Application of Swarm Intelligence in

Business Management
Swarm Intelligence is the collective behaviour of decentralized, self-organized systems that
work together to optimise their objective function (goal). Since many businesses like
conglomerates have multiple companies that could interact with each other to develop
synergies and thus have a potential to benefit from application of swarm intelligence.
System Architecture Proposed:
Since in this scenario each business operates independently and has its own goals it could be
looked at as a System of Systems (SoS) problem. We propose using a Collaborative SoS
architecture where the systems voluntarily work together to address shared/common interests.
Therefore, there is no overarching SoS control level that dictates the objectives, management,
authority, responsibility, or funding. Thus, each business unit has operational and managerial
independence, can undergo evolutionary development while reaping the benefits of the
emergent behaviour from the SoS.

Business application of swarm intelligence:

Conglomerates are companies that own a group of subsidiaries conducting business
separately in diversified industries. We would like to use swarm intelligence to help in the
value maximization of these conglomerates as well as their individual subsidiaries by
studying their interactions with each other. Some of the identified domains which would cater
to this purpose are:
- Material Flow / Product Mapping:
The final product of one subsidiary can be used as the raw material of the other. To provide
business services of one business, they could rely on the expertise or inputs of others. Hence,
in such a scenario these interactions need to be studied and the most beneficial and efficient
alternative must be identified, evaluated, and opted.
- Business Function:
Some business functions such as HR, IT, and warehouse management are repetitive in nature
and can be centralized for all or some business units. We need to be able to evaluate
alternatives to identify the best functional structure for the conglomerate that maximizes its
utility and reduces operational hassles/ costs not just for individual business units but also
maximizes the gains of the conglomerate.
- Financing:
Related party transactions to ensure adequate working capital is maintained or for raising
funds for a new project for a specific subsidiary is often undertaken in these businesses to
reduce the financial costs while adhering to the statutory constraints. These interactions can
also be considered, evaluated, and optimized to implement the most beneficial alternative.
- Governance:
Often the flow of information between subsidiary companies is limited due to the governance
structure in place. As conglomerates grow larger, it becomes even harder to break through
this barrier. Therefore, it would help to place certain executives between strategic subsidiaries
that interact with each other often. This would enhance the quality of information flowing
between the two and ensure that the information transfer process is smooth and seamless.

Potential Guidance Needed:

Might need guidance in the application of swarm intelligence to a problem (does not have to
be business specific).