Ontonix UK provides business intelligence and corporate performance management services using complexity-based analysis. They measure the complexity and entropy of organizations, markets, portfolios, and systems to assess fragility and risk of crisis. This helps clients intervene early before issues arise to better manage growth and restructure appropriately. Their techniques also enable real-time monitoring of complex and critical systems like banks' IT infrastructure for early warnings.

1. Ontonix UK
www.ontonix.com
Business Intelligence and Corporate Performance Management
It is known that when a system functions in the proximity of its critical
complexity, it is very difficult to manage and grow and, at the same
time, quite risky. In such situations the system may develop
unexpected modes of behaviour. Based on corporate data it is
possible to measure the evolution of corporate complexity and
therefore to track in a holistic fashion the manageability and growth
potential of the corporation. Before critical complexity is reached the
management may either decide to re-structure (drain entropy) or
consider a merger. In the latter case the corresponding critical
complexity threshold is elevated, thereby increasing the growth
potential. Critical business units (hubs of the business) are indicated
in red in the process map.
Advanced Portfolio Design and Asset Management
The Ontix is a holistic complexity-based index conceived by Ontonix
and issued to track the complexity of stock markets, asset portfolios
or generic financial products. The image above illustrates a Process
Map built automatically using real-time values of the following indices:
ATX, BEL-20, CAC 40, DAX, AEX General, OSE, MIBTel, ISE, Madrid
General, Stockholm general, Swiss Market and the FTSE 100. The plot
of the Ontix index the map are refreshed every 30 minutes and may
be viewed in the home page of our site. Complexity-based methods of
portfolio design go beyond the limitations of the covariance-based
MPT.
Crisis Anticipation
The sub-prime crisis in the US became known to the wide public in
August 2007. However, based on our analysis of the US housing
market data spanning the period 2004-2007, we have shown
how during 2006 the complexity and entropy of the
market rose steeply by about 40%. None of the conventional methods
delivered early warnings of the upcoming crisis while complexity-
based technology indicated clearly that the market was building up
entropy at least a year before the August blow-up.
CEO: David G Wilson david@ontonix.com Tel: +44 (0) 7919 917150
UK Ltd. Registered number: SC380992. Registered office: The C'a'doro, 45 Gordon Street,
Ontonix UK Ltd. Registered number: SC380992. Registered office: The C'a'doro, 45 Gordon Street, Glasgow G1 3PE

2. Ontonix UK
www.ontonix.com
Real-time Monitoring of IT Systems
(Bank)
IT systems in banks are extremely complex dynamical systems,
composed of disparate hardware platforms, disk, routers, software
applications, and are accessible by the bank's customers via the
internet. Clearly, the correct operation of a bank's IT infrastructure is
of vital importance. Real-time monitoring of the complexity (and
fragility) of a large IT system may be used to issue early warnings to
the system's managers, helping intervene before the systems reaches
a state of crisis.
Identification of Financial Crisis Precursors
Recent developments in the international financial arena show how
conventional risk rating and risk management tools and techniques
prove inefficient in a highly turbulent and globalized economy. Sudden
default of AAA companies is a fact which has been observed on more
than one occasion in the past few months. The cause of these failures
may be attributed to a substantial increase of complexity without the
management's knowledge. It is known that excessive complexity may
in fact “drown" a business if it is unprepared. Therefore, it is
mandatory to measure and manage complexity. In the near future,
risk management will become complexity management.
Trends in World Economy
Analysis of data which is published by Central Banks and the WTO is
used to periodically conduct analyses of the trends of complexity,
entropy and state-of health of the World's economy, as well as that of
specific regions and market segments. In the period 2004-2007, for
example, the complexity of the World economy has doubled, while
entropy has increased by 50%.
CEO: David G Wilson david@ontonix.com Tel: +44 (0) 7919 917150
UK Ltd. Registered number: SC380992. Registered office: The C'a'doro, 45 Gordon Street,
Ontonix UK Ltd. Registered number: SC380992. Registered office: The C'a'doro, 45 Gordon Street, Glasgow G1 3PE

3. Ontonix UK
www.ontonix.com
Conflicts and Failing States
A socio-economical system becomes fragile when it functions in
proximity of its critical complexity. At critical complexity a system
becomes vulnerable and extremely fragile, as often a minute change
in any of its parameters may trigger transitions to unwanted and
unexpected modes of behaviour. Social unrest, civil war or armed
conflicts are examples of such modes. Terrorist attacks are examples
of triggers. Moreover, critically complex countries are ideal terrorist
sanctuaries. Process maps, complexities and the corresponding critical
complexities may be established for single countries or regions. Those
regions in which complexity grows at high rate require closer
monitoring.
CEO: David G Wilson david@ontonix.com Tel: +44 (0) 7919 917150
UK Ltd. Registered number: SC380992. Registered office: The C'a'doro, 45 Gordon Street,
Ontonix UK Ltd. Registered number: SC380992. Registered office: The C'a'doro, 45 Gordon Street, Glasgow G1 3PE