Article importance of adaptability with respect to viability sustainability.
Key pillars of any system are effciency, effectivenss and adapatability which implies doing the right kind of things.
We live in an era of risk and instability. Globalization, new technologies, and greater transparency have combined to upend the business environment and give many CEOs a deep sense of unease. Just look at the numbers. Since 1980 the volatility of business operating margins, largely static since the 1950s, has more than doubled, as has the size of the gap between winners (companies with high operating margins) and losers (those with low ones).
There are so many studies attempting to quantify the cost of software failures. They don’t agree on percentages but they generally agree that the number is at least 50 to 80 billion dollar range annually.
Innovation doesn’t come easily to most large companies. Yet some big players in nearly every industry are able to turn out one successful new product after another.
The survey revealed dramatic differences between innovation leaders and everyone else. Top-quartile companies grew at an average annual rate of 13%, compared with 5% for other companies.
Enterprise IT is in crisis — no doubt about it. Our research, conducted in partnership with Harvard Business Review, The Economist, CEB (formerly the Corporate Executive Board), Intel, and TNS Global, finds that corporate leadership has lost confidence in the CIO as a strategic partner and views IT as a commodity rather than a difference-maker.
Clearly the roles of CIO and the IT organization need reinvention
So, what is ‘systems thinking’ and why should CEOs view it as their next competitive edge for years to come?
System dynamics is an approach to understanding the behaviour of complex systems over time. It deals with internal feedback loops and time delays that affect the behaviour of the entire system.What makes using system dynamics different from other approaches to studying complex systems is the use of feedback loops and stocks and flows. These elements help describe how even seemingly simple systems display baffling nonlinearity.
Companies often make a conscious decision to not innovate. Why do companies choose to do this? Why is it so hard for their employees to innovate?