Week 07 – Cost of IT (II)
Online discussion questions – Oct 17
- There is only one person at IVK who knows how the internal IT prices are calculated. What would be the risks? How could he/she abuse the system?
- Why is the slush fund at IVK problematic from the perspective of managerial (cost) accounting?
- If you’re Mr. Barton, how would you make the case for new security project funding to business unit managers?
- Any examples of public goods? (other than what we discussed in-class – defense, fresh air, public park, police, fire dept.)
- Any examples of Prisoner’s Dilemma (other than what we discussed in class)?
- If you are a professor, how would you make sure that everyone in a group project works hard and no one free-rides?
Week 7 – Cost of IT (II) – class slides and videos
Week 07 – Cost of IT (II) (color).pdf
Week 07 – Cost of IT (II) (bw).pdf
Chalk Talk – Tragedy of the Commons – NSF (http://www.youtube.com/watch?v=KZDjPnzoge0)
What Is the Prisoner’s Dilemma – Scientific American (http://www.youtube.com/watch?v=jUTWcYXVR5w)
Week 7 – IT Adventures Ch. 8 – Brief Guideline
- Why has Mr. John Cho’s request for IT security funding been being denied?
- Why had Mr. Davies, the former IVK CIO, had to set up a slush fund? How?
- By “one neck in the noose”, what does Maggie (Mr. Barton’s girlfriend) mean?
- What’s Mr. Barton’s decision regarding IT funding and what’s his rationale?
In-class discussion questions – Week 7 (Oct 17)
- Which government spending do you want to cut – military, education, highway?
- Is there a reason not to cut military spending? Is there a reason not to cut education?
- Who controls the IT budget at IVK?
- On what basis do the business units at IVK pay for IT?
- Why had Mr. Davies, the former CIO, had to set up “slush funds”? How did he secure the slash funds?
- The slush fund is technically what? from accounting standpoint?
- Why is Mr. John Cho requesting an immediate funding on IT security?
- Why has the request for IT security funding kept being denied?
- What’s the consideration and decision of Mr. Barton in terms of IT budget funding and controls? What’s his rationale?
- If he controls the entire budget, will all the problems go away?
- What does Maggie, Mr. Barton’s girlfriend/consultant, mean by “one neck in the noose”?
- Suppose that you pay income tax and can live in any house you want for free! (Your government provides housing for you.) What would happen?