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Globalization – the Context Lecture Points Global Production Systems 1 2 Globalization – the context Can Systems Engineering • Globalization has set in motion a process of growing interdependence in economic relations (trade, support the integration of CSR in investment and global production) and in social and political interactions among organisations and global production systems? individuals across the world. • Despite the potential benefits, it is recognised that the Cecilia Haskins current processes are generating unbalanced Trial Lecture, 25th June 2008 outcomes both between and within countries. Department of Industrial Economics and The United Nations Commission on International Trade Law (UNCITRAL) Technology Management 3 4 Lecture points Global production systems • Overview of concepts • Geographically and organizationally distributed – Global production systems production networks – Corporate Social Responsibility • Systems that span several organizations, industry – Systems Engineering sectors and even national boundaries • An example • Interactions within these systems may be subject to • Related concepts conflicts between corporate interests (financial, • Addressing the question competitiveness) and governmental interests (culture, democracy, work places, political relations) 5 6 Hitchins 5-layer model Corporate Social Responsibility • A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis – definition of the Commission of the European Communities, 2001 (Dahlsrud 2008) • Term is ‘appraisive’ (Moon 2007) – no one deliberately seeks to be assessed as irresponsible Hitchins (2007) 7 8 Elkington Implications of CSR for GPS • Coined phrase “triple bottom line” to illustrate that the • Align the values of the extended corporation with the CSR agenda focuses attention not only on the values of society – implying corporate citizenship economic value added by corporations, but also the • Integrate the priorities of all stakeholders into the contributions that they add to (or detract from) societal and environmental values strategic and tactical decisions taken by the firm • Some observed paradigm shifts • Embrace need for accountability and transparency – Markets moving from Compliance to Competition – Communicate about policies and decision-making – Life-cycle technology moving from Product to Whole-life – Disclose the impacts of actions taken – Partnerships moving from Subversion to Symbiosis • Tightly linked to business ethics for all decisions – Corporate governance moving from Exclusive to Inclusive 9 10 CSR in global production systems Systems Engineering • Must be conceptualized to span multiple • Per Peter Checkland organizations, industry sectors and even national – A systems-based methodology for tackling real-world problems for boundaries which an objective or end-to-be-achieved can be taken as given, and the system engineered to achieve the stated objective. • Consider implementation through a series of • Per Derek Hitchins contractual and market relationships – The Art and Science of creating optimal solution systems for • Insights from systems theory may help uncover the complex issues and problems influence of diverse actors in the network on the • Per INCOSE overall performance Paraphrased from CSR-Norway – is an interdisciplinary approach and means to enable the realization of successful systems 11 12 Empirical applications of systems Essential attributes of SE approaches • Banathy – designing social systems • Systematic • Checkland – soft systems methodology – Disciplined approach to solving problems, creating solutions, making • Fet – environmental impacts in the marine sector decisions – Scope of the approach must encompass the entire problem space • Hale – INCOSE contributions to GEOSS • Systemic • Haskins – industrial parks – Looks at wholes – the problem within a context and the interactions • Ramo – cure for chaos between the parts that lead to emergent behaviors of the solution • Robèrt – strategic sustainable development – Mitigate unintended consequences • Senge – learning organizations, 5th discipline • Sustainable – Full life cycle considerations • Warfield – social systems science – Consider both the useful life of a system and its disposition after useful life 13 14 Unintended consequences An eco-park example 15 16 An Industrial Ecology view Production systems over time Current Status Kalundborg Little, 1991 17 18 Risk governance view Resilience Sajeva, Security of Critical Networked Infrastructure Holling and Gunderson 2002 19 20 A system of systems Tools used by systems engineers Stakeholders of • Checkland’s SSM • Project management • Autonomy Global Production Systems • Concept maps • Cost estimating techniques • Belonging • Systemigrams • Requirements management • Connectivity • Modeling and simulation • Risk management • Diversity • System dynamics (archetypes) • Human Factors analysis • Backcasting • RMA – ilities • Emergence • Interactive management • Environmental impact analysis Boardman Sauser 2008 • Specialized trade studies • Decision-making under • TQM, House of Quality, 6 σ uncertainty (AHP, trees) • Scenario building • … to name a few 21 22 Limitations of systems engineering Systems engineering can help .1 • Eventually a problem statement must be formulated – the • Systematic approach quality of this statement is highly dependent on the ability – Following a process when coping with complicated and complex of the stakeholders to communicate real needs problems provides a framework for guiding the resolution – A framework provides an element of stability in an uncertain • The quality of the end result is highly dependent on the evolution competence of the people involved – their ability to • Support for open dialogue and consensus building among stakeholders understand the problem and their ability to apply domain • Generate a shared vision of the preferred future • Support for continuity – a ‘memory’ of what has been accomplished and knowledge to the solution what remains to be done • These limitations are shared with all human endeavors • Support for ‘course corrections’ when needed • Disciplined decision-making and follow-through 23 24 Systems engineering can help .2 Systems engineering can help .3 • Systemic approaches • Sustainable solutions – Embrace the seemingly conflicting points of view held by the stakeholders; the – Avoid quick fixes and point solutions with negative unintended paradoxes consequences – See the systems that contribute to the understanding of the domain – Express performance as the mutual optimization of the triad of • The social systems – people interacting with people and technology • The production systems – creating the goods associated with quality of life people, planet and product • The technical infrastructure systems – providing underlying support – Address the ways we involve stakeholders in the definition and • The value / belief systems – motivating people to act in certain ways implementation of changes • The management systems – intra- and inter-organizational cooperation – Increased stakeholder involvement will demand transparency and • The governance systems – stimulate and manage change accountability of corporations, governments, all leaders (e.g. SE) • The economic systems – often given higher priority than other considerations • The planet support systems – often given lower priority than they deserve 25 Thank you for your attention Systems engineering of the future • To remain relevant in the future systems engineers – Need to tackle questions such as that posed for this lecture – Need to expand their tool kit, adding for example participatory management techniques – Need to be educated as ‘generalists’ with an expanded vocabulary that includes •Economics •Ethics • Environmental stewardship • Governance • Psychology – Need to prepare to lead the multi-disciplinary teams that will create the solutions to the problems facing us today.
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