Reducing the time dependent complexity in organizational systems using the concept of functional periodicity
MetadataShow full item record
Economic growth and sustainable value creation are a company’s most important long-term targets. However, practical experience shows that large structures notoriously suffer from efficiency losses due to increasing organizational complexity and bureaucracy. To realize a profitable growth, companies have to be good in handling their internal diseconomies caused by the increased complexity of large organizations [Matt, 2007/b]. This hypothesis is confirmed by a study of the St. Gallen Centre of Organizational Excellence (CORE) in which 300 large European enterprises were analyzed within a period of 10 years [Gomez et al., 2007]. The results of the research show: the central challenge for profitable growth consists in a company’s ability to continuously improve its organization in efficiency and flexibility. Thus, one of the major challenges is to select an organizational system configuration that promotes a sustainable business growth and is easy to operate and manage. In this paper a concept for reducing the complexity of an organizational system is discussed in order to maintain a company’s high system efficiency as a success factor for sustainable growth. Starting from the Axiomatic Design based complexity theory a procedure is presented that helps system designers and operations managers not only to design organizational systems with low or zero time-independent complexity, but also to re-initialize the once designed organizational system before time-dependent combinatorial complexity drives it to fail, i.e. to lose its competitiveness due to heavy losses in efficiency. A central aspect is the identification of a functional periodicity. With the help of a practical example the concept of the organizational periodicity is explained, a generally applicable cycle with four phases that is adapted to the individual company’s situation by compressing or stretching the sinus curve over the timeline.
Showing items related by title, author, creator and subject.
Connectivity in Cyber-Physical Production Systems: Three-Tier Industrial Internet System Model for Connectivity of heterogeneous Elements in Cyber-Physical Production Systems Rojas R; Rauch E; Matt DT (2018)In the "Smart Factory", cyber-physical systems (CPS) must be synchronized with each other and with the outside world in order to exchange information and trigger actions. This paper presents a model for the design of an ...
Matt, DT; Rauch, E (InTech, 2012)The geographically distributed production of fresh food poses unique challenges to the production system design because of their stringent industry and logistics requirements. The purpose of this research is to examine the ...
Collaborative Cloud Manufacturing: Design of Business Model Innovations Enabled by Cyberphysical Systems in Distributed Manufacturing Systems Rauch E; Seidenstricker S; Dallasega P; Hämmerl R (2016)Collaborative cloud manufacturing, as a concept of distributed manufacturing, allows different opportunities for changing the logic of generating and capturing value. Cyberphysical systems and the technologies behind them ...