Michael Lissack
We explore AI and augmented intelligence—not just as technological capabilities but as transformative forces requiring fundamental rethink- ing of decision processes, workflow design, and human-machine collab- oration. Through examples like supply chain management systems that combine algorithmic pattern detection with human judgment, we see how the frontier lies not in automation but in creating new forms of col- lective intelligence where humans and machines complement rather than replace each other. We examine climate complexity and business adapta- tion, exploring how climate change represents a complexity challenge of unprecedented scale characterized by systemic interconnections, long time horizons, irreversible tipping points, and high uncertainty. Through case studies across industries, we see how forward-thinking organizations are shifting from viewing climate change as merely a risk factor to recog- nizing it as a fundamental driver of business model innovation. We explore demographic transformations creating complexity through contradictory trends—populations aging in developed economies while youth bulges characterize developing regions, increasing diversity within workforces while polarization creates new divisions, urbanization accelerating in some areas while remote work enables population dispersion in others. We examine digital-physical integration as boundaries between virtual and material realities blur through technologies like digital twins, IoT sensors, and augmented reality interfaces. We explore ecosystem business models where multiple organizations combine capabilities to create value that none could create alone, requiring new approaches to governance, partnership, and competition. The chapter concludes by addressing how organizations can prepare for unknown complexities through sensing net- works, scenario planning, experimentation culture, strategic redundancy, and distributed intelligence. Chapter 17 outlines the characteristics, capabilities, and underlying principles of organizations designed to thrive amidst complexity. Rather than proposing incremental adaptations to traditional structures, it envi- sions fundamental transformation in how we organize human effort and technology to create value in complex environments. We explore the key
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