...COLLECTED VIEWS ON COMPLEXITY IN SYSTEMS JOSEPH M. SUSSMAN JR East Professor Professor of Civil and Environmental Engineering and Engineering Systems Massachusetts Institute of Technology Cambridge, Massachusetts April 30, 2002 The term “complexity” is used in many different ways in the systems domain. The different uses of this term may depend upon the kind of system being characterized, or perhaps the disciplinary perspective being brought to bear. The purpose of this paper is to gather and organize different views of complexity, as espoused by different authors. The purpose of the paper is not to make judgments among various complexity definitions, but rather to draw together the richness of various intellectual perspectives about this concept, in order to understand better how complexity relates to the concept of engineering systems. I have either quoted directly or done my best to properly paraphrase these ideas, apologizing for when I have done so incorrectly or in a misleading fashion. I hope that this paper will be useful as we begin to think through the field of engineering systems. The paper concludes with some “short takes” -- pungent observations on complexity by various scholars -- and some overarching questions for subsequent discussion. AUTHOR A THEORY OF COMPLEX SYSTEMS Edward O. Wilson Herbert Simon SOURCE Consilience: The Unity of Knowledge “The Architecture of Complexity”, Proceedings of the American Philosophical Society, Vol. 106, No. 6, December...
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...Complexity Analysis Introduction This integrated essay focuses on explaining and discussing how small changes in a given system can result to large and radical transformational changes in an organization within the framework of complexity theory. The paper offers a description of the complexity theory, an analysis, explanation and discussion, the conclusions, extending the discussion, and the references. Description of Theories/ Core Concepts The complexity theory is a framework that focuses on analyzing the nonlinear dynamics of systems. It is a loose assortment of concepts and analytic tools that seek to analyze complex and dynamic systems (Litaker, Tomolo, Libaratore, Stange & Aron, 2006). The complexity theory suggests that simple deterministic actions can cause highly complex and unpredictable behaviors, as well as, exhibit order and patterns. The theory seeks to explain how systems learn and spontaneously organize themselves into structured and sophisticated forms that respond better to their environments. Although the complexity theory was created in the biological and physical sciences, numerous scholars have noted that economic and social systems also exhibit nonlinear relationships and complex interactions. Economists and social scientists have noted the significance of complexity theory by observing the level of interrelationships among components of the social system (Koen, 2005). For instance, in the business setting, economists have noted that business success...
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...Importance Perspective We found the research itself on the effects of reporting complexity rather interesting as regulators continuously attempt to reach a state of equality between both small and large investors. While the SEC has assisted in granting electronic access to financial information for small investors, it kind of seems counterintuitive that many small investors receive a minimal benefit as report complexity has continued to increase which in most cases lead to higher processing costs. Arthur Levitt, former SEC chairman has said that “In many cases, the problem is not a lack of information; it is actually quite the opposite. To much information can be as much of a problem as to little and more disclosure does not always mean better disclosure.” More information and disclosure, especially to small investors is seen as a negative attribute as it once again comes back to higher processing costs from resources they do not have. This makes it rather difficult for small investors to make an informed investment decision surrounding the filing date of a company’s 10-k. Hypotheses Brian Miller derived two hypotheses, with one consisting of an A & B format surrounding the effects of reporting complexity on small and large investors in order to guide his research. The first hypothesis H1(a) is Total abnormal trading around a 10-K is lower when reports are more complex. Mr. Miller stated that if reports become complex (based...
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...Part IV Emerging and Integrating Perspectives January-2007 MAC/ADSM Page-213 1403_985928_17_cha14 January-2007 MAC/ADSM Page-214 1403_985928_17_cha14 CHAPTER 14 Complexity Perspective Jean Boulton and Peter Allen Basic principles The notion that the world is complex and uncertain and potentially fast-changing is much more readily acceptable as a statement of the obvious than it might have been 30 years ago when complexity science was born. This emerging worldview sits in contradistinction to the view of the world as predictable, linear, measurable and controllable, indeed mechanical; it is the so-called mechanical worldview which underpins many traditional approaches to strategy development and general management theory (see Mintzberg, 2002 for an overview). The complexity worldview presents a new, integrated picture of the behaviour of organisations, marketplaces, economies and political infrastructures; these are indeed complex systems as we will explain below. Some of these behaviours are recognised in other theories and other empirical work. Complexity theory is unique in deriving these concepts through the lens of a coherent, self-consistent scientific perspective whilst nevertheless applying it to everyday, practical problems. These key principles can be summarised here: There is more than one possible future This is a very profound point. We are willing to accept the future may be too complicated to know, but the notion...
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...hj Amazon US | UK | There is a growing popular literature on chaos and complexity (eg Stewart 1989; Kauffman 1993) authored by scientists of high reputation writing about research fields in which they are themselves active. There is also a burgeoning literature (eg Wheatley 1992; Stacey 1992, 1996; McMaster 1995, Merry 1995) which draws on this work to address management concerns and practices, but whose authors are experienced in management and management education rather than in the substantive scientific fields whose findings they report and interpret. I shall refer to this arena as ‘management complexity’. There is some evidence of managerial take-up of ‘complexity’ as a framework for informing organisational practice. This is still at an early stage, and take-up may or may not lead to take-off. The purpose of this paper is to contribute to a discussion of the validity and significance of these ideas for the management of organisations. The type of questions which I shall at least be raising are: * what failings in current management theory or practice are claimed to be corrected? * how novel are the management prescriptions which are derived from complexity theory? how plausible? * does complexity theory provide scientific authority for these prescriptions? I will first provide the briefest of overviews of the subject matter of chaos and complexity theory, followed by an outline of the ways in which they have been applied to the field of management. I will...
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...so. This is an inaccurate geographical imagination, though one which is useful to some. In fact what is going on is far more complex. To give some examples of this greater complexity; first at the same time as some barriers are falling we are also building a newly regionalised world of Europe, of the Far East, and of the countries of NAFTA." Using this quotation the complexity is the creation of new types of borders (i.e. while some barriers are falling, others are being put up). What you need to do then, is think about what types of challenges this complexity might create in future. For example, perhaps the challenge will be the inaccessibility and exclusivity these barriers might pose to some. Or perhaps the challenge is the management of those barriers? Another way of conceptualising the challenges presented by this complexity may be to consider the way in which it fosters isolated cooperation or understanding amongst peoples. Does this make sense? The readings cite a number of complexities associated with globalisation - they are present conditions that have resulted from global processes. The challenges are things that we will face in future, as a result of these complexities. We cannot know definitively what those will be, but we can certainly think about the prospects. | | Another complexity: trade with nations far away? | INTRODUCING HUMAN GEOGRAPHIES BY CRANGE ET. AL. | NOTES | PAGE NUMBER | COMMENTS ON INFORMATION | - | | | | NOTES | PAGE NUMBER...
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...caused a lot of administrative mistakes and wrong deliveries, which in turn meant more costs for Boeing. First, the largest airlines established EDI connections with Boeing over VAN’s, but this system was also very complex and costly and the majority of the airlines didn’t use it. With the use of the Internet, Boeing saw a huge potential to achieve even more customers in a cheaper and more efficient way. The good-working PART system may even encourage customers to buy Boeing aircrafts because of the good service quality. 2. What motivated the move from EDI to the Internet? Until 1992 only 10 percent of the largest customers were using EDI to order parts from Boeing. The main reasons for this weak performance were high costs and the complexity of VAN-based EDI. The internet itself is characterized by a very easy and cheap access, and Boeing saw the opportunity to encourage more of its customers to order parts electronically. Not only the largest airlines ordered their parts via the internet but also the smallest airline or company was now able to participate in PART. Consequently Boeing was able to increase the order volume in a very short period and could save money at the same time, because more than 600 phone calls per day were eliminated. Boeing was able to satisfy their customers on the one side, and work more...
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...ongoing globalisation has brought increased complexity to mostly every aspect of the business world, and supply chains are also affected to a large extent. Overly complex supply chains are not adaptable so many companies are facing failures. The only way left is to reduce complexity in supply chains by using different techniques. Companies with more mature supply chain practices can reduce costs and can achieve higher profits. Industry leaders are using this advantage to increase market share and are competing effectively. Innovation in supply chain can transform the industry in which firm competes, companies like Dell, Wal-Mart and Zara has done the same and have met the success. Physical breadth and configuration, relationship with suppliers and customers, management and organizational structure are some of the physical factors which have contributed to the problem. There are number of causes to complexity in supply chains as competitive pressure, lack of an integrated functional approach and time factor. Contrary to this, simplification is one such factor that can impact the entire supply chain, and can yield satisfied customers through following factors. More responsiveness Lower operation costs Consistent quality Enhanced performance Customer Satisfaction = If a process can be made simpler it usually performs better. The complexity reduction framework breaks down supply chain complexity into its component parts. Since supply chain...
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...Tracing Complexity Theory by Pedro Ferreira For ESD.83 – Research Seminar in Engineering Systems Fall 2001 Summary This work traces the development of complexity theory as a field of study. Complexity theory studies and analyzes complex systems and aims at understanding their structure and behavior. A complex system is characterized by emergent behavior resulting from the interaction among its parts and, for that reason it cannot be fragmented without losing its identity and purposefulness. Therefore, complexity theory is at the heart of what systems are today, and is concerned with the idea that a system is more than just assembling a set of machines together. To deal with this kind of systems, researchers use abstraction and rely heavily on computer simulation to derive steady-state information about the system, in form of invariants, limiting cycles and attractors. Complexity theory has a large scope of application in today’s life mainly because real world systems are all complex. This document presents ideas, definitions and properties of complex systems and introduces some of the tools and methods used in complexity theory. It also analyzes the origins of this field of study and includes an assessment about its success and relevance. 1 Ideas about Complex Systems Complexity theory encompasses a body of knowledge aimed at analyzing complex systems. Some views put up by researchers dealing with complex systems, compiled by Joseph Sussman in 2000...
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...elsewhere in the course (such as in the theoretical paper assignment next week—hint, hint). Your initial post should contain 3 scholarly citations and 3 references minimum (your textbook may NOT serve as a source for this forum). After reviewing this week’s required PowerPoint presentation, the theory I chose to further discuss is complexity theory. According to the presentation, complexity theory is relevant to all traditional fields, focuses on specific questions about parts, wholes and relationships, cuts across all disciplines of science and, is the study of complex systems and understanding their indirect effects (Introduction to the Theoretical and Conceptual Foundations of Organizational Management, n.d., p. 19). Another more specific definition of complexity theory is that it is the study of “how order, structure, pattern, and novelty arise from extremely complicated, apparently chaotic systems and conversely, how complex behavior and structure emerges from simple underlying rules” (Cooke-Davies et al., 2007, p. 52). Complexity theory and, in turn, complexity thinking is ideally suited in for managing organizations because ‘“complexity management is coupled to ethics or values – the need to encourage a diversity and autonomous action implies a respect for other people (and their ideas) and a high level of trust’ and a common vision” (as cited in Swanson & Zhang, 2011, p. 40). The third article I chose to review for this week’s assignment...
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...who is a pay leader, is in the process of creating a pay structure for the company using a point job evaluation system. The job that is currently in question is an entry-level computer engineer. The compensable factors are weighted out of 1000 points and those that have been selected for this job are education (200 pts), experience (200 pts), complexity (250 pts), and responsibility (350 pts). Education is divided into five degrees: Doctorate (200), Masters (150), Bachelors (100), Associates/ Some College (50), High School or less (0). Experience is divided into five degrees: 10+ years of experience (200), 6-9 years of experience (150), 3-5 years of experience (100), 1-2 years of experience (50), little to no experience (0). Complexity is divided into four degrees: very complex (250), complex (150), somewhat complex (50), not very complex (0). Finally, responsibility is divided into four degrees: supervisor (350), senior engineer (250), engineer (150), junior engineer (50). The computer engineer job would receive 100 pts for education, as a bachelor’s degree is needed, 0 pts for experience, since it is an entry-level job, 250 for complexity because the position is that of an engineer,...
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...Global Management Assignment – The IBM Case Please answer the following questions: (1) What global forces drove IBM to become a globally-integrated enterprise? An increasingly global world creates many opportunities – easier and faster communication, more affordable and more refined solutions, as well as a better interconnectivity between customers and suppliers around the globe. As the internet has deeply integrated itself into the economic performance of companies and countries at meso and macro levels, the competition between suppliers is increasing and fostering a more rapid innovation cycle. As new markets open up and offer new profit pools for companies, it is essential for firms such as IBM to be on top of their game. They need to analyze and understand market trends before they are even born and respond with a global solution, which is capable of taking transnational strategies and skillfully translating them for the local market needs. The biggest market for any company might not always be its home market. Free markets around the world create many opportunities for growth. However, if IBM fails to identify these opportunities, it can cost the company its survival, as the competition quickly moves in and takes over. Globalization means more options and power for customers, as all over the world people can virtually connect with companies, goods and services anywhere. Therefore, open markets, new market entries, developing government policies, increased customer...
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...William Paley uses the analogy of finding a watch vs. finding a stone in nature, and the complexities of the watch that are not similarly found in something like a stone, to prove that we, as complex beings that can reproduce, must also have a supreme designer the same way a complex watch has a designer. Paley goes through some of the parts of a watch and explains each specific purpose they serve in the mechanism and the great deal of care each piece was placed with. Given the complexities of the watch, it is clear that the watch in question must have had a creator, a designer who made everything as it was for a reason. Even though we may not know a watchmaker personally, or have not seen a watch being made, ancient art being created, etc. we understand that there was someone who created these things at some point in time and these creations served a specific purpose. It is absurd to think that something with a design did not have a designer. Paley then asks us to consider the possibility that the watch in question contained a specific set of parts that would allow it to create another watch like itself. If someone found this watch and then later discovered it could reproduce, the person who found the watch would no doubt see it in a new light and see this as a new reason to believe that a designer put a great deal of thought into this creation. He also uses an analogy of water powered corn grinder to show that although water is unintelligent, the manner in which it is used in...
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...Ama Dente MHA 601: PRINCIPLES OF HEALTH CARE ADMINISTRATION Error Avoidance in Post Modern/Complex Adaptive Systems Professor: Tricia Devin December 10, 2012 Post-modernist/complex adaptive systems are modern theories of management that deal with relationships within the organization and how the organization is structured. As in all positions of leadership, managers in these organizations have to possess tools necessary to keep their part of the organization running smoothly. Many of these managers employ the postmodernist complex adaptive systems theory because it allows for less rigid boundaries during the planning and implementation process as well as constantly reminding the manager that the staff is a critical component to the organization as well. Being in a position of leadership means that it is up to that person to handle any problems that may arise during the lifetime of the organization. This paper focuses on ten possible errors that can be found in health care organizations. For each of these errors, I will discuss what makes it an error and what way the error can be avoided. The first error that will be discussed is “failing to account for employees' ability to learn safe machine operation methods by experimenting on their own with ways to speed up production and thereby reduce the effort they are required to use.” The first criterion that proves this to be an error is that the failure to account for an employee's...
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...model equations are always different. There are different ways to solve for the same cost driver. The best way to be accurate is to try and isolate activities down to the component drivers. For instance, with deliveries we can further break that out into deliveries for desktop service and commercial delivery. Now if with commercial deliveries, if the cost was driven by expedites or overnight orders then ideally we would account for those. The further detail we try and obtain the more complex our overall method becomes. To combat these complexities and still seek detail we can lean on technological developments in software that can aid in these efforts. Overall, this case left out a lot of details such as total number of orders and better detail on acquisition cost. We could have obtained more accuracy if we had more details around current expenses and orders. For a simple company such as a paper distributor, I would have not anticipated such complexity in calculating cost. This assignment took a long time, but I have a much deeper appreciation for calculating accurate cost. Order entry personnel spend a disproportionate amount of time with manual orders which is driving up cost. Customers that are not utilizing EDI should pay at least $90 more per order. Financing customers for A/R is costing his company money every month, and he might consider charging these customers more as...
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