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Brian Futterman & Scott Renick SYSTEMS  &  CHAOS  THEORY
Gee whiz, look at that system!
Chaos and Complexity (anything but) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
…meaning… ,[object Object]
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
Perspective
What Chaos does ,[object Object],[object Object],Beinhocker,E.D. (1997) "Strategy at the edge of chaos."  The McKinsey Quarterly, 1, p. 35
In other words…
Bifurcations
Aperiodic nature
History repeats itself? Well, it’s complicated. ,[object Object],[object Object],[object Object]
… 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
Systems Theory
Systems Theory ,[object Object],[object Object],[object Object],[object Object],[object Object]
Chaos describes a system that is predictable in principle but unpredictable in practice. Although the system follows deterministic rules, its time evolution appears random.
Sources ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Brian Futterman & Scott Renick SYSTEMS  &  CHAOS  THEORY

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Chaos And Systems Theory

  • 1. Brian Futterman & Scott Renick SYSTEMS & CHAOS THEORY
  • 2. Gee whiz, look at that system!
  • 3.
  • 4.
  • 5. 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.
  • 7. Closed vs. Open Systems Beinhocker,E.D. (1997) "Strategy at the edge of chaos." The McKinsey Quarterly, 1, p. 27
  • 8. 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
  • 10.
  • 14.
  • 15. … 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
  • 17.
  • 18. Chaos describes a system that is predictable in principle but unpredictable in practice. Although the system follows deterministic rules, its time evolution appears random.
  • 19.
  • 20. Brian Futterman & Scott Renick SYSTEMS & CHAOS THEORY

Editor's Notes

  1. Systems Theory = theory about the nature of complex systems (science, nature, society, etc.) Looks at the behavior of groups of objects that work together to produce a result.
  2. Closed-system equilibrium (ball-in-the-bowl) are stable, impervious to change, static. Traditional view of economics and organizations. Quote: Companies would have no reason to innovate if it were not for market pressures. If it were a closed system in constant equilibrium, there would be no incentive for change!
  3. Chaos is used to describe the behavior of complex systems.
  4. Emergent complexity is a bottom-up phenomenon. Flocks of birds, fish, even human crowds, etc. Large scale order from a small scale interaction. NOT top-down There is no leader like a conductor in an orchestra or a general in the army.
  5. Closed-systems are like the first picture (no disturbances). Shocks represent unanticipated, irregular change that occurs because of sensitive dependences – NOT because they are random. Complexity then settles with a new equilibrium.