Failing networks

As interest grows in predictive analytics and data mining, the often overlooked area is network behavior. Recent research (1) proposes ways to predict network failure modalities in complex systems with significant implications for restricting the spread of epidemics and the restoration of ecosystems. Catastrophic system failures occur not necessarily because of the obvious destruction of hubs but damages to obscure but critical areas with path dependencies.



Advancing analytical techniques are beginning to focus on the prediction of the behavior of systems as opposed to individual components. Although this has been routine in engineering design for nearly half a century, such ideas have not migrated fast enough to business. Lack of sophistication in business management coupled with an overweighted focus on tactics have resulted in dramatic failures of large enterprises and the remaining ones are on their way to the same place. Considering the enterprise as a network of ideas, skills, people and machines as opposed to accounting statements will be a step forward to building the next generation companies (2).



A new crop of leaders with a good understanding of network effects in complex systems are needed to salvage what is left of the large companies.



(1) Cyberwarfare, conservation and disease prevention could benefit from MU researcher's network model. Published: Tuesday, July 10, 2012 - 21:04 in Mathematics & Economics. Source: University of Missouri-Columbia

(2) Flexibility : Flexible Companies for the Uncertain World.http://www.amazon.com/Flexibility-Flexible-Companies-Uncertain-World/dp/1439816328/ref=sr_1_2?ie=UTF8&qid=1341976171&sr=8-2&keywords=gill+eapen