Archive for the ‘Stratification’ Category

On being edge-driven: outside is inside

Tuesday, September 6th, 2016

by Philip Boxer BSc MBA PhD

We have seen in distinguishing task systems, sentient organisation and sovereignty that an enterprise with supply-side sovereignty has no difficulty establishing its boundary or perimeter as an ‘open system’.  Furthermore, its definition of primary task is derived from the way it asserts sovereignty over its behaviors.  But what does it mean to say that an enterprise has multiple primary tasks?  In terms of business platforms and K-type value propositions, it means dealing with client-customers one-by-one, or at least primary task by primary task, ‘primary task’ being specific to customer situation rather than to the enterprise as a whole.  This is the challenge facing an enterprise when faced with the need to innovate or to compete in turbulent highly-connected environments in which it must surrender sovereignty in order to be able to respond one-by-one to the demands it encounters at its edges.

How is an edge-driven enterprise to be defined?

How, then, is an enterprise to be defined, if it is not to be in terms of its primary task and its boundary or perimeter?  To answer this question, we need to return to this graphic from the previous posting, and to consider the nature of the tension between the vertical (hierarchically imposed) accountabilities imposed on individual enterprises within an ecosystem, and the horizontal linkages (i.e. accountabilities to task outcome, ultimately to the client) dominating the ways in which K-type value propositions are aligned to customer situations:
pan6
The relation of novel emergences of macrostates of the first and second kind (products & services and product/services), which define the vertical accountabilities, can be thought of in terms of their ‘height’ above a base level of maximal microstates, shown on the left below.[1] In contrast the microstates of customer situations can be thought of as at a depth ‘below’ a surface of novel emergences of macrostates of the fourth kind (i.e. demand situations), shown on the right below:

pan8
Novel emergences of the third kind, however, aligning multiple supply-side product/services via effects ladders to demand situations, compose maximal microstates at depth on the right to minimal macrostates at height on the left:

pan9
The outside is inside
These alignments compose supply-side sovereignty with demand-side situations within an ecosystem of suppliers, value propositions and client-customers which have the topology of the Klein bottle:[2]

pan9a
The key characteristic of this topology is that it is a one-sided ‘non-orientable’ surface.  To travel on this surface and return to a point of origin can flip the traveler upside down – there is no inside distinct from an outside, since inside is outside and vice versa:
150px-Surface_of_Klein_bottle_with_traced_line.svg

For an enterprise to engage in edge-driven demand-side alignment, therefore, implies that the enterprise can no longer define itself by a relation between an inside and an outside.  Rather it must do so by the way it takes up the causes of client-customers’ demand situations as its own.[3] These causes involve forming networked interventions that dynamically orchestrate and align supply-side products and services to reduce client-customers’ value deficits.

Asymmetric leadership
Value for the enterprise comes to be defined by the value created through reducing the client-customer’s value deficit.[4] This creates a new kind of challenge for leadership. It requires that the north-south bias towards sovereignty be replaced by an east-west dominant system of governance, and it requires a double alignment of know-how that enables quality to be driven from the edge through triple-loop processes of learning.

Notes
[1] In evaluating platform architectures within ecosystems, in which the supplier’s relation to indirect value is modeled, this ‘height’ relation is separated out into a ‘behavior articulation’ of novel emergences of the first kind and a ‘constraint articulation’ of novel emergences of the second kind. The ‘value articulation’ captures novel emergences of the fourth kind, while the relation between the three articulations capture novel emergences of the third kind.
[2] “In mathematics, the Klein bottle is an example of a non-orientable surface; it is a two-dimensional manifold against which a system for determining a normal vector cannot be consistently defined. Informally, it is a one-sided surface which, if traveled upon, could be followed back to the point of origin while flipping the traveler upside down. Other related non-orientable objects include the Möbius strip and the real projective plane. Whereas a Möbius strip is a surface with boundary, a Klein bottle has no boundary.  For comparison, a sphere is an orientable surface with no boundary.” (from Wikipedia)
[3] ‘Cause’ here refers to Aristotelian cause, in particular the final cause. This is the other side of the third of the dilemmas of ignorance, i.e. affiliation versus alliance.
[4] This concept of value is that which defines multi-sidedness – the value is more in the impact on the demand-side network of relations than on the supply-side networks of production. (This is the revolution currently taking place in the economic logic of societies subject to digitalisation and globalisation.)

On stratification

Thursday, August 28th, 2014

by Philip Boxer PhD

Why the interest in stratification?
A colleague, Simon Western, referred me recently to Actor-Network Theory and the work of Bruno Latour in the context of a conversation about the behaviour of health care networks.

  • His point was that the value of this approach was in the way it focused on ‘following the interactions’, including in a network anything that “modifies a state of affairs by making a difference”.[1] Physical objects that constrain or enable interactions are thus just as important in defining a network as are human actors.  His observation was that standardisation, while restrictive if it became overly prescriptive and bureaucratic, could be liberating, “underpinning all successful business networks”.  Just enough standardisation was the key, for without minimal standardised interfaces, nothing happened.  His examples were:
    • Ryan air- the biggest airline in Europe, grown from nothing on the basis of standardisation creating behaviour change from all stakeholders, to grow a huge network of passengers and air travel;
    • McDonalds- standardised processes, fueled by entrepreneur franchise ownership + fantastic supply chain networks
    • Facebook and Twitter – phenomenal growth through simple standardised frames for individuals to fill with their own personalised content
  • I commented that I thought standardisation per se was insufficient in understanding what made networks effective, the issue being to understand their stratification.  Thus standardisation operated within some of the strata of a stratification and then in different ways depending on the nature of the relationship to demand that the network as a whole was mobilising.[2]
  • His response was that my use of strata and layers spoke more of an engineering project, geology or construction site rather than the fluid complexity of networks. Following Latour’s understanding of networks, his point was that “standardisation and structure are actants within networks, but not the architecture of them.”

So here we were with what looked like a disagreement – follow the networks of interactions and the worlds they construct versus how are the worlds of networks built? In what follows, I explore the ways in which there is no disagreement between these positions.

Follow the networks of interactions and the worlds they construct
In relation to what does a network form?  A useful place to start here is the social object.  An example of a social object would be the condition of a patient[3], but the condition encountered as an event – some singular moment in which there is something about the condition that disrupts existing understandings and/or irrupts in a way that insistes on being attended to [4].  A social object represents a particular affective relation to a situation in which some aspect of the situation itself is experienced as complex, question-generating, endlessly unfolding and incomplete.  The social object is to be distinguished from a ‘real’ object, being like a flag around which people may gather allied in relation to the situation that the flag signifies.[5]  Its efficacy in serving as a social object depended on there being a fit between the nature of its incompleteness and the individuals’ own experience of lack – an identification between some aspect of an individuals’ unconscious lack and the imaginary form given to it by the social object.[6] This ‘gathering around’ takes the form of a network of interactions that includes not only people as actants, but tools, technologies, ways-of-thinking and anything else that enables a current state of affairs to be modified by the differences it makes in the interactions. In the case of our patient, it is hopefully a gathering around the cause of addressing his or her condition.

Latour introduced the notion of punctualisation as a way of thinking about how actants are related to as ‘black boxes’[7]:

the way scientific and technical work is made invisible by its own success. When a machine runs efficiently, when a matter of fact is settled, one need focus only on its inputs and outputs and not on its internal complexity. Thus, paradoxically, the more science and technology succeed, the more opaque and obscure they become.

The definition of these black boxes ‘punctualise’ the actants between which interactions are taking place, and when there is some breakdown in the interactions, such black boxes are ‘depunctualised’ in the sense of being opened up themselves as a network. It is this relationship of embeddedness of networks as elements of networks that is described as a ‘stratification’.

Latour further distinguished a ‘real’ object “not by virtue of being tiny and fundamental, but by virtue of having an intrinsic reality that is not reducible to its sub-components or exhausted by its functional effects on other things.”[8] This is consistent with a view of all objects and systems as forms of novel emergence, even though it is convenient for many of such objects to be considered ‘objective’ in the sense of their existence being inter-subjectively agreed as independent of the observer .[9]

So now we have networks, each one formed by interacting actants allied by a relation to a social object the relation to which operates as the (final) cause of the network.  Such networks are stratified by the ways in which they are constituted in relation to embedded networks that are ignored so long as the network as a whole performs as expected in relation to its cause.

How are the worlds of networks built?
The ambiguity in this heading is intended.  We are interested both in finding ways of describing the way networks are punctualised into strata, and also interested in how new forms of punctualisation become possible in pursuit of new kinds of effect.  Latour identified a second type of  ‘intentional’ object that “has no interior of its own, but exists purely on the interior of some other object”.[8] The descriptions of interacting actants from which stratified networks are constructed have this intentional nature.[10] Looked at like this, it is possible to see why Simon was concerned.  In terms of the following diagram, by seeking to identify the ways in which structures might shape the ways in which actants interacted with each other, we would also be creating new understanding of the actants within the network itself. [11] How so?

actantsSuch structure structures an actant’s way of understanding his or her interactions with the network. The actant is subject to this structuring, over-determining the way that they attribute ontic status to their constructions.[12] Using this approach, three kinds of depunctualisation can be articulated in the ways in which these structuring structures structure the way actants’ constructions are made. These depunctualisations are particular to the actant’s subjection to the structuring structure that they embody.

These depunctualisations are referred to as asymmetries, producing a stratification of six types of embeddedness.  When this stratification is projected into the actant’s constructions, they articulate the embeddedness of underlying technologies in relation to the social objects of actants embodying demands within their contexts-of-use[13]:

  • The first asymmetry, separating a product/service from the technology embedded in it.
  • The second asymmetry, separating a solution delivered to a customer from the business organisation embedded in its processes of delivery.
  • The third asymmetry, separating the customer’s experience of the solution within their context-of-use from the customer’s demand.

When the delivery of a product/service, solution or experience is by a network that can be identified with a single organisation, its embedded behaviors describe a theory-in-use that may or may not correspond to what members of the organisation say they are doing.[14] When the relationships between these embedded behaviors become fixed by supply-side interests, they are fixed by an accountability hierarchy. [15]  The delivery of a particular customer’s experience is more likely, however, to be identified with a number of organisations operating as a network, describable also as a ‘system of systems’. [16] For such networks to function effectively, there has to be sufficient agility in the relationships between its embedded systems for them to be capable of being aligned dynamically in response to accelerating tempos in the emergence of new forms of demand. [17]

No disagreement?
Why should we not want to think about the ways in which networking is made impossible by the ways in which it is not possible to punctualise? The engineer in me wants to find ways of overcoming such impossibilities. But my colleague is right in pointing out that what always comes first must be the desire motivating the formation of the network.

Notes
[1] Bruno Latour (2005) Reassembling the Social: An Introduction to Actor-Network-Theory, Oxford University Press. p71
[2] Standardisation can be applied both to the way supply is coordinated and also to the way demand is defined in relation to the client/customer’s context-of-use. These two forms of standardisation have to be managed over a governance cycle. The examples of Ryan Air, McDonalds, Twitter and Facebook belong to particualr parts of that cycle in which there is competition on ‘customisation’ and/or ‘cost’.
[3] Accountable know-how in relation to the patient’s particular pathway is about much more than cost. The process of healthcare must be (and must be expected to be) a collaboration around a social object (the patient’s experience) in the full sense of the word. See Learning about Clinical Commissioning from the USA
[4] ‘Event’ is being used here “the problem of irregularity and indetermination, of the unforeseen and the unforseeable, of the eventually subversive and the disruptive.” See Parker, I. and D. Pavon-Cuellar (2014). Lacan, Discourse, Event: New Psychoanalytic Approaches to Textual Indeterminacy. New York, Routledge.
[5] This understanding of a social object is written about more fully in The social object – distinguishing Kleinian, ‘real’ and Lacanian objects. In explaining the basis of these social objects, Karin argued that the ‘real’ object came to serve as a social object to the extent that it supported a being-in-relation, mutuality or reciprocity between individuals on the basis of enabling temporal synchronisation or on the basis of establishing a shared temporal immediacy – individuals able to collaborate around a shared task, or individuals able to be present to each other in some situation (in contrast to the more familiar spatial synchronisation and immediacy of a face-to-face meeting). Furthermore, to the extent that this mutuality was experienced, it was experienced as a ‘We’-ness embedding the individual in a larger context, but derived from the nature of the shared situation rather than from an institutional affiliation.
[6] This understanding of the relation to ‘lack’ is developed further in a conversation on the refusal of (symbolic) castration. It is to be understood not in the sense of something unconsciously known but not yet brought to consciousness (an interpretive unconscious), but as something radically unknowable in relation to the unconscious per se – a real unconscious (in the sense of the Lacanian Real, not in the sense of ‘real’ reality). See Soler, C. (2014[2009]). Lacan – The Unconscious Reinvented. London, Karnac.
[7] Taken from Bruno Latour (1999) Pandora’s hope: essays on the reality of science studies. Cambridge, MA. Harvard University Press.
[8] Quoted from Harman, G. (2009). Prince of Networks: Bruno Latour and Metaphysics (Anamnesis). Melbourne, re.press. This is teh definition of novel emergence.  See later posting distinguishing novel emergence from hierarchy.
[9] This leads to an understanding of embedded strata of novel emergence as an effect of the interest and capabilities of the observer rather than an inherent property of that-which-is-observed. See Ryan, A. (September 2006). “Emergence is coupled to scope, not level.” Complexity – Complex Systems Engineering 13(2): 67-77. See the following series of postings.
[10] The ‘intentional’ nature of these objects may be understood as themselves networks that, in addition to their synchronic characteristics as a network, also have diachronic characteristics to do with the tempo at which they exhibit their behaviours, corresponding to a timespan of discretion. See Timespan of discretion and the double alignment of ‘know-how’.  For more on the significance of tempo, see [17] below.
[11] Category theory is one medium in which the relationships between these actants may be thought about. See A Categorial expression of Demand Asymmetry.
[12] The nature of such ontic assumptions are described in Describing what is going on (wigo)
The Oxford English Dictonary defined ‘ontic’ as follows: “Of or pertaining to knowledge of the existence or structure of being in a given entity.” Thus any ‘realist’ assertion of ontology is mediated by the ontic assumptions being made by the observer-entity making the assertion i.e. an ontology is built by an entity making ontic assumptions. The 4-quadrant model gives us a way of thinking about what kind of ontic assumptions the entity is making. The concept of the strategy ceiling further elaborates on the way these ontic assumptions are held by an entity in the form of stratified relations between the enterprise and demand.
[13] For more on these layers see 3 Asymmetries.
[14] These behaviors relate to each other in the form of a stratification of nested contexts which places the supply-side behaviors of the enterprise in relation to the demand-side contexts with which it interacts. Where such a relationship does not exist, we may say that the strategy ceiling of the enterprise prevents it. See The strategy ceiling.
[15] East-West dominance means having a business agile enough to support the particular relationships of embeddedness needed to sustain a relationship to the distinct forms of demand arising at its edges. Under these conditions, the 6-layer stratification is no longer usefully thought of as a hierarchy, but rather as a particular structuring of the alignment between supply and demand. Note that it is only by including the third asymmetry that the stratification can no longer be thought of as hierarchy. See When is a stratification not a universal hierarchy?
[16] Such networks involve distributed collaboration in a complex system-of-system multi-enterprise context over which there is no single source of control. See Enterprise Architecture for Complex System-of-Systems Contexts.
[17] The tempo at which an enterprise creates new uses for its systems is different from that of its acquisition or systems development processes. For example, the military continues to confront the issue of how fielded systems can support the agility needed by its deployed forces. This problem of diverging tempos applies to a variety of large-scale, software-reliant enterprises-such as those found in healthcare and digital communications. See Building Organizational Agility into Large-Scale Software-Reliant Environments.

When is a stratification not a universal hierarchy?

Tuesday, January 30th, 2007

by Philip Boxer

In describing the 3 asymmetries, Richard establishes a six-layer stratification relating underlying technologies to ultimate contexts-of-use. Thus in the case of orthotics, if we approach it from the point of view of a manufacturer of orthotic footwear, these layers look like increasingly general descriptions of the contexts within which the underlying technology will come to be used: technology=soles, product=footwear, business=footwear-to-order, solution=fitted footwear, customer demand=orthopaedic patients, customer experience=difficulties in mobility. Is this therefore not just a hierarchy moving from the particular of the technology to the general of its uses?

If, as a supplier, we want to take a symmetric view of demand, then this is true – ‘orthopaedic patients with difficulties in mobility’ is a general definition of the footwear manufacturer’s market.

But in distinguishing the third asymmetry we define the relationship to demand as being to a particular context-of-use that demands a particular form of orchestration and composition of services and products in order to satisfy it. Thus if we take up the perspective of the customer experience=the patient’s experience of living with their condition through its life, then the customer demand=that treatment for my condition that will have the greatest impact on my through-life experience at this time, and the solution=the treatment that is fitting for the current situation within its through-life context. Not surprising, then, that one of the major issues faced when insourcing clinicians employed by the manufacturers was how to reflect the through-life dimension of performance in the way the clinical service was contracted.

In finding the edge, we describe the particular form of orchestration and composition needed in response to asymmetric demand in terms of a wedge of services that needs its own four-colour model of how it is aligned to demand. Thus for our patient, the customer experience is in the black quadrant, the customer demand and its particular solution in the red quadrant, the business and its product(s) in the white quadrant, and the technology in the blue quadrant. East-West dominance means having a business agile enough to support the particular white-red organisation needed to sustain a relationship to the distinct forms of demand arising at its edges. But now the 6-layer stratification can no longer be thought of as a hierarchy, but rather as a particular structuring of the alignment between supply and demand – something more horizontal than vertical.

The way we understand the four-colour model is therefore central to the way this alignment is defined. In order to be able to construct it, three distinctions have to be made:

  • Internal//External: what is internal to the way we do business vs what is not. This distinguishes the provider of the insourced clinical service from the environment into which the service is being provided.
  • Viability//Identity: the way things work vs what determines the shape of the way things work. Clinicians learn about how orthoses are made and how they can be used on the musculo-skeletal system (the way things work), but the particular ways these are shaped depend on the patients’ characteristics and the way the manufacturer chooses to do business.
  • Addressed//Ignored: the domain of reality being addressed vs not addressed. The domain defined from the point of view of the manufacturer is going to be much narrower than that defined from the point of view of the patient’s needs. The way the domain is defined is fundamental to governance-at-the-edge, and implicates the ‘I’ of the beholder. Thus when demand is assumed to be symmetric, the ‘I’ can be the view from the top/centre of the supplying business. But when it is assumed to be asymmetric, the ‘I’ must be defined collaboratively through the way the relationship at the edge is itself constructed.

The 3 asymmetries and their associated economies correspond to the relationships between the blue-white, white-red and red-black quadrants, accounting for the particular way the quadrants are held in relation to each other. By including the third asymmetry, the stratification can no longer take the form of a universal hierarchy, but instead must be particular to the relationship to demand. It is this which presents the business with its double challenge, and the necessity to shift from an object-oriented to a subject-oriented approach to modeling the relationship of the enterprise to the demands of its clients.

The three asymmetries

Sunday, January 1st, 2006

by Richard Veryard
Demand Asymmetry means that the forms of demand are increasingly specific to the context in which they arise.

The first asymmetry involves separating out technology from the supply of specific products. This requires modelling of possible behaviors that can be supported (so Microsoft or car manufacturing has to modularize itself in support of families of technology use).

The second asymmetry requires separating out business models that can organize supply from the solutions that are on offer. This requires modelling of the possible forms of business geometry (so rail maintenance or retail services have to use a franchise model to allow the variation in business organization to accommodate the variety of ways in which the service needs to be implemented).

And the third asymmetry requires separating out the different contexts of use within which a demand arises. This requires modelling of the possible forms of demand within the contexts in which they arise (so that financial or care services are having to take up the way the through-time wealth/conditions are managed in a way that responds to different forms of context-of-use). The result is a stratification that describes six layers of organisation through which underlying technology is brought into relation with ultimate context-of-use:

It is worth considering what happens if these asymmetries are ignored.[1]

  • In the first asymmetry, this means defining the product by the technology. This is typical of the early stages in the emergence of new technologies. (Do you remember how we used to have to use mobile phones?).
  • In the second asymmetry, this means defining the solution for the customer by the way the business is organized. (Do you remember how large businesses used to relate to their customers before CRM?).
  • And in the third asymmetry, the solution to the problem presented by the customer is assumed to be what the customer actually needs. (Have you ever received a prescription from the doctor that turns out only to treat the symptom?).

Source: Metropolis and SOA Governance. Part 1: Towards the Agile Metropolis

Notes
[1] There is a fourth ethical dilemma, therefore, that is the dilemma of whether or not to hold the other three dilemmas open…