Saturday, March 2, 2019

Develop Sensitivity to Digital Emergence

Create business synergy, which is just the business term for a desirable emergent property.

Businesses are systems. Digital businesses are dynamic and keep evolving. It is sometimes useful to define the system then look for or at its emergent properties. You might use "Emergent Property" to mean a property that surprisingly emerges in system operation.


 You might use "Emergent Property" to mean a property that emerges after a system change such as a company merger. You might use "Emergent Property" for composite system variable value that is more or less than the sum of partial system variable values. You might use "Emergent Property" to mean any outcome of a system in operation. How to develop sensitivity to digital emergence in order to manage digital business systematically?

It is important for the organization to identify emergent business properties: The two most basic systemic structures are the balancing cycle and the growth cycle; and their emergent characteristics just happen to be balance and growth, which would sort of implying that any system must have emergent characteristics. This is also normal in business, but it generally doesn't work well because managers are trained to try to design for emergence using reductionist approaches and not surprisingly the reductionist toolkit doesn't fit the systems thinking task. With the faster paces of changes and continuous disruptions, digital organizations today have to enable desirable emergent property. Thus, planning and forecasting become challenging, and planning fallacy turns to be a business reality. It’s important to figure out the “right level” of planning, or take the dynamic planning to keep iterating, adjusting, evolving, and working on a rhythm of sustained products or services deliveries. It is important for the organization to identify emergent business properties, as well as how information is associated with the valued tangibles of businesses; products and resources; like information flows in processes, for example, then its own value will become readily apparent and quantifiable by association with the force of business growth, allowing creativity and innovation to flow, enabling business capabilities, and how information can empower the business to leapfrog the digital transformation.

Start with a set of outcomes and then model the system that does or could produce them: To achieve the planned business result, it’s useful and normal in Systems Thinking (ST) to work the other way round, to start with a set of emergent properties and then model the system that does or could produce them. The term "outcomes" seems better than "emergent properties" since the latter is restricted to having the very peculiar characteristic that they are properties only of the whole system - not any partial system. Whereas outcomes are not restricted by that peculiar characteristic. Since more often, you cannot clearly point to either the whole or its parts. And you can rarely state that the whole is required for the property to be observed. Most system outcomes can be achieved with only some or a few parts. It is useful and normal to start with a set of outcomes and then model the system that does or could produce them. Also, it is useful to define the system then look for or at its outcomes.

Create business synergy, which is just the business term for a desirable emergent property: Synergy creation implies the emergent business capability being built via certain business activities, process tuning or talent development. Many people have lost the meaning of synergy and fail to realize that it is supposed to mean an emergent property and so they blithely assume that there is no difference between a cost saving and gain in synergy. Complex systems are rife with unintended consequences. It captures reality, the reality that systems have what is known as "emergent properties," properties of the whole that are not properties of the parts. Not understanding this is responsible for virtually all of our social and societal problems. The healthy planning-adjusting-evolving digital refinement cycle creates the business synergy to strive vigorously in leading digital transformation. Digital businesses become more dynamic and hyperconnected, organizations have to enable the desirable emergent property, either being called synergy or ongoing capability because they are the business competency and key differentiator to build high-performing digital businesses.

So every system is a construct of the mind. Emergence is a universal phenomenon that can be defined mathematically in a very general way. This is useful for the study of scientifically legitimate explanations of complex systems, defined as hyperstructures. A requirement is that the observation mechanisms are considered within the general framework. In philosophy, almost all accounts of emergence include a form of irreducibility. Every system is like three sides of a con, this side, that side and the integrative relationship between them. Using math, the formula looks like"(this, that) interaction = whole." The focal point of digital management is based on the future trend, based on the varying situations; and based on what the system requires for its long-term sustenance.

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