Digital complexity
Business complexity
Global complexity

When it comes to systems,
we need to deconstruct what exists
instead of keeping constructing on shaky bases

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The less understandable the business ,
the more investments in data !

Accumulation of what was supposed to bring solution has become a problem

Tools and data available have grown at an unprecedented rate

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VUCA environment in which our businesses operate

The less understandable the business ,
the more teams invest in new systems.

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The messier the data, the more different teams invest in different tools, the less tools fit together,
the less understandable the business

The bigger the organisation,
the more complex the (IT) systems it creates

Every year, approximately $48 trillion are invested in projects. Yet according to the Standish Group, only 35% of projects are considered successful. The wasted resources and unrealised benefits of the other 65% are mind-blowing.
https://www.infoq.com/articles/standish-chaos-2015/

Projects unrealised benefits

Complexity leads to inefficiencies which is a business opportunity for other companies

The more complex the IT system landscape, the more silos, the more data manipulation, the messier the data

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Personal computers & Internet

1990-2000

Business efficiency and data-centricity

Because nowadays organisations' data is stored under digital format, there is a common understanding that this data is the most valuable asset for any company (to know thyself and adapt thyself to customer/society needs). Companies need to leverage this asset in combination with external (real world) data to get a competitive advantage.

Digital transformation

Current thinking logic

Companies must respond, adapt, and decisions swiftly. To do so, they will need a clear, comprehensive understanding of their own inner workings - their processes, their resources, how it all fits together. Only then can they navigate the choppy waters of this new reality.

Business architecture

Because the combination of rising complexity and accelerating change places a heavy burden on our organizations. Those that can achieve true clarity about their businesses, about the implications of their choices - they will be the ones best prepared to adapt, to grow, to meet the challenges of our time.

Sustainability

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2) Data services

  • Migration
  • Storage
  • Processing/Integration
  • Management
  • Cleaning/quality
  • Security
  • Analytics
  • Visualisation
  • Governance

Data mess

Image generated on 2024-04-18 using Microsoft copilot with the following prompt: "A black and white map of a complex plumbing system featuring many pumps and pipes as a maze"

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Imagine what would happen to oil if it would flow and be processed by an overwhelmingly complex plumbing system.

Image generated on 2024-04-18 using Microsoft copilot with the following prompt: "A complex two-dimensional class diagram using the UML modelling standard showing the integration of four IT systems at physical level. Use one specific color for each system."

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A collection of discrete or continuous values

  • that convey information (when properly annotated),
  • describing the quantity, quality, fact, statistics, other basic units of meaning,
  • or simply sequences of symbols that may be further interpreted formally
Data

Content

First 5

  • Volume
  • Value
  • Veracity
  • Velocity
  • Variety

And more were added

  • Viscosity
  • Virality
  • Visualization
The Vs of big data
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Format

more than 2000 different file formats

Structure

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Schema

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"The most significant challenge, cited by almost three-quarters (73%) of organizations, is disparate data sources and systems. Data silos are a perennial data-management problem for organizations."

2023

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2021

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2012

Volatile, Uncertain, Complex and Ambiguous

Volatility

Drivers: changes, changes dynamics, change rate and speed, unexpected challenges, unpredictable context
Effects: risks, instability, flux, timing/duration unknown

Uncertainty

Drivers: unpredictability, potential surprises, unknown outcomes, we don't know what we don't know, what we don't know increases
Effects: lake of direction, no risk taking, paralysis preventing action

Complexity

Drivers: overwhelming amount of information (big data Vs), tasks correlation, multifaceted effects, influencers, interdependencies,
Effects: unproductively, dilemas, inability to stand for CONs of any decision

Ambiguity

Drivers: ideal vs. actual, many stakeholders, contradictory inputs, diverging interests/opinions, causal relationships are unclear, no precedents
Effects: doubt, distrust, lapses in decision-making, hurt innovation

VUCA environment

Sources of digital complexity

Chats

Alerts

Online shopping

Copilots

Messaging

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News feed

Search engines

Online bets

Music streaming

Online gaming

Streaming services

Gaming

Video sonferencing

What do you mean by "digital"

Assistants

Online shopping

Desktop apps

Notification

Mobile apps

E-learning

Wristwatch signals

Social media

Emails

Online dating

Advertisements

Economic systems

  1. Financial Systems
  2. Trade Systems
  3. Taxation Systems

Technological systems

  1. Information Systems
  2. Communication Systems
  3. Energy Systems

Us

Health systems

  1. Mental Health Systems
  2. Public Health Systems
  3. Nutritional Systems

Geographical systems

  1. Urbanization
  2. Rural Areas
  3. Resource Distribution

Political systems

  1. Governance and Democracy
  2. International Relations
  3. Public Policy

Professional systems

  1. Corporate Governance
  2. Labor Markets
  3. Supply Chains

Legal systems

  1. Judicial Systems
  2. Regulatory Systems
  3. Intellectual Property Systems

Security systems

  1. Cybersecurity Systems
  2. National Security Systems
  3. Emergency Response Systems

Ecological systems

  1. Climate System
  2. Biodiversity
  3. Water Systems

Governance systems

  1. Local Government Systems
  2. Federal Systems
  3. International Governance Systems

all these systems as disconnected

Sources of complexity

Infrastructure systems

  1. Transportation Systems
  2. Utility Systems
  3. Housing Systems

Social systems

  1. Healthcare System
  2. Education System
  3. Family and Community

Cultural systems

  1. Media Systems
  2. Educational Systems
  3. Religious Systems

Environmental systems

  1. Atmospheric Systems
  2. Soil Systems
  3. Waste Management Systems

Transportation systems

  1. Aviation Systems
  2. Maritime Systems
  3. Rail Systems

Understanding/solving small or local problems will enable us to understand/solve the global one.

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A human body is a system, a biological system.

  • It is made of systems (organs, cells,...)
  • It is part of systems (solar system, ecosystem, social systems...)

All these systems are intertwined, interacts with each other and influence each other in a complex manner as a "global system".

A fractal of systems

Silos

in order to chunk big complex problems in small simpler parts/problems

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Human brains

  • have limited cognitive capabilities
  • can only keep in mind and process a limited amount of information at the same time
  1. Information: we generate more but understand less; our brains are bombarded and overwhelmed by too much information
  2. Time or dynamics: components within a complex system change faster and faster over time
  3. Variability: high degree of variability or uncertainty in the components
  4. Vulnerability: complex systems are more susceptible to disruptions or failures
  5. Correlation: components within a complex system are more or less related and their interactions affect each other
What do you mean by complex?
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Content

  1. Global complexity
  2. Digital complexity
  3. Business complexity

Acknowledging and understanding digital complexity


Cedric Berger
June 8th, 2024
contact@biomedima.org

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System-centric mindset and hypes

Focus on oil, not pipes and pumps

Data-centricity

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Siloed

  • academic (universities) department
  • governmental and NGOs organisations
  • medium and large organisations
  • personal lives
  • ...
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Systems thinking is a way of making sense of the complexity of the world by looking at it in terms of wholes and relationships rather than by splitting it down into its parts.

It has been used as a way of exploring and developing effective action in complex contexts, enabling systems change. Systems thinking draws on and contributes to systems theory and the system sciences.

Wikipedia

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System thinking

but now that we reach the planet boundaries

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Image generated on 2024-07-02 using Microsoft copilot with the following prompt: "Create an image representing the world split into siloes"

We realise

  • these systems are all connected
  • we don't understand the Earth global super-system
  • it is on the verge of collapsing

Complex systems

Where human brains

  • have to deal with too many parameters at the same time
  • are overwhelmed
  • therefore are stressed as we cannot make sense of it
  • we feel bad about it (see stress hormons)

not by buying new IT systems !

Thinking in systems

What do you mean by "complex"?

Did you notice?

IT systems

IT systems landscape

IT system interfaces

Data

Data is the new oil

Selling pumps and pipes

When and how did it start?

Digital transformation

IT systems and organisation size

Impact on business efficiency

Business is becoming more complex everyday.
We understand less and less of it (end-to-end).

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1) Pumps and pipes

  • selling IT tools/systems/applications
  • creating or feeding from your data
  • locking it in their predefined data models and logic
  • configuration costs
  • maintenance costs

It increases the risk of mixing different sources, flows, leaks, losing track of provenance, reduced quality, mis-processing, landing in wrong destination, complex monitoring...

The more complex the communication structure of an organisation, the more complex the systems it creates

same happens with data
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