Economics

Maxwell’s Demon: Planning for Technology Obsolescence in Acquisition Strategy

Imagine a chamber divided into two parts by a removable partition. On one side is a hot sample of gas and on the other side a cold sample of the same gas. The chamber is a closed system with a certain amount of order, because the statistically faster moving molecules of the hot gas on one side of the partition are segregated from statistically slower moving molecules of the cold gas on the other side. Maxwell’s demon guards a trap door in the partition, which is still assumed not to conduct heat. It spots molecules coming from either side and judges their speeds…The perverse demon manipulates the trap door so as to allow passage only to the very slowest molecules of the hot gas and the very fastest molecules of the cold gas. Thus the cold gas receives extremely slow molecules, cooling it further, and the hot gas receives extremely fast molecules, making it even hotter. In apparent defiance of the second law of thermodynamics, the demon has caused heat to flow from the cold gas to the hot one. What is going on?

Because the law applies only to a closed system, we must include the demon in our calculations. Its increase of entropy must be at least as great as the decrease of entropy in the gas-filled halves of the chamber. What is it like for the demon to increase its entropy? –Murray Gell-Mann, The Quark and the Jaguar: Adventures in the Simple and the Complex, W. H. Freeman and Company, New York, 1994, pp. 222-223

“Entropy is a figure of speech, then,” sighed Nefastis, “a metaphor. It connects the world of thermodynamics to the world of information flow. The Machine uses both. The Demon makes the metaphor not only verbally graceful, but also objectively true.” –Thomas Pynchon, The Crying of Lot 49, J.B. Lippincott, Philadelphia, 1965

Technology Acquisition: The Basics

I’ve recently been involved in discussions regarding software development and acquisition that cut across several disciplines that should be of interest to anyone engaged in project management in general, but IT project management and acquisition in particular.

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Shake it Out – Embracing the Future in Program Management – Part One: Program and Project Management in the Public Interest

I heard the song from which I derived the title to this post sung by Florence and the Machine and was inspired to sit down and write about what I see as the future in program management.

Thus, my blogging radio silence has ended as I begin to process and share my observations and essential achievements over the last couple of years.

My company—the conduit that provides the insights I share here—is SNA Software LLC. We are a small, veteran-owned company and we specialize in data capture, transformation, contextualization and visualization. We do it in a way that removes significant effort in these processes, ensures reliability and trust, to incorporate off-the-shelf functionality that provides insight, and empowers the user by leveraging the power of open systems, especially in program and project management.

Program and Project Management in the Public Interest

There are two aspects to the business world that we inhabit: commercial and government; both, however, usually relate to some aspect of the public interest, which is our forte.

There are also two concepts about this subject to unpack.

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Ch- Ch- Changes–What I Learned at the NDIA IPMD Meeting and Last Thoughts on POGO DCMA

Hot Topics at the National Defense Industrial Association’s Integrated Program Management Division (NDIA-IPMD)

For those of you who did not attend, or who have a passing interest in what is happening in the public sphere of DoD acquisition, the NDIA IPMD meeting held last week was a great importance. Here are the highlights.

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Take Me to the River, Part 1, Cost Elements – A Digital Inventory of Integrated Program Management Elements

In a previous post I recommended a venue focused on program managers to define what constitutes integrated program management. Since that time I have been engaged with thought leaders and influencers in both government and industry, many of whom came to a similar conclusion independently, agree in this proposition and who are working to bring it about.

My own interest in this discussion is from the perspective of maximization of the information ecosystem that underlies and describes the systems known as projects and programs. But what do I mean by this? This is more than a gratuitous question, because oftentimes the information essential to defining project and program performance and behavior are intermixed, and therefore diluted and obfuscated, by confusion with those of the overall enterprise.

Project vs. Program

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Learning the (Data) — Data-Driven Management, HBR Edition

The months of December and January are usually full of reviews of significant events and achievements during the previous twelve months. Harvard Business Review makes the search for some of the best writing on the subject of data-driven transformation by occasionally publishing in one volume the best writing on a critical subject of interest to professional through the magazine OnPoint. It is worth making part of your permanent data management library.

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Three’s a Crowd — The Nash Equilibrium, Computer Science, and Economics (and what it means for Project Management theory)

Over the last couple of weeks reading picked up on an interesting article via Brad DeLong’s blog, who picked it up from Larry Hardesty at MIT News.  First a little background devoted to defining terms.  The Nash Equilibrium is a part of Game Theory in measuring how and why people make choices in social networks.  As defined in this Columbia University paper:

A game (in strategic or normal form) consists of the following three elements: a set of players, a set of actions (or pure-strategies) available to each player, and a payoff (or utility) function for each player. The payoff functions represent each player’s preferences over action profiles, where an action profile is simply a list of actions, one for each player. A pure-strategy Nash equilibrium is an action profile with the property that no single player can obtain a higher payoff by deviating unilaterally from this profile.

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The Monster Mash — Zombie Ideas in Project and Information Management

Just completed a number of meetings and discussions among thought leaders in the area of complex project management this week, and I was struck by a number of zombie ideas in project management, especially related to information, that just won’t die.  The use of the term zombie idea is usually attributed to the Nobel economist Paul Krugman from his excellent and highly engaging (as well as brutally honest) posts at the New York Times, but for those not familiar, a zombie idea is “a proposition that has been thoroughly refuted by analysis and evidence, and should be dead — but won’t stay dead because it serves a political purpose, appeals to prejudices, or both.”

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A Little Bit Moore — Moore’s Law and Public Sector Economics

Back in the saddle and have to just find the time to put some thoughts down.  In dealing with high tech and data issues one of the most frequent counterfactuals that I have been running into lately is in regard to the “cost” associated with data, especially data submissions.  If one approaches this issue using standard economic theory pre-high tech then the positive correlation applies.

But we live in a different world now folks.

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Gotta Serve Somebody — The Proper Balance of Duties in Business–and Project Management

While traveling over the last couple of weeks I was struck by this article in the Wall Street Journal entitled: “Pharmaceutical Companies Buy Rivals’ Drugs, Then Jack Up the Prices.”  The reporter of the article stated in a somewhat matter-of-fact manner that the reason for this behavior was the need for maximization of stockholder value.  Aside from the fact that, with the poorly vetted excuse mongering in the article about fewer opportunities for development and limitations on payments under healthcare, U.S. drugs tend to be significantly higher than generics found overseas, the assumption regarding maximizing stockholder value is misplaced.

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Family Affair — Part III — Private Monopsony, Monopoly, and the Disaccumulation of Capital

It’s always good to be ahead of the power curve.  I see that the eminent Paul Krugman had an editorial in the New York Times about the very issues that I’ve dealt with in this blog, his example in this case being Amazon.  This is just one of many articles that have been raised about the monopsony power as a result of the Hatchette controversy.  In The New Republic Franklin Foer also addresses this issue at length in the article “Amazon Must Be Stopped.”  In my last post on this topic I discussed public monopsony, an area in which I have a great deal of expertise.  But those of us in the information world that are not Microsoft, Oracle, Google, or one of the other giants also live in the world of private monopsony.

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