Evolution

Some complex systems have two other very important characteristics: evolution and adaptation. These two are briefly explained in this and next posts, respectively. In future posts, Co-evolution and Co-adaptation and their embodiment in context of LTH as well as supply chains will be described.

Evolution, in general, is defined as a process of gradual and progressive change or development over time. Evolution is change of complexity and adaptation of complex systems in time. For me, evolution is the loveliest characteristic of complex systems where an inception starts. Based on what I have understood till now, evolution has originated from discipline of biology with belief in two generating mechanisms; natural selection and genetic drift. For sake of simplicity, I just exemplify some dimensions of natural selection which may help a complex system like LTH to evolve (I have adopted the principles from http://necsi.edu/):

1) Variation in species: This may relate to existence of optimal diversity of/at departments and divisions. Diversity should be in humans (for example students, researchers, and personnel) and their skills, research areas, research projects, courses and programs, etc.

2) Organisms produce more offspring than actually survive: There should be enough students and researchers in all levels from bachelor to professorship.

3) Organisms must struggle to survive: The organisms, like agents or departments at LTH, must be provided with enough resources and facilities. In addition, agents should also themselves struggle to earn resources like money; projects; contact with other faculties, universities, and industries; etc.

4) Some variations allow members of a species to survive and reproduce better than others: The agents, like departments or divisions, should train their students and personnel in a way to prepare them for surviving, like finding or creating jobs, after graduation.

5) Organisms that survive and reproduce pass their traits to their offspring, and the helpful traits gradually appear in more and more of the population: The senior researchers and graduate students must share and transfer their knowledge and experience with junior researchers and undergraduate students in time.

All the above mentioned dimensions provide opportunities for evolution in supply chains as well. Some examples inspired from the above principles can be as follow:

1) Variation in supply chain resources (both tangible and intangible);
2) Back up from upstream agents of the chain like dual sourcing than single one;
3) Optimal expanding and diversification of the downstream links like entering the new markets or creating new demands;
4) Shifting from supply chain view to value network view;
5) Translating markets’ values for each type of chain in the network.

Supply chains have tremendously evolved since their existence. Developing from traditional transport links to logistics and distribution and then combination with marketing and production are all evidence of evolution in supply chains. Supply chains have also faced with revolution in their evolution. For example, Industrial- and Information revolution as well as globalization (by introduction of GATT (General Agreement on Tariffs and Trade) and its successor, WTO (World Trade Organization)) have tremendously affected evolution of supply chains.
In my current standpoint, I do believe that there is not naturally any guaranty for sustainable development in complex systems. What we can do is to make and run semi-sustainable strategies and operations, respectively which may show a pattern of emergent sustainability in both short- and long-terms. If we succeed to gradually develop while sustaining the system in the long term then we can open the door towards evolutionary sustainability. The role of a leader for sustainable development is to navigate the system in the direction towards emergence of evolutionary sustainability.

Emergence

Emergence is another fundamental characteristic of complex systems.

It relates to capability of complex systems to show macroscopic properties which are distinct from microscopic properties of each agent (sub-system) of the system. In other words, we cannot understand the characteristic of the whole system by just looking at characteristic of each sub-system. The main reason is dynamic change of structures and interconnections/ relationships/ behavior of sub-systems.

Both complicated and complex systems show emergent properties. The former ones have predetermined while the later have semi-determined or non-determined characteristics.
A good example of emergence in a complicated system is different characteristics of Graphite and Diamond while both are constituted from Carbon. Interconnections of Carbon atoms in Graphite make it soft and dark while other interconnections of the same atoms in Diamond make it hard and clear. Isn’t it surprising?
A good example of emergence in complex systems is different characteristics of faculty of engineering (LTH) at Lund University than individual or collective characteristics of its departments and division. Some divisions may not have engineering or technological characteristics while are very important for emergence of such characteristics at the LTH in whole.

That’s due to belief to emergence that humans turn to families and societies, birds to flocks, ants to colonies, fish to shoals, mammals to herds, bees to swarms, etc.
By analogy, focal companies/enterprises/organizations have figured out that the values in different markets would be fulfilled just if they look at whole of the supply chain or network. Surprisingly, when they take the holistic view to whole of the chain or network the values can better be fulfilled even if some agents (sub-systems) of the chain or network in some occasions show other values (characteristics).
Due to existence of emergence in complex systems, like supply chains, their sustainable development call for a holistic, instead of reductionist, approach. The whole system can develop and evolve sustainably when both the design (statics) and operations (dynamics/interrelations) of each agent show a pattern of sustainability. Even if several partners or parts of supply chain – which are becoming more global – are sustainable, the whole is still unsustainable.
The role of a strategist for sustainable development is to arrange the statics and dynamics of the system in a way that desirable outcome be emerged both in short- and long terms.

Self-organization

Self-organization is one of the fundamental characteristics and themes of a complex system.

It relates to ability of a complex system to spontaneously arrange its components and their interactions into a sustainable, global structure that tries to maximize overall fitness, without need for an external or internal controller (inspired from Kauffman, 1995).

This is the main reason that new methods of governing complex systems suggest that the agents (sub-components) should be supported - although I love to call it persuaded - instead of forced or obligated. It is also the fundamental of bottom-up, in addition to top-down, policy or decision making.
That’s due to the belief to self-organization that, for example at Lund University, supervisors set aside optimal flexibility to their students to navigate in their research; or the head of the faculty delegates the power to each department and division.
By analogy, democratic governance and policy making requires delegation, distribution, and decentralization of power.

Thanks to self-organization, complex systems and their complicated or complex agents (sub-components) are able to spontaneously generate new internal structures and forms of behavior. Due to self-organization, the whole system can move toward innovation, adaptation, and evolutionary sustainability. For a system to self-organize, it must be open, flexible, communicating, and dynamic.

Capability of complex systems, like supply chains, to self-organize makes me optimistic to the feasibility of their sustainable development. This calls for generating a self-organizing economy where a global pattern of corporate social responsibility be emerged.