In our application we have a repository that contains things (they are called methods and queries, but this is not particularly relevant for this question). Each thing has a title, description (though some may lack both) and some other data. Users save things to repository and load and use things from repository.
I wonder what is the best way to organize the repository from usability point of view. There seems to be two major approaches. The first approach is to put things in folders, subfolders and so on, and have a hierarchical structure similar to a filesystem. The second approach (that has become fashionable) is two have a flat space and assign zero or more tags to each thing, so that users can view a list of things for a particular tag.
Currently we use flat space, tags and search. It appears to be somewhat unmanageable. I am not sure if switching to folders/subfolders will make it better.
I would like to learn more about the pros and cons of each approach and what properties of the collection and the things themselves suggest using one or another approach or a combination of both. If anybody can point me to some studies or discussions of those, I would really appreciate that.