Beinhocker says: All are open systems comprising a number of agents whose dynamic interactions self-organize to create a larger structure. Eric Beinhocker, Strategy at the edge of Chaos , 1997 Writing about cities, forest ecosystems, the immune system, and the Internet.
Beinhocker says: EMERGENCE!
Closed vs. Open Systems Beinhocker,E.D. (1997) "Strategy at the edge of chaos." The McKinsey Quarterly, 1, p. 27
Punctuated Equilibrium (Complexity with Chaos) Beinhocker,E.D. (1997) "Strategy at the edge of chaos." The McKinsey Quarterly, 1, p. 32 Shocks to the equilibrium (punctuations) relative to the organizational ‘status-quo’ (stasis) … this behavior is Chaos Adoption of ESSPs Change in productivity
What Chaos does
Bifurcations (divergence) occur when a new equilibrium is established, or punctuated, and an organization is found at the edge of chaos, prompting action.
Strange attractors are possible scenarios/results that lie at the end of a bifurcated sequence of events.
Beinhocker,E.D. (1997) "Strategy at the edge of chaos." The McKinsey Quarterly, 1, p. 35
In other words…
History repeats itself? Well, it’s complicated.
“… chaos refers to what might be called ordered disorder”
Patterns will emerge and may resemble a trend, but cannot be used for anything beyond mass generalizations.
… behaviour in chaotic systems may be perceived as unpredictable. Periods of inactivity may be punctuated by sudden change, apparent patterns of behaviour may disappear and new patterns unexpectedly emerge. Such behaviour emerges in complex systems. This chaotic behaviour does not indicate a lack of order . Rather, the order is difficult or impossible to describe in simple terms and requires complex narrative description. McBride, 2008 EMPHASIS ADDED
Entropy = disorder
Negative entropy = increased order
Openness & feedback
Feedback can be positive or negative
Chaos describes a system that is predictable in principle but unpredictable in practice. Although the system follows deterministic rules, its time evolution appears random.
Beinhocker, E. (2000). Strategy at the Edge of Chaos. McKinsey Quarterly , 1-17.
McBride, N. (n.d.). Chaos Theory and Information Systems (pp. 1-13, Tech.). Leicester, UK.
McBride, N. (2005). Chaos theory as a model for interpreting information systems in organizations (pp. 1-22, Tech.). Leicester, UK.
Wikipedia contributors. "Systems theory." Wikipedia, The Free Encyclopedia . Wikipedia, The Free Encyclopedia, 18 Jan. 2010. Web. 22 Jan. 2010.
Wikipedia contributors. "Chaos theory." Wikipedia, The Free Encyclopedia . Wikipedia, The Free Encyclopedia, 21 Jan. 2010. Web. 22 Jan. 2010.