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dp/kk jan2006 INTEL CONFIDENTIAL Complexity and the Enterprisewith examples from Intel Corporation Karl Kempf Decision Technologies Group, Intel Corporation Adjunct, Arizona State University AGENDA The Enterprise Interacting Vectors of Complexity (with examples) The Illusion of Control (with examples) Practical Problems The communication-based problems The forecasting-based problems Looking for Practical and/or Theoretical Solutions Discussion The Core of the Enterprise* The Core of Intel The Core of Intel The Core of Intel Complexity: Structure Each of the main organizations has … a recurring management structure (business and technical) a large set of business processes (internally facing and externally facing) a set of metrics including cost, benefit, efficiency, speed a group of long standing domain experts, journeymen, new hire novices a catalog of training materials, classes, and instructors …… In the trenches at the bottom of the organization they are very different in their day to day operations In the executive offices at the top of the organization they become more similar – they must integrate / complement / coordinate to achieve the overall goals of the enterprise Complexity: Nonlinearity There are many well-known non-linear relationships in our enterprise … In Manufacturing – work in progress VS throughput As a Buyer and as a Seller – price VS volume In the Supply Chain – inventory VS stock out risk We suspect there are many more … Manufacturing process technology development Product technology development Manufacturing capability technology development There are clearly discontinuities … Radical innovations (inside the enterprise as well as outside) Incremental innovations Complexity: Manufacturing Complexity: Supply Chain Complexity: Self-Reorganization In small scale, enterprises adaptively self-organize … Work groups at the bottom of the enterprise self-organize to accomplish a task Very dynamic, spontaneous, temporary At all scales, ente
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