A deontic analysis of inter -organizational control requirements

This research focuses on the design and verification of inter-organizational controls. Instead of looking at a documentary procedure, which is the flow of documents and data among the parties, the research examines the underlying deontic purpose of the procedure, the so-called deontic process, and identifies control requirements to secure this purpose. The vision of the research is a formal theory for streamlining bureaucracy in business and government procedures. ^ Underpinning most inter-organizational procedures are deontic relations, which are about rights and obligations of the parties. When all parties trust each other, they are willing to fulfill their obligations and honor the counter parties’ rights; thus controls may not be needed. The challenge is in cases where trust may not be assumed. In these cases, the parties need to rely on explicit controls to reduce their exposure to the risk of opportunism. However, at present there is no analytic approach or technique to determine which controls are needed for a given contracting or governance situation. ^ The research proposes a formal method for deriving inter-organizational control requirements based on static analysis of deontic relations and dynamic analysis of deontic changes. The formal method will take a deontic process model of an inter-organizational transaction and certain domain knowledge as inputs to automatically generate control requirements that a documentary procedure needs to satisfy in order to limit fraud potentials. The deliverables of the research include a formal representation namely Deontic Petri Nets that combine multiple modal logics and Petri nets for modeling deontic processes, a set of control principles that represent an initial formal theory on the relationships between deontic processes and documentary procedures, and a working prototype that uses model checking technique to identify fraud potentials in a deontic process and generate control requirements to limit them. Fourteen scenarios of two well-known international payment procedures—cash in advance and documentary credit—have been used to test the prototype. The results showed that all control requirements stipulated in these procedures could be derived automatically.^

A Deontic Analysis of Inter-Organizational Control Requirements

This research focuses on the design and verification of inter-organizational controls. Instead of looking at a documentary procedure, which is the flow of documents and data among the parties, the research examines the underlying deontic purpose of the procedure, the so-called deontic process, and identifies control requirements to secure this purpose. The vision of the research is a formal theory for streamlining bureaucracy in business and government procedures. Underpinning most inter-organizational procedures are deontic relations, which are about rights and obligations of the parties. When all parties trust each other, they are willing to fulfill their obligations and honor the counter parties’ rights; thus controls may not be needed. The challenge is in cases where trust may not be assumed. In these cases, the parties need to rely on explicit controls to reduce their exposure to the risk of opportunism. However, at present there is no analytic approach or technique to determine which controls are needed for a given contracting or governance situation. The research proposes a formal method for deriving inter-organizational control requirements based on static analysis of deontic relations and dynamic analysis of deontic changes. The formal method will take a deontic process model of an inter-organizational transaction and certain domain knowledge as inputs to automatically generate control requirements that a documentary procedure needs to satisfy in order to limit fraud potentials. The deliverables of the research include a formal representation namely Deontic Petri Nets that combine multiple modal logics and Petri nets for modeling deontic processes, a set of control principles that represent an initial formal theory on the relationships between deontic processes and documentary procedures, and a working prototype that uses model checking technique to identify fraud potentials in a deontic process and generate control requirements to limit them. Fourteen scenarios of two well-known international payment procedures -- cash in advance and documentary credit -- have been used to test the prototype. The results showed that all control requirements stipulated in these procedures could be derived automatically.

Cuba’s Role in Venezuela’s Control of the Internet and Online Social Networks

The arrival of Cuba’s Information Technology (IT) and Communications Minister Ramiro Valdés to Venezuela in the Spring of 2010 to serve as a ‘consultant’ to the Venezuelan government awakened a new reality in that country. Rampant with deep economic troubles, escalating crime, a murder rate that has doubled since Chávez took over in 1999, and an opposition movement led by university students and other activists who use the Internet as their primary weapon, Venezuela has resorted to Cuba for help. In a country where in large part traditional media outlets have been censored or are government-controlled, the Internet and its online social networks have become the place to obtain, as well as disseminate, unfiltered information. As such, Internet growth and use of its social networks has skyrocketed in Venezuela, making it one of Latin America’s highest Web users. Because of its increased use to spark political debate among Venezuelans and publish information that differs with the official government line, Chávez has embarked on an initiative to bring the Internet to the poor and others who would otherwise not have access, by establishing government-sponsored Internet Info Centers throughout the country, to disseminate information to his followers. With the help of Cuban advisors, who for years have been a part of Venezuela’s defense, education, and health care initiatives, Chávez has apparently taken to adapting Cuba’s methodology for the control of information. He has begun to take special steps toward also controlling the type of information flowing through the country’s online social networks, considering the implementation of a government-controlled single Internet access point in Venezuela. Simultaneously, in adapting to Venezuela’s Internet reality, Chávez has engaged online by creating his own Twitter account in an attempt to influence public opinion, primarily of those who browse the Web. With a rapidly growing following that may soon reach one million subscribers, Chávez claims to have set up his own online trench to wage cyber space battle.