Compartmented systems
This page describes the organizational forces that limit change.  It explains how to overcome them when necessary. 

Power& tradition holding back progress
This page uses an example to illustrate how:
  • A business can gain focus from targeting key customers,
  • Business planning activities performed by the whole organization can build awareness, empowerment and coherence. 
  • A program approach can ensure strategic alignment. 
Be responsive to market dynamics
This page uses the example of HP's printer organization freeing itself from its organizational constraints to sell a printer targeted at the IBM pc user. 
The constraints are described. 
The techniques to overcome them are implied. 
Overcome reactionaries
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The success of compartmented systems

Summary
Lou Gerstner describes the challenges he faced and the strategies he used to successfully restructure the computer company IBM. 
Who Says Elephants Can't Dance?
In Lou Gerstner's book "Who Says Elephants Can't Dance?" he describes how he faced the imminent death of the company.  He used the situation to transform the company into a key competitor in the growing Internet and global technology consulting markets.   He was able to do this in part because of the nature of IBM, and his
This page looks at schematic structures and their uses.  It discusses a number of examples:
  • Schematic ideas are recombined in creativity. 
  • Similarly designers take ideas and rules about materials and components and combine them. 
  • Schematic Recipes help to standardize operations. 
  • Modular components are combined into strategies for use in business plans and business models. 

As a working example it presents part of the contents and schematic details from the Adaptive Web Framework (AWF)'s operational plan. 

Finally it includes a section presenting our formal representation of schematic goals. 
Each goal has a series of associated complex adaptive system (CAS) strategy strings. 
These goals plus strings are detailed for various chess and business examples. 
strategic capabilities


Gerstner concluded that IBM's core was its mainframe franchise.  It had been
This page reviews Christensen's disruption of a complex adaptive system (CAS).  The mechanism is discussed with examples from biology and business. 
disrupted
, he writes, by UNIX is a computer operating system.  It is a registered trademark of AT&T. 
cracking the foundations, and PC is personal computer
market wrecking the superstructure.  So he made two big bets:
  1. On the industries direction.  He concluded that
    • "Over the next decade, customers would increasingly value companies that could provide solutions--solutions that integrated technology from various suppliers and, more important, integrated technology into the processes of an enterprise.  " and
    • "The emergence of a networked model of computing [that] would replace the PC is personal computer
      -dominated world of 1994.  "
  2. On IBM's strategy.  He writes that "We bet that the historical preoccupations with chip speeds, software versions, proprietary systems, and the like would wane, and that over time the information technology industry would be services-led, not technology-led.  "
The successful restructuring left IBM with a remarkably similar set of businesses Gerstner comments.  With the emergence of IBM global services, and the subsequent purchase of Price Waterhouse Coopers by Sam Palmisano, to
This page discusses the benefits of bringing agents and resources to the dynamically best connected region of a complex adaptive system (CAS). 
centralize
IBM in the services business, the assets that the company needed to succeed were all in place.  What Gerstner did was to:
  • Change all the products and technologies from proprietary to open architectures. 
  • Walk away from the architectural control points that had leveraged the business model.  The most challenging was
  • Change the "mindset and instincts of hundreds of thousands of people who had grown up in an undeniably successful company [...], to live, compete, and win in the real world. "
Having cut back the company to
Strategy gives way to tactics.  If you your company or other emergent system collapse there is no further possibility of strategic action.  This page discusses the importance of sustaining the base of operations to support subsequent strategic action. 
create a strong base
, and gained a
This page reviews the potential to benefit from strategy in a complex adaptive system (CAS).  The challenges described by Dorner require a careful search of the proximate environment. 
clear, personal, understanding of the situation
Gerstner selected appropriate building blocks from the technologies and employees and side stepping the client server wars he drove IBM towards his new vision where he could
Rather than oppose the direct thrust of some environmental flow agents can improve their effectiveness with indirect responses.  This page explains how agents are architected to do this and discusses some examples of how it can be done. 
indirectly attack
his competitors as a business
This page reviews the strategy of bundling multiple products within a single offer in a complex adaptive system (CAS).  The mechanism is discussed with examples from biology and business. 
super-organism
feeding off the high profit networked computing market. 

Gerstner was able to leverage IBM's culture, products and businesses because they were structured to allow this.  IBM was already organized around a giant mainframe market and so Gerstner could leverage this in targeting a new giant market.  IBM was not one giant shell containing hundreds of thousands of employees.  It was highly compartmentalized, and most of the compartments that had contributed to the success of the mainframe were applicable in the new market.  The key was the adjustments that Gerstner did to the culture of IBM, the
Plans change in complex adaptive systems (CAS) due to the action of genetic operations such as mutation, splitting and recombination.  The nature of the operations is described. 
genetic operations
that he performed on the agent's
Plans emerge in complex adaptive systems (CAS) to provide the instructions that agents use to perform actions.  The component architecture and structure of the plans is reviewed. 
schematic plans
. Cultural plans which drove the activities and judgments of IBM employees. 
This page discusses the mechanisms and effects of emergence underpinning any complex adaptive system (CAS).  Key research is reviewed. 
Emergent
changes to IBMs many business functions. 

Our point is that compartmentation extends the adaptability of CAS
Plans are interpreted and implemented by agents.  This page discusses the properties of agents in a complex adaptive system (CAS). 
It then presents examples of agents in different CAS.  The examples include a computer program where modeling and actions are performed by software agents.  These software agents are aggregates. 
The participation of agents in flows is introduced and some implications of this are outlined. 
agents


In the realm of biology eukaryotes, a relatively large multi-component cell type from which yeast and multi-celled plants and animals, including humans, is constructed.  It contains modules including a nucleus and production functions such as mitochondria.   demonstrate a huge variety of combinations of essentially similar components.  Many of the most valuable components are enclosed prokaryotic, a single cell system exemplified by the bacteria.  Prokaryotes have their own DNA and infrastructure within a single enclosure.   bacteria.  These act as production functions within each eukaryotic cell.  The eukaryotic cells further deploy in clusters that can be specialized and cooperate.    The adjustment to shifts in the environment and competitive situation can consequently include changes in size, shape, sexual motif... 

It seems likely that the rate of Darwinian
This page reviews the implications of selection, variation and heredity in a complex adaptive system (CAS).  The mechanism and its emergence are discussed. 
evolution
is far higher than has been assumed based on mutation because recombination is so powerful in emergent compartmentalized
This page reviews the implications of reproduction initially generating a single child cell.  The mechanism and resulting strategic options are discussed. 
organisms
.  Many types of compartment can be leveraged by schematic recombination. 
This page discusses the strategy of modularity in a complex adaptive system (CAS).  The benefits, mechanism and its emergence are discussed. 
Modularity
may be beneficial.  Alternatively symbiotic production function relationships may be simpler to effect.  The insect
E. O. Wilson & Bert Holldobler illustrate how bundled cooperative strategies can take hold.  Various social insects have developed strategies which have allowed them to capture the most valuable available niches.  Like humans they invest in specialization and cooperate to subdue larger, well equipped competitors. 
super-organism
extends the operation further. 

In general the ability to recombine schematically and have the changes reflected in each compartment of the
This page reviews the implications of reproduction initially generating a single child cell.  The mechanism and resulting strategic options are discussed. 
organism
when appropriate have proved to be very competitive.  


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integrating quality appropriate for each market
 
This page looks at schematic structures and their uses.  It discusses a number of examples:
  • Schematic ideas are recombined in creativity. 
  • Similarly designers take ideas and rules about materials and components and combine them. 
  • Schematic Recipes help to standardize operations. 
  • Modular components are combined into strategies for use in business plans and business models. 

As a working example it presents part of the contents and schematic details from the Adaptive Web Framework (AWF)'s operational plan. 

Finally it includes a section presenting our formal representation of schematic goals. 
Each goal has a series of associated complex adaptive system (CAS) strategy strings. 
These goals plus strings are detailed for various chess and business examples. 
Strategy
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This page uses an example to illustrate how:
  • A business can gain focus from targeting key customers,
  • Business planning activities performed by the whole organization can build awareness, empowerment and coherence. 
  • A program approach can ensure strategic alignment. 
Program Management
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