what complexity science has to offer industry

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March 2013 What Complexity Science has to offer Industry Prof Paul Davies Thales UK

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Prof Paul Davies Thales UK. What Complexity Science has to offer Industry. How I discovered complexity. Open Systems. Emergence. Autopoiesis. Holism vs Reductionism. Modern views of complex systems. What can complexity science offer industrial operations?. - PowerPoint PPT Presentation

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Page 1: What Complexity Science has to offer Industry

March 2013

What Complexity Science has to offer Industry

Prof Paul Davies

Thales UK

Page 2: What Complexity Science has to offer Industry

March 20132

How I discovered complexity...

Page 3: What Complexity Science has to offer Industry

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Page 7: What Complexity Science has to offer Industry

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Page 8: What Complexity Science has to offer Industry

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Modern views of complex systems

Page 9: What Complexity Science has to offer Industry

March 2013

What can complexity science offer industrial operations?

Page 10: What Complexity Science has to offer Industry

March 201310

Industrial projects - the basic V model

Page 11: What Complexity Science has to offer Industry

March 201311

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March 201312

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Page 15: What Complexity Science has to offer Industry

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Multiple nested V models

x8

Userrequirements

definition

Installation& validation

Operationalsystem

Proposedcharacteristics

Componentdevelopment Components

Deliveredcomponents

Integratedsystem

Systemrequirements

definition

Architecturaldesign

Integration&

verification

Allocatedrequirements

Proposedcharacteristics

Allocatedrequirements

Proposedcharacteristics

Integratedsubsystems

Suppliedsubsystems

Systemrequirements

definition

Integration&

verification

Architecturaldesign

Allocatedrequirements

Proposedcharacteristics

Integratedsubsystems

Suppliedsubsystems

Systemrequirements

definition

Integration&

verification

Architecturaldesign

Page 16: What Complexity Science has to offer Industry

March 201316

Ring Value Lifecycle model

CommunitySituation

Value of System Quantified

Effects on Problem Known

Context Adapted

Real Effect of PSS Known

OperationalResults

PSS Activated

Operational Readiness

PSS TestedComponents

Specified – Developed - Assembled

PSS ArchitectedAnd Designed

PSS Envisioned

PSS S><R Specified

Intervention Strategy

Solution EffectEnvisioned

Problem System Understood

Problem Discerned

Focus on Value

Focus on Purpose

Focus on System

After Jack Ring

PSS = Problem (proposed) System Solution

AssessAnalyse

Generateoptions

AssessAnalyse

Generateoptions

AssessAnalyse

Generateoptions

CommunitySituation

Value of System Quantified

Effects on Problem Known

Context Adapted

Real Effect of PSS Known

OperationalResults

PSS Activated

Operational Readiness

PSS TestedComponents

Specified – Developed - Assembled

PSS ArchitectedAnd Designed

PSS Envisioned

PSS S><R Specified

Intervention Strategy

Solution EffectEnvisioned

Problem System Understood

Problem Discerned

Focus on Value

Focus on Purpose

Focus on System

After Jack Ring

Page 17: What Complexity Science has to offer Industry

March 201317

Potential modelling approaches

Explicit chained activities (classical project management tools) + Monte Carlo simulation

Stochastic models introducing rework phase networks? graph-theoretic critical path analysis?

ODEs with feedback loops System dynamics

Representation using category theory

??

Page 18: What Complexity Science has to offer Industry

March 201318

System Dynamics Example

Bass, F.M., 1969. A New Product Growth For Model Consumer Durables. Management Science, Vol. 15(5), pp. 215 – 227. Sterman, J.D., 2000. Business dynamics: systems thinking and modeling for a complex world 1st ed. S. Isenberg, ed., Jeffrey J. Shelstad.

PotentialAdopters P

Adopters AAdoption Rate AR

Adoption fromWord of Mouth

++

Total Population N

AdoptionFraction I

Contact Rate c

-

Adoption fromAdvertising

AdvertisingEffectiveness a

+

+

+ +

+

+

B R

B

Market Saturation

Market Saturation Word of Mouth

Bass Diffusion (from Sterman)

Adopters A8,000

6,000

4,000

2,000

0Adoption Rate AR

600

450

300

150

00 18 36

Time (Month)

Page 19: What Complexity Science has to offer Industry

March 201319

Rework Loop

Suggested by Cooper (1993) and used with System

Dynamics (Cooper & Lee, 2009)

Cooper, K. G., & Mullen, T. W. (1993). Plowshares - The Rework Cycles of Defense and Commerical Software. American Programmer, 6(5).Cooper, K., & Lee, G. (2009). Managing the Dynamics of Projects and Changes at Fluor (pp. 1–27).

Page 20: What Complexity Science has to offer Industry

March 201320

Our Model

Page 21: What Complexity Science has to offer Industry

March 201321

Model Outputs

Cumulative Work Done GraphWork really done

400

300

200

100

0

0 4 8 12 16 20 24 28 32 36 40Time (Month)

Req

uire

men

t

Work really done : baseline

Page 22: What Complexity Science has to offer Industry

March 201322

Model Outputs

Work Rate GraphGood

80

60

40

20

0

0 4 8 12 16 20 24 28 32 36 40Time (Month)

Req

uire

men

t/Mon

th

Good : baseline

Page 23: What Complexity Science has to offer Industry

March 201323

Discussion of Results

Mawby, D., & Stupples, D. (2002). Systems Thinking for Managing Projects. Engineering Management Conference, 2002. IEMC ’02 (pp. 344–349). IEEE International.Putnam, L. H. (1978). A General Empirical Solution to the Macro Software Sizing and Estimating Problem. IEEE Transactions on Software Engineering, SE-4(4), 345–361.

Page 24: What Complexity Science has to offer Industry

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Discussion of Results

The model is producing planned parameter profiles similar to what is

expected, and which fit the PNR distribution suggested by Putnam

(1978) and incorporating the effects of rework as suggested by

Mawby & Stupples (2002)

The underlying behavioral assumptions are being explored with a

sensitivity analysis

The model needs calibration and validation against real project data

Mawby, D., & Stupples, D. (2002). Systems Thinking for Managing Projects. Engineering Management Conference, 2002. IEMC ’02 (pp. 344–349). IEEE International.Putnam, L. H. (1978). A General Empirical Solution to the Macro Software Sizing and Estimating Problem. IEEE Transactions on Software Engineering, SE-4(4), 345–361.

Page 25: What Complexity Science has to offer Industry

March 201325

Sensitivity Analysis

Page 26: What Complexity Science has to offer Industry

March 2013

So, why engage with Academia?

Page 27: What Complexity Science has to offer Industry

March 201329

Economic Indicators

1

4

3

2

-1

Q4/08

Q1/05

“By 2020, 90% of the world’s manufacturing will be based in the BRIC countries”

“If it was purely down to the cost of wages, the UK wouldhave gone out of business years ago”

White collar average wages:UK $44000; India $4000

227,000 Elec Engapplicants / year

<7,000 Elec Enggraduates / year

Page 28: What Complexity Science has to offer Industry

March 201330

So why is the UK still in business?

Because we do some things better: Innovation

Staying ahead of the competition

System integration and risk-taking

Page 29: What Complexity Science has to offer Industry

March 201331

Innovation Streams

Str

ateg

ic K

ey Q

ues

tio

ns

10 years

Consultancy

<0.5%

Res

earc

h 1

Res

earc

h n

3-5 years

Universities etc

~3%

Development

0-3 years

Internal

17 - 35%

Page 30: What Complexity Science has to offer Industry

March 201332

Technology Readiness Levels

Inn

ova

tion

fun

din

g“V

alle

y o

f De

ath

Page 31: What Complexity Science has to offer Industry

March 201333

General Model of University Activity Thales (UK)

Undergraduate

Postgraduate & Research

University

Graduate Recruitment/Milk Rounds Summer

Placements

Talks to final year students

Recruitment Focus

PhD & EngD Research

Collaborative

Research FP7 etc

Industrial Clustered

Research (MVCE etc)

Funded Research

ASTRAEA, OCIAM, etc

Research Focus

Techno Watch

Schools

Encouraging

participation in

STEM subjects

Industry Advisory Panels

Sponsored Chairs

Visiting Professors

Teaching

Supporting Masters Projects

Supporting Doctoral Students

(PhD & EngD)

Image Focus

CPD Focus

Public coursesTailored courses

Page 32: What Complexity Science has to offer Industry

March 201334

Summary of Technical Research Engagement

TRL TimescaleCost to

IndustrialIP Leverage Hassle

CP 1 to 5 up to 3 yrs Staff time contract 2:1 high

SA 1 to 4 typ 3 yrs Can be high contract 2:1 possible medium

IC 1 to 5 up to 3 yrs ~£50k/yr contract high low

CR 1 to 5Depends on

contractCan be high

with FECcompany low medium

SP/D 1 to 3 3.5 yrs £8k/pa contract3:1 with CASE

low

SP/M 4 to 5 3 months Staff time student - low

UP 1 to 3 up to 5 yrs Staff time university - low

CP = Collaborative ProjectsSA = Strategic Alliance IC = Industrial Clustered CR = Contract Research

SP/D = Student PhD Projects SP/M = Student MSc Projects

UP = University Projects

Page 33: What Complexity Science has to offer Industry

March 201335

What you’re selling...

“Transferrable skills”• Mathematical modelling• Proven ability to follow a single complex project through to completion, plus reporting rigour• Understanding of the fundamental interconnectedness of all things• Comfort with, and ability to represent, uncertainty

What you haven’t got, necessarily:• Collaborative project skills• Awareness / skills in the commercial world• Multidisciplinarity

Page 34: What Complexity Science has to offer Industry

March 2013

Questions?