InterJournal Complex Systems, 254
Status: Accepted
Manuscript Number: [254]
Submission Date: 981221
Revised On: 10328
Organizational Intelligence
Author(s): Paul Morris

Subject(s): CX.43, CX.44

Category: Brief Article


Business organizations are intelligent entities. To verify this assertion, insights into the nature of intelligence are reviewed and a working definition synthesized; collective intelligence is described and explored, leading back to the counter-intuitive conclusion that all intelligence is in fact collective. Intelligence is correctly understood in terms of optimum fit rather than in linear terms of 'higher' or 'lower.' A conceptual formula for the intelligence of organizations is proposed. Derived from analysis of biological systems, it defines the determining factors and their interplay. Application of this model in the business context is explained. Next, some impacts of information technology advances are considered: the emergence of new economic landscapes and new dimensions of differentiation--especially in terms of organizational intelligence. Particular attention is paid to knowledge (defined to be the architecture of intelligence) and the fundamental ways in which the new technologies convert information into knowledge. Finally, implications of the organizational intelligence model for strategic management are discussed, including: matching capability and complexity; - the dimensions of complexity - analysis of options using the organizational intelligence model the common errors of level and scale in applying this type of model; and, no single right answer--differentiation remains the first principle; but, going forward: the directional migration of systems and structures. While this approach to understanding organizations is largely coincident with complex adaptive systems frameworks, the differences are productive in considering implications and application of the concepts for business organizations.

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