Assignment 5

Mr. Chambers speaks about how Cisco uses collaboration and a unique business model to create an innovative and successful business. One of the key points the Mr. Chambers makes is that collaboration is great, but when you add a visual aspect its benefits are amplified. Productivity can be increased, especially in companies in which travel is needed to hold national and international meetings.

Cisco also uses workgroups and a flat rather than hierarchical structure to work on projects. Cisco empowers more people within its organization to take charge of projects and make the necessary decisions which in turn allows the projects to come to completion much more quickly. The leaders involved in each project are able to focus their energy on just two or three projects rather than having only a superficial involvement in ten projects.

Cisco has found that if they provide the means for their employees to collaborate, they are more likely to use those channels not because they are forced to, but for the leverage that the collaboration offers. Over time, people begin to see the advantages of sharing information which one another and more and more become involved in blogging, messaging and other forms of collaboration.

Assignment 4

Nucor Steel created a social ecology which created a knowledge spiral within the company. By creating an environment in which employees are encouraged to learn and share knowledge, the socialization of knowledge occurs. During socialization, Nucor employees are able to pass tacit knowledge along to each other. The combination and externalization of knowledge is encouraged in Nucor Steel since the employees are able to receive bonuses based on discoveries they make. Employees are taught that they are accountable for their decisions, but that mistakes are an expected part of the learning process.  To reap the benefits of the pay incentives, employees must have a way to document and share their knowledge. Nucor Steel not only uses IT to help transmit the documented knowledge, but also takes advantage of face-to-face communication for knowledge that is difficult to document.

Nucor employees are empowered with the ability to thoroughly learn the ins and outs of the steal industry. Because they are able to internalize the information they are presented with, they are able to make better decisions when it comes to engineering technologies.

Because the knowledge created at Nucor Steel is retained, the company is able to move through a knowledge spiral into a deeper and deeper understanding of all that affects the steel industry. While other steel companies may make discoveries, not having a process in place to share these discoveries keeps them at the top or shallow part of the spiral; constantly acquiring the same knowledge.

Assignment 3

Beaumont Hospitals in Michigan is utilizing an Electronic Health Record (EHR) keeping system to help improve patient care. According to beaumonthospitals.com, by using EHRs, physicians will have the ability to enter all orders onto the system rather than writing physician’s orders by hand. This will help reduce error caused by messy handwriting that is so stereotypical of doctors. Although the hospital has added an EHR system partially to receive funding from the government, it has participated with enthusiasm and has seen an improvement in patient care. In addition to the provisions required by the Medicare and Medicaid EHR Incentive Programs to receive funding, the hospital plans to “optimize” their use of the system by analyzing current use and making changes where needed. The EHR system also includes a feature unique to Beaumont Hospitals called MyBeaumontChart in which patients can “access to their personal patient record. This allows them to see test results, schedule appointments, check payment balances, review immunization records and download patient education material related to their condition”.

The addition of an EHR system will dramatically improve patient care in hospitals, but there are a few things that developers and doctors should keep in mind. While alerts about dangerous drug interactions and allergies are extremely useful, they should be careful that the doctors do not see these alerts so often that they click through them without acknowledging them. Also, doctors should be aware that the system is not going to be infallible and when they are in doubt they should use their intuition and research further if needed. If doctors become too reliant on the system, they will lose their ability to think critically and identify faulty information.

Assignment 2

Businesses are highly dependent on the warehousing and analysis of data to make a majority of their strategic decisions. Although this information is highly valued, the concept of systematic irrationality may actually decrease the significance of the charts and graphs derived from the data so carefully collected everyday. Systematic irrationality introduces the idea that although humans are rational beings and are expected to use that gift to make daily decisions, other factors come into play such as the emotions that making certain decisions might evoke. In addition, a person may choose differently based on relative rather than actual data.


In The Mind of the Market—Compassionate Apes, Competitive Humans and Other Tales From Evolutionary Economic, Micheal Shermer studies the economic impact of such irrationality. Adding emotions and other unforeseen factors into decision making means businesses need to reevaluate the data they collect. Drawing linear conclusions using concrete statistics is not enough to make decisions, because many people are not actually choosing the most rational (mathematical) method to make their decisions.


As a society, we need to recognize the importance of constantly reevaluating the data we keep, and try to capture the less obvious information as well as the obvious. Recording and managing trends, while helpful, will be difficult as new environmental factors will constantly come into play. We must steer away from making assumptions that something that has worked in the past will always work. Dan Ariely touches on this concept when he talks about the nurse who insisted that removing the bandage quickly was the best way because that is the we she has always done it and that is how she was taught to do it. If she were to take a step back and discover for herself the best way, she would have brought more comfort to her patients. What was more comfortable for Dan may not be comfortable for every patient, and it is important to reevaluate each situation. For each new patient, she can draw on past experiences to help make decisions, but keep an open mind.


Businesses can apply this same concept to assist in making better decisions. By involving historical data and observing the current environment, thereby incorporating both rational and irrational decision making; businesses will enhance their ability to make strategic decisions.