Saturday, October 27, 2012

Design for Complexity: The Hidden Power of Networks

Design for Complexity: The Hidden Power of Networks

Tim Brown
I recently moderated a fascinating session at the World Economic Forum 'Summer Davos' in Tianjin, China. Two network scientists, Cesar Hidalgo of MIT and Albert-Laszlo Barabasi of Harvard, discussed the underlying science of how networks operate and how this knowledge might be applied to business and economics.

At the outset of network science a key question was raised: are networks random? If so, all nodes would be more or less similar to each other. But that is not the case. The reality is that certain nodes have more connections than others and play the role of hubs. New nodes in a pre-existing network tend to connect with highly connected nodes. After a certain threshold, the removal of highly connected nodes can make a whole network fall apart. Thus interconnectivity is beneficial but also brings in vulnerability: if you and I are connected we can share resources; meanwhile your problems can become mine, and vice versa. This happens in many different kinds of networks, from financial systems to social media to electrical power grids. Numerous complex systems can be mapped and analyzed, such as transportation and biological systems.

Network science and tools are readily available to shed light on factors that were not considered in the past and to inform decisions in many different sectors and organizations. The adoption of network science and tools for decision-making are especially powerful when designing for complexity. Hidalgo even proposed that the future economic growth of nations can be predicted based on an analysis of networks of production.

In our own organizations, network visualizations and analyses can be used to inform management decisions by looking at how employees connect to each other and how information flows through networks.

Edited by: Lawyer Asad

No comments: