Lnbip 105 Design of Enterprise Information Systems: Roots, Nature and New Approaches

4
 
Common Responses to Uncertainty and Complexity 
Over the years, we have observed how companies have responded to uncertainty, 
unforeseeable events and complexity. Although not based on a specific statistical 
survey, we shall claim that the following characteristics represent typical reactions 
that are also reflected in several studies of organizational behavior. 
Preoccupation with Daily Operations 
In recent decades, Danish companies have demonstrated significant improvements in 
their operations in terms of better quality, shorter and more precise delivery times, and 
increased productivity. However, competing companies have managed to do the same. 

---

14 J.O. Riis 
On the other hand, very little focus has been placed on their capability to learn from 
daily operations, e.g. to extract patterns from the large amount of operational data that is 
available, and to systematize knowledge sharing. Furthermore, few companies are 
aware of increasing their capability of speedy and effective organizational changes. 
Most companies plunge into initiating major changes, as a response to external demand, 
without taking note of the organization’s capability to change. 
Different Degrees of Uncertainty Are Dealt with by the Same Organizational 
Form 
In many of the planning situations involved in daily operations and in many design 
activities there is little room for including probability statements. Colleagues and 
external partners expect precise answers to delivery dates, to the manpower needed, to 
expected future sales of a new product, or to the scope of a new management system, 
etc. Even if the associated probability can be calculated or estimated, there are some 
fundamentally difficult issues related to making a decision under conditions of 
uncertainty. The organizational hierarchical structure, often with detailed performance 
indicators for each unit, does not encourage the inclusion of probability statements. 
In addition, traditional organizational forms do not permit dealing with incidents 
that are not even perceived. Many organizational procedures and management 
systems are geared to provide only one response to coping with a broad spectrum of 
different situations.