1. April 29-30, 2001SwarmFest, Santa Fe1

2. April 29-30, 2001SwarmFest, Santa Fe2

3. April 29-30, 2001SwarmFest, Santa Fe3 Our products are sequences of numbers! 1-2 2-13 28-7-27-7... Product “1-2” requires the production phases 1 and 2; “28-7-27-7” requires … Each production phase represents a step in the process of producing a good or a service using goods or services running the jVE production

4. April 29-30, 2001SwarmFest, Santa Fe4 1-2 2-13 28-7-27-7... market Enterprise front end units our jVE enterprise (a sub-swarm of units) FE 28 7 27 A system of enterprises and micro productive units (a swarm) FE recipes

5. April 29-30, 2001SwarmFest, Santa Fe5 28-7-27-7 units FE 28 7 27 FE 7 ?? a a, a random order with a random recipe b c The orders are placed in the unit waiting lists and executed in a FIFO way x then we have steps b, c, …; in x we have a choice problem

6. April 29-30, 2001SwarmFest, Santa Fe6 28-7-27-7 units FE 28 7 27 FE 7 Warehouses and inventories ? ? ? ? ? … how to decide?

7. April 29-30, 2001SwarmFest, Santa Fe7 http://eco83.econ.unito.it/~terna/ct-era/ct-era.html The Environment Rules Agents (ERA) scheme

8. April 29-30, 2001SwarmFest, Santa Fe8 28-7-27-7 units FE 28 7 27 FE 7 News useful for … technically: objects Knowledge management and information diffusion ? ? ? ??? ? Sending or not the news: a problem of cooperation, routines, agreements, … (the core of organization problems) a micro–unit a macro–unit

9. April 29-30, 2001SwarmFest, Santa Fe9 The swarm of swarm technique allows us to consider macro– units containing a complete jVE … and to simulate the effect of information diffusion linking directly the macro–units or the micro ones … so a jVE macro–unit may work on the basis of the news produced by a micro–unit operating within another jVE or by another macro–unit

10. April 29-30, 2001SwarmFest, Santa Fe10 Hierarchies, knowledge management and P2P perspective... GartnerConsulting The Emergence of Distributed Content Management and Peer- to-Peer Content Networks

11. April 29-30, 2001SwarmFest, Santa Fe11 28-7-27-7 units FE 28 7 121 34 73... Exploding recipes to consider deeply sub–procurement problems 28- 121-34-…-73 -7-27-7 Procurement

12. April 29-30, 2001SwarmFest, Santa Fe12 Accounting capabilities … environmental accounting 28-7-27-7 units FE 28 7 27 FE 7 ?? cost accounting on the unit side cost accounting on the order side differences ?

13. April 29-30, 2001SwarmFest, Santa Fe13 The “no-inventories” case …and the effects on the length of the waiting lists The “inventories” case: waiting lists and financial costs The diffusion of news that influence decisions about inventories: different effects on financial costs (not yet implemented) A closer look to the jVEFrame model

14. April 29-30, 2001SwarmFest, Santa Fe14 without inventories

15. April 29-30, 2001SwarmFest, Santa Fe15 with inventories

16. April 29-30, 2001SwarmFest, Santa Fe16

17. April 29-30, 2001SwarmFest, Santa Fe17 3 matrixes (unexpressed, emerging, operating in background, …) from/to Units 1 2 3 … N 123…N123…N flows of goods and services information hierarchies

18. April 29-30, 2001SwarmFest, Santa Fe18 The enterprises (unexpressed) knowledge What unexpressed knowledge is? The tacit, unarticulated, nonscientific knowledge of the decision- makers With jVEFrame we can build models on it, in actual enterprises, and simulate the effects of changes like B2B or B2C or P2P knowledge management etc.

19. April 29-30, 2001SwarmFest, Santa Fe19 Emerging innovation in recipes... 1 311 1217 7... # of any length in recipes of any length new # in recipes as new production phases or components new recipes as sequences of new and old # to renew units and spatial organization in a productive supply chain (# as components in recipes) with JVEFrame we can also make the attempt of modeling the emergence of innovation

20. April 29-30, 2001SwarmFest, Santa Fe20 units FE 28 7 27 FE 7 ?? From …

21. April 29-30, 2001SwarmFest, Santa Fe21 … to … 28 7 27 FE 7 with the emergence of new units, new jVEs and a new space organization … local networks of enterprises or industrial districts

22. April 29-30, 2001SwarmFest, Santa Fe22 The primary objective of the National Industrial Information Infrastructure Protocols (NIIIP) Consortium is to develop, demonstrate, and transfer into widespread use the technology to enable Industrial Virtual Enterprises. A Virtual Enterprise is a temporary organization of companies that come together to share costs and skills to address business opportunities that they could not undertake individually. Industrial Virtual Enterprises, with NIIIP technology, foster collaborative efforts and the sharing of engineering and manufacturing information. www.niiip.org A small project (jVEFrame) and a big one (NIIIP)

23. April 29-30, 2001SwarmFest, Santa Fe23 Introduction of space, distances, transportation and logistic problems Creation of Gantt charts for the simulated activities Forthcoming practical improvements in jVEFrame

24. April 29-30, 2001SwarmFest, Santa Fe24 Luis Garicano (2000), Hierarchies and the Organization of Knowledge in Production, Journal of Political Economy, vol. 108, no. 5 Organizations exist, to a large extent, to solve coordination problems in the presence of specialization. As Hayek (1945, p. 520) pointed out, each individual is able to acquire knowledge about a narrow range of problems. Coordinating this disparate knowledge, deciding who learns what, and matching the problems confronted with those who can solve them are some of the most prominent issues with which economic organization must deal. Hayek, Friedrich A. von. “The Use of Knowledge in Society.” A.E.R. 35 (September 1945): 519–30. The theoretical side...

25. April 29-30, 2001SwarmFest, Santa Fe25 Coase R. (1937), The nature of the firm, Economica, 4, pp. 386- 405. Chamberlin E.H. (1933), The Theory of Monopolistic Competition, Cambridge (Ma.), Harvard University Press. Kirzner I. (1997), Entrepreneurial discovery and the competitive market process: an Austrian approach, Journal of Economic Literature, vol.XXXV, n.1, pp. 60-85. A theoretical journey with agent based simulation and jVEFrame: from Chamberlin and Coase to Kirzner, via the Hayek’s work. v. Hayek F. (1948), Individualism and Economic Order, London, University of Chicago Press.

26. April 29-30, 2001SwarmFest, Santa Fe26 If the Austrian theory claims that entrepreneurial discovery can account for a tendency toward equilibrium, that vague-sounding term “tendency toward” is used deliberately, advisedly, and quite precisely. Such a tendency does exist at each and every moment, in the sense that earlier entrepreneurial errors have created profit opportunities which provide the incentives for entrepreneurial corrective decisions to be made. These incentives offer rewards to those who can better anticipate precisely those changes in supply and demand conditions which we have seen to be so disconcertingly possible. What our understanding of the entrepreneurial discovery process provides, is not conviction that an unerringly equilibrative process is at all times in progress, but rather appreciation for the economic forces which continually encourage such equilibrative movement. Conclusions (… borrowed from Kirzner’s paper)