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2022 | Book

Systems Research II

Essays in Honor of Yasuhiko Takahara on Systems Management Theory and Practice

Editors: Prof. Kyoichi Kijima, Prof. Junichi Iijima, Prof. Ryo Sato, Prof. Hiroshi Deguchi, Prof. Bumpei Nakano

Publisher: Springer Nature Singapore

Book Series : Translational Systems Sciences

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About this book

This book is in honor of Yasuhiko Takahara, a first-class researcher who has been active for some 50 years at the global level in systems research. Researchers and practitioners from Japan and other countries who have been influenced by Takahara have come together from far and wide to contribute their major research masterpieces in the field of systems research in the broadest sense.
While the roots of Takahara’s systems research are in general systems theory and systems control theory, he developed his research and teaching in diverse directions such as management information science, engineering, social simulation, and systems thinking. As a result, many of the researchers and practitioners he supervised or influenced have established their own positions and are now active around the world in a wide range of systems research.
Volume II is a collection of their masterpieces or representative works in the fields of systems management theory and practice.

Table of Contents

Frontmatter

Social/Organizational Theory and Application

Frontmatter
Chapter 1. Complex Systems and Postmodernism: ANew Perspective for Society in the Twenty-First Century
Abstract
The objective of this chapter is to claim that the Hobbesian problem asking how the social order is possible must be replaced with the problem of how the edge of chaos is established. Fluctuation, noise, disequilibrium, and chaos have been noticed and emphasized in the last two decades as the major factors in the science of complexity. We may say that the current of the new scientific view of complex systems indicates the passing of a Copernican Change from the order theory to the chaos theory of the world in the twenty-first century. The postmodernism succeeding the poststructuralism is a social version of the science of complexity and offers the viewpoint that foresees the self-organization of the coming new civilization. In the ‘edge of chaos’ in modern civilization, the social system enters an excitation state and the ‘rhizomic (schizophrenic)’ movement dedifferentiates the modern structural-functional system. Social roles and statuses formed with the functional requirement are dedifferentiated, and the actions not constrained by them become dominant. In addition, control and manipulation become invalidated and concepts such as control center, authorities and wholeness of system are refuted. The increase of the arguments regarding complex systems and postmodernism symbolically signals that modern civilization has reached the edge of chaos. Probably, a plan of the new civilization will come out from the chaos theory of the world. In the twenty-first century, the situation of society seems to have become heated by the generation of noise, fluctuation, and chaos.
Takatoshi Imada
Chapter 2. A Retrospective on the University–Industry Innovation Nexus in Japan: Empirical Assessment of Coauthorship in the Light of New Data
Abstract
The role of public research in contributing to the innovation that drives economic development is rightfully a topic of concern for policymakers throughout the world. The huge amount of open research taking place primarily in universities and public research institutes represents a major deployment of research investment, and raises the question of whether the research goes on to support innovation and economic development for the benefit of the people who support that research, and global society as a whole. This has particularly been an issue in Japan, where large public research investments coincided with the onset of prolonged economic recession, and where there has been a dearth of the lauded signs of the university–industry innovation nexus, such as university-originated spin-off companies or lucrative university-held patents. Supported by the lack of these signs, an assumption of a disconnect between university research and industrial development emerged as the conventional wisdom, upon which most research policy prescriptions have been based. With this as background, the author conducted a series of research studies from the mid 1990s to the early 2000s during the first of Japan’s so-called “lost decades,” and demonstrated empirically that the disconnect hypothesis was incorrect. In fact, the university–industry innovation nexus was quite strong as measured via industry support of university research, university–industry coauthored research, and economic development based on university-sourced patents. This finding—particularly the strong and growing trend of university–industry coauthorship of scientific publications over the 1981–1996 time period—was so contrarian to the conventional wisdom that skeptics doubted the veracity of the finding and questioned whether the trend was real or an aberration. Those doubts were debunked at the time based on the available data, but temporal distance would be required for a verification of the robustness in the time trend. With the benefit of two decades of hindsight and a secondary source dataset for the 1981–2004 time period, this new study was finally able to verify the university–industry coauthorship metrics. The findings of this new study fully reconfirm the 1981–1996 results, and demonstrate empirically that the trend of rising university–industry coauthorship continued unabated through the 2004 end point of the new dataset.
Kenneth Pechter
Chapter 3. Consideration of Organization Model Based on Dynamic Equilibrium Theory
Abstract
The external environment of firms is constantly changing. To adapt to change, they are required to continue to change their internal environment. In this chapter, the author considers the coordination mechanisms existing in constitutive elements of business organizations, applying the concept of Dynamic Equilibrium Theory in the field of life science.
Inflexible mechanisms will not affect a short-term business performance, whereas will endanger a firm’s existence in the long term. To avoid such a risk, sophistication of coordination mechanisms should be highly required. This chapter also discusses measures to advance coordination mechanisms.
Hirolkazu Tanaka
Chapter 4. A Process for a Conceptual Design and Its Simulation Toward New Business Model Creation
Abstract
A process for a conceptual design and its simulation toward new business model creation is proposed. In this process, a SWOT analysis on Business Model Canvas (BMC) is done to clarify strength and weakness of the company, then Business Model Pattern (BMP) is chosen to formulate its creation policy. According to the policy, Action Framework (AF) is applied to decide the measures for realizing the new model, and the migration process to the new model through those measures is simulated using System Dynamics (SD) and Monte Carlo Simulation (MC) in order to verify its feasibility, profitability, and growth.
The novel points in this proposal are described as follows.
1.
A series of tasks from conceptual design to verification of a new business model is defined as a process.
 
2.
Incorporating BMP as a template for new business models and formulating policies
 
3.
For each block of the BMC, the method of building SD models is standardized.
 
4.
For each block of the BMC, the method of building the extended part of the SD model is standardized according to the results of AF application.
 
5.
For each BMP, parts that can be formalized as SD model are made and applied to extend the SD model.
 
6.
When multiple BMPs are applied, the tasks to be performed in conceptual design and the rules to be followed in verification are prescribed.
 
Furthermore, this chapter is written on the basis of (Yoshida, Japan Society for Management Information 29, 2021) and (Yoshida, Journal of the Japan Society for Management Information 30, 2022).
Kazuki Yoshida
Chapter 5. Virtual Organization, Organizational Intelligence, and Imperfect Information Processing
Abstract
After the loss of Eden, human beings have always faced the difficulties of imperfect information processing. No one knows what shall happen tomorrow and the day after tomorrow. And, people strongly wanted to know the future. At that moment, time is starting toward the future. People have rushed into the real world, in which they were suffering from uncertainty and anxiousness.
First, they had thrown themselves on god’s mercy. They have trusted their primitive nation’s fate and destiny to oracle and prediction in ancient Greek, China and Japan. They offered sacrificial victims to their deities, told their victory and defeat of war, and preyed a fertility of hunting and fruitful crop. Almost simultaneously, people have formed organization to see the far future. They have already known the tactics of war, technology of production, and comfortable life of city.
Organization is, as it were, a castle in the air. Human beings have built it up on the community, before the birth of market, and state. Organization has geometric structure which represents some properties, even though the structure is virtual. The geometric properties generate organizational phenomena and performance.
Organization could have intelligence as well as Human Intelligence and Artificial Intelligence (AI). It has many aspects of intelligence, such as memory, emotion, excellent discernment and inference, and so on. In these characteristics, the core concept of organizational intelligence (OI) is the ability to make a strategic plan for smooth transformation of organizational structure. Adding to it, the core concept consists of setting a goal and predicting organizational future.
Organizational structure has spontaneously grown up and repeated the growing cycle in the birth of enterprise. On the other hand, in any political systems, social systems, and management systems there has continued long-term wave of transformation of organizational structure, only according to technologically growing curve, without intention of organizational intelligence. We can observe that the structure is swinging between hierarchy and decentralized structure.
Organizational intelligence is defined as to make a strategy, describe structural design, set a goal, and to predict organizational future. It means that organizational intelligence exists on meta layer in the hierarchy of organizational structure and phenomena. The space of organizational intelligence is out of cybernetic space and out of self-organizing space, but in systems space.
In particular, organizational intelligence makes a plan for organizational structure, while observing and considering the spontaneously structural transformation which can bring optimal transition. Thus, while organizational intelligence is monitoring the transition and simulating the optimal structure using AI, it can support promotion of the metamorphose. This scheme may bring us the newer style of management organization with computerized organizational Intelligence.
Tadashi Yamamoto
Chapter 6. Composite: A Model of Virtual Organization
Abstract
Organization is, as it were, a temporally stable whirlpool appearing on flow of imperfect information processing. At that time, there are going on two processes concurrently. One is to make optimal organization to perform task. The other is to process imperfect information. If we describe this process as an inherent model based on discrete structure, many decentralized autonomous units continuously try to connect to others, from which some nested hierarchical system forms with optimal structure.
Composite is a model of virtual organization. It is also a model of hierarchical system, based on distributed autonomous units and their relations. Each unit has own basic endowment sets and operators. It is trying to connect to each other, using its local scope under some local rules, and makes network topology. A composite is hierarchically composed of the nested sub-composites through this continuous process. It is spontaneously growing up by composition, and sometime later collapsing by decomposition.
Composite and its composing process show that there arises characteristic geometry and structural complexity. At the base layer, Decentralized Autonomous Units (DCAUs) and their connecting form some topological geometry, which shows some kind of complexity. Also, spontaneous stratification with nested structure represents generating complexity. In the middle hierarchical layer, there will emerge measurable complexity. On the other hand, composite is an information processing system simultaneously with a self-organizing system. In particular, it deals with imperfect information. So, it makes bifurcation and a new branch for future forecasting. Higher stratified composite based on wider domain of DAUs could see the further future in the global scope.
The top of composite is transformed, according to composing process. It can be optimal process with global scope. In simulation, there often happen many local optimal solutions by local scope. As it can procure the higher global scope, it will escape from a trap of local optimal structure. Composite holds nested stratification and composing process with repeating operation and recursive operation. This composing process generates complexity and computational complexity at the conceptual simulation.
From the Paradise Lost, human beings have always developed the newer systems for imperfect information processing. However, there remains invariant imperfect information against the transformation of the systems. Thus, it is necessary for any information systems from CPU to AI, and to world market to predict the near future. While they are seeking for efficiency or advantages, surely imperfect information will appear in their small spaces. Composite model enables us to generate inherent information for predicting the near future against imperfect information. However, for acquiring genuine generator by means of which we can overcome the invariant part of imperfect information, we need to develop a conceptual model of Transcendental Genesis.
Tadashi Yamamoto

Systems Management

Frontmatter
Chapter 7. What Should Be Added to Science for Solving Wicked Problems?
Abstract
In today’s uncertain and unpredictable society, known as the VUCA era, the world is facing at the frequent occurrence of severe disasters caused by huge typhoons and torrential rains due to global warming, the global COVID-19 pandemic, the UK’s withdrawal from the EU, and the trade friction and struggle for supremacy between the US and China, in addition to such large-scale complex global problems, we are surrounded by so-called “wicked problems” that are difficult to solve, for which there may or may not be a single correct answer.
To what extent is science effective in solving these “wicked problems”? What can complement traditional science, which has focused mainly on “nature”, to solve the “wicked problems” facing humanity? This is the question we will consider in this essay.
I believe that we can solve the “wicked problems” by complementing the “science” base with an empathy-based approach from the perspective of “design”.
Our approach starts from the “wicked problems” of people, organisations and societies, clarify the current situation based on empathy, conceive an artificial system to support change it into a desirable future, create a blueprint, implement it in society in cooperation with engineering and administration, and then make the solution sustainable.
This approach is a combination of a general systems development approach and design thinking. In this chapter, we discuss the background to this approach.
First, I will summarise what the concept of “wicked problems” is, then I will clarify the author’s position on “science”, and then I will trace the evolution of systems theory as a complement to it. Finally, the importance of empathy as an “alpha” that should be added to science for solving wicked problems is discussed, after showing how it is linked to “design”.
Junichi Iijima
Chapter 8. Methodology for Refining Concept Through Refutation in Theory of Organizational Strategy
Abstract
The general systems research has focused on complexity and provided hierarchical organization model and operation model. The research on corporate strategy can be positioned in higher stratum of the model of organizations. A theory of strategy of organizations has its own concept and propositions, and the proof of a proposition is usually based on case studies. Using case studies as its proof has a reason that experiments are impossible in business phenomena, and that a phenomenon or event is not repeatable.
We propose a methodology of organizational strategy by refining with cases through refutation in this chapter. A universal proposition has both sufficient and necessary conditions. When we are doing research, we can focus on the cases that satisfy necessary condition but may not satisfy the sufficient condition. This attempt of search of cases helps us understand real business activity. In the research area of strategy dynamics, cases are distinct and not many. We need to select cases that are theoretically meaningful and that can be used for refutation-oriented check. It is almost useless that gathering positive cases for an already proved existing proposition. When there is a theory of strategy, business cases should be used for refutation purpose in order to enhance and deepen the scientific knowledge.
Ryo Sato
Chapter 9. PVaR: A New Risk Measure for Financial Investments
Abstract
Most risk indicators for financial investments are for the cases with a fixed investment term; they become inappropriate when the investment term is not fixed, which is common in real investment situations. In order to measure market risk of investments in such common situations, we proposed the notion of Period Value at Risk(PVaR) in early 2010s. This article is to introduce PVaR and its computation methods that we developed in recent years.
Chunhui Xu
Chapter 10. An Agent-Based Approach to Stability of Complete, Directed, and Signed Social Networks with Loops
Abstract
An agent-based approach to social networks is developed, and some effects of types of agents to systemic properties of the social networks are clarified. Complete, directed, and signed social networks with loops are investigated, and three types of agents, that is, Heider agents, Newcomb agents, and converse Newcomb agents, are treated. The converse Newcomb agents are newly defined in this work and are proved to have strong effects on self-attitudes, symmetry of attitudes, and stability of the social networks. This work deals with three types of stability, that is, Heider’s stability, Newcomb’s stability, and converse Newcomb stability. The converse Newcomb stability is also newly defined in this work. One of the main propositions establishes the equivalence between Heider’s stability and converse Newcomb stability in complete, directed, and signed social networks with loops. This removes redundancy of the traditional definition of Heider’s stability and refines so-called “Structure Theorem” on Heider’s stability, with respect to complete, directed, and signed social networks with loops.
Takehiro Inohara
Chapter 11. A Model of Consensus and Consensus Building Within the Framework of Committees with Permissible Ranges of Decision Makers
Abstract
A model of consensus and consensus building is proposed within the framework of voting committees with permissible ranges of decision makers. A group decision-making situation is expressed by a voting committee with the unanimous decision rule, and a negotiation process among decision makers in the situation is expressed as a sequence of decision makers’ permissible ranges. Consensus is, moreover, defined as a permissible range of decision makers with a stable alternative and consensus building as a sequence of decision makers’ permissible ranges from the status quo to consensus. The existence of consensus and relationships between consensus in a committee, the core of the committee, and Nash equilibrium are investigated.
Takehiro Inohara
Chapter 12. A Game Theory Investigation of Contract Between IT Vendor and User in Problems of Information System
Abstract
We model a contract between a user company and an IT vendor as a two-person non-zero-sum game. If a contract does not include compensation for damaged items, the IT vendor does not make any effort to reduce the problems. However, if there is such compensation, depending on a payoff, this game can be a non-implement game, a prisoner’s dilemma, or an implement game. No problem reduction efforts are made in the prisoner’s dilemma, because this strategy is not Pareto optimum. Therefore, we examine the effectiveness of the incentive contract and find that it does not have any effect. Next, we examine an iterated prisoner’s dilemma under a long-term contract and find that the user and the IT vendor both make efforts to reduce the system problems. For this purpose, the user must have a smart retaliation strategy such as TFT.
Umehara Eiichi
Chapter 13. Systemic Approach to Reliability and Safety Management Incorporating Uncertainty
Abstract
Although reliability and safety engineering theories have previously been systematized as a related discipline, numerous accidents continue to occur in large-scale complex systems, primarily because those theories lack a system perspective. This chapter will introduce a new approach to considering the reliability and safety of real-world systems operating in diverse environments by introducing the concept of emergent failures caused by component interactions, along with a model that focuses on the gray zone (GZ) between normal and failure (or the GZ between safety and danger), which is not found in conventional theories based on two-valued logic.
Kenji Tanaka
Metadata
Title
Systems Research II
Editors
Prof. Kyoichi Kijima
Prof. Junichi Iijima
Prof. Ryo Sato
Prof. Hiroshi Deguchi
Prof. Bumpei Nakano
Copyright Year
2022
Publisher
Springer Nature Singapore
Electronic ISBN
978-981-16-9941-2
Print ISBN
978-981-16-9940-5
DOI
https://doi.org/10.1007/978-981-16-9941-2