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 M¢25  Funded By Mahalo ? |  July 23, 2009 02:31 PM

Does centralized planning break down when systems become more complex?

Do self organizing and adaptive system work better than centralized control as the system becomes more complex?
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October 14, 2009 07:43 AM
There are a number of different ways in which a system can be "complex".
If one considers a system to be comprised of nodes and connecting links (for example, people and interpersonal relationships), one of the clearest metrics for complexity is the number of links. This is different from the number of nodes - just because there are a lot of people in a system does not necessarily make it complex. If the relationships between the people are kept minimal and well ordered, like a chain of command, centralized control can work over a very large system. However, if there are lots of links (think interpersonal relationships) between the nodes (think people), then there are many different ways that two nodes (people) can connect. In a way, we can consider this to be "noise" in the system, which is difficult to handle with "command and control". If the system can be modularized into subsystems where the number of links between the subsystems is small, it can be easier to manage the overall system. This is called "holonic control", and it is part of the reason that modularization works in code development and product design.
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October 14, 2009 08:06 AM
Small World networks increase exponential as more nodes are added to the network. Suppose, you had a string that connected to between the nodes. If you pick up the node, you will identify all the connecting nodes. The market seems to work like a complex network. Price is adjusting to millions or billions of variables in the complex market network. The price is correctly adjusting to supply and demand.

A central plan fixes the prices based on a limited set of variables and therefore can not correctly determine supply or demand. The results is excess or scarcity, both situations are wasteful.

Large systems that are not complex can be controlled by a centralized control system. However, once the system become complex, the centralized system can not correct predict supply and demand.

Modularization and hierarchy control nodes are classification structures. In well defined environments these hierarchies are very affective at capturing rules and knowledge. However, in highly adaptive systems the structures are probably more chaotic. Modularization is helpful for finding information. Creating higher level selectors and critics help to reduce the sizes of the searches we make.

Modeling business consciousness is probably impossible. At best, business rules and patterns could be programmed, but an adaptive and dynamic system not likely.

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October 14, 2009 08:20 AM
Good point. In fact, the number of links in any network that is not
just a string of linked nodes increases faster than the rate of
addition of nodes. In the case where there is just one kind of link,
the maximum number of links that can be added with the addition of a
node is just the total number of existing nodes. But usually real
systems have many different kinds of links, so the situation becomes
even more complex. And while nodes tend to be relatively stable,
links are dynamic, so a central plan that sets conditions will have
a hard time keeping up with the rate of change in a system with lots
of links.

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October 14, 2009 08:27 AM
From the book, "Mechanism of the Mind"

Quote
Some knowledge of the properties of the basic unit is required at each level of information form, but a detailed knowledge of the basic level does not yield any information about higher levels of organization. For example, nerves and synaptic connection detailed information does not give insight into notion and idea formation abstracts. If the units are too small, the functional description can not be described and if the units are too big, the description will be too broad for use at all. The perfect size is a unit big enough to be usable as an explanation but also capable of making predictions.

De Bono seems to suggest that high level idea formation abstractions are mysterious. The lower level information details gives not insight into how an idea is formed. The leap is quantum, it just happens.

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October 14, 2009 08:33 AM
Kind of like the difference between deductive and inductive reasoning!

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October 14, 2009 09:52 PM
More like the difference between dreaming and deducing

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