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Cause and effect in our networked society ripple across the globe


Munich, 30.10.2009

Business today is not determined by one company in one country or by one type of customer. Increasing specialisation and globalisation creates a fragile supply chain where the contribution of value to the product is efficiently distributed across numerous companies. In such a tight network the chain of cause and effects has become exponentially more complex and thereby very unusual risk scenarios. Why are we surprised to be discussing China’s demand for petrol and their effects on Brazilian crop farmers with the procurement officer of Coca-Cola or Wrigley’s? A Chinese producer’s decision to save one cent causing a serious quality concern with multimillion Euros consequences for Mercedes Benz?

We have to connect events from multiple avenues.

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