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● The Ecosystem Model which is an enhanced network with
the customer included. Made possible by social media platforms
underpinning easy and very low-cost two-way communications
with customers this embedding of the customer dramatically
increases sensitivity to context and facilitate requisite
complexity (adaptation).
● The New Virtual Model of platforms that allows makes the
customer part of the offering creation and where the structure is
a few lines of code and services can be outsourced.

Accelerating Adaptation
In the discussion of Emergence, it is shown that the rate of
technological and related Emergence is likely to increase - possibly
dramatically - generating waves of change through the context making
disruption of business models the norm. Link this to the idea
of Requisite Complexity and the implication is that organizations will
be faced with an acceleration in the rate of adaptation required at both
the task and system levels.

Some Implications of Accelerating Adaptation

The Explore - Exploit Problem

With the need to continually adapt and the probable acceleration of
contextual change, a root issue in business theory is being driven to
the forefront. The Explore-Exploit problem. First formalized by Cyert
& March (1963), the discussion of the organizational implications goes
back to the 1930s (Burns & Stalker). The challenge is as follows:

● Exploring new offerings requires financial and cultural
commitments by an organization to learn and innovate including
a willingness to invest at risk.

● Exploiting the profit-earning capability of an offering requires
stability of operating systems and a culture of optimization of
processes.

Achieving both these at the same time is tricky in the same
organization and is the underlying problem of long and short-term
thinking. Additionally, the two mindsets attract different personalities

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