Page 74 - Complexity Perspective_Neat

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 a power structure. 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 though
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

Hence, we have seen for decades, business experimenting with
structural flexibility including going virtual and the use of
partnerships instead of ownership, self-organization models of
operational adaptation, and shifting cultural traits toward continuous
learning and change tolerance, a flexibility of role and agility amongst
others.
The "Rules" Are and Always Have Been Forever!

The above has always happened. The 'rules' are not a phenomenon of
today. They are permanent.
Emergence was operating in Ancient societies, the Medieval period,
certainly, the Industrial Revolution and they operate today in the
Information Revolution, and will tomorrow. Ashby's Law operated in
those time periods as well. These are permanent features of
society. For example, the technical inventions that emerged in the
18th and early 19th century made huge shifts in business organization
possible including the multi-stage shift from craft production to mass

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