Systems and Chaos Theory

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  • 1. SYSTEMS & CHAOS THEORY
    Brian Futterman & Scott Renick
  • 2. Complexity and Chaos(anything but)
    “Companies don’t innovate; markets do.” –Dick Foster
    Complex adaptive systems
    Ants scale to organizations
    Evolving rules, dynamic environment, interacting agents
    Chaos vs. stasis – two possible states of a CAS with shifting patterns and group interactions
  • 3. 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.
  • 4. Beinhocker says:
    EMERGENCE
  • 5. Sources
    McBride, N. (n.d.). Chaos Theory and Information Systems (pp. 1-13, Tech.).
  • 6. Equilibrium Video
    Beinhocker,E.D. (1997) "Strategy at the edge of chaos." The McKinsey Quarterly, 1, p. 27
  • 7. …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
  • 8. “Wait, what just happened?”
    Beinhocker,E.D. (1997) "Strategy at the edge of chaos." The McKinsey Quarterly, 1, p. 32
  • 9. Systems Theory
  • 10. Chaos Theory
    the qualitative study of unstable, aperiodicbehaviour in deterministic, nonlinear dynamic systems (Kellert, 1993 quoted in Tsoukas, 1998)
  • 11. Chaos Theory
    Qualitative
  • 12. Chaos Theory
    Unstable
  • 13. Chaos Theory
    Aperiodic
  • 14. Chaos Theory
    Deterministic
  • 15. Further Reading