Page 90 - The Complexity Perspective 20 02 18

These rules apply at all levels of contextual integration. New political
constructs can emerge at the highest levels and rise or fall based on
nonlinear popularity expressed through self-organizing networks. New

functionality can be found in multi-agent distribution systems;
example, the introduction and diffusion of logistics software.

These simple "Rules" underpin the dynamics at ALL scales within the
context (that is the phenomenon of fractalness).

How Does this Translate to the Embedded Systems?

Bounded systems (firms) are agents operating in the emergent context.
Ashby's Law says that a bounded system must develop the requisite

internal complexity to survive in the context.
Systems are goal-directed entities; their take on complexity constructs

can be characterized as attempts to extract the ‘active ingredient’ to
bolt on to the otherwise stable power structure need to maintain
operational coherence. Some examples:

● Emergence: the “active ingredient” is the creative value of

spontaneity expressed in 3M style ‘play’ budgets

 Diffusion: the “active ingredient” is the capture and spreading
of ideas and knowledge through the organization through
knowledge systems

● Nonlinearity: the “active ingredient” is the learning value of
feedback

● Self-organization: the “active ingredient” is the survival value

of rapid adaptation & flexibility through the use of self-managing,
‘high performance’ teams

● Networks: the “active ingredient” includes the communications
value of virality

The above list can be cast as akin to genetic modification: a new bit of
DNA is spliced into the organization in the hopes of modifying its

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