclusions. Data collected is often self-selected, which can skew conclusions.

Transaction Cost Theory

• Focuses on the cost of managing transactions among parties.
• Useful for evaluating efficiency in e-commerce transactions and evaluating "make vs. buy" decisions concerning big data initiatives.

Digital Governance - Additional Points

• Digital governance moves authority from exchange participants to the developers of digital tools creating tensions, potentially leading to platform struggles.
• A concern for governance is the coordination and control of digital interactions and exchanges in organizations.

Big Data - Additional Points

• Big data analysis includes structured, unstructured, and enriched data from internal and external sources.

Explore the fundamentals of digital governance in the context of blockchain technology. This quiz covers aspects of blockchain's decentralization, governance trajectory, and the challenges faced in coordinating networks. Test your understanding of how these elements come together in the realm of secure information flows.