- composed of many agents acting in parallel
- continuously shuffling the building blocks
- subject to the second law of thermodynamics, exhibiting entropy and winding down
- has the capacity for pattern recognition
Enter Pascale and the era of complex adaptive systems. The organisation and the market cannot be controlled or predicted purely by considering energy - if we invest more in X, we can defeat competitive spending in Y. The equation becomes more complex, with the evolution of unexpected outomes and the time-based nature of the second law - the impact of energy recedes over time as entropy increases.
I wonder if there is some future business analogy to the 3rd law?
Or perhaps we have already seen it - complex adaptive systems are at risk when in equilibrium - a precursor to death. Perhaps the regular death of major companies is an exhibition of equilibrium at absolute zero - energy exhange with the environment has declined to zero as the processes ossify and the ability to change is reduced to zero.
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