MIT World: Engineering >>
These panelists use the lens of systems engineering to focus sharply on some signature global challenges in finance, healthcare, energy and IT.
The system failure that undid the small but influential financial services industry was a few decades in the making, says John Reed. In the ‘80s, a sea change swept over firms trading hundreds of billions of dollars each day. The new mantra was “shareholder value.” Firms ditched time-honored rules of capitalizing trades and guaranteeing risk in order to build investor profits. The crystallization of this philosophy was the mortgage-backed security. Trillions of dollars went into “off-balance-sheet investment vehicles.” When the nation’s mortgage portfolio deteriorated, not just one node in the system collapsed, but all of them. To fix the financial sector, says Reed, “A systems view will be essential, including behavioral considerations, not just economics.”
There’s no point in saying U.S.healthcare is broken unless you can offer a vision. For Denis Cortese, this means designing a “learning organization.” Cortese maps out this organization’s goals: simple value, with “better outcomes, better safety, and better service at
These panelists use the lens of systems engineering to focus sharply on some signature global challenges in finance, healthcare, energy and IT. The system failure that undid the small but influential financial services industry was a few decades in the making, says John Reed. In the ‘80s, a sea change swept over firms trading hundreds of billions of dollars each day. The new mantra was “shareholder value.” Firms ditched time-honored rules of capitalizing trades and guaranteeing risk in order to build investor profits. The crystallization of this philosophy was the mortgage-backed security. Trillions of dollars went into “off-balance-sheet investment vehicles.” When the nation’s mortgage portfolio deteriorated, not just one node in the system collapsed, but all of them. To fix the financial sector, says Reed, “A systems view will be essential, including behavioral considerations, not just economics.”
There’s no point in saying U.S.healthcare is broken unless you can offer a vision. For Denis Cortese, this means designing a “learning organization.” Cortese maps out this organization’s goals: simple value, with “better outcomes, better safety, and better service at

One of the nation’s revered technology leaders dispenses anecdotes and wisdom on the slippery subject of engineering systems (or systems engineering). Norm Augustine just can’t get a handle on the discipline: “No one agrees on what it is, or what it does.” After years in industries like Lockheed Martin, Augustine has come up with “Norm’s Rules,” and can at least define ‘system’ as “having two or more elements that interact,” and ‘engineering’ as “creating the means for performing useful functions.” But these definitions don’t get you too far in the real world.
The field of systems engineering has only recently emerged, and as this symposium demonstrates, defies precise definition. But MIT has taken this evolving area to heart, nurturing a new division and encouraging a raft of ventures that in their execution, may help shape the field for the next century.
Real-world practitioners of systems engineering/engineering systems describe how the young discipline has shaped their very large enterprises.
Astronaut Mike Massimino returns to MIT and shares his experience on the Space Shuttle Atlantis (STS-125). Topics include the challenges of space walking while repairing the Hubble, having the right tools on hand for high stakes repairs, and the long hours of practice that lead up to the task.
It’s no exaggeration to say John Holdren’s job involves tackling the most critical issues of our age: economic recovery and growth, health care, energy, climate change, global pandemics, national security, ecosystem preservation…the list goes on. As President Obama’s science and technology advisor, Holdren leverages the resources and collective acumen of the nation’s researchers and innovators to address these complex and urgent matters. At an MIT AeroAstro hosted event, Holdren makes the case that aerospace science, technology and education will provide a “crucial contribution to and driver of many relevant capabilities” the U.S. will need to meet this century’s challenges.
Road traffic is a challenging societal problem, and with the increasing crowding of areas in and around cities, it is only becoming worse. With the proliferation of wireless connectivity, smartphones (think cheap embedded computers), it is now possible to continuously monitor urban areas using mobile sensors carried by people while they drive.
The need for flexible management of supply chains to increase operational efficiencies could not be greater, as modern companies outsource and manufacture overseas. David Simchi-Levi observes that between 2003 and 2008 labor costs increased by 21% in Brazil, 19% in China, and 3% to 8% in other countries. Meanwhile, logistic costs, as a percentage of gross domestic product (GDP), began to rise in 2003, after declining steadily. Adding to this unstable business mix has been tremendous volatility and fluctuation in oil prices.
Rich Wilson had followed the Vendée Globe Race ('round-the-world single-handed) since its inception in 1988 but had never considered sailing it himself—“too hard, too long, too dangerous, too risky, too, too, too, the boats were too big, the sails were too big.”
Researchers who wish to study mobility patterns might be reaching for your phone. Increasingly, cell phones are equipped with locational receivers (Global Positioning Systems or GPS) and their bread crumb trails are opening up entirely new ways to study and predict the dynamics of travel. “We are in the GPS revolution because most PCS of tomorrow will be in our hands in the (form of) the smart phone”, according to Marta González. San Francisco is a city on the forefront of this revolution: there, willing cell phone users have voluntarily uploaded their GPS trajectories.