A computational theory of enterprise transformation
Article first published online: 26 JUL 2011
Copyright © 2011 Wiley Periodicals, Inc.
Volume 14, Issue 4, pages 441–454, Winter 2011
How to Cite
Yu, Z., Rouse, W. B. and Serban, N. (2011), A computational theory of enterprise transformation. Syst. Engin., 14: 441–454. doi: 10.1002/sys.20188
- Issue published online: 13 OCT 2011
- Article first published online: 26 JUL 2011
- Manuscript Revised: 20 DEC 2010
- Manuscript Accepted: 20 DEC 2010
- Manuscript Received: 13 AUG 2010
- This research was supported, in part, by the Mark & Kimberly Miller Charitable Foundation.
- enterprise transformation;
- change strategies;
- computational modeling;
- change point detection
This paper translates a qualitative theory of enterprise transformation into a quantitative, mathematical theory. This enables computational exploration of the phenomena outlined in the theory, as well as the sensitivity of these phenomena to a range of parameters intended to reflect the elements of the theory. The overall question addressed is, “What should an enterprise do in response to perceptions of impending substantial change?” A mixture of three types of responses is considered—predict better, learn faster, and act faster. As these responses all require investments, it is not the case that an enterprise should always pursue all of them. Indeed, there are conditions under which an enterprise should not pursue any of them. This paper elaborates the nature of these conditions, explains why they arise, and discusses the implications for enterprises entertaining transformation. © 2011 Wiley Periodicals, Inc.