Lecture One:

Overview of course:
Management as decision orient activity
How to make decision using more data and knowledge (getting rigth info for right decision)
Consequence of digitilzation, societym orgiznation and individual.
Future role: business translator, consultant company, n
Need to have deeper knowledge and industry or functional expertise

Decision making process:

Can be individual or collective, context free or in context, intuitive or analytic,
human or machines (algorithems)

Digitilization: second machine age

(globalisation- trade wars the role of U and WTO)
(financialisation money matter,)
(Servification intangibles)

Decision making is about

creating attention (what is important how to mearsure preformance)
coordination and control (inside outside, value chain, rules info)
allocating resources (financial, time, where when why)
Motivating (Who when what/ recruitment reward)
Problem solving and learning

Cognitive prespective: how we think/logic/Reasoning (input and output):

Preceptions, prefereence, priorities
Rationality-bounded rationality
System 1 and 2 approach
Biases- heuristicss

Management is science or art about getting thing done. (in contect of Digitilization)
Mobilization of Collective action with other (work together)
System 1 quick decision makign based on experiecne logic with blink gut feelings, judgements
System 2 more scienctific approach, , matrix. Analytical models

Restriction/ boundaries for decision making:

Time
Recourses
Energy/ motivation (competence, relatednesss, loyalty)
During this course Focus is on person and situation ( social psychology) different ppl act
differene in different situation)

System 2 more scienctific approach, , matrix. Analytical models

1. Data
2. Descriptive (experiecene jsudgements)
3. Predictive (use data to predict future, regression coorelation)
4. Prescriptive (use data to give order)

Analystical models
1. Framing assumption
2. Naming
3. Relating
Lecture 2:
Lecture 3:
Chapter 1 Data Science by Kelleher
Date Science encompasses a set of prinicnples problem definitions algorithems and pricess for
extracting non obvious and useful patterns from large data sets.
Date scienec machine learning (design and evaluation of algorithms) and data mining (analysis
of structured data) are interchangeable focus on improving decsision making throuhj the analysis
of data.
Clustring/Customer Segmentation: identifying group of customers exhibiting similar behavior
and teastes.
Association rule minning: indentiies products that are frequently bought together
Anomaly/ Outlier detection: identifying strange or abnormal events (fraudulent clains)
Prediction: identifying these types of classification patterns.
Actionable insight: using the context to describe what we want the extracted patterns to give
us.
Transactional Data vs non transactional data:
Relational Data Model how data were stored indexed and retrived from database.
Meta data: data describing the structure and properties of the raw data.
Big Data defined in terms of: Volume variety and velocity.
Mapreduced framework: where data is distributed on multiple server and partial results
calculated on each servers are merged/ reduced.
Data analysis: descriptive (summerization) vs statistics (measurement)
All of the data in these various databases and data sources will need to be integrated, cleansed,
transformed, normalized, and so on. These tasks go by many names, such as extraction,
transformation, and load , “data munging,” “data wrangling,” “data fusion,” “data crunching,

Use of Data Science: Corporate companies, Governements, Prefessional sports.

Need: Complex and richer profile of customers, commoditization of data, Graphic rendereing
Deep learning: neural network models

Chapter 2 Data Science by Kelleher.

Data set veriables, features and attibutes (consist of attibutes and entites.) n*m
Analytical record:
Types of attributes:
1. numeric. ( Interval scale or ratio scale)
2. Nominal (categories, classes, states of things)
3. ordinal. (similar to nominal but ranking is being used)
Chractistic of data: how we create our data and sense check
Data can be Structured and unstructured:
Data can be captured or exhaust
CRISP-DM life Cycle:
1. Business understading
2. Data understading
3. Data preparation
4. Modeling
5. Evaluation
6. Deployment
Lecture 3:

Competent cotivated loyal employees

Individual motive internal personal subjective thing or common purpose
Practice prespective: team work, shared goals.
Learners and non learners (fixed mindset vs growth mindset)
Emerging culture, cloud computing,
Productivity, paradox, (meansurement problem)
Exploration (sreaching for new) and exploitation (improve what we have)
Innovation – recombination
Complements (tangible and intangibles)
Ideation (coming up with new idea- need of imagination and creativity)
Communication:
Expertise: someone every skillful and well informed.
Developed mindset: more conceptial way
Engagement: ethos of accepting and respobislity of failure
Whats important for expertise:
1. Self efficacy vs over confidence
2. Goal orientation: learning goals vs performance goals
3. Motivation
4. Effort, struggle sacrifice
5. Will power vs procrastination (I’ll do tomorrow)

Range of biases overconfidence (negative point)

Need for social skills - soft skills
T competence
Competence and charater:
1. Wisdom and knowledge
2. Courage
3. Humanity
4. Justice
5. Temperance (self regulation)
6. Transcendence (hope, humor)

Analytical, creative practical people

Four core competencies of creative expression

1. Captureing (gathering, gaining)
2. Surrouding (social setting, enviroment)
3. Challening (goals aim)
4. Broadening (open to new things)

Data architecture:
Describe how data is collected stored transformed distributed and consumed.
Lecture 4:
Mind- a theroy of mind: without understading of our thought and behavior.
Cognition: how we think (process) and feel (emotion).
Utility theory: Explain behavior of individuals based in their choices/ preferecnes. (governence
of pain and pleasure)
Rational choice theory: cost benefit analysis to make choices
Prospect theory: diffrenet situation due to different defination/naming of the siutation.
Discriptive statistics vs probablilities *deals with unknown
Rational choice: expected value (the bell curve, statistics), expected utility
S curve: /Marginal diminishing law
Framing: reference point/
Risk avers/ risk seeking
Framing and Preference:
In many situations we don’t know what we prefer. It changes with situation.
1. Interconnected decision:
2. Pseudocartainty: ppl value the creatoin of certainty over and equally valed shift
3. Whats is worth to you:
4. Endownment efftect: value we place on what we own
5. Mental accounting: different decsion rules to different mental accounts

Heuristics:
Ppl rely in number of sumplifying strategies/rule of thumb when making decisions.(learning and
making deicision with personal understing) self discouvery. Time pressured and time bounded,
experiments.
Types of heuristic:
1. Availability of heuristic: we take what we have/readily avaiable in memory
Leads to cognitive biases (ease of recall and retrievability)

2. Representative heuristic: weak statistical reasoning/ sterotypes thinking.

3. Confirmation heuristic (anchoring and adjustment): (asking for someone help/idea)

 4. Affect/emotional heuristic

Complexity:
1. Difficult to identify casue and effect, causality
2. Systems- intergrated interdependents modules
3. Power laws small casue large consequences

Over confidence- root of all biases

Over precision: living strong believe you are right/ no power to accpet others opinion
Overestimation: believing in we are better smarter faster more capable than we actually are.
1. Illusion control: ppl think they have more control over circumstance than they actually
do.
2. Planning fallacy: tedenecy to overestimate.
3. Optimistic biases: overestimate the rosiness of our future.
4. Self enhancement:motiveted to view themselves positively.
Overplacement: tendency to falsely rank ourself better than we are/ comparing with other

Data: Raw material

Statistics: uncertinities (Big Data)
Probablities: future the unknows
Lecture 5:

Emotions and affects in context of risk and uncertainity.

Orgnaizational emotions
1. Control & turst (centralization/decentralization)
2. Enagement (energy-motivation)
3. Loyalty
4. Fireness/justice (social decision making-
5. Uncertainty & risk (risk possible to measure/ uncertainity difficult to identify cause n
effect)
Regret avoidance:
Emotional and motivation:
1. collision -Want to do and should do.
2. Time prespective –we are biased towards the present
Discounting decision making:
Escalation of commitment: sunk cost
1. Preceptual biases
2. Juddemental biases (risk seeking)
3. Impression management (not wanting toa dmit fail)
4. Competitive irrationality (different logics)
Tools models for risk
1. Regression (bell curve)
2. Diversification (CAPM)
3. Probability distribution (power law pareto 80/.20 smallcasue big consequence)
Statistical measurement: (six sigma, standard devisation, alfa&beta).
How to handle uncertainity;
1. desige of resiliance
2. decentalization decision making structures
Risk as feeling.
Affect: feeling of goodness and badness
Lecture 6:
Algorithm: human created models that process data. AL, Big data, Machine learning
Predictive models, forecasting, probablity, predictions (artifical intellegence) monkey see
monket do.
Machine learning automates the discovery.
’Algorithms rule based on predictions cant and don’t take everything into account
Algorithms do includes most common and impotant things
Who decide what is important (business translator) Data mining

Crate algorithems (based on assumptions)

1. Purpose: focus attention allocate resouccses fimd a problem
2. Framing: define domain
3. Naming define identify important aspects/varibles/ constructs
4. Relating: find out/discuss imporatnt relation between concepts

Machine learning:
Restrictions
1. Cant codify formal rules
2. High cost
3. Computer power (quantum computing)

Symbolists vs comnnectionism:
Machine learning can be
1. Supervised: classficication and regression (decision tree, neutral networks)
2. Unsupervised: clusting

Deep learning:learns hierarchicals represtation from the data itself and scales with more data.
Black box: accountability(provision of reasions, explanations and justifications)
Epistemic (what kind of data) normative standards (how we use it)
Limoncelli: 10 things Executives should know about software
1. software is not magic
2. Software is never done
3. Software is team effort
4. Design isnt how something looks. It is how it works.
5. Security is everything (cybersecutiy, risk)
6. Feature size doesn’t predict developer time
7. Greatness comes from thousands of small improvements
8. Technical debt is bad but unavoidable
9. Software doesn’t run itself
10. Complex system need devops to run well

Organizational limits: Cognition, management policies and constraints (endogenous-exogenous).

By kristina potocnik and thomas calvard (2017)
Decision tree
Algorithms and accountability
Management with software (analysis, decision and action)
Lecture 7:
Lecture 8:
Transformation Microfoundation:
1. roles, (expectation, responsibility/accountability)
2. routines, (process- how work is done/interdependences/learning process)
3. resources (tools-action driven by intentions/goals
4. and rules (matrix)

Process redesign.

Roles; new expectations relations responsibitlies create demands machine capable roels.
Conflicting goals- need of balance
1. Different goals (shareholder&stakeholder
2. Grwoth & profitiablity
3. Efficiency *stability) and Effectiveness flexible adabptibility
4. Time frames – short or long term

Final project: need to use attention, using goals.

Choose one topic, create content, framing dig deeper,
Lecture 9:
CSR (corporate social responsibility)
Disounted cashflow
Total cost of ownership ( value creation- price is not a value)

Analytical approach:
1. Information processing
2. Interpertive approach
3. Politacl approach ( how different interest

Difference knowledge domains, dependence and novelty

T framework for managing knowledge across boundries
Lecture 10:
Strategies for better decision making
1. Use decision Analysis tools
2. Acquire experties
3. Debias your judgement
4. Reason analogically
5. Take an outser view
6. Understand biases in others
7. Nudge wiser and more ethical decision

Imporatance of framing the problem

Design science: how what which where (book in studium)

Univerisal problem: task division, task allocation, provision of reqards and provision of
information, exception management.

Individual level and management level.

Actor and structure (formal vs informal)

Core problems (need a solution)

Class lecture4 :online class

1: RESPECTFUL INQUIRY

Motivation, empowerment, control, encouraging relationship

Self determination theory (that all humans have basic psychological needs, which social
interactions)
Under Behavious, help setting goals feedback, decision making. Integrated leadershp field.

What is respectful inquery

Asking questions, listening attentively to share thoughts
Respectful
Motivational concerpts managerial behavious
Asking questions question openness and attentive listening

Illocutionary strength (confidence commitment to what they are saying )

Listening behaviour (attentivenesss, expression, emotional tone, head movenement, eye

contact)

WHAT CAN WE LEARN FROM THIS LEVEL OF ANALYSIS?

Communicative (showing respect) , informational (accuracy and quality) , procedural giving
voice), justice.

WHAT ARE THE (MOTIVATIONAL) CONSEQUENCES OF RESPECTFUL

INQUIRY?
Autonomy, Competence and relatedness

WHAT ARE THE MOTIVATIONAL ANTECEDENTS OF RESPECTFUL INQUIRY

Own autonomy (threat rigidity)
Insecure about competence
Social insecurity
Desire to protect own ego
Problem in respectful inquery:
Physical distance
Time Presure
Cognitive load
Orgniazation culture
 2: Problem-Finding and Problem-Solving Approach
Resource based capabilities, dynamic capabilities and governance prespectives to help design
organziation. It offers unit o analysis and behavioral assumptions.
1. Resource based capabilities, (allocation of physical and routiens resources)
2. dynamic capabilities (adaptability to changes)
3. governance prespectives (management)
Helps understanding preformance difference, facilitate knowledge trasfer.discover solutions,
implementoin of soulations.
It must incorporate unit of analysis, must adopt behavioral assumtions and must create new
value.
Unit of Analysis:
1. Problem finding, framing and formulating
2. Problem solving
3. Solution implementing
4. Operating implemented solutions.

Governance Prespective:
Commons principles: Conflict, mutuality and order
Governence structure incentive intensity, administrative control and contact law regim.
Behavioral assumtions:
1. Bounded Rationality
2. Opportunism

The Problem-Finding and Problem-Solving Approach

Questions
1. How to find frame and formumation problems and opportunities
2. How to organize knowledge set to search for solutions
3. How to implement soluation and capture value
Chapter 6: Privacy and Ethics (Data Science book)
Reasonable ways to gather and use the data relating to individuals in context.
Adoption of Data driven decision making (infrastructure and technologies)
Data driven decision increase efficiency effectievness competiveness, and securitization (privacy
and data usage).
Profiling and discrimination:
Creating panipticon: Technocratic and control creep
(Person) digital footprint: Privacy perspective (without permission and shared to thirdparty)
1. Data footprint
2. Data shadow

Computational approaches:
1. Differential privacy
2. Federated learning

Legal framework for regulating data use and protecting privacy:

1. Anti-discrimination legislation
2. Personal data-protection legislation

OECD guidelines about Data Set:

Collection limitation Principle. Data should be obtained with knowledge,lawfully,consent
Data Quality Principle: data collected should be relevant to purpose
Purpose specification Principle: purpose should informed for which it’ll be used
Use limitatin Principle: use of data limited to purpose
Safety safeguards Principle: data should be protected against deletion, theft, disclosure
Openness Principle: data should be aquire information with ease
Individual participation Principle: data has right to access and challenge personal data
Accountability Principle: a data controller is accountable for complying with the principles.