Policies in the future should support business efforts to build more robust and resilient supply chains and not add to health and other dangers a policy risk built on misconceptions about GVCs. Robustheit, auch als „Fehlertoleranz“ bezeichnet, zählt zu den Qualitätskriterien für Software. However, the COVID-19 crisis is of a different nature, with the recession likely to stem from services and domestic activities rather be associated than trade finance issues, as in 2008-2009. Robustness vs. resilience When we talk about designing highly available systems, we usually cover techniques such as redundancy, retries, fallbacks, and failovers. Ads & Promos, Company, Events, Financial Releases, Logistics News WorldWide, Press Releases, Publications, Uncategorized. He talked about the types of issues that make it difficult to manage software resiliency and robustness, how to balance expectations from the business, and what regulatory response would be useful vs. detrimental. For example, Beata Javorcik recently wrote in the Financial Times that “businesses will be forced to rethink their global value chains” and that “while just-in-time manufacturing may be the optimal way of producing a highly complex item such as a car, the disadvantages of a system that requires all of its elements to work like clockwork have now been exposed”.1 Even the World Economic Forum has recommended to “aggressively evaluate near-shore options to shorten supply chains and increase proximity to customers” as a response to COVID-19.2. As we know that a complete software system comprises of various components, such kind of testing ensures reducing cost and time required for efficient delivery of a software system. Most logistics firms report no strong impact on their operational capabilities with the exception of some air routes or specific destinations that may be more impacted by the virus.4 Volatility in freight rates has risen, but with falling demand, international trade costs are more likely to decrease than to increase. Figure 1 Import intensity of production and predicted decrease in output in Thailand, by sector (%). 11 An unintended crisis in sea transportation due to COVID-19 restrictions Inga Heiland and Karen Helene Ulltveit-Moe . tourism) or the movement of producers (e.g. In the near future, the mass production of a COVID-19 vaccine will require formidable international effort and cooperation. Resilience versus robustness in global value chains. While some lessons will have to be drawn, and both firms and consumers are likely to make different choices after the crisis, it may be premature to call for the end of GVCs or to conclude that shorter supply chains would be less vulnerable. The positive ability of a system or company to adapt itself to the consequences of a catastrophic failure caused by power outage, a fire, a bomb or similar (particularly IT systems, archives). Examples of how software resilience testing is done Resilience testing at Netflix. Some governments assert that global value chains create economic vulnerabilities in times of a pandemic. There is no correlation between the level of fragmentation of production and the severity of the economic impact of COVID-19, not only because of services activities but also among manufacturing industries. By Stephen de Villiers Graaff, Principal Agile Consultant at DVT . The most impacted industries are those relying on the movement of people, such as hotels and restaurants, or passenger transport. For example, such risk materialised in the fourth week of January 2020 when China decided to lock down the city of Wuhan and start taking measures to prevent the spread of the virus to the rest of the country. Indeed, lead firms there have developed COVID-19 tests and supplied their local markets. Resilience versus robustness in global value chains. Figure 1 is based on World Bank estimates of the economic impact of COVID-19 made on Thailand (Maliszewska et al. The views expressed are those of the author and do not necessarily reflect those of the OECD Secretariat or the member countries of the OECD. While it is acceptable to question GVCs in light of the COVID-19 crisis, business realities must guide policy deliberations. But they are quite resilient. Why would you spend 2-6 months in a software engineering project with programmers from the vendor rather than focused on plans, impact analysis, and operational resilience with real BCM experts - doesn't make a lot of sense. Bems, R, R C Johnson and K M Yi (2013), “The Great Trade Collapse”, Annual Review of Economics 5: 375-400. Creative Commons Attribution/Share-Alike License; The mental ability to recover quickly from depression, illness or misfortune. The use of entropy and resilience indices for measuring robustness of water distribution networks has been investigated. Flexibility is scheduled or planned adaption to unforeseen yet expected external circumstance… Let me first illustrate with an example from biology to distinguish between two frequently confused concepts: robustness and resiliency. One month later, the company was producing 1 million test kits per week and by the beginning of April 2020, production was increased to 3 million test kits per week, with 90% available for export. Robustness testing ensures that a software system qualifies as the end product for which it was meant for, hence serving the right purpose. Robustness versus resilience of systems is first defined. 2014). Policies that introduce new barriers to trade and investment to push firms towards domestic production or re-shoring would raise costs and lead to sourcing patterns driven by policy risks and not by the optimal organisation of production required for addressing other risks. Resilience allows that the capacity of a system may be exceeded, forcing the system to rely on the remaining attributes to achieve recovery. ... (software engineering) Resistant or impervious to failure regardless of user input or unexpected conditions. A design next is good but can be optional. 9 “Korean-made COVID-19 testing kits demanded by over 100 countries”, Maeil Business News Korea, 9 April 2020. 10 “How this South Korean company created coronavirus test kits in three weeks”, CNN, 13 March 2020. Anticipation, preparation and international co-operation can achieve better results, when compared to isolated and silo-based strategies. Author’s note: The author is writing in a personal capacity. While many observers were expecting more diversity in the location of production after the 2011 experience, it happens that Western Digital not only continued to produce in Thailand but also decided to close a factory in Malaysia in 2017 to concentrate even more its production in Thailand.8. Topics: This type of experience simply does not come from local production and activities shielded from competition.11. Covid-19 International trade, Tags: 10 Will the post-COVID world be less open to foreign direct investment? Matous, P and Y Todo (2017), “Analyzing the coevolution of interorganizational networks and organizational performance: Automakersí production networks in Japan”, Applied Network Science 2(5): 1-24. Often, the terms can be used interchangeably, which leads to unclear expectations. Reliability is the target that developers aim for, a system that has perfect operation or no downtime. A resilient organization adapts effectively to surprise. Building robustness requires different strategies, when compared to building resilience, and when it comes to the distribution of key medical supplies (such as face masks, ventilators, medicines), it is robustness that matters, not resilience. Tweet. An Oak that grew on the bank of a river was uprooted by a severe gale of wind, and thrown across the stream. Finally, Mr. Chauvet discussed the path to introducing software risk prevention methodologies. Software Engineering Stack Exchange is a question and answer site for professionals, academics, and students working within the systems development life cycle. Numerous statements have been made about complex value chains being more impacted during the COVID-19 crisis, possibly due to additional risks and costs related to international trade.5 However, the available evidence – while limited at this stage ñ does not support such a view. This is a matter for further scrutiny post-crisis, and indicates that there are other factors at play ñ such as innovation, flexibility, reactivity, access to distribution networks, and so on ñ that accord an advantage to GVCs for the efficient supply of essential goods. by Steve Vogelsang. This is not the time for experimenting with untested new trade and industrial policies. And there only four days separated Volkswagen closing its factories in Europe (17 March) and in the US (21 March).3 And whether domestic or not, suppliers of parts and components also closed their plants because they were affected by similar measures - not because their inputs could not be delivered; the contagion became more of a concussion (Baldwin 2020). COVID-19 is a global crisis very different from the localised natural disasters that took place with the earthquake in Japan or the floods in Thailand in 2011. Share. June 18, 2020. Formal techniques, such as fuzz testing, are essential to showing robustness since this type of testing involves invalid or unexpected inputs. Under Attack – Receiver Response to Spoofing: Robustness vs. When demand is suddenly multiplied by a factor of ten or more, governments and companies are compelled to switch to a different production model of production. In der Informatik und Softwareentwicklung bedeutet der Begriff „Robustheit“ die Eigenschaft eines Verfahrens, auch unter ungünstigen Bedingungen noch zuverlässig zu funktionieren. The experience with previous crisis and disasters is that GVCs are rather resilient. Such firms prefer to go through the disruptions and minimise their impact. Their broad use in other disciplines has motivated social scientists and policy researchers to adopt them in analyses. The experience with the 2011 tsunami in Japan and floods in Thailand is that ‘complex’ value chains are not always robust and they take the full hit of both the direct effect of the disaster and indirect contagion effects through their respective supply chains. These firms report many challenges but indicate that they are operational in most regions. 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