# Business Analysis of Complex Problems By:: [[Brian Heath]] 2022-09-30 Analysis is often the most useful when examining something complicated or complex. If it were simple, then the analysis is intuitive and probably unnecessary. However, the nature of how we think about things in simple or complex terms does not align with the nature of these things. In real systems, there is no such thing as simple or complex. They exist as they are. They can always be decomposed further to generate complexity or aggregated higher to embody simplicity. Imagine a bouncing ball. This may seem like a simple physics problem if all you care about is the aggregate bouncing of the ball. However, if you examine all of the atoms of the bouncing ball, then it quickly becomes a very complex system. It's all about how we abstract it. If there are many components in the abstraction, then it is complex. If there are only a few components in the abstraction, then it is simple. There is another element of simplicity and complexity beyond the number of components. Consider the flocking behavior of birds. Depending upon the size of the flock, we may call the flock simple as even a hundred birds aren't that many bird components. However, when the birds start to fly they exhibit complex behaviors. They stay [[together]], but not too close, and they effortlessly fly in a direction together without any single bird in command. Here the number of components is deemed simple, yet the aggregate behavior is complex. This second element of simplicity and complexity is about our understanding of the abstraction. If we understand the abstraction, then we call it simple. If we don't understand the abstraction, then we call it complex. When we put together the size and understanding definitions of simplicity and complexity, we get a much clearer value assessment of analysis. If we assume that the most valuable analysis is not with simple abstractions, then the analyst benefits the most by tackling complex problems. As we have seen, there are two primary types of complex problems: those with many components and those that aren't well understood. The many component problem is relatively easy to solve. Leverage a computer to integrate and process all the data. However, the lack of understanding problem is much more difficult as you can't rely upon computer processing to figure it out. Analyzing these problems requires significant thinking, [[research]], and time, and you may still never solve them. A wise analyst may choose to avoid business problems that are complex due to a lack of understanding as many businesses do not tolerate repeated [[failure]]. Many component problems are often a much safer bet and are often the only problems that businesses care about. The downside is that many component problems are not terribly interesting in the long run, so getting a hobby outside of work is highly recommended. #### Related Items [[Complex Systems]] [[Simplicity]] [[Complexity]] [[Analytics]] [[Business]] [[Problem Solving]] [[Understanding]]