.
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Industrial Operations / Information Processing Convergence Control Chain Management Body Of Knowledge
MI Intelligence Real meaning
04/2011
Jean Vieille
www.syntropicfactory.com j.vieille@syntropicfactory.com
Research community www.controlchainmanagement.org Consulting group: www.controlchaingroup.com
Agenda
Intellectual/Informational hierarchy Biological and artificial intelligence Product of Complex systems Enterprise IQ
MI - Intelligence- Real meaning
2
Information levels
Syntropic Type Potential Potential Potential Potential Potential Kinetic Kinetic Kinetic Kinetic Kinetic 1 2 3 4 5 Syntropic Rank Information type 1 Things and Facts 2 Data 3 Meaning 4 Knowledge 5 Consciousness Interactions Communication Processing Intelligence Wisdom Representation Objective Objective / Language Subjective / Language Objective / Language Subjective Objective Objective / Language Objective / Language Objective / Language Subjective
MI - Intelligence- Real meaning
3
Potential Information Level 1: Things and Facts
The « reality », the « Truth » Ø The things as they are Ø The facts as they happen Ø Inherently objective Independent of the observers Ø Ourselves, Sensors and computers Ø Though Quantum physics tells us otherwise.... Cannot be processed as is
MI - Intelligence- Real meaning
4
Potential Information Level 2: Data
A local representation of disconnected facts and observations Ø Translation of things and facts by the primary observer, from its narrow local perspective, into communicable information § The temperature is -50 § Riots are going on Ø Tentatively objective, though the selection of data is subjective Data relies on language Ø Offering conceptual references, symbolisation... § Physical measurement Temperature, pressure § Numbering § Social events Riots, parties, meeting Ø ... implicit in the context of the observer
MI - Intelligence- Real meaning 5
Potential Information Level 3: Meaning
An interpretation of data for use by other Ø Condition, combine data in order to convey meaning to non-direct observers § The temperature is -50 °C at the North pole, on 2010 March 1st 4PM § Riots in Teheran, 17M inhabitants, 20000 demonstrators Ø "Interpretation" fills information gaps to pull more meaning Ø Subjective: meaning depends on the observer processing the data Meaning relies on language Ø Relying on conceptual references Ø Describing the context, Ø Bringing the distant observer closer to facts and things Ø Through the direct observer interpretation and filtering § "colouring" the reality on purpose or indidentally
MI - Intelligence- Real meaning 6
Potential Information Level 4 : Knowledge
Knowledge is an objective state of understanding Ø In the form of experiences, theories, beliefs Ø Trying to explain the Reality: things and facts, looking for "truth" Ø Can be materialized (books, files, painting...) using language and other means or less appropriate to people / machine languages It is independent of its subjective usage Ø Any entity can interacts with knowledge to influence its behavior in dealing with actual things and facts § Interpreting/understanding and "applying" this knowledge § Developing / improving objective knowledge Accessibility and confinement Ø Can be initiated / kept by an individual / machine Ø Can be shared by several individuals / machines Ø Can be more or less publicly exposed to open access
MI - Intelligence- Real meaning 7
Potential Information Level 5: Consciousness
Consciousness is a lasting issue for philosopher Dictionnaries discard the problem - Oxford: Ø the state of being conscious. § the fact of awareness by the mind of itself and the world. Ø one's awareness or perception of something Is it really a level 5 of Potential Information? Ø Is knowledge a precondition for consciousness? Ø Would the World be different without consciousness?
MI - Intelligence- Real meaning
8
Kinetic information Level 1: Interactions
The dynamics of the world is through interactions Ø Actions results of a network of interactions from an initial trigger Ø This trigger itself arise from other interactions and so on Interactions have many forms Ø At the atomic and subatomic levels, to build more complex material structures Ø Multimedia interactions between people through available senses:: sound, vision, smell, touch, taste, 6th sense Ø Chemical, mechanical electrical, interactions
MI - Intelligence- Real meaning
9
Kinetic information Level 2: Communication
Communication is the abstraction of interactions, making possible Ø To implement artificial interactions § Not naturallly occuring Ø To link separate, distant entities Ø To link dissimilar entities ( people and machines) Communication relies on language Ø Only meaningful interactions are useful Ø A language offers conceptual references for a shared understanding
MI - Intelligence- Real meaning
10
Kinetic information Level 3: Processing
Processing implements existing knowledge Ø To understand and act on he Reality Information « flows » through systems' components Ø Communication exchange « meaning » between thinking / processing bodies /.black boxes Ø What happen inside brain and computer is « processing » § Which itself results of interactions synapses in gray matter, integrated circuits Processing relies mainly on language Ø Thinking processes and artificial computing Some local, low-level, basic processing relies on direct interactions Ø No language is required to make people wlaking Ø No language is required to control to fill up the WC water bin after a flush
MI - Intelligence- Real meaning 11
Kinetic information Level 4: Intelligence
Intelligence Ø Makes a critical use of knowledge: challenges existing beliefs and theories trial and error process confronting theories and reality Ø Suggest changes to existing knowledge, develops new theories § Intelligence build knowledge - Processing sucks, Intelligence contributes Ø Focuses the limited thinking / processing capabilities toward conscious goals - Beyond survival and reproduction Involves abilities such as Ø to reason, plan, solve problems, think abstractly connecting theories to reality, comprehend complex ideas. Ø To be creative, imagining new or amended theories Ø To take benefit (discover, understand) existing relevant theories Ø To learn from experience IQ tests measure more processing abilities than intelligence
MI - Intelligence- Real meaning 12
Kinetic information Level 4: Intelligence
Other definitions Ø Judgment, otherwise called good sense, practical sense, initiative, the faculty of adapting one's self to circumstances...auto-critique Ø The aggregate or global capacity of the individual to act purposefully, to think rationally, and to deal effectively with his environment. Ø Innate general cognitive ability Ø Goal-directed adaptive behavior Ø Aptitude to survive and reproduce Is language involved? Ø As a higher processing ability, language might be involved § "Artificial intelligence", mental representations Ø "Intuitive" behavior results of an inner appropriation of knowledge that realize a short cut from knowledge to a processible outcome action, decision / the language might be only involved at the last stage
MI - Intelligence- Real meaning 13
Kinetic information Level 5: Wisdom
Common definitions (I don't like them!) Ø the inner knowledge and experience needed to make sensible decisions and judgments, or the good sense shown by the decisions and judgments made Ø accumulated knowledge of life or in a particular sphere of activity that has been gained through experience Ø an opinion that almost everyone seems to share or express Ø ancient teachings or sayings that survives to Time Better: Ø Consciousness of having limited knowledge and poor understanding § Data, Information, Knowledge and intelligence are of relative interest Ø Acting for the common interest, being unselfish
MI - Intelligence- Real meaning
14
Potential/Kinetic Information relationship
Sensing
Things & Facts
Data
Action
Meaning
Know ledge
Conscious sness
Communication
Interactions
Intelligence
Processing
MI - Intelligence- Real meaning
Wisdom
15
Discussion
From real world to ultimate wisdom and back, a huge variety amplification / attenuation occurs Ø The real world is highly complex Ø At the data level, capturing the whole context is impossible Ø By selecting "relevant", "significant" data, one makes assumptions to summarize a complex situation into an apparently simple one Ø The same filtering occurs at the meaning level, explaining why the very same situation is judged very differently by different people Ø Again, Knowledge builds on a subset of the available "meaningful" information Mass media play at will with listeners understanding Ø Finally, the overall consciousness consolidates knowledge into a global, simplistic perception of the World, determining choices open by knowledge, based on the subjective meaning of a given situation Ø Walking back to the real world for action, the reverse amplification must occur for actions to match the actual complexity/variety
MI - Intelligence- Real meaning 16
Agenda
Intellectual/Informational hierarchy Biological and artificial intelligence Product of Complex systems Enterprise IQ
MI - Intelligence- Real meaning
17
Biological Computational capabilities
Connection to the World Ø Perception Ø Motion and manipulation Meaning and Knowledge representation Ø Pattern recognition Ø Verbal Language and other communication skills Deduction, reasoning, problem solving Ø Ability to complete missing information Ø Planning Ø Learning Ø Creativity Ø Social behavior Ability to repair
MI - Intelligence- Real meaning 18
Biological / Digital computing Comparison (Stonier)
Computer Digital information processor based on circuits of binary switches Human Brain Analogue information processor involving a complex nervous system with scores of chemical neurotransmitters and modifiers Information transmitted as pulses of depolarization along membranes and as neurotransmitters across synapses Speed of pulses transmission approximately 10 m/sec Extremely complex circuitry: 1011 neurons with up to 1015 connections
Information transported as pulses of electrons along conductors and across semiconductors Speed of pulses transmission approximately 108 m/sec Relatively simple circuitry but increasing in complexity
MI - Intelligence- Real meaning
19
Biological / Digital computing Comparison (cont'd)
Computer Can operate under a wide variety of conditions Computer system may be shutdown indefinitely with no damage No self-repair. Some self-correction and by-pass of faulty areas Memory based on patterns of binary switches Human Brain Needs carefully regulated environment to operate Brain requires continuous energy inputs in order to maintain the living system Tissue capable of significant selfrepair. Also extensive capability to transfer function to other circuitry Memory based on patterns of neural connections
Crystalline structure, extremely stable Biotissue, vulnerable to damage
MI - Intelligence- Real meaning
20
Intelligence in artificial systems
To simplify the following sections, an artificial system is considered to only exhibit intelligence at the level it has a purpose on its own: Ø The marketing department or the production facilities have a lot of processing capabilities, § I can fire the production department and outsource the manufacturing activity Ø but only the company itself exhibit intelligence from the proper coupling of all its entities § Nothing subsists if I kill the company § Except saleable assets without any proper responsibility outside a living company
MI - Intelligence- Real meaning
21
Agenda
Intellectual/Informational hierarchy Biological and artificial intelligence Product of Complex systems Enterprise IQ
MI - Intelligence- Real meaning
22
System intelligence
Intelligence is an emergent property of complex systems Ø resulting of complex interactions Ø between behaving components § brain synapses, silicon gates, talking people, assembled machines Processing and Intelligence residence Ø Processing can be localized in computing areas § Monism: Intelligence is integrally embedded in the system Control loops, servo-mechanisms § Dualism: Intelligence is a well defined decision making entity Recipe sequencer, decision maker Ø Intelligence is a diffused characteristic of a complex system § At its different levels of recursion see section 4 "Make intelligence actionable"
MI - Intelligence- Real meaning 23
Conflicts and Intelligence
Intelligence is carried on by complex system/sub-systems Ø With proper references and individual goals, Ø Having a certain level of autonomy § Regarding other components and environment § Subject to priorities / positioned in decision hierarchies Conflicts are inevitable Ø A perfectly stable system may be immune for some time Ø Any change may trigger conflicts, Any conflict may trigger change Ø Survival has timing and altruistic dimensions: § Component interest may contradicts other components' / system's itself
MI - Intelligence- Real meaning
24
Conflicts and Intelligence
Conflicts reveal lacking/failing/inappropriate interactions Ø Communication issues, Ø Structural and behavioural unfit Ø System / Subsystems goals mismatch Ø More generally bad variety/complexity management Conflict resolution is a critical aspect of intelligence Ø Leads to improved interactions ad growing knowledge
MI - Intelligence- Real meaning
25
Cooperation and Intelligence: 1+1 > 2 or <2
Cooperation is the intended purpose of interactions Ø Called in this case « relationships » Intelligence results of efficient cooperative relationships Ø 1+1 > 2 : globally positive impact § A football team succeed when the players interact best during the game Ø 1+1 < 2 : globally negative impact § The best French player at the 2010 World cup form a disastrous team
MI - Intelligence- Real meaning
26
Feedback: The Power of information
Interactions imply that sub-systems Ø Receive information / sense from other sub-systems / environment Ø Process information Performing local « processing » - functionnal role Ø Send new information to / act on other sub-systems / environment The sub-systems being « complicatedly coupled », their actions Ø spread to many other sub-systems directly/indirectly, themselves processing and spreading this information Ø Hit them back at some point Ø Intelligence results of these complex interactions and processing Ø Intelligence is a direct factor of appropriate filtering/amplification of information Feedback loops Ø Positive: Productivity enhancement Ø Negative: Traffic control
MI - Intelligence- Real meaning 27
Uncertainty and Intelligence
Some systems are subject to standard Gaussian deviations Ø Future is somewhat predictable Ø Exception are rare or of limited impact Others are subject to extreme events that can arise without computable probability Ø Our modern World tends more and more to favour this kind of environment Intelligence implies Ø The knowledge of the real Gaussian domains § Exercising classic risk Mitigation management Ø The consciousness of the lack of knowledge of the uncertainty § Be ready to address unpredictable, but very likely large impact events § Bad or Good
MI - Intelligence- Real meaning 28
Deterministic Intelligence
Example: Ø Comissionning manager strategy Ø FDA regulations, TQM Decision hierarchy Ø Classical Strategy / Tactic / Operations decision process HR management Ø Stimulations, conflicts resolution Linear Feedback loops Ø React on predictable events based on knowledge gathering and development Process improvement Ø Performance measurement, KPIs Ø TOC, 6Sigma, Lean...
MI - Intelligence- Real meaning
29
Opportunistic Intelligence
Example Ø Best performing companies are lucky.. Noise and useful information Ø Distinguish unimportant / important events Mitigate risk Ø Uncertainty and Risk Leverage the Luck factor Ø Be imaginative, Develop creativity Ø Recognize opportunities Ø Be adaptive Ø Decide and act fast Ø Make mistakes, fix and learn (don't do the same twice)
MI - Intelligence- Real meaning
30
Agenda
Intellectual/Informational hierarchy Biological and artificial intelligence Product of Complex systems Enterprise IQ
MI - Intelligence- Real meaning
31
Intelligence measure
Intelligence a single global capability of a system Ø influences many performance domains Systemic performance indicators assess system's intelligence Ø Shall be global to the system (taken as a black box) Ø Local smart behaviour are not a valid measures Ø However, being smart locally might impact positively the systemic performance releasing higher intelligence § Not necessarily! Performance can be measure on system's I/Os Ø For each (category of) external interactions § Type of flow : information / money / matter / energy § Type of party: Shareholder / Employees / Government, Citizen, Society, / Nature, environment / Partner, suppliers, customers / Competitors
MI - Intelligence- Real meaning 32
The enterprise black box
Government, Society, citizen Employees Shareholders Nature, Environment Partners Suppliers, Customers Contractor Bank, Insurance Competitors
Information Money Matter Energy
Negentropy Information Money Enterprise Manufacturing Matter System Entropy Energy
MI - Intelligence- Real meaning
33
Industrial Enterprise Systemic Performance Dimensions
Relationships Shareholder Employees Government Nature Partners Competitors Information Ps.in Pe,in Pg,in Pn,in Pp,in Pc,in Money Ps,mo Pe,mo Pg,mo Pn,mo Pp,mo Pe.en Pg,en Pn,en Pp,en Pg,ma Pn,ma Pp,ma Energy Matter
MI - Intelligence- Real meaning
34
Exercise: IESPD Example
Pi Ps.in Ps,mo Pe,in Pe,mo Pe.en Pg,in Pg,mo Pg,en Pg,ma Pn,in Pn,mo Pn,en Pn,ma
MI - Intelligence- Real meaning
35
Exercise: SCOR Performance Attributes and Associated Level 1 Metrics / IESPD
Performance Cliquez sur Attribute Supply Chain Reliability
l'icône pour ajouter un tableau
The performance of the supply chain in delivering: the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer. The speed at which a supply chain provides products to the customer. The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage.
Performance Attribute Definition
Level 1 Metric Perfect Order Fulfillment
Impacted IESPD
Supply Chain Responsiveness Supply Chain Flexibility
Order Fulfillment Cycle Time Upside Supply Chain Flexibility Upside Supply Chain Adaptability Downside Supply Chain Adaptability Supply Chain Management Cost Cost of Goods Sold Cash-to-Cash Cycle Time Return on Supply Chain Fixed Assets Return on Working Capital
Supply Chain Costs Supply Chain Asset Management
The costs associated with operating the supply chain. The effectiveness of an organization in managing assets to support demand satisfaction. This includes the management of all assets: fixed and working capital.
MI - Intelligence- Real meaning
36
Example of Industrial Enterprise Systemic IQ
Shall mesure the ability to improve the systemic performance Like human IQ tests, analytical results seldom match individual global, actionable intelligence Also, performance seen from the system might often contradict party's interests Ø Might favor short term performance Ø But condemn long term survival
MI - Intelligence- Real meaning
37
Calculation example
Given Ø IQ: Enterprise systemic intelligence factor Ø KiPi: weighed individual systemic performance measurement § Ps,mo = Monetary performance for shareholders IQ = 100+d(KiPi)/dt Ø IQ = 100 = steady performance Ø IQ > 100 performance increases Ø IQ <100 performance decreases Issues: Ø Not an absolute measurement can perform poorly or nicely at 100 Ø Do not guarantee survivability Depend on the weighing Ø Single value: terrible, deadly performance can be offset by outstanding's
MI - Intelligence- Real meaning
38
Exercise: Your proposal
Give a definition of an Industrial system intelligence Propose a method for assessing its IQ Ø Based on the Industrial Enterprise Systemic performance dimensions Ø Imagine other assessment methods
MI - Intelligence- Real meaning
39
Thank You !
MI - Intelligence- Real meaning
40
Industrial Operations / Information Processing Convergence Control Chain Management Body Of Knowledge
MI Intelligence Real meaning
04/2011
Jean Vieille
www.syntropicfactory.com j.vieille@syntropicfactory.com
Research community www.controlchainmanagement.org Consulting group: www.controlchaingroup.com
Agenda
Intellectual/Informational hierarchy Biological and artificial intelligence Product of Complex systems Enterprise IQ
MI - Intelligence- Real meaning
2
Information levels
Syntropic Type Potential Potential Potential Potential Potential Kinetic Kinetic Kinetic Kinetic Kinetic 1 2 3 4 5 Syntropic Rank Information type 1 Things and Facts 2 Data 3 Meaning 4 Knowledge 5 Consciousness Interactions Communication Processing Intelligence Wisdom Representation Objective Objective / Language Subjective / Language Objective / Language Subjective Objective Objective / Language Objective / Language Objective / Language Subjective
MI - Intelligence- Real meaning
3
Potential Information Level 1: Things and Facts
The « reality », the « Truth » Ø The things as they are Ø The facts as they happen Ø Inherently objective Independent of the observers Ø Ourselves, Sensors and computers Ø Though Quantum physics tells us otherwise.... Cannot be processed as is
MI - Intelligence- Real meaning
4
Potential Information Level 2: Data
A local representation of disconnected facts and observations Ø Translation of things and facts by the primary observer, from its narrow local perspective, into communicable information § The temperature is -50 § Riots are going on Ø Tentatively objective, though the selection of data is subjective Data relies on language Ø Offering conceptual references, symbolisation... § Physical measurement Temperature, pressure § Numbering § Social events Riots, parties, meeting Ø ... implicit in the context of the observer
MI - Intelligence- Real meaning 5
Potential Information Level 3: Meaning
An interpretation of data for use by other Ø Condition, combine data in order to convey meaning to non-direct observers § The temperature is -50 °C at the North pole, on 2010 March 1st 4PM § Riots in Teheran, 17M inhabitants, 20000 demonstrators Ø "Interpretation" fills information gaps to pull more meaning Ø Subjective: meaning depends on the observer processing the data Meaning relies on language Ø Relying on conceptual references Ø Describing the context, Ø Bringing the distant observer closer to facts and things Ø Through the direct observer interpretation and filtering § "colouring" the reality on purpose or indidentally
MI - Intelligence- Real meaning 6
Potential Information Level 4 : Knowledge
Knowledge is an objective state of understanding Ø In the form of experiences, theories, beliefs Ø Trying to explain the Reality: things and facts, looking for "truth" Ø Can be materialized (books, files, painting...) using language and other means or less appropriate to people / machine languages It is independent of its subjective usage Ø Any entity can interacts with knowledge to influence its behavior in dealing with actual things and facts § Interpreting/understanding and "applying" this knowledge § Developing / improving objective knowledge Accessibility and confinement Ø Can be initiated / kept by an individual / machine Ø Can be shared by several individuals / machines Ø Can be more or less publicly exposed to open access
MI - Intelligence- Real meaning 7
Potential Information Level 5: Consciousness
Consciousness is a lasting issue for philosopher Dictionnaries discard the problem - Oxford: Ø the state of being conscious. § the fact of awareness by the mind of itself and the world. Ø one's awareness or perception of something Is it really a level 5 of Potential Information? Ø Is knowledge a precondition for consciousness? Ø Would the World be different without consciousness?
MI - Intelligence- Real meaning
8
Kinetic information Level 1: Interactions
The dynamics of the world is through interactions Ø Actions results of a network of interactions from an initial trigger Ø This trigger itself arise from other interactions and so on Interactions have many forms Ø At the atomic and subatomic levels, to build more complex material structures Ø Multimedia interactions between people through available senses:: sound, vision, smell, touch, taste, 6th sense Ø Chemical, mechanical electrical, interactions
MI - Intelligence- Real meaning
9
Kinetic information Level 2: Communication
Communication is the abstraction of interactions, making possible Ø To implement artificial interactions § Not naturallly occuring Ø To link separate, distant entities Ø To link dissimilar entities ( people and machines) Communication relies on language Ø Only meaningful interactions are useful Ø A language offers conceptual references for a shared understanding
MI - Intelligence- Real meaning
10
Kinetic information Level 3: Processing
Processing implements existing knowledge Ø To understand and act on he Reality Information « flows » through systems' components Ø Communication exchange « meaning » between thinking / processing bodies /.black boxes Ø What happen inside brain and computer is « processing » § Which itself results of interactions synapses in gray matter, integrated circuits Processing relies mainly on language Ø Thinking processes and artificial computing Some local, low-level, basic processing relies on direct interactions Ø No language is required to make people wlaking Ø No language is required to control to fill up the WC water bin after a flush
MI - Intelligence- Real meaning 11
Kinetic information Level 4: Intelligence
Intelligence Ø Makes a critical use of knowledge: challenges existing beliefs and theories trial and error process confronting theories and reality Ø Suggest changes to existing knowledge, develops new theories § Intelligence build knowledge - Processing sucks, Intelligence contributes Ø Focuses the limited thinking / processing capabilities toward conscious goals - Beyond survival and reproduction Involves abilities such as Ø to reason, plan, solve problems, think abstractly connecting theories to reality, comprehend complex ideas. Ø To be creative, imagining new or amended theories Ø To take benefit (discover, understand) existing relevant theories Ø To learn from experience IQ tests measure more processing abilities than intelligence
MI - Intelligence- Real meaning 12
Kinetic information Level 4: Intelligence
Other definitions Ø Judgment, otherwise called good sense, practical sense, initiative, the faculty of adapting one's self to circumstances...auto-critique Ø The aggregate or global capacity of the individual to act purposefully, to think rationally, and to deal effectively with his environment. Ø Innate general cognitive ability Ø Goal-directed adaptive behavior Ø Aptitude to survive and reproduce Is language involved? Ø As a higher processing ability, language might be involved § "Artificial intelligence", mental representations Ø "Intuitive" behavior results of an inner appropriation of knowledge that realize a short cut from knowledge to a processible outcome action, decision / the language might be only involved at the last stage
MI - Intelligence- Real meaning 13
Kinetic information Level 5: Wisdom
Common definitions (I don't like them!) Ø the inner knowledge and experience needed to make sensible decisions and judgments, or the good sense shown by the decisions and judgments made Ø accumulated knowledge of life or in a particular sphere of activity that has been gained through experience Ø an opinion that almost everyone seems to share or express Ø ancient teachings or sayings that survives to Time Better: Ø Consciousness of having limited knowledge and poor understanding § Data, Information, Knowledge and intelligence are of relative interest Ø Acting for the common interest, being unselfish
MI - Intelligence- Real meaning
14
Potential/Kinetic Information relationship
Sensing
Things & Facts
Data
Action
Meaning
Know ledge
Conscious sness
Communication
Interactions
Intelligence
Processing
MI - Intelligence- Real meaning
Wisdom
15
Discussion
From real world to ultimate wisdom and back, a huge variety amplification / attenuation occurs Ø The real world is highly complex Ø At the data level, capturing the whole context is impossible Ø By selecting "relevant", "significant" data, one makes assumptions to summarize a complex situation into an apparently simple one Ø The same filtering occurs at the meaning level, explaining why the very same situation is judged very differently by different people Ø Again, Knowledge builds on a subset of the available "meaningful" information Mass media play at will with listeners understanding Ø Finally, the overall consciousness consolidates knowledge into a global, simplistic perception of the World, determining choices open by knowledge, based on the subjective meaning of a given situation Ø Walking back to the real world for action, the reverse amplification must occur for actions to match the actual complexity/variety
MI - Intelligence- Real meaning 16
Agenda
Intellectual/Informational hierarchy Biological and artificial intelligence Product of Complex systems Enterprise IQ
MI - Intelligence- Real meaning
17
Biological Computational capabilities
Connection to the World Ø Perception Ø Motion and manipulation Meaning and Knowledge representation Ø Pattern recognition Ø Verbal Language and other communication skills Deduction, reasoning, problem solving Ø Ability to complete missing information Ø Planning Ø Learning Ø Creativity Ø Social behavior Ability to repair
MI - Intelligence- Real meaning 18
Biological / Digital computing Comparison (Stonier)
Computer Digital information processor based on circuits of binary switches Human Brain Analogue information processor involving a complex nervous system with scores of chemical neurotransmitters and modifiers Information transmitted as pulses of depolarization along membranes and as neurotransmitters across synapses Speed of pulses transmission approximately 10 m/sec Extremely complex circuitry: 1011 neurons with up to 1015 connections
Information transported as pulses of electrons along conductors and across semiconductors Speed of pulses transmission approximately 108 m/sec Relatively simple circuitry but increasing in complexity
MI - Intelligence- Real meaning
19
Biological / Digital computing Comparison (cont'd)
Computer Can operate under a wide variety of conditions Computer system may be shutdown indefinitely with no damage No self-repair. Some self-correction and by-pass of faulty areas Memory based on patterns of binary switches Human Brain Needs carefully regulated environment to operate Brain requires continuous energy inputs in order to maintain the living system Tissue capable of significant selfrepair. Also extensive capability to transfer function to other circuitry Memory based on patterns of neural connections
Crystalline structure, extremely stable Biotissue, vulnerable to damage
MI - Intelligence- Real meaning
20
Intelligence in artificial systems
To simplify the following sections, an artificial system is considered to only exhibit intelligence at the level it has a purpose on its own: Ø The marketing department or the production facilities have a lot of processing capabilities, § I can fire the production department and outsource the manufacturing activity Ø but only the company itself exhibit intelligence from the proper coupling of all its entities § Nothing subsists if I kill the company § Except saleable assets without any proper responsibility outside a living company
MI - Intelligence- Real meaning
21
Agenda
Intellectual/Informational hierarchy Biological and artificial intelligence Product of Complex systems Enterprise IQ
MI - Intelligence- Real meaning
22
System intelligence
Intelligence is an emergent property of complex systems Ø resulting of complex interactions Ø between behaving components § brain synapses, silicon gates, talking people, assembled machines Processing and Intelligence residence Ø Processing can be localized in computing areas § Monism: Intelligence is integrally embedded in the system Control loops, servo-mechanisms § Dualism: Intelligence is a well defined decision making entity Recipe sequencer, decision maker Ø Intelligence is a diffused characteristic of a complex system § At its different levels of recursion see section 4 "Make intelligence actionable"
MI - Intelligence- Real meaning 23
Conflicts and Intelligence
Intelligence is carried on by complex system/sub-systems Ø With proper references and individual goals, Ø Having a certain level of autonomy § Regarding other components and environment § Subject to priorities / positioned in decision hierarchies Conflicts are inevitable Ø A perfectly stable system may be immune for some time Ø Any change may trigger conflicts, Any conflict may trigger change Ø Survival has timing and altruistic dimensions: § Component interest may contradicts other components' / system's itself
MI - Intelligence- Real meaning
24
Conflicts and Intelligence
Conflicts reveal lacking/failing/inappropriate interactions Ø Communication issues, Ø Structural and behavioural unfit Ø System / Subsystems goals mismatch Ø More generally bad variety/complexity management Conflict resolution is a critical aspect of intelligence Ø Leads to improved interactions ad growing knowledge
MI - Intelligence- Real meaning
25
Cooperation and Intelligence: 1+1 > 2 or <2
Cooperation is the intended purpose of interactions Ø Called in this case « relationships » Intelligence results of efficient cooperative relationships Ø 1+1 > 2 : globally positive impact § A football team succeed when the players interact best during the game Ø 1+1 < 2 : globally negative impact § The best French player at the 2010 World cup form a disastrous team
MI - Intelligence- Real meaning
26
Feedback: The Power of information
Interactions imply that sub-systems Ø Receive information / sense from other sub-systems / environment Ø Process information Performing local « processing » - functionnal role Ø Send new information to / act on other sub-systems / environment The sub-systems being « complicatedly coupled », their actions Ø spread to many other sub-systems directly/indirectly, themselves processing and spreading this information Ø Hit them back at some point Ø Intelligence results of these complex interactions and processing Ø Intelligence is a direct factor of appropriate filtering/amplification of information Feedback loops Ø Positive: Productivity enhancement Ø Negative: Traffic control
MI - Intelligence- Real meaning 27
Uncertainty and Intelligence
Some systems are subject to standard Gaussian deviations Ø Future is somewhat predictable Ø Exception are rare or of limited impact Others are subject to extreme events that can arise without computable probability Ø Our modern World tends more and more to favour this kind of environment Intelligence implies Ø The knowledge of the real Gaussian domains § Exercising classic risk Mitigation management Ø The consciousness of the lack of knowledge of the uncertainty § Be ready to address unpredictable, but very likely large impact events § Bad or Good
MI - Intelligence- Real meaning 28
Deterministic Intelligence
Example: Ø Comissionning manager strategy Ø FDA regulations, TQM Decision hierarchy Ø Classical Strategy / Tactic / Operations decision process HR management Ø Stimulations, conflicts resolution Linear Feedback loops Ø React on predictable events based on knowledge gathering and development Process improvement Ø Performance measurement, KPIs Ø TOC, 6Sigma, Lean...
MI - Intelligence- Real meaning
29
Opportunistic Intelligence
Example Ø Best performing companies are lucky.. Noise and useful information Ø Distinguish unimportant / important events Mitigate risk Ø Uncertainty and Risk Leverage the Luck factor Ø Be imaginative, Develop creativity Ø Recognize opportunities Ø Be adaptive Ø Decide and act fast Ø Make mistakes, fix and learn (don't do the same twice)
MI - Intelligence- Real meaning
30
Agenda
Intellectual/Informational hierarchy Biological and artificial intelligence Product of Complex systems Enterprise IQ
MI - Intelligence- Real meaning
31
Intelligence measure
Intelligence a single global capability of a system Ø influences many performance domains Systemic performance indicators assess system's intelligence Ø Shall be global to the system (taken as a black box) Ø Local smart behaviour are not a valid measures Ø However, being smart locally might impact positively the systemic performance releasing higher intelligence § Not necessarily! Performance can be measure on system's I/Os Ø For each (category of) external interactions § Type of flow : information / money / matter / energy § Type of party: Shareholder / Employees / Government, Citizen, Society, / Nature, environment / Partner, suppliers, customers / Competitors
MI - Intelligence- Real meaning 32
The enterprise black box
Government, Society, citizen Employees Shareholders Nature, Environment Partners Suppliers, Customers Contractor Bank, Insurance Competitors
Information Money Matter Energy
Negentropy Information Money Enterprise Manufacturing Matter System Entropy Energy
MI - Intelligence- Real meaning
33
Industrial Enterprise Systemic Performance Dimensions
Relationships Shareholder Employees Government Nature Partners Competitors Information Ps.in Pe,in Pg,in Pn,in Pp,in Pc,in Money Ps,mo Pe,mo Pg,mo Pn,mo Pp,mo Pe.en Pg,en Pn,en Pp,en Pg,ma Pn,ma Pp,ma Energy Matter
MI - Intelligence- Real meaning
34
Exercise: IESPD Example
Pi Ps.in Ps,mo Pe,in Pe,mo Pe.en Pg,in Pg,mo Pg,en Pg,ma Pn,in Pn,mo Pn,en Pn,ma
MI - Intelligence- Real meaning
35
Exercise: SCOR Performance Attributes and Associated Level 1 Metrics / IESPD
Performance Cliquez sur Attribute Supply Chain Reliability
l'icône pour ajouter un tableau
The performance of the supply chain in delivering: the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer. The speed at which a supply chain provides products to the customer. The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage.
Performance Attribute Definition
Level 1 Metric Perfect Order Fulfillment
Impacted IESPD
Supply Chain Responsiveness Supply Chain Flexibility
Order Fulfillment Cycle Time Upside Supply Chain Flexibility Upside Supply Chain Adaptability Downside Supply Chain Adaptability Supply Chain Management Cost Cost of Goods Sold Cash-to-Cash Cycle Time Return on Supply Chain Fixed Assets Return on Working Capital
Supply Chain Costs Supply Chain Asset Management
The costs associated with operating the supply chain. The effectiveness of an organization in managing assets to support demand satisfaction. This includes the management of all assets: fixed and working capital.
MI - Intelligence- Real meaning
36
Example of Industrial Enterprise Systemic IQ
Shall mesure the ability to improve the systemic performance Like human IQ tests, analytical results seldom match individual global, actionable intelligence Also, performance seen from the system might often contradict party's interests Ø Might favor short term performance Ø But condemn long term survival
MI - Intelligence- Real meaning
37
Calculation example
Given Ø IQ: Enterprise systemic intelligence factor Ø KiPi: weighed individual systemic performance measurement § Ps,mo = Monetary performance for shareholders IQ = 100+d(KiPi)/dt Ø IQ = 100 = steady performance Ø IQ > 100 performance increases Ø IQ <100 performance decreases Issues: Ø Not an absolute measurement can perform poorly or nicely at 100 Ø Do not guarantee survivability Depend on the weighing Ø Single value: terrible, deadly performance can be offset by outstanding's
MI - Intelligence- Real meaning
38
Exercise: Your proposal
Give a definition of an Industrial system intelligence Propose a method for assessing its IQ Ø Based on the Industrial Enterprise Systemic performance dimensions Ø Imagine other assessment methods
MI - Intelligence- Real meaning
39
Thank You !
MI - Intelligence- Real meaning
40
Johann Sebastian Bach. the music closest to silence, closest, in spite of its being so highly organized, to pure, one-hundred-degree proof Spirit" (Aldous Huxley, Island)