Workflow business strategyWhen HP corporate authorized 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.creation of a software business unit it was assumed that the product sales would ramp once removed from the line control of other businesses. In the newly created unit there were a variety of products targeting diverse market segments. One product that became a focus for the executives was a workflow, in business processes define the movement of a case file between cooperating agents who when they possess the case perform the activities outlined in the flow to complete a process. The flows and their control have been automated with workflow servers moving the case to the agents. The flowchart style model of the automated flows does not typically reflect the true adaptive nature of the collaborative interactions of the agents. engine.
Strategically it is an interesting scenario, since it demonstrates:
New product developmentThe integration within a business of a central research lab is viewed as a core technology strategy enabling technology transfer. However, complex adaptive system (
This page introduces the complex adaptive system (CAS) theory frame. The theory provides an organizing framework that is used by 'life.' It can be used to evaluate and rank models that claim to describe our perceived reality. It catalogs the laws and strategies which underpin the operation of systems that are based on the interaction of emergent agents. It highlights the constraints that shape CAS and so predicts their form. A proposal that does not conform is wrong.CAS) analysis suggests that the research process is analogous to the germination process. Just as male chromosomes are an aggregate of a very long DNA molecule with associated proteins including histones. Human chromosomes are visible as 23 distinct pairs during cell division, prior to their refolding into chromatin structures.
John Holland's framework for representing complexity is outlined. Links to other key aspects of CAS theory discussed at the site are presented.
must be carefully separated in 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 create new generations of genome the research process within academia is clearly separated. In a business research lab the separation is hard to maintain, and so the researchers come under strong pressure to tailor their research to expected return and justify the business outcomes of their work.
ModularityThe workflow server had been designed to enforce ordered execution of well-defined process graphs found in computer aided design and in regulated communications within the oil, finance and insurance reduces volatility in standard of living by compensating for losses of income during periods of unemployment, for catastrophic losses from disaster, or death of a family income earner as described by Gordon. Insurance companies must set aside reserves to handle such claims. Britain initially required that insurance buyers also have an insurable interest. That is required in insurance markets to ensure buyers of insurance don't destroy their asset just to obtain the insurance. Health insurance is treated separately being unusual, since the subscriber is likely to know more about their state of health than the insurer is and the subscriber is more likely to purchase the health insurance when aware of their increased risk. This behavior collapses the risk pool by: forcing the insurer to increase the premiums, and encouraging healthy individuals to opt out of health insurance coverage. markets. The executives' attention was drawn to the possibility of providing businesses in general with a way to increase process efficiency and executive understanding of performance from a dashboard.
The successful expansion of the target market depended on the architectural assumptions about process design that held for highly regulated businesses like insurance being true in the general case.
When looked at as a CAS, businesses can be seen as generally emergent, and can respond adaptively in evolutionary biology is a trait that increased the number of surviving offspring in an organism's ancestral lineage. Holland argues: complex adaptive systems (CAS) adapt due to the influence of schematic strings on agents. Evolution indicates fitness when an organism survives and reproduces. For his genetic algorithm, Holland separated the adaptive process into credit assignment and rule discovery. He assigned a strength to each of the rules (alternate hypothesis) used by his artificial agents, by credit assignment - each accepted message being paid for by the recipient, increasing the sender agent's rule's strength (implicit modeling) and reducing the recipient's. When an agent achieved an explicit goal they obtained a final reward. Rule discovery used the genetic algorithm to select strong rule schemas from a pair of agents to be included in the next generation, with crossing over and mutation applied, and the resulting schematic strategies used to replace weaker schemas. The crossing over genetic operator is unlikely to break up a short schematic sequence that provides a building block retained because of its 'fitness'; In Deacon's conception of evolution, an adaptation is the realization of a set of constraints on candidate mechanisms, and so long as these constraints are maintained, other features are arbitrary.
to shifts in their environment. Only in the special case of highly stable or regulated environments, can a business drop its emergent systems architecture and improve efficiency with processes of high rigidity. Needless to say the deployment of process enforcement was problematic in the more general business case.
Phenotypic alignment and ProphylaxisAs the unit struggled with this reality, its business competitors, often HP partners, added special inducements to the revenue that HP obtained, when it sold solutions based on their products and HP computers and services, to turn HP's sales channel against the software business unit. In effect the synergies present in the HP value delivery system worked in opposition to the newly formed software unit, whatever the intent of the executives.
This page discusses the benefits of proactively strengthening strong points.Prophylaxis just amplified the effects.
Commitment and pre-conditionsThe executives would have to
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.dive deeply into the environment of their target customers to become aware of the uncertainty is when a factor is hard to measure because it is dependent on many interconnected agents and may be affected by infrastructure and evolved amplifiers. This is different from risk, although the two are deliberately conflated by ERISA. Keynes argued that most aspects of the future are uncertain, at best represented by ordinal probabilities, and often only by capricious hope for future innovation, fear inducing expectations of limited confidence, which evolutionary psychology implies is based on the demands of our hunter gatherer past. Deacon notes reduced uncertainty equates to information.
they induced in widening the target market of the workflow system. Unfortunately the benefit to the company for executives to focus in this way does not result in a matching benefit to the executive. In the short term the executive is likely to be rewarded for driving progress. Only in the long term as the business results become clear does the executive risk criticism since
Agents can manage uncertainty by limiting their commitments of resources until the environment contains signals strongly correlated with the required scenario. This page explains how agents can use Shewhart cycles and SWOT processes to do this.the pre-conditions of his business success were not met when he, or she, had already committed resource and promised results.