Organize for Complexity

Harold Jarche

” Well I think Niels has answered much of that question himself, in his recent book Organize for Complexity. We call this “disciplined practice” Fads like business analytics, knowledge management, and big data will never make organizations fit for complexity.

hold space for complex problems

Harold Jarche

Energy resources (think rising energy prices, environmental catastrophes displacing people, a culture of sustainability emerging).” Every one of the major challenges facing us is complex. But our organizations are not designed for complexity. Complexity Democracy

Strategy and Execution in an Increasingly Complex World

Irving Wladawsky-Berger

Twenty-thirty years ago, the business world was arguably less complex, slower moving and more predictable. They are developing a variety of product-related services to create new sources of revenues and profits, such as an ongoing maintenance, subscription streams, value-added opportunities and pricing models. These shifts are unyielding and contribute to the sense of a world growing more uncertain, volatile and complex.” .

Value based pricing is at the heart of the future of professional services

Ross Dawson

In my first book Developing Knowledge-Based Client Relationships: The Future of Professional Services the final chapter was titled Value-Based Pricing: Implementing New Revenue Models. Pricing by value rather than time is clearly a central aspect to building true knowledge-based relationships, since knowledge should be measured by the value of its application rather than time spent by professionals. Value-based pricing is not always the best approach.

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Complex Organizational Systems

Irving Wladawsky-Berger

The study of complex systems has been a common arc in my career. It started with physics at the University of Chicago in the 1960s, where I was studying complex natural systems - atomic and molecular physics in particular. In the last twelve years, my work has focused on the kinds of complex systems made possible by the advent of the Internet and the Web. What makes such complex systems complex ? But why are these systems so complex?

Complex Sociotechnical Systems: the Case for a New Field of Study

Irving Wladawsky-Berger

They generally exhibit a level of complexity that is often beyond our ability to understand and control. Not only do they have to deal with the complexities associated with large scale hardware and software infrastructures, but with the even more complex issues involved in human and organizational behaviors. . A few weeks ago, MIT professor Joseph Sussman addressed these issues in a lecture - Complex Sociotechnical Systems: The Case for a New Field of Study.

System 171

Values, Trust and Reputation in an Increasingly Complex World

Irving Wladawsky-Berger

Both present and future leaders expect the business environment to grow significantly more complex over time. This is one of the main conclusions of two recent studies conducted by IBM, the 2010 Global CEO Study , and the companion student study, Inheriting a Complex World. They don’t even need a definition of complexity, since that is the only world they have ever known.

A Novel Method for Measuring the Value of Free Digital Services

Irving Wladawsky-Berger

While suitable when economies were dominated by the production of physical goods, GDP does not adequately capture the growing share of services and increasingly complex solutions that characterize advanced economies. If the price is zero, then “zero times any quantity is still zero.

Data 194

The Collapse of Complex Business Models ? Clay Shirky

Clay Shirky

The Times’ Paywall and Newsletter Economics » The Collapse of Complex Business Models. In 1988, Joseph Tainter wrote a chilling book called The Collapse of Complex Societies. Every one of those groups had rich traditions, complex social structures, advanced technology, but despite their sophistication, they collapsed, impoverishing and scattering their citizens and leaving little but future archeological sites as evidence of previous greatness. Clay Shirky.

The Productivity Paradox: Digital Abundance and Scarce Genius

Irving Wladawsky-Berger

Jobs requiring expert problem solving and complex communication skills have significantly expanded with the earnings of the educated workers need to fill such jobs rising steadily. “In 2008, the top 25 percent of US workers earned more than half of all labor income, the top 2.5

Despite Their Huge Upside Potential, Why Do Most Platforms Fail?

Irving Wladawsky-Berger

While getting the price right is necessary for success, it’s not sufficient. Complex Systems Economic Issues Innovation Management and Leadership Services Innovation Society and Culture Technology and Strategy

From “Buy What We Have” to “Connected Customer Strategies”

Irving Wladawsky-Berger

In it, companies provide high-quality offerings at competitive prices, but it’s up to customers to identify their needs and seek out the appropriate products or services to meet them.

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The Business Value of Resilience

Irving Wladawsky-Berger

The Industrial Revolution was “as much about process innovations that reduced waste and increased productivity as it was about the application of new technologies,” wrote Roger Martin in a recent Harvard Business Review (HBR) article, - The High Price of Efficiency.

Price 196

Artificial Intelligence is Ready for Business; Are Businesses Ready for AI?

Irving Wladawsky-Berger

Similarly, electric utilities can use dynamic pricing to better balance the supply and demand for electricity, charging more for periods of peak demand, and less when the demand is lower, thus reducing the need to add power plants to satisfy peak demands. AI is now seemingly everywhere.

Data 217

The Myth of the Washed-Up, Middle-Age Entrepreneur

Irving Wladawsky-Berger

Further analysis showed that the forward 5-year multiples of their stock price tended to rise as they got older, with the peak coming at 48 for Jobs, 39 for Gates, 45 for Bezos, and 36 for Brin and Page.

Cryptocurrencies and Blockchains - How Are They Doing After 10 Years?

Irving Wladawsky-Berger

Its price has been subject to wild fluctuations over the past two years. Most are likely to quickly disappear , but others are trying to fix some of bitcoin’s key issues, like its wild price fluctuations.

Price 167

It's All About the Business Model, - Not the Technology

Irving Wladawsky-Berger

A successful business model identifies an important, unsatisfied customer job-to-be-done or problem-to-be-solved and proposes an offering, - a product, service or combination, - that does the job or solves the problem at an affordable price.

The Evolution of Design Thinking

Irving Wladawsky-Berger

Yet, they account for the bulk of the growing complexity in our daily lives. This new approach is in large part a response to the increasing complexity of modern technology and modern business.” . In such an environment, formulating a winning market strategy is very complex indeed. .

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Blockchain’s Potential for Environmental Applications

Irving Wladawsky-Berger

Blockchain technologies promise to significantly improve the efficiency and security of business transactions and data sharing among participants in a global ecosystem, such as supply chains, financial services, and similar complex applications involving multiple institutions.

Where is Technology Taking the Economy

Irving Wladawsky-Berger

The criteria for measuring the economy will also change. “GDP and productivity apply best to the physical economy and do not count virtual advances properly… GDP is the total of goods and services times their price. I recently read Where is Technology Taking the Economy? ,

The Prosperity Puzzle

Irving Wladawsky-Berger

In the mid 1990s, Nordhaus looked at the evolution of the price of light over the past two centuries in Do Real-Output and Real-Wage Measures Capture Reality? By this measure, the true price of light has plummeted by considerably more than a hundredfold since the early 1800s.

Data 190

A Framework for the Safe Management of Digital Identities and Data

Irving Wladawsky-Berger

Apply correct pricing models for algorithms and data : A correct pricing structure needs to be developed by the members of a trust network ecosystem, to encourage data owners to develop new business models based on the OPAL paradigm. Identity plays a major role in everyday life.

Data 171

The True State of Globalization

Irving Wladawsky-Berger

However, each such local variation adds costs and complexity, thus reducing the benefits of aggregation and economies of scale. Complex Systems Diversity Economic Issues Management and Leadership Political Issues Society and Culture

Issues 195

Automation Anxieties - We’ve Been Here Before

Irving Wladawsky-Berger

Abundance : “Use the new machine to open up vast new markets by dropping the price point of existing offers, much as Henry Ford did with automobiles”. Artificial Intelligence Complex Systems Economic Issues Innovation Political Issues Smart Systems Society and Culture Technology and Strategy

System 177

Cloud Computing and the Supply Chain of Services

Irving Wladawsky-Berger

IT was then undergoing a similar transformation, as cloud service providers were starting to offer IT-as-a-Service with near unlimited scalability at very attractive prices, based on a flexible pay-as-you-go delivery model.

Lean Principles in the Digital Economy

Irving Wladawsky-Berger

But, this push economy is fading fast in our complex, integrated, fast changing world. A company can differentiate itself from competitors in one of two key ways: by providing a superior customer experience or by offering the lowest prices.

Data 254

Blockchain and the Future of the Firm

Irving Wladawsky-Berger

Transaction costs are incurred in obtaining goods and services outside the firm, such as searching for the right partners and prices; coordinating an ecosystem of partners; negotiating, monitoring and enforcing contracts; and so on.

The Internet, Blockchain, and the Evolution of Foundational Innovations

Irving Wladawsky-Berger

What makes disruptive innovations dangerous to incumbent firms is that, if allowed to gain a market foothold, they can get on a learning curve of rapidly improving quality and capabilities while preserving the lower prices and/or ease-of-use that drove their early acceptance.

AI and the Productivity Paradox

Irving Wladawsky-Berger

Traditional metrics don’s adequately account for the digital economy, because so many of its technologies deliver substantial value while accounting for a small share of GDP due to their relatively low price.

Learning to Work with Our Increasingly Smart Machines

Irving Wladawsky-Berger

Obviously, paying customers appreciate when higher productivity means that prices go down; while some people might cherish paying higher prices to enjoy artisanal products and services, most go for the product that does the job at the lowest price possible.

Price 180

Embracing Disruptive Change - Why Is it So Difficult?

Irving Wladawsky-Berger

If it’s a public company, it has investors, a stock price and financial expectations to meet - quarter after quarter after quarter. Complex Systems Economic Issues Innovation Management and Leadership Technology and Strategy

Change 271

The Evolution of the Internet of Very Smart Things

Irving Wladawsky-Berger

These factors eventually led to significantly increased management complexities and costs. The centrally managed, highly scalable, attractively priced cloud platforms were now being designed to support a variety of mobile devices, - e.g. smartphones, tablets, e-readers and laptops.

Data 278

Vehicle Automation - a Very Important Priority for AI Research

Irving Wladawsky-Berger

While some thought that fully autonomous vehicles will be all around us within a decade or so, others were not quite so sure, myself included, due to the many highly complex technical, economic and societal issues that must be worked out.

Blockchain - Once Again, the Technological Genie Has Been Unleashed from its Bottle

Irving Wladawsky-Berger

But, it’s come at a price: it’s good-enough but not optimal for any one application. Complex Systems Digital Money and Payments Economic Issues Innovation Management and Leadership Political Issues Smart Systems Society and Culture Technology and Strategy

Beyond GDP - Measuring Value in a Service-oriented, Information-based, Digital Economy

Irving Wladawsky-Berger

While suitable when economies were dominated by the production of physical goods, GDP does not adequately capture the growing share of services and the production of increasingly complex solutions that characterize advanced economies.

Disruptive Innovation Revisited

Irving Wladawsky-Berger

What makes disruptive innovations dangerous to incumbents is that, if allowed to gain a market foothold, they can get on a learning curve of rapidly improving quality and capabilities while preserving the lower prices and/or ease-of-use that drove their early success.

Cloud, Services and the Transformation of Production

Irving Wladawsky-Berger

Is it a return to centralized computing , driven by the rising complexities, management costs and energy inefficiencies of distributed systems? Ever since cloud computing first appeared in the IT world, people have struggled to define what it is and why it’s so important.

The Future of the Globally Integrated Enterprise

Irving Wladawsky-Berger

But the competitive pressures are going to be greater, and the price of failure will be higher. Complex Systems Economic Issues Management and Leadership Political Issues Society and Culture Technology and Strategy

Issues 192

Disruptive Innovation Revisited

Irving Wladawsky-Berger

It’s the first technology that has demonstrated sustained exponential improvement in price/performance over an extended period of time and continuing into the foreseeable future (based on interviews with scientists and technologists pushing the boundaries of this technology).” .

Customer Service and Trust in the Internet Economy

Irving Wladawsky-Berger

Internet-age consumers now have ways of getting back at companies they feel stuck with but don’t trust because of poor service, high prices and/or low quality. Complex Systems Economic Issues Management and Leadership Political Issues Services Innovation Society and Culture

Issues 228

The Future of Financial Services

Irving Wladawsky-Berger

Fast changing technologies and rising complexities lead to the emergence of a few major ICT-based ecosystem leaders - e.g., Apple, Amazon, Google, - while traditional financial institutions, unable to compete, gradually fade away.

Data 222

The (Uneven) Digitization of the US Economy

Irving Wladawsky-Berger

But, unlike the prices of goods and services in most other industries, ICT prices have declined 63% between 1983 and 2010, driven by the dramatic advances in digital technologies over that time span. Digital technologies are all around us, - increasingly ubiquitous and commoditized.

Data 190

The Rise of the Platform Economy

Irving Wladawsky-Berger

Cloud Computing Complex Systems Economic Issues Innovation Management and Leadership Services Innovation Society and Culture Technology and StrategyWhat do we mean by a platform ?

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