Page 62 - Complexity Perspective_Neat

Path dependence can be defined as "a social process that exhibits
positive feedback and thus generates patterns of historical
development”. For example, goal choices in a business (system) are
informed by past choices and in turn inform future goal choices. We
can use path dependency and positive feedback interchangeably.

Context

All business contexts involve feedback loops that drive market growth,
decline and stability. Every shift in a context resulting from the actions
of an agent changes the basis for all subsequent choices by competitors
and so on ad infinitum.

Diffusion

A customer buys an item and experiences it; he or she then posts an
opinion in the customer comments section of the product's website. If
the opinion is positive it may encourage others to buy and so help
diffuse the adoption of the product. If not positive, it may (a)
discourage future buyers and/or (b) encourage the supplier to amend
the offering.

Adaptation

An organization changes to adapt to a shift in the context (e.g., takes
on a new technology). This adaptation shifts the firm's
competitiveness in the market. Competitors must now adapt to
the shift. The context is never still, every move by every agent induces
a shift that influences tactical moves by other agents.

Emergence

In, for example, technology Emergence, the inventions and insights of
prior scientists and technologists represent the context of today's
inventors. Today's inventors, following their local and personal
interests, make their contribution and so amend the technology
context that faces the next round of inventors.

Self-organization

62
©Business Games Works 2018 (V1 Beta)