Panel III - Systemic Approaches in Business Management    COMPLEXITY AND DECISION MAKING.        IMPLICATIONS FOR MARKETIN...
Agenda1. Purpose2. Methodology: the Viable Systems Approach (vSa)     Part A. vSa as an interpretative approach     Part B...
1. Purpose    To propose the (vSa) methodological approach to    interpret complexity and its implication for decision    ...
2. Methodology    The Viable Systems Approach (VSA) (Golinelli, 2000, 2005, 2010,    2011; Barile, 2000, 2008, 2009, 2011)...
PART A.VSA as an interpretative approach    a systems qualification of    complexity5            Di Nauta P., p.dinauta@un...
PART A: VSA as an interpretative approachorganizations as viable systems (Beer, 1972) aiming at surviving in theircontext ...
PART A: A VSA interpretation of complexityFrom an objective to                    a     subjectivequalification of complex...
PART A: A vSa interpretation of complexity    Complexity dimensions    (Rullani, 1989; Golinelli, 2000, 2005, 2010; Barile...
PART B.VSA as a governance approach    interpretation of decision making                                                  ...
PART B: VSA as a governance approach Fundamental role of the governing subjectKey governance processes:1. abstraction of t...
PART B: The VSA governance drivers The governance decisions are the outcome of the action of two complementary and co-esse...
PART B: The VSA governance drivers- Competitiveness follows a classical causality logic- Consonance seems to follow a reve...
3. First insights:     complexity and decision makingHow do decision makers manage to achieve resonance incomplexity condi...
3. First insights:     complexity and decision makingOrganizations choices are of two kinds, depending on the context cond...
3. First insights:       complexity and decision makingThe system’s governing subject, in conditions of complexity, mustac...
4. Implications for marketingThese shifts in focus correspond to the evolution of themarketing approach over time:  Focus ...
Implications for marketing Marketing Mix (4P) doesn’t grant enough importance to clients and to stable relationships with ...
The Service revolution This evolution has led to the Relationship Marketing approach (Gummesson, 2004) recently extended t...
Service & Complexity          Service is considered an ever complex issue to deal with.•   Service is related to value co-...
Complex Service Systems                 Complex Service Systems are re-shaping                    business & marketing pra...
Complex Service Systems            Complex Service Systems are re-shaping               business & marketing practicesb)A ...
Service exchanges & Complex Service Systems                …Instrumented, Interconnected, Intelligent(More measurement dat...
Comlexity theories in Marketing     There are numerous Systems Theories’ key principles useful to                       ma...
ReferencesAA.VV. (2011), Contributions to theoretical and practical advances in management. A Viable Systems Approach (VSA...
About ASVSAASVSA, Associazione per la ricerca sui Sistemi VitaliAssociation for research on Viable SystemsJoin us!www.asvs...
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Di Nauta P., Polese F., Saviano M., Complexity and decision making. Implications for marketing

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Presnetation at the World Complexity Science Academy (WCSA) 2011, Palermo

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Di Nauta P., Polese F., Saviano M., Complexity and decision making. Implications for marketing

  1. 1. Panel III - Systemic Approaches in Business Management COMPLEXITY AND DECISION MAKING. IMPLICATIONS FOR MARKETING Primiano Di Nauta, University of Foggia, Italy, p.dinauta@unifg.it Francesco Polese, University of Cassino, Italy, polese@unicas.it Marialuisa Saviano, University of Salerno, Italy, msaviano@unisa.it1
  2. 2. Agenda1. Purpose2. Methodology: the Viable Systems Approach (vSa) Part A. vSa as an interpretative approach Part B. vSa as a governance approach3. First insights: complexity and decision making4. Implications for the marketing approach 2 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  3. 3. 1. Purpose To propose the (vSa) methodological approach to interpret complexity and its implication for decision making. To evidence how marketing approach is changing and should change as a consequence of conditions of growing complexity that characterize decision making contexts. To highlight a growing convergence of thought of Scholars in the new developments of the: Systems theories (Viable Systems Approach) Network theories (Relationship Approach and Many-to-Many Logic) Service Dominant Logic Service Science Management and Engineering3 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  4. 4. 2. Methodology The Viable Systems Approach (VSA) (Golinelli, 2000, 2005, 2010, 2011; Barile, 2000, 2008, 2009, 2011) is both a research and a governance methodology rooted in systems thinking (Von Bertalanffy L. , 1950). We adopt (VSA) - as an interpretative approach to qualify the concept of complexity, highlighting its systemic nature - as a governance approach for investigating the general implications of complexity for decision making and the specific implications for the marketing approach4 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  5. 5. PART A.VSA as an interpretative approach a systems qualification of complexity5 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  6. 6. PART A: VSA as an interpretative approachorganizations as viable systems (Beer, 1972) aiming at surviving in theircontext the context conditions in which they act are relevant for the system’s outcomethe structure-system paradigm, a dual perspective to investigate aphenomenon by focusing on (Barile and Saviano, 2008, 2011): how it is made (Structure Based View – StBV) static and objective view a perspective that focuses on objects, parts, components (analytical reductionist approach) and on the relations (relationship view) how it functions (Systems Based View – SyBV) dynamic and subjective view a perspective that extends the view from the parts and relations (static) to the whole interaction (dynamic) process (systems view)6 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  7. 7. PART A: A VSA interpretation of complexityFrom an objective to a subjectivequalification of complexity: complexity does not characterize the context/phenomenon in itself, but the subjective conditions of the cognitive process on the part of the decision maker,, that is influenced by his/her interpretation schemes and affected by emotional feelings emerging from the perception of the context. complexity manifests itself when the interaction emerging from relations in a specific process does not follow clear cut behavioral rules. 7 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  8. 8. PART A: A vSa interpretation of complexity Complexity dimensions (Rullani, 1989; Golinelli, 2000, 2005, 2010; Barile, 2000, 2009, 2011): Variety Variability Indeterminacy From a static to a dynamic view From an objective to a subjective view Complication Complexity8 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  9. 9. PART B.VSA as a governance approach interpretation of decision making Supra- System systems Context Environment9 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  10. 10. PART B: VSA as a governance approach Fundamental role of the governing subjectKey governance processes:1. abstraction of the context from the environment2. definition of goals3. identification of the relevant internal and external components of the system4. involvement of relevant components into the achievement of a shared goal10 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  11. 11. PART B: The VSA governance drivers The governance decisions are the outcome of the action of two complementary and co-essential drivers (Golinelli, 2011): the competitiveness, that qualifies an effort to the continuous improvement of the system’s performances. the consonance, that qualifies an aspiration to harmonic relationships with sub and supra-systems to achieve a collective potential, an ideal sense of belonging to the system aiming at achieving a shared goal.11 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  12. 12. PART B: The VSA governance drivers- Competitiveness follows a classical causality logic- Consonance seems to follow a reverse-causalityThe result of a virtuous interaction (harmonizing) between thetwo drivers is the resonance.The resonance makes possible the existence of a collectiveconsciousness, that (in turn) makes the desired future scenariocome true (Barile, 2011). 12 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  13. 13. 3. First insights: complexity and decision makingHow do decision makers manage to achieve resonance incomplexity conditions?Decision makers are forced to abandon the “certainty” of theobjective and static structural perspective and face the “uncertainty” ofthe subjective and dynamic systems perspective.According to Barile (2011): they have “visions” of future scenarios, not as linearly determined outcomes of past facts (causality), but as emotionally anticipated desired future events (reverse-causality). then, by acting upon common feeling and desiderata, they create conditions of consonance, so being able to involve all relevant components and stakeholders into the achievement of a shared goal. 13 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  14. 14. 3. First insights: complexity and decision makingOrganizations choices are of two kinds, depending on the context conditions that characterize the decision process: management decisions – complication/certainty contexts – availability of laws, rules and customs and of interpretation schemes - decisions made on the basis of experienced models (problem solving realm) governance decisions – chaos/complexity contexts - unavailability of shared laws, rules and customs and of interpretation schemes - decisions made on the basis of feelings, values and desiderata (decision making realm) Management tends to believe that there is an optimal solution for every problem, ending up adopting a problem-solving approach in dealing with governance issues, that relate to the realm of decision making (Barile, 2009), noting the growing inadequacy of technical tools already at their disposal. 14 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it
  15. 15. 3. First insights: complexity and decision makingThe system’s governing subject, in conditions of complexity, mustaccomplish a shift in perspective: from a traditional Structural Dominant View (StDV) to a Systems Dominant View (SyDV), that means from static to dynamic from objective to subjective from parts/relations to interaction from a “problem solving” to a “decision making” approach, that means from the certainty of quantities and figures to the uncertainty of emerging proprieties, qualities and feelingsand in the marketing context: from a Goods-Dominant to a Service-Dominant Logic Source: Capra, F. (1996). The web of life. Doubleday-Anchir Book, New York, p.50. life. Doubleday-
  16. 16. 4. Implications for marketingThese shifts in focus correspond to the evolution of themarketing approach over time: Focus on production Focus on product Focus on customer Focus on relation Marketing is focused to concretize the best relation between firms and their market: but markets have changed! Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it 16
  17. 17. Implications for marketing Marketing Mix (4P) doesn’t grant enough importance to clients and to stable relationships with them, thus missing to consider clients as a strategic resource for competitive advantage Firms are ever more stimulated to relationships management within networks of actors (suppliers, partners, co-producers, clients, etc.) Business is hence represented by networks of Actors interacting with Actors In these networks firms try to promote service exchanges It is only through the service exchange (and consequent satisfaction) that firms share resources with other actors) Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it 17
  18. 18. The Service revolution This evolution has led to the Relationship Marketing approach (Gummesson, 2004) recently extended to a wider Many to Many perspective (Gummesson, 2006) on the basis of a Network view. Recent marketing research is based upon Service-Dominant Logic (Vargo and Lusch, 2004; 2006), whose key concepts are: service, rather than goods, as the focus of economic and social exchange customer is always a co-creator of value all social and economic actors are resource integrators from “market to” to “market with”
  19. 19. Service & Complexity Service is considered an ever complex issue to deal with.• Service is related to value co-creation among actors.• Adopting a Service view improves positive interaction between entities in reticular systems.• Service co-creation involves many actors within a dynamic process.• Service is based upon Complex Service Systems 19
  20. 20. Complex Service Systems Complex Service Systems are re-shaping business & marketing practices A global Player Complex Service System Supply network B2A/A2B Regulators Pressure Groupsa) Global PlayerA global player B2A/A2Bdesigning and assemblingan airplane engine coordinating an B2B International Partner B2Cinternational network of actors Clients End Users 20
  21. 21. Complex Service Systems Complex Service Systems are re-shaping business & marketing practicesb)A client trying to bookhis honeymoonthrough an ICTtourims platform. 21
  22. 22. Service exchanges & Complex Service Systems …Instrumented, Interconnected, Intelligent(More measurement data, More networks, More learning and adaptation)Smart traffic Intelligent Smart food Smart Smart energy Smart retailsystems oil field systems healthcare grids 22 technologiesSmart water Smart supply Smart Smart Smart citiesmanagement chains countries weather Smart regions Source: www.ibm.com/think22
  23. 23. Comlexity theories in Marketing There are numerous Systems Theories’ key principles useful to marketing management1. Through ST we can investigate organization behavior.2. ST allow the analysis of links, nets, balances, processes. dynamics3. With ST various standpoints can be chosen to underpin resources, goals, needs/expectations.4. ST support the interpretation of complex phenomena both from a holistic perspective and from a reductionist view. 23
  24. 24. ReferencesAA.VV. (2011), Contributions to theoretical and practical advances in management. A Viable Systems Approach (VSA), ASVSA Associazione per la ricerca sui Sistemi Vitali, International Printing, Avellino.BARILE, S. (2000), Contributi sul pensiero sistemico in economia d’impresa, Arnia.BARILE, S. (2009), Management sistemico vitale, Giappichelli, Torino,.BARILE, S. (2011), “A viable system conceived as a universal decision maker”, in AA.VV., Contributions to theoretical and practical advances in management. A Viable Systems Approach (VSA), International Printing Editore, Avellino.BARILE, S. , POLESE, F. (2010), “Linking Viable Systems Approach and Many-to-Many Network Approach to Service-Dominant Logic and Service Science”, in International Journal of Quality and Service Science, vol.2, n.1.BARILE, S., POLESE, F., (2011) “The Viable Systems Approach and its potential contribution to marlketing theory”, in AA.VV., Contributions to theoretical and practical advances in management. A Viable Systems Approach (VSA), International Printing Editore, Avellino.BARILE, S., SAVIANO, M. (2011), “Foundations of systems thinking: the structure-system paradigm”, in AA.VV., Contributions to theoretical and practical advances in management. A Viable Systems Approach (VSA), International Printing Editore, Avellino.BARILE, S., SAVIANO, M., (2010) “A New Perspective of Systems Complexity in Service Science”, in coll. with BARILE S., in Impresa, Ambiente, Management, vol.3, n.3.BEER, S. (1972), Brain of the Firm, The Penguin Press, London.DI CORPO, U., VANNINI A., (2011), Supercausality and complexity. Changing the rules in the study of causality. (Syntropy) [Kindle Edition], Amazon Digital Service.GOLINELLI, G.M. (2005, 20001), L’approccio sistemico al governo dell’impresa. L’impresa sistema vitale, Vol. I, Cedam, Padova.GOLINELLI, G.M., (2010) Viable Systems Approach. Governing Business dynamics, Cedam, Kluwer, 2010.GOLINELLI, G.M. (2011), L’Approccio Sistemico Vitale (ASV) al governo dell’impresa. Verso la scientificazione dell’azione di governo, Cedam, Padova.NG, I., BADINELLI, R., POLESE, F., DI NAUTA, P., LÖBLER, H. AND HALLIDAY, S. (2012), "S-D Logic Research Directions and Opportunities: The Perspective of Systems, Complexity and Engineering", Journal of Marketing Theory and Practice, forthcoming.RULLANI, E., (1989), "La teoria dell’impresa", in Rispoli M (ed.), 1989, L’impresa industriale. Economia, tecnologia, management, Il Mulino, Bologna.SAVIANO, M., Di NAUTA, P., (2011) “Project Management as a compass in complex decison making . A Viable Sstems Approach, in Proceedings 1st International Workshop on Project and Knowledge Management Trends-PKMT2011, Co-located with the 12th International Conference on Product Focused Software Development and Process Improvement, PROFES 2011, Torre Canne (Br), 21 June 2011.VON BERTALANFFY, L. (1950), “The theory of open systems in physics and biology”, Science, vol. III. 24
  25. 25. About ASVSAASVSA, Associazione per la ricerca sui Sistemi VitaliAssociation for research on Viable SystemsJoin us!www.asvsa.cominfo@asvsa.com 25 Di Nauta P., p.dinauta@unifg.it, Polese F., polese@unicas.it; Saviano M., msaviano@unisa.it

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