Expert Blog

Is complexity manageable?

Microchips are essential in modern life, with smartphones containing around 50 and cars up to 4,000 chips. The global chip crisis, worsened by the pandemic and geopolitical tensions, highlights the fragility of supply chains. Dealing with complexity requires structured approaches, flexibility, and technology to find sustainable solutions.

Is complexity manageable?

Microchips are the invisible heroes of our everyday life: From smartphones to cars to household appliances - our daily lives depend on these tiny components. A smartphone contains about 50 microchips, while modern cars can use up to 4,000 chips. Even simple devices like washing machines or coffee makers are increasingly equipped with microchips to enable smart functions. This dependency on microchips was painfully highlighted by the global chip crisis, accelerated by the COVID-19 pandemic. Semiconductor production was severely affected by lockdowns and disrupted supply chains, while the demand for electronics for home office and online learning surged. This led to production stoppages, price increases, and delivery delays worldwide. At the same time, geopolitical tensions between the USA and China exacerbated the situation, restricting access to key raw materials and technologies. Unemployment and short-time work in the automotive and electronics industries, rising prices for everyday products and technological devices, as well as restricted access to modern technology, intensified social inequalities. Geopolitical tensions and dependencies on key technologies heightened uncertainties. This crisis demonstrates how vulnerable our global system is and how interconnected the economy, technology, and social stability are today. We must respond to this: Politics, together with organizations and associations, can work on solutions for the structural challenges, for example, by expanding educational programs to promote digital skills or by supporting local job market projects. Dealing with complexity requires structure and adaptability. We need to better understand complexity in order to respond more effectively to it. 1. First, it helps to break down problems into manageable parts and prioritize them. 2. Flexibility is crucial as complex systems are constantly changing. 3. Interdisciplinary collaboration brings together different perspectives to make better decisions. 4. Modern technologies like data analysis can help identify patterns and make informed forecasts. 5. Resilience and preparation for uncertainties also create resilient structures that can withstand complex challenges. The complexity in our world requires structured approaches, flexibility, and the use of technology to effectively manage it. Through collaboration and resilient structures, organizations and individuals can respond to dynamic challenges and find sustainable solutions. The chip crisis was a wake-up call. The chip crisis vividly demonstrates how complex and fragile our global supply chains are and how heavily modern economy depends on a few key technologies. Complexity makes the system vulnerable to crises - with far-reaching effects on the economy, markets, and our daily lives. Some companies and organizations have successfully learned to deal with complexity. It is advisable to observe these approaches and adapt one's own processes, structures, and tools!