By: Calista, Imjad, Hui-Xin, Mauroof, Liong

Intelligence Strategy: the Evolutionary and Co-evolutionary Dynamics of Intelligent Human Organizations and their Interacting Agents

Overview
• Human minds most vital in the knowledge economy • Capable of processing information, establishing knowledge structure, conceptualizing idea and making decision • Human systems driven by the intelligence of individual minds + organizational (collective) minds • This paper focuses on the dynamics of an ‘intelligent’ person

Outline
• Introduction (Evolution, Complexity and Autopoiesis) • 4 Aspects (the fundamentals) - A New Management Philosophy - A New Organization Theory - A New Organization Form - A New Management Strategy • Conclusion

The study
How intelligent human organizations can be structured and managed more effectively in this economy

Process dynamic

Theorizesynthesize approach

Introduction
• Evolution • Complexity • Autopoiesis

Evolution, Complexity and Autopoeisis
Two contradicting viewpoints Darwinian theory suggests that evolution is a gradual process Cambrian explosion which took place about 600 million years ago after 3 billion years of biological silence suggests that there was a sudden increase and richness of life forms existing Thus, evolution does not seem to be entirely a gradual process

Evolution, Complexity and Autopoeisis
• Discovery of spontaneous order (order for free) - Self-organization is intrinsic of genetic systems - No need for external forces to execute or influence evolution process - latent internalized forces existing within system are instrumental to life, structure and human organizations which are manifested as intelligence

• Second law of thermodynamics states that the - universe is expanding - entropy is increasing - phenomenon itself is chaotic • The sea of chaos also includes countless “local activity center”, each surrounded by a space of order that defies the second law • In each of these spaces, - structure emerges - entropy reduces - predictability enhanced These local activity centers include a crystal, an amoeba, the human thinking system and even community of

Evolution, Complexity and Autopoeisis

Evolution, Complexity and Autopoeisis
• Linear world will continue to exist and serve as the comfortable platform • For human beings to further progress intro the intelligence era, the non-linear domain should be exploited Example: Business functions that encompass nonlinear activities (strategic planning, creating competitive advantage & structuring organization) must exploit complexity in the new context

Evolution, Complexity and Autopoeisis Autopoietic nature of human systems is

vital for stability and order • Intelligent human systems exhibits selforganizing and autopoietic dynamics
– responsible and vital for elevating collective intelligence – strengthens a mindful culture – makes human organizations highly intelligent

• Continuous interactions of self-organizing and auptopoietic dynamics enables human organizations to evolve, co-evolve and survive in the fast changing environment

A New Management Philosophy

Complex Adaptive Systems (CAS)
• Human thinking systems and human organizations are complex, adaptive and non-linear • Have distinct differences from linear systems
– presence of butterfly effect – able to encrypt information

Butterfly Effect
• Presence of great diversification in surface phenomena arising from a fairly simple set of elementary process, due to only slight variations in initial conditions. - Slight disruption leading to a huge chaos • A person’s behaviour can be greatly altered leading to a person to be sane and insane depending on a slight change in a person’s brain • The complex behavioral/cognitive patterns verses the same set of elementary processes makes the brain and hence the mind a CAS

Information Encryption
• The ability to encrypt information about themselves and their environment • The genetic message of human beings is encoded in DNA. • In current society the human brain carries highly complex and sophisticated knowledge structures • Intelligent human organizations must also possess the equivalent genetic packages [organizational (societal) DNA]

Snowflake

Our human brain is the most superior knowledge structure

With this highly sophisticated super computer, the human brain – an intelligent human organization should also possess the equivalent genetic package

Water Ice

A slight change in condition can lead to a great transformation

• Information – the capacity to organize and structure systems, and organized systems contain information. • Bilateral relationship is vital to the emergence of life • However embedded information by itself may not be meaningful hence it must be decoded with respect to a certain environment context
Example: In a micro biological world a cell decodes information stored in a DNA. Likewise in socio economic and in the world of politics human minds are the decoders.

Intelligence, Information and Structure

Intelligence, Information and Structure
Intelligence and information are closely associated and have mutually reinforcing relationships

Informatio n

Intelligenc e

Intelligence, Information and Structure
• Intelligence is the unique intangible energy that drives all human thinking systems. • This is spread over a spectrum as follow; Collective Proto intelligence
EXTREME Eg: molecular structure embedded in a crystal. It allows the crystal to grow and reproduce if the condition is right

intelligence EXTREME

Eg: Human groupings possess collective intelligence, with the collective intelligence of a global nation being the optical in this planet

Intelligence, Information and Structure
Superior intelligence of humankind • Creation of physical symbol system and written language elevated intelligence in human thinking systems • A source with low level of intelligence is considered as a system or an intelligent source that is unable to create a physical symbol system

Intelligence, Information and Structure

Intelligence, Information and Structure
• Intelligence and information are closely associated and have mutually reinforcing relationships • Physical symbol system and written language elevate intelligence in human thinking systems • Major perspective of human minds is information processing, knowledge acquisition, perception and decisionmaking

Intelligence, Information and Structure
• Human mind is information processing, knowledge acquisition, perception and decision making. • Organisation should execute the intelligence associated traits better than an individual human being. • Nurture a corporation’s orgmind with the associated collective intelligence.

A New Organization Theory

Old Organizational Science
• Old domains in organizational theory
– Executive leadership – Management function – Management strategy – Operational procedure – Organizational objective – Productivity

Business functions
• Managerial
– Sophisticated info processing – Decision making perspective – More complex

• Operative
– Single, simple act of operative performance – More structured – Less complex

Execute

Construction of a Organizational Theory
• In order to do so, a paradigmatic shift encompassing scientific dimension must be established • Take on a theoretical scientific model
– Identification of Variables and Constructs – How entities interact with each other – Determine boundary – Explore new domains

Basics of Businesses
• Setup that pools business functions to generate revenue • Vital to be open system • Prepared to accept input and deliver output • Primary objective to optimize profit

Basics of Business Model- Intrinsic properties of various economic resources
Input entities
– Physical Entities (Material, Labour)
• Direct input

– Conceptual Entity (Information)
• Indirect Input; Useless unless consumed • Internalization when consumed • Can be reused

– Pseudo Entity (Money)
• Used for obtaining entities

Basics of Business ModelIntrinsic properties of various economic resources
Output entities • Assumed to be more valuable than input entities
– Product Entity
o Intangible

– Service Entity
o Tangible

Basic Economic Entity Transformation Subsystem: Axioms of the Model
Axiom I: There exists a buying function that has the ability to transform a money entity input state into a primary economic entity input state. Axiom II: There exists an, manual and/or automated, operative function which transforms a primary economic entity input state into a primary economic entity.

Axiom III: There exists a selling function that has the ability to transform a primary economic entity output state into a money entity output state.
Buying function
INPUT OUTPUT

Basic Economic Entity Transformation Subsystem: Axioms of the Model

Selling function

Economic entity transformation functions

Basic Economic Entity Transformation Subsystem: Axioms of the Model
Axiom IV: There exist a “production / economic-oriented” managerial function that complements the production or perative function to increase the profit of the organizational systems.

Axiom V: There exists a “sociopsychologically-oriented” managerial function that minimizes the sociopsychological /stress and political disturbances in organizations.

Basic Economic Entity Transformation Subsystem: Axioms of the Model

Postulate I: Law of Boundaries. The scope of the spaces of order of business organizations is defined by the elements of the input economic entity states and the elementsof the output economic entity states. Information
Labor Material Money Product Service Space of Order

Basic Economic Entity Transformation Subsystem: Postulates of the Model

Postulate II: Law of InteractionThe Primary objective of a business organization for transforming an economic entity input state into an economic entity out put state is to generate profit

Basic Economic Entity Transformation Subsystem: Postulates of the Model

Postulate III: Law of Organization- The key purpose for establishing a business organization and hence for setting up an economic entity transformations system is to optimize the law of interaction

Basic Economic Entity Transformation Subsystem: Postulates of the Model

New Management Mindset
• Some businesses do not possess this subsystem • Those that do – Possess order and complexity – Complex Adaptive Systems – However, structure of spaces of order is revealing inefficiency • Organization as a “Production Machine” • Move from industrial intensive to knowledge intensive render theories and practices invalid presents new need for change in mindset

New Management Mindset
How to change? • Org-mindfulness • “Humanize” organizations rather than “Re-engineer” • Allocate HTS as top priority • Emphasis on surface structure Emphasis on non linearity and complexity • Spaces of complexity to be explored, understood and exploited

Basic Economic Entity Transformation Subsystem: Axioms of the Model
Axiom VI: There exists an intelligence enhancing function that enables latent intelligence in organizations to be exploited, and collective intelligence to be nurtured.

A New Organization Form

Local Self-Enrichment Processes

Human Thinking System (Elementary Unit)

Intelligent Human Organization (System)

Local Self-Enrichment Processes
Axiom VII : The elementary units of intelligent human organizations, the human thinking systems, are driven by their own intrinsic intelligence. Each of these units is a complex adaptive system.

Local Self-Enrichment Processes
Axiom VIII : All intelligent human organizations possess their own collective intelligence. Hence they are higher order intelligent complex adaptive systems.

Local Self-Enrichment Processes
• Self-Enrichment Processes
– Self-centric or autopoietic forces which influence elementary units of human systems – Beneficial to the local structure and prolongs existence of elementary units – May be material, mental, spiritual and self-actualization based – Material based processes most predominant

Local Self-Enrichment Processes
Axiom IX: There exist autopoietic elementary self-enrichment processes that constantly enhance the stability of the elementary units in all Intelligent human organizations.

Local Self-Enrichment Processes
• Relationship between Self-Enrichment Processes and the Human System – Self-enrichment processes the most vital stabilizing forces in human systems – Elementary units cannot make choices which benefit the system without benefiting oneself. – If there is no place for the process in the system, the system will destabilize and collapse. – Example of system failure – Communist ideology

Local Self-Enrichment Processes
Postulate IV – Law of selfenrichment Self-enrichment is the most fundamental requirement for the successful evolution of all human organizations.

Global Forces
• Intelligence does exist even in non-living world.
Hydrogen Atom Oxygen Atom Hydrogen Atom

• Atoms and molecules come together to steady themselves with in a much bigger system. • Same phenomenon exist both in animal

Global Forces
• Among human beings people gather in groups and participate in group activities, which leads to self enrichment. • People form into groups and these groups take the form of corporations, economy or a nation. • Once such a stable group is established – global forces interact and ensure the survival of these systems.

Global Forces
Axiom X: There exists global forces that further enrich elementary units, that is, global forces must enhance self-enrichment processes if they are to be regarded as constructive

Postulate V: Law of Global Forces The effective global forces in intelligent human organizations are those that enrich elementary units of the system, meaning that they support the self-enrichment process. Its presence is required as the 2nd set of system stabilizers.

The two complex dynamics in intelligent human organisation
Interacting Agents Autopoiesis
Selforganisation

Basic intelligent organisation dynamics

Intelligent system dynamic and mindfulness
• Intelligent system dynamic
– Self enrichment dynamic is a local selfcentric phenomenon – Driven by intelligence embedded in the human thinking system and depends on the unit’s awareness and mindfulness. – Mindfulness refers to a uniquely human function of focusing inwards at the mental state of the thinking system. – Mindfulness of the individual minds is a vital attribute

Intelligent system dynamic and mindfulness
An organization is intelligent only if it nurtures a high level of collective intelligence Through the following ;
Dynamic equilibrium between global and elementary processes • The intelligent organization must be able to bind the individuals while the elementary units must be able to influence the system simultaneously • This equilibrium allows the global system to learn, adapt and evolve to form a more effective system which has a stable surface structure • This entire dynamic is nonlinear and complex

Intelligent system dynamic and mindfulness
Just as how mindfulness is vital to an individual mind, orgmindfulness is crucial to an organization An orgmindful organization constantly monitors the mental state of its interacting agents - ensure they are in highly participative and stable state

Intelligent system dynamic and mindfulness
Intelligent human organization Interacting agents with better mental state

Orgmindfuln ess

The collective intelligence source is effective only if it is able to influence the mindfulness of the individual thinking systems.

Intelligent system dynamic and mindfulness
Why is this important? The relationship between the collective intelligence source and the individual thinking systems (orgmindfulness) enhances connectivity and a mindful culture
Orgmindfulnes s

Orgmind

Quality connectivity and mindful culture

Intelligent system dynamic and mindfulness
• Intelligent system dynamic
– Self enrichment dynamic is a local selfcentric phenomenon – Driven by intelligence embedded in the human thinking system and depends on the unit’s awareness and mindfulness. – Mindfulness refers to a uniquely human function of focusing inwards at the mental state of the thinking system.

Intelligent system dynamic and mindfulness
• Orgmind
– The collective self-enrichment process emerging from individual thinking systems. – An intelligent organization nurtures a high level of collective intelligence – Orgmindfulness is achieved when it constantly focuses inwards to ensure that all it’s interacting agents are in a stable and highly participative state

Intelligent system dynamic and mindfulness
• Dynamic equilibrium between global and elementary processes
– The intelligent organization must be able to bind the individuals while the elementary units must be able to influence the system simultaneously – This equilibrium allows the global system to learn, adapt and evolve to form a more effective system which has a stable surface structure

The New Organization Form
• Intelligence is the fundamental force behind evolution. • Intelligence is inherently present in the universe. • Intelligence facilitates thinking and learning. • With the use of intelligence, knowledge structures and theories are established. • Similar to individual human beings, the collective intelligence of an organization facilitates the formation of corporate knowledge structures and organizational theories. • Similarly, a high level of orgmindfulness must be nurtured to elevate the organization to new conceptual and operational domains.

The New Organization Form

The New Organization Form
Postulate VI – Law of Collective Intelligence
The collective intelligence of an intelligent organization resides in its orgmind. It is a vital energy source which is responsible for moulding a coherent deep structure and an effective nimble surface structure. The human organization is unable to evolve without the orgmind

Postulate VII – Law of Orgmindfulness

A high level of orgmindfulness is necessary to nurture intense, coherence and well focused intelligence source. This allows for a high level of evolution and co-evolution dynamics between the organization and the interacting agents

The general structure of intelligent business organizations
Economic Production Cycle Intelligence
Information flow

Input

Selfenrichme nt dynamics
Elementary

Output

entities Theory Knowledg Corporate Intelligence e Enhancer
Engagement

Corporate Intelligence Enhancer
Orgmind

New Conceptual Domain
Orgmindfulness

Intelligence

New Awareness
Theory Knowledg e

New Mindset

New Attitudes

New Direction

New Skills and Capabilities

New Operation al Domain

A New Organization Strategy

Intelligent Person Model
• Human thinking system is the most important asset of a human being. • It is comprised of the following functions. • Consciousness – awareness of one’s own existence as an independent entity. • Mental Functions – such as perception, conceptualisation, and decision making • Sensory System – abilities to interact with the environment • Mindfulness – awareness of each and every thought that arises in the mind

Human Thinking System

An ‘Intelligent’ Person
• Does not concentrate on optimality at all times • Adopts the Intelligence Strategy • Is mindful and contributes towards the collective intelligence of the system • Has a mindset that includes;
• • • • continual fast learning longer-term survival exploitation of the butterfly effect co-evolution with their system

Inner Dynamic of an Intelligent Person Increase Mindfulness
Human Mind Intelligen ce Informati on Flow
Individua l Intelligen ce Enhance r

Theory

Knowledg e

Self-Enrichment Dynamic

Let’s Recap

Conclusion
• Evolution is driven by intelligence • It is inherently embedded in the universe • Thinking is a necessary attribute that indicates the presence of advanced intelligence • An intelligent person is highly aware of the changing environment and maintains a high degree of mindfulness. • An intelligent interacting agent always attempts to establish a more supportive culture in the organization through improving the quality of its connectivity, competitiveness, and evolution and coevolution dynamics.

How to nurture an Intelligent Organization
1) The dynamic of an intelligent human organization is (integration of local self-enrichment processes + constructive global forces) 2) The overall system dynamic is significantly impacted by ( mental state of the interacting agents + orgmind) 3) An intelligent interacting agent ensures a more constructive system dynamic due to ( high level of mindfulness, more concern about longer-term optimality than shorter-term gain & highly aware of emergence 4) High priority must be allocated to mindfulness of interacting agent and orgmindfulness of human organization when leading and managing the organization - To achieve higher level of collective intelligence and