Page 63 - Complexity Perspective_Neat

Imagine a social movement built on outrage over a perceived or actual
injustice. Activists interact with those sympathetic to the issue and
spontaneously organize. If the population of potentially outraged
individuals is big enough, communications through their networks will
increase the mass of the movement by communicating the issue and
creating a vehicle to express one's level of outrage. The process of
spreading is positive feedback.

Networks

Here positive feedback can be linked to the 'network effect'.

A 'network effect' is the positive effect an additional user of
a good or service has on the value of that product to others. When a
'network effect' is present, the value of a product or service increases
according to the number of others using it.

The classic example is the telephone, where a greater number of users
increases the value to each; even though the new user had no intention
of creating value for others, being focused on his or her own needs, but
does so regardless. Online social networks work in a similar fashion.

Increasing the users of a telephone increases value up to a point; the
point when the value to others drops because of increased congestion.

A 'positive network effect' can create a bandwagon as the perceived
increase in the value of the network encourages more people to join;
the bandwagon is a positive feedback loop.

A note: business being a human social activity, communication and
therefore positive feedback creation occurs on the network. A network
with a mix of weak and strong ties will facilitate communication and
so feedback loops. A deficient network with few ties or filled with
gatekeepers will compromise feedback.

Chaos Theory

The very roots of chaos theory lie in feedback loops.

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