This document discusses using a fractal enterprise model to assist with complexity management. It begins by explaining concepts like simple vs complex complexity and the law of requisite variety. It then introduces the fractal enterprise model and how it can represent interconnected business process work systems. The document hypothesizes that these systems need to communicate if they manage the same asset, one manages an asset used by the other, or if they share the same asset. It concludes by discussing contributions, testing this hypothesis on a fractal enterprise model, and opportunities for future research.

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Using Fractal Enterprise Model to Assist
Complexity Management
Position paper
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Ilia Bider and Erik Perjons
7/8/2019
3rd International Workshop
on Managed Complexity,
ManComp 2018
Stockholm, September 23

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The Law of Requisite Variety
Only variety destroys (absorbs) variety
Ashby, W. R.: An introduction to cybernetics. Chapman & Hall, London (1956)
Applying to a system adapting to (moving in) the environment:
The number of states of the environment should be matched by the number
of states of the system
Note 1: The notion of state includes dynamic characteristics – direction,
speed acceleration, not only static ones
Note 2: Matching does not mean having the same number of states, but
having a response for each state of the environment

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Simple Vs. Complex Complexity
• Simple complexity –
each element of the system is connected to all other element of it,
• Complex complexity -
total interconnectivity is not achievable, and each element is connected
only to few other
Luhmann, N.: Introduction to Systems Theory. Polity Press (2013)

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Video on YouTube:
https://youtu.be/6O8qayGWAjo
https://youtu.be/6O8qayGWAjo
Text of the paper
http://bit.ly/2NB6APD
http://bit.ly/2NB6APD
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Links to external sources

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Example of Complex Complexity
Science as a system – Complex Complexity
"The republic of science: its political and economic theory"
Polanyi, M. S.: Knowing and Being. University of Chicago, Chicago (1969)

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Question – Complex Organizational Systems
• How to find out which elements/components/subsystem need
to interact/communicate with each other and which do not need
to do so?
• Can an enterprise model help to answer this question

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Fractal Enterprise Model
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Bider, I., Perjons, E., Elias, M., Johannesson, P.: A fractal enterprise model and its application for business
development. Software & Systems Modeling (2016)

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Archetypes

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Theoretical Background – A
Systems View on Processes
Respondent System – The system created to respond to the situation where the parallel
bars indicate that this system interacts with the situation and transforms the situation
to a new situation.
System Assets – The assets of a bigger system that are to be utilized in responding to situations.
Systems coupling
diagrams
H. Lawson, A Journey Through the Systems
Landscape, College Publications, 2010

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Business Process as a System
• BPI - On the instance level, we consider a Business Process Instance as a temporal system
created for handling a specific situation, for example a request for quotation. After the situation
has been dealt with, the temporal system is disbanded.
• BPWS - On the type level, we consider that for each type there exists a permanent socio-
technical system that is responsible for starting and monitoring process instances of the given
type, and supplying them with resources/assets needed for attaining the instances operational
goals, such as people, tools (e.g. IT systems), procedures (e.g. manuals, process maps). We
call this system a Business Process Work System
• FEM – represent interconnected BPWS
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Answering the question
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BPWS systems that needs communicate are the ones that are connected to the same asset

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Three types of connection
1. Both BPWSs manage the same asset.
2. One BPWS manages an asset used in another
3. Both BPWS share the same asset.
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Conclusion & Future Research
Contributions:
1. Formulating a question
2. Putting forward a hypothesis
3. Testing a hypothesis on a FEM (positive so far)
Future:
• Investigating how interactions happens in practice
• Looking on other enterprise models.
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Q & A
Thank you for your patience
Questions and comments
Please
Contact: ilia@dsv.su.se
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