Revealed: the capitalist network that runs the world – New Scientist


A timely reminder and some useful, supplementary, information! Don’t be deceived… https://www.youtube.com/watch?v=c7E9SUwlooE

Get "fit for randomness" [with Ontonix UK]

I recently wrote “” and have been boring regular readers about complexity and the threat of excessive complexity, particularly when the inter-connections are “closely coupled” (see below). Amongst others, the World Economic Forum have attempted to highlight the issues.

Financially “influential” firms SHOULD BE, as they have historically been, sources of “systemic resilience”. Instead, in a turbulent, debt-laden, global economy they can, effectively, act as “superspreaders”…hubs of systemic risk:

The 1318 transnational corporations that form the core of the economy. Superconnected companies are red, very connected companies are yellow. The size of the dot represents revenue <i>(Image: </i>PLoS One<i>)</i>AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters’ worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help…

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Five Reasons Companies Fail at Business Model Innovation – HBR


We have become so used to the idea of standards as a good thing that we tend to apply them in the wrong places. For example, consider the idea of a “best practice.” The concept of a best practice assumes that there is one ‘best way” to solve a problem. It assumes that every problem can be isolated from its context, and a single best way of solving it can be described and shared. Unfortunately, this has caused a lot of problems in the business world, because it’s impossible to isolate problems from their contexts.

A system is not just the sum of its parts. What makes a system work is not the parts in isolation, but the interactions between them, and the inherent tradeoffs that must be made to achieve different kinds of system performance…

Get "fit for randomness" [with Ontonix UK]

Several years ago when I first read these words from Clay Shirky they really resonated as far as my own industry [insurance] was concerned.

“It is easier to understand that you face competition than obsolescence”

In the intervening period a great deal has changed…not necessarily for the better. But too much has remained the same. As I read recently “Nowadays, competition is mainly taking place between business models rather than just between products and services…”. It is true.

Business models that are unsustainable but still function in the current environment, are now showing the outward signs of frailty. Fragile businesses lack the agility to adapt for survival in a post-critical financial landscape.

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What is Resilience? Why is it Important in a Turbulent Economy


See on Scoop.itComplexity & Resilience

The concept of resilience of a corporation – which today may be measured based on the technology developed by Ontonix – is crucial because our economy is unstable, turbulent, and most importantly, punctuated by shocks. It is difficult to imagine, in the face of galloping globalization, that these fluctuations and shocks would become progressively less intense and severe… 

business resilience is a new and fundamental KPI

David G Wilson‘s insight:

The age of overpaying to Financial Institutions for inferior products and services – particularly those firms whose raison detre is to strip customers of promised value in order to fund excessively complex, over-remunerated and inflexible infrastructures – MUST BE NEARING AN END! http://wp.me/p16h8c-BA

 

See on www.ontonix.com

Regulation, Capital Concerns Top Insurance Worries – Wall Street Journal (blog)


See on Scoop.itComplexity & Resilience

Economic Times Regulation, Capital Concerns Top Insurance Worries Wall Street Journal (blog) “A focus on capital management and regulations is familiar territory for insurance companies and therefore the least surprising finding in our survey,”…

David G Wilson‘s insight:

INSURERS AS SOURCES OF SYSTEMIC RISK: An industry that can’t establish ‘causal relationships’ within its OWN systems has no chance of identifying or addressing THE issues that cost them more than customer claims, affect their ability to build RESILIENCE into their own portfolios without their customers (and partners) becoming, measurably, more resilient…"A survey of insurance companies worldwide shows many see an increasing regulatory burden as being one of the their biggest challenges over the next several years, along with capital management issues, the impact of social media and the adoption of big data and other technologies"

See on blogs.wsj.com

Bank Of England Warns Banks Worldwide About Risks In Steep And Abrupt … – International Business Times


See on Scoop.itComplexity & Resilience

International Business Times
Bank Of England Warns Banks Worldwide About Risks In Steep And Abrupt …

David G Wilson‘s insight:

Banks as ‘superspreaders’ of systemic risk…"Financial institutions and markets are also vulnerable to an abrupt rise in global interest rates”…because it is their already hard-pressed business and personal customers who have to find the funds! Measurable RESILIENCE is the only course: www.rate-a-business.com

See on www.ibtimes.com