Memetic trading networks

This page describes the organizational forces that limit change. It explains how to overcome them when necessary.

This page uses an example to illustrate how:

A business can gain focus from targeting key customers,
Business planning activities performed by the whole organization can build awareness, empowerment and coherence.
A program approach can ensure strategic alignment.

This page uses the example of HP's printer organization freeing itself from its organizational constraints to sell a printer targeted at the IBM pc user.
The constraints are described.
The techniques to overcome them are implied.

This web frame explores very significant example real world complex adaptive systems (CAS). It explains how the examples relate to each other, why we all have trouble effectively comprehending these systems and outlines the items we see as key to the system and why. By understanding these summaries you can better frame the interdependencies of important events such as war in Iraq, new iPhone releases or a cancer diagnosis and see how they are impacting you. Example systems frame
Dietrich Dorner argues complex adaptive systems (CAS) are hard to understand and manage. He provides examples of how this feature of these systems can have disastrous consequences for their human managers. Dorner suggests this is due to CAS properties psychological impact on our otherwise successful mental strategic toolkit. To prepare to more effectively manage CAS, Dorner recommends use of: Effective iterative planning and Practice with complex scenario simulations; tools which he reviews. Complexity catastrophes
E. O. Wilson reviews the effect of man on the natural world to date and explains how the two systems can coexist most effectively. Adaptive ecology
Barton Gellman details the strategies used by Vice President Cheney to align the global system with his economics, defense, and energy goals. US vds alignment
Kevin Kruse argues that from 1930 onwards the corporate elite and the Republican party have developed and relentlessly executed strategies to undermine Franklin Roosevelt and the New Deal. Their successful strategy used the credibility of conservative religious leaders to: Demonstrate religious issues with the New Deal. Integrate the corporate elite and evangelicals. Use the power of corporate advertising and Hollywood to reeducate the American people to view the US as historically religious and the New Deal and liberalism as anti-religious socialism. Focus the message through evangelicals including Vereide and Graham. Centralize the strategy through President Eisenhower. Add religious elements to mainstream American symbols: money, pledge; Push for prayer in public school Push Congress to promote prayer Make elections more about religious positions. Following our summary of his arguments RSS frames them from the perspective of complex adaptive system (CAS) theory. Strategy is the art of the possible. But it also depends on persistence. Inventing Christian America
Charles Ferguson argues that the US power structure has become highly corrupt. Ferguson identifies key events which contributed to the transformation: Junk bonds, Derivative deregulation, CMOs, ABS and analyst fraud, Financial network deregulation, Financial network consolidation, Short term incentives Subsequently the George W. Bush administration used the situation to build a global bubble, which Wall Street leveraged. The bursting of the bubble: managed by the Bush Administration and Bernanke Federal Reserve; was advantageous to some. Ferguson concludes that the restructured and deregulated financial services industry is damaging to the American economy. And it is supported by powerful, incentive aligned academics. He sees the result being a rigged system. Ferguson offers his proposals for change and offers hope that a charismatic young FDR will appear. Following our summary of his arguments, RSS comments on them framed by complex adaptive system (CAS) theory. Once the constraints are removed from CAS amplifiers, it becomes advantageous to leverage the increased flows. And it is often relatively damaging not to participate. Corruption and parasitism can become entrenched. Financial WMD
Matt Taibbi describes the phenotypic alignment of the American justice system. The result he explains relentlessly grinds the poor and undocumented into resources to be constrained, consumed and ejected. Even as it supports and aligns the financial infrastructure into a potent weapon capable of targeting any company or nation to extract profits and leave the victim deflated. Taibbi uses five scenarios to provide a broad picture of the: activities, crimes, policing, prosecutions, court processes, prisons and deportation network. The scenarios are: Undocumented people's neighborhoods, Poor neighborhoods, Welfare recipients, Credit card debtors and Financial institutions. Following our summary of his arguments, RSS comments on them framed by complex adaptive system (CAS) theory. The alignment of the justice system reflects a set of long term strategies and responses to a powerful global arms race that the US leadership intends to win. Aligned justice
Jonathan Powell describes how the government of, the former UK Prime Minister, Tony Blair, actually operated. Powell was Blair's only chief of staff. Mechanics of power
H. A. Hayek compares and contrasts collectivism and libertarianism. Libertarianism
David Bodanis illustrates how disruptive effects can take hold. While the French revolution had many driving forces including famine and oppression the emergence of a new philosophical vision ensured that thoughtful leaders were constrained and conflicted in their responses to the crisis. Voltaire's disruptive network
An epistatic meme suppressed for a thousand years reemerges during the enlightenment. It was a poem encapsulating the ideas of Epicurus rediscovered by a humanist book hunter. Greenblatt describes the process of suppression and reemergence. He argues that the rediscovery was the foundation of the modern world. Complex adaptive system (CAS) models of the memetic mechanisms are discussed. Constraining happiness
Isaacson uses the historic development of the global cloud of web services to explore Ada Lovelace's ideas about thinking machines and poetic science. He highlights the value of computer augmented human creativity and the need for liberal arts to fulfill the process. Complex adaptive system (CAS) models of agent networks and collaboration are discussed. Arts technology & intelligence
Haikonen juxtaposes the philosophy and psychology of consciousness with engineering practice to refine the debate on the hard problem of consciousness. During the journey he describes the architecture of a robot that highlights the potential and challenges of associative neural networks. Complex adaptive system (CAS) theory is then used to illustrate the additional requirements and constraints of self-assembling evolved conscious animals. It will be seen that Haikonen's neural architecture, Smiley's Copycat architecture and molecular biology's intracellular architecture leverage the same associative properties. Associatively integrated robots
Good ideas are successful because they build upon prior developments that have been successfully implemented. Johnson demonstrates that they are phenotypic expressions of memetic plans subject to the laws of complex adaptive systems (CAS). Developing ideas
A government sanctioned monopoly supported the construction of a superorganism American Telephone and Telegraph (AT&T). Within this Bell Labs was at the center of three networks: The evolving global scientific network. The Bell telephone network. And The military industrial network deploying 'fire and missile control' systems. Bell Labs strategically leveraged each network to create an innovation engine. They monitored the opportunities to leverage the developing ideas, reorganizing to replace incumbent opposition and enable the creation and growth of new ideas. Once the monopoly was dismantled AT&T disrupted. Complex adaptive system (CAS) models of the innovation mechanisms are discussed. Strategic innovation
Sven Beckert describes the historic transformation of the growing, spinning, weaving, manufacture of cotton goods and their trade over time. He describes the rise of a first global commodity, its dependence on increasing: military power, returns for the control points in the value delivery system(VDS), availability of land and labor to work it including slaves. He explains how cotton offered the opportunity for industrialization further amplifying the productive capacity of the VDS and the power of the control points. This VDS was quickly copied. The increased capacity of the industrialized cotton complex adaptive system (CAS) required more labor to operate the machines. Beckert describes the innovative introduction of wages and the ways found to mobilize industrial labor. Beckert describes the characteristics of the industrial cotton CAS which made it flexible enough to become globally interconnected. Slavery made the production system so cost effective that all prior structures collapsed as they interconnected. So when the US civil war blocked access to the major production nodes in the American Deep South the CAS began adapting. Beckert describes the global reconstruction that occurred and the resulting destruction of the traditional ways of life in the global countryside. This colonial expansion further enriched and empowered the 'western' nation states. Beckert explains how other countries responded by copying the colonial strategies and creating the opportunities for future armed conflict among the original colonialists and the new upstarts. Completing the adaptive shifts Beckert describes the advocates for industrialization in the colonized global south and how over time they joined the global cotton CAS disrupting the early western manufacturing nodes and creating the current global CAS dominated by merchants like Walmart pulling goods through a network of clothing manufacturers, spinning and weaving factories, and growers competing with each other on cost. Following our summary of Beckert's book, RSS comments from the perspective of CAS theory. The transformation of disconnected peasant farmers, pastoral warriors and their lands into a supply chain for a highly profitable industrial CAS required the development over time: of military force, global transportation and communication networks, perception and representation control networks, capital stores and flows, models, rules, standards and markets; along with the support at key points of: barriers, disruption, and infrastructure and evolved amplifiers. The emergent system demonstrates the powerful constraining influence of extended phenotypic alignment. Globalization from cotton
Roger Cohen's New York Times opinion about the implications of BREXIT is summarized. His ideas are then framed by complex adaptive system (CAS) theory and reviewed. BREXIT
Ed Conway argues that Bretton Woods produced a unique set of rules and infrastructure for supporting the global economy. It was enabled by the experience of Keynes and White during and after the First World War, their dislike of the Gold Standard, the necessity of improving the situation between the wars and the opportunity created by the catastrophe of the Second World War. He describes how it was planned and developed. How it emerged from the summit. And he shows how the opportunity inevitably allowed the US to replace the UK at the center of the global economy. Like all plans there are mistakes and Conway takes us through them and how the US recovered the situation as best it could. And then Conway describes the period after Bretton Woods collapsed. He explains what followed and also compares the relative performance of the various periods before during and after Bretton Woods. Following our summary of his arguments RSS comments from the perspective of Complex Adaptive System (CAS) theory. Conway's book illustrates the rule making and infrastructure that together build an evolved amplifier. He shows the strategies at play of agents that were for and against the development and deployment of the system. And The Summit provides a key piece of the history of our global economic CAS. Bretton woods
The IPO of Netscape is defined as the key emergent event of the New Economy by Michael Mandel. Following the summary of Mandel's key points the complex adaptive system (CAS) aspects are highlighted. New economy
A key agent in the 1990 - 2008 housing expansion Countrywide is linked into the residential mortgage value delivery system (VDS) by Paul Muolo and Mathew Padilla. But they show the VDS was full of amplifiers and control points. With no one incented to apply the brakes the bubble grew and burst. Following the summary of Muolo and Padilla's key points the complex adaptive system (CAS) aspects are highlighted. Housing amplifiers
Satyajit Das uses an Indonesian company's derivative trades to introduce us to the workings of the international derivatives system. Das describes the components of the value delivery system and the key transactions. He demonstrates how the system interacted with emerging economies expanding them, extracting profits and then moving on as the induced bubbles burst. Following Das's key points the complex adaptive system (CAS) aspects are highlighted. Derivative systems
Carl Menger argues that the market induced the emergence of money based on the attractive features of precious metals. He compares the potential for government edicts to create money but sees them as lacking. Following our summary of his arguments RSS frames his arguments from the perspective of complex adaptive system (CAS) theory. With two hundred years of additional knowledge we conclude that precious metals are not as attractive as Menger asserts. Government backed promissory notes are analogous to other evolved CAS forms of ubiquitous high energy transaction intermediates. Emergence of money
Johnson & Kwak argue that expanding the national debt provides a hedge against unforeseen future problems, as long as creditors are willing to continue lending. They illustrate different approaches to managing the debt within the US over its history and of the eighteenth century administrations of England and France. The US embodies two different political and economic systems which approach the national debt differently: Taxes to support a sinking fund to ensure credit to leverage fiscal power in: Wars, Pandemics, Trade disputes, Hurricanes, Social programs; Starting with Hamilton, Lincoln & Chase, Wilson, FDR; Low taxes, limited infrastructure, with risk assumed by individuals: Advocated by President's Jefferson & Madison, Reagan, George W. Bush (Gingrich); Johnson & Kwak develop a model of what the US government does. They argue that the conflicting sinking fund and low tax approaches leaves the nation 'stuck in the middle' with a future problem. And they offer their list of 'first principles' to help assess the best approach for moving from 2012 into the future. They conclude the question is still political. They hope it can be resolved with an awareness of their detailed explanations. They ask who is willing to push all the coming risk onto individuals. Following our summary of their arguments RSS frames them from the perspective of complex adaptive system (CAS) theory. Historically developing within the global cotton value delivery system, key CAS features are highlighted. National debt
The complexity and problems of the US Health network is described in terms of complex adaptive system (CAS) theory. The network: Is deeply embedded in the US nation state. It reflects the conflict between two opposing visions for the US. The emergence of a parasitic elite further constrains the choices. Is incented to focus on localized competition generating massive & costly duplication of services within a historically ineffective physician based health care instead of proven public health strategies. This process drives increasing research & treatment complexity and promotes hope for each new technological breakthrough. Is amplified by the legislatively structured separation and indirection of service development, provision, reimbursement and payment. Is impacted by the different political strategies for managing the increasing cost of health care for retirees. Is presented with acute and chronic problems to respond to. As currently setup the network is tuned to handle acute problems. The interactions with patients tend to be transactional. Includes a legislated health insurance infrastructure which is: Costly and inefficient Structured around yearly contracts which undermine long-term health goals and strategies. Is supported by increasingly regulated HCIT which offers to improve data sharing and quality but has entrenched commercial EHR products deep within the hospital systems. Health care
Deaton describes the wellbeing of people around the world today. He explains the powerful benefit of public health strategies and the effect of growth in material wellbeing but also the corrosive effects of aid. Following our summary of Deaton's arguments RSS comments from the perspective of complex adaptive system (CAS) theory. The situation he describes is complex including powerful amplifiers, alignment and incentives that overlap broadly with other RSS summaries of adaptations of: The biosphere, Politics, Economics, Philosophy and Health care. Improving wellbeing
Donald Barlett and James Steele write about their investigations of the major problems afflicting US health care as of 2006. Problems of US health care
US healthcare is ripe for disruption. Christensen, Grossman and Hwang argue that technologies are emerging which will support low cost business models that will undermine the current network. Applying complex adaptive system (CAS) theory to these arguments suggests that the current power hierarchy can effectively resist these progressive forces. Disrupting health care
Atul Gawande writes about the opportunity for a thirty per cent improvement in quality in medicine by organizing to deploy as agent based teams using shared schematic plans and distributed signalling or as he puts it the use of checklists. With vivid examples from a variety of situations including construction, air crew support and global health care Gawande illustrates the effects of complexity and how to organize to cope with it. Following the short review RSS additionally relates Gawande's arguments to its models of complex adaptive systems (CAS) positioning his discussion within the network of US health care, contrasting our view of complexity, comparing the forces shaping his various examples and reviewing facets of complex failures. Complexity checklists
Friedman and Martin leverage the lifelong data collected on 1,528 bright individuals selected by Dr. Lewis Terman starting in 1921, to understand what aspects of the subjects' lives significantly affected their longevity. Looking broadly across each subject's: Personality, Education, Parental impacts, Energy levels, Partnering, Careers, Religion, Social networks, Gender, Impact from war and trauma; Friedman and Martin are able to develop a set of model pathways, which each individual could be seen to select and travel along. Some paths led to the traveler having a long life. Others were problematic. The models imply that the US approach to health and wellness should focus more on supporting the development and selection of beneficial pathways. Following our summary of their arguments RSS comments from the perspective of CAS theory. The pathways are most applicable to bright individuals with the resources and support necessary to make and leverage choices they make. Striving to enter and follow a beneficial pathway seems sensible but may be impossible for individuals trapped in a collapsing network, starved of resources. Promoting longevity
Gawande uses his personal experience, analytic skills and lots of stories of innovators to demonstrate better ways of coping with aging and death. He introduces the lack of focus on aging and death in traditional medicine. And goes on to show how technology has amplified this stress point. He illustrates the traditional possibility of the independent self, living fully while aging with the support of the extended family. Central planning responded to the technological and societal changes with poorly designed infrastructure and funding. But Gawande then contrasts the power of bottom up innovations created by experts responding to their own family situations and belief systems. Gawande then explores in depth the challenges that unfold currently as we age and become infirm. He notes that the world is following the US path. As such it will have to understand the dilemma of integrating medical treatment and hospice strategies. He notes that all parties involved need courage to cope. He proposes medicine must aim to assure well being. At that point all doctors will practice palliative care. Complex adaptive system (CAS) models of agency, death, evolution, cooperation and adaptations to new technologies are discussed. Agent death
Sonia Shah reviews the millennia old (500,000 years) malarial arms race between Humanity, Anopheles mosquitoes and Plasmodium. 250 - 500 million people are infected each year with malaria and one million die. Malaria
Peter Medawar writes about key historic events in the evolution of medical science. Medical science events
Using John Holland's theory of adaptation in complex systems Baldwin and Clark propose an evolutionary theory of design. They show how this can limit the interdependencies that generate complexity within systems. They do this through a focus on modularity. Modular designed systems
Lou Gerstner describes the challenges he faced and the strategies he used to successfully restructure the computer company IBM. Compartmented systems
Grady Booch advocates an object oriented approach to computer software design. Object based systems
Bertrand Meyer develops arguments, principles and strategies for creating modular software. He concludes that abstract data types and inheritence make object orientation a superior methodology for software construction. Complex adaptive system (CAS) theory suggests agents provide an alternative strategy to the use of objects. Software construction
Tools and the businesses that produce them have evolved dramatically. W Brian Arthur shows how this occurred. Tools
Memetic trading networks
Brynjolfsson and McAfee explore the effects of Moore's law on the economy. They argue it has generated exponential growth. This has been due to innovation. It has created a huge bounty of additional wealth. But the wealth is spread unevenly across society. They look at the short and long term implications of the innovation bounty and spread and the possible future of technology. Following our summary of their arguments RSS comments from the perspective of CAS theory. Brilliant technologies
Salman Khan argues that the evolved global education system is inefficient and organized around constraining and corralling students into accepting dubious ratings that lead to mundane roles. He highlights a radical and already proven alternative which offers effective self-paced deep learning processes supported by technology and freed up attention of teams of teachers. Building on his personal experience of helping overcome the unjustified failing grade of a relative Khan: Iteratively learns how to teach: Starting with Nadia, Leveraging short videos focused on content, Converging on mastery, With the help of neuroscience, and filling in dependent gaps; resulting in a different approach to the mainstream method. Assesses the broken US education system: Set in its ways, Designed for the 1800s, Inducing holes that are hidden by tests, Tests which ignore creativity. The resulting teaching process is so inefficient it needs to be supplemented with homework. Instead teachers were encouraging their pupils to use his tools at home so they could mentor them while they attended school, an inversion that significantly improves the economics. Enters the real world: Builds a scalable service, Working with a real classroom, Trying stealth learning, At Khan Academy full time, In the curriculum at Los Altos, Supporting life-long learning. Develops The One World Schoolhouse: Back to the future with a one room school, a robust teaching team, and creativity enabled; so with some catalysis even the poorest can become educated and earn credentials for current jobs. Wishes he could also correct: Summer holidays, Transcript based assessments, College education; Concludes it is now possible to provide the infrastructure for creativity to emerge and to support risk taking. Following our summary of his arguments RSS frames them from the perspective of complex adaptive system (CAS) theory. Disruption is a powerful force for change but if its force is used to support the current teachers to adopt new processes can it overcome the extended phenotypic alignment and evolutionary amplifiers sustaining the current educational network? Education versus guilds
Amy Chua and Jed Rubenfeld's New York Times opinion based on The Triple Package is summarized. Their ideas are then framed by CAS theory and reviewed. What drives success
Peter Turchin describes how major pre-industrial empires developed due to effects of geographic boundaries constraining the empires and their neighbors' interactions. Turchin shows how the asymmetries of breeding rates and resource growth rates results in dynamic cycles within cycles. After the summary of Turchin's book complex adaptive system (CAS) theory is used to augment Turchins findings. Warrior groups
Through the operation of three different food chains Michael Pollan explores their relative merits. The application of complex adaptive system (CAS) theory highlights the value of evolutionary testing of the food chain. Natural systems
E. O. Wilson & Bert Holldobler illustrate how bundled cooperative strategies can take hold. Various social insects have developed strategies which have allowed them to capture the most valuable available niches. Like humans they invest in specialization and cooperate to subdue larger, well equipped competitors. Insect superorganisms
Computational theory of the mind and evolutionary psychology provide Steven Pinker with a framework on which to develop his psychological arguments about the mind and its relationship to the brain. Humans captured a cognitive niche by natural selection 'building out' specialized aspects of their bodies and brains resulting in a system of mental organs we call the mind. He garnishes and defends the framework with findings from psychology regarding: The visual system - an example of natural selections solutions to the sensory challenges of inverse modeling of our environment; Intensions - where he highlights the challenges of hunter gatherers - making sense of the objects they perceive and predicting what they imply and natural selections powerful solutions; Emotions - which Pinker argues are essential to human prioritizing and decision making; Relationships - natural selection's strategies for coping with the most dangerous competitors, other people. He helps us understand marriage, friendships and war. These conclusions allow him to understand the development and maintenance of higher callings: Art, Music, Literature, Humor, Religion, & Philosophy; and develop a position on the meaning of life. Complex adaptive system (CAS) modeling allows RSS to frame Pinker's arguments within humanity's current situation, induced by powerful evolved amplifiers: Globalization, Cliodynamics, The green revolution and resource bottlenecks; melding his powerful predictions of the drivers of human behavior with system wide constraints. The implications are discussed. Computationally adapted mind
Consciousness has confounded philosophers and scientists for centuries. Now it is finally being characterized scientifically. That required a transformation of approach. Realizing that consciousness was ill-defined neuroscientist Stanislas Dehaene and others characterized and focused on conscious access. In the book he outlines the limitations of previous psychological dogma. Instead his use of subjective assessments opened the window to contrast totally unconscious brain activity with those including consciousness. He describes the research methods. He explains the contribution of new sensors and probes that allowed the psychological findings to be correlated, and causally related to specific neural activity. He describes the theory of the brain he uses, the 'global neuronal workspace' to position all the experimental details into a whole. He reviews how both theory and practice support diagnosis and treatment of real world mental illnesses. The implications of Dehaene's findings for subsequent consciousness research are outlined. Complex adaptive system (CAS) models of the brain's development and operation introduce constraints which are discussed. Conscious access
Reading and writing present a conundrum. The reader's brain contains neural networks tuned to reading. With imaging a written word can be followed as it progresses from the retina through a functional chain that asks: Are these letters? What do they look like? Are they a word? What does it sound like? How is it pronounced? What does it mean? Dehaene explains the importance of education in tuning the brain's networks for reading as well as good strategies for teaching reading and countering dyslexia. But he notes the reading networks developed far too recently to have directly evolved. And Dehaene asks why humans are unique in developing reading and culture. He explains the cultural engineering that shaped writing to human vision and the exaptations and neuronal structures that enable and constrain reading and culture. Dehaene's arguments show how cellular, whole animal and cultural complex adaptive system (CAS) are related. We review his explanations in CAS terms and use his insights to link cultural CAS that emerged based on reading and writing with other levels of CAS from which they emerge. Evolved reading
Read Montague explores how brains make decisions. In particular he explains how: Evolution can create indirect abstract models, such as the dopamine system, that allow Life changing real-time decisions to be made, and how Schematic structures provide encodings of computable control structures which operate through and on incomputable, schematically encoded, physically active structures and operationally associated production functions. Receptor indirection
Richard Dawkin's explores how nature has created implementations of designs, without any need for planning or design, through the accumulation of small advantageous changes. Accumulating small changes
Russ Abbott explores the impact on science of epiphenomena and the emergence of agents. Autonomous emergence
Terrence Deacon explores how constraints on dynamic flows can induce emergent phenomena which can do real work. He shows how these phenomena are sustained. The mechanism enables the development of Darwinian competition. Constraint based phenomena

Primary Navigation

In this page we explain how to use the site.
There are two main starting points:

The example systems frame and
The presentation frame.
And then there is how we use the site.

The site uses lots of click through. That's so that you can see the underlying principles that are contributing to the system being discussed. We hope that as you internalize and reflect on the principles the system should appear in a new light. At this site clicking is good!

Opportunities

This page introduces the complex adaptive system (CAS) theory frame. The theory is positioned relative to the natural sciences. It catalogs the laws and strategies which underpin the operation of systems that are based on the interaction of emergent agents.
John Holland's framework for representing complexity is outlined. Links to other key aspects of CAS theory discussed at the site are presented.

Theory

This web frame explores very significant example real world complex adaptive systems (CAS). It explains how the examples relate to each other, why we all have trouble effectively comprehending these systems and outlines the items we see as key to the system and why. By understanding these summaries you can better frame the interdependencies of important events such as war in Iraq, new iPhone releases or a cancer diagnosis and see how they are impacting you.

Examples

This page presents a search result list covering each linked region of rob's strategy studio.

Search

Rob's Strategy Studio aims to celebrate and illuminate complex adaptive systems (CAS) just as an art studio does art.

By way of introduction it notes the complex interactions that led to the partnership that discovered the DNA double helix and genetic code.

The page introduces the RSS vision 'I act, therefore I think' approach and the RSS mission.

It describes how many key aspects of the world are CAS including businesses.

Finally the page explains each of the framed pictures displayed at the studio including the other aspects explored in this vision frame.

Vision

This page introduces the programs that the Adaptive Web Framework (AWF) develops and uses to deploy Rob's Strategy Studio (RSS).
The programs are structured to obey complex adaptive system (CAS) principles. That allows AWF to experiment and examine the effects.
A production program generates the web pages.
A testing system tests the production program. It uses a framework to support the test programs. This is AWF's agent programming framework as described in the agent-based programming presentation.
An example of the other AWF agent-based programs that are also described in the frame is the virtual robot.
Finally a strength, weaknesses, opportunities and threats assessment is presented.

Perl

This page introduces a series of asymmetries which encourage different strategic approaches.
The differences found in business, sexual selection, gamete structure, as well as in chess encourage escalations in the interactions.
And yet the systems including these asymmetries can be quite stable.

Asymmetries

This web frame includes a set of presentations about complex adaptive systems (CAS)

Presentations

Memetic signals adaptive responses and trade networks

Summary

Matt Ridley demonstrates the creative effect of man on the World. He highlights:

A list of preconditions resulting in
Additional niche capture & more free time
Building a network to interconnect memes processes & tools which
Enabling inter-generational transfers
Innovations that help reduce environmental stress even as they leverage fossil fuels

The Rational Optimist

Ridley's book 'The Rational Optimist' contrasts the impacts of humanity with all other life forms and asks what caused the difference?

Ridley identifies a number of facets that support man's impact on the world:

Use of fire to reduce the cost of digestion and extend the range of foods that could be consumed.
The trading,
Plans change in complex adaptive systems (CAS) due to the action of genetic operations such as mutation, splitting and recombination. The nature of the operations is described.

recombination and instantiation of memes based on
Plans emerge in complex adaptive systems (CAS) to provide the instructions that agents use to perform actions. The component architecture and structure of the plans is reviewed.

Memetic
Agents use sensors to detect events in their environment. This page reviews how these events become signals associated with beneficial responses in a complex adaptive system (CAS). CAS signals emerge from the Darwinian information model. Signals can indicate decision summaries and level of uncertainty.

signals, and adaptive
This page discusses the tagging of signals in a complex adaptive system (CAS). Tagged signals can be used to control filtering of an event stream. Examples of CAS filters are reviewed.

receptors.
This page reviews the inhibiting effect of the value delivery system on the expression of new phenotypic effects within an agent.

Extended phenotypic creation of tools such as hand axes making up for a lack of effective talons and claws and increasing the niches that could be competed for successfully.
Evolved separation of roles by males and females including
Gathering of carbohydrate sources creating a predictable energy source, and
Hunting of animals providing a high protein but less reliable source of food. Ridley notes that this could have been driven by
This page describes the consequences of the asymmetries caused by eggs having to include resources required for the development of sexually reproduced organisms while sperms do not.
The impact of this asymmetry is to force alternative strategies on males and females. The strategies are outlined.

sexual selection.
Specialized preparation, including cooking, of food. This separation of roles was compensated by the
Sharing of food. Ridley sees this as highly unusual behavior which was a precursor of
Trading of resources, enabling
This page discusses the effect of the network on the agents participating in a complex adaptive system (CAS). Small world and scale free networks are considered.

networks of traders to support themselves via comparative advantage.

Ridley suggests these facets allowed man to expand the niches that could be competed for successfully, and provided the time to focus on specialized strategies. The adaptive result allowed man to hunt prey to extinction without paying a price since alternatives still existed. For the prey the

This page reviews the strategy of setting up an arms race. At its core this strategy depends on being able to alter, or take advantage of an alteration in, the genome or equivalent. The situation is illustrated with examples from biology, high tech and politics.

arms race that had driven the development of these highly specialized competitors failed and their

This page discusses the mechanisms and effects of emergence underpinning any complex adaptive system (CAS). Key research is reviewed.

emergent cascade collapsed.

Ridley shows how man has created a

This page reviews the catalytic impact of infrastructure on the expression of phenotypic effects by an agent. The infrastructure reduces the cost the agent must pay to perform the selected action. The catalysis is enhanced by positive returns.

network that transfers, supports,

Plans change in complex adaptive systems (CAS) due to the action of genetic operations such as mutation, splitting and recombination. The nature of the operations is described.

recombines and instantiates

Plans emerge in complex adaptive systems (CAS) to provide the instructions that agents use to perform actions. The component architecture and structure of the plans is reviewed.

memes, processes and

Tools and the businesses that produce them have evolved dramatically. W Brian Arthur shows how this occurred.

tools. He explains how this

This page reviews the implications of reproduction initially generating a single child cell. The mechanism and resulting strategic options are discussed.

sexual recombination enables the vast variety of new forms that man has innovated.

He describes how current western civilizations, and early hunter gatherers both invested in skills and specialization over many years of development is a phase during the operation of a CAS agent. It allows for schematic strategies to be iteratively blended with environmental signals to solve the logistical issues of migrating newly built and transformed sub-agents. That is needed to achieve the adult configuration of the agent and optimize it for the proximate environment. Smiley includes examples of the developmental phase agents required in an emergent CAS. In situations where parents invest in the growth and memetic learning of their offspring the schematic grab bag can support optimizations to develop models, structures and actions to construct an adept adult. In humans, adolescence leverages neural plasticity, elder sibling advice and adult coaching to help prepare the deploying neuronal network and body to successfully compete.
, obtaining amplified payback from the network of specialists and the

Tools and the businesses that produce them have evolved dramatically. W Brian Arthur shows how this occurred.

increasing array of products, components and tools they create. Ridley comments "The true measure of something's worth is the hour's it takes to acquire it. If you have to acquire it yourself, it usually takes longer than if you get it ready made by other people. If you can get it made efficiently by others, then you can afford more of it".

Ridley shows how current western societies create a network that enables inter-generational transfers from the productive adults to the developing young. He points out:

The system must keep moving forward or it will collapse.
The innovation is the economic realization of invention and combinatorial exaptation.
achieved by sexual recombination and development of time saving products and service benefits all.
That using time to borrow from the future rather than invest in innovation creates the risk of stalling progress.

He suggests time invested in innovation will ensure "the relentless upward march of human living standards". He is rightly optimistic, and is joined in that position by Jared Diamond, E.O. Wilson and Jeffrey Sachs.

Innovations reducing stress on the environment

Ridley writes that technological innovation is the economic realization of invention and combinatorial exaptation.
s are increasing the resources available to man while helping to reduce the stress on the environment. Building on the leverage of fossil fuels and the Haber process, he shows how genetic variants of crops were initially breed, and more recently engineered to vastly amplify the amount of food stuffs available, from the same amount of land. As an added benefit the resultant transfer of rural to urban labor typically reduces the human demand for land.

As he reviews the historical development of trade networks Ridley points out the

amplifying effect of rivers, roads and especially seas with technologies like the wheel and boats. Ridley argues that the Phoenicians development of birene galleys, leveraging local cedar & cypress forests, was particularly significant in making the Mediterranean ports key trading hubs.

He also points out that human replacement rates are dropping in most parts of the world, which can eventually be expected to limit the pressure of exponentially increasing growth rates. Its a point discussed at depth by Jeffrey Sachs. As death rates drop couples no longer use a strategy of large families to ensure some adult offspring. It is clear to them that smaller families have better living standards. When education and trade are also available women become keen to limit their investment in child rearing.

Ridley concedes that elites often emerge from the rewards of trading, only to divert the benefits to

This page describes the organizational forces that limit change. It explains how to overcome them when necessary.

increasing their power and wealth consequently undermining the effect of the trading.

The contribution of fossil fuels

Ridley explains how fossil fuels do not compete for land while providing a flexible energy source.

He argues that this is of major significance. Britain's Industrial Revolution was unusual because it did not suffer negative returns to scale. Ridley shows that this was because the energy needed to sustain it did not require dedication of ever more land, which would not have been available. Otherwise like all previous technological expansions, the revolution would have collapsed. Instead by drawing workers from rural to urban life styles the Industrial Revolution reduced their demand for land too.

In comparison, Ridley complains, most 'green' energy strategies will be damaging since they will have to grab land from natural ecologies.

Ridley promotes networked innovation is the economic realization of invention and combinatorial exaptation.
as a bottom up emergent process. He sees

This page reviews Christensen's disruption of a complex adaptive system (CAS). The mechanism is discussed with examples from biology and business.

predators and parasites as a major risk to its continued operation. He comments "It happened in the past.

Peter Turchin describes how major pre-industrial empires developed due to effects of geographic boundaries constraining the empires and their neighbors' interactions. Turchin shows how the asymmetries of breeding rates and resource growth rates results in dynamic cycles within cycles. After the summary of Turchin's book complex adaptive system (CAS) theory is used to augment Turchins findings.

Empires bought stability at the price of creating a parasitic court; monotheistic religions bought social cohesion at the price of a parasitic priestly class; nationalism bought power at the expense of a parasitic military; socialism bought equality at the price of a parasitic bureaucracy; capitalism bought efficiency at the price of

Charles Ferguson argues that the US power structure has become highly corrupt.

Ferguson identifies key events which contributed to the transformation:

Junk bonds,
Derivative deregulation,
CMOs, ABS and analyst fraud,
Financial network deregulation,
Financial network consolidation,
Short term incentives

Subsequently the George W. Bush administration used the situation to build a global bubble, which Wall Street leveraged. The bursting of the bubble: managed by the Bush Administration and Bernanke Federal Reserve; was advantageous to some.

Ferguson concludes that the restructured and deregulated financial services industry is damaging to the American economy. And it is supported by powerful, incentive aligned academics. He sees the result being a rigged system.

Ferguson offers his proposals for change and offers hope that a charismatic young FDR will appear.

Following our summary of his arguments, RSS comments on them framed by complex adaptive system (CAS) theory. Once the constraints are removed from CAS amplifiers, it becomes advantageous to leverage the increased flows. And it is often relatively damaging not to participate. Corruption and parasitism can become entrenched.

parasitic financiers. "

The application of

CAS theory represents the economy as a set of

This page discusses the mechanisms and effects of emergence underpinning any complex adaptive system (CAS). Key research is reviewed.

emergent niches. The facets present in hunters and gatherers created an

evolutionary amplifier between interacting humans where each specialist gains time from the trades with other

Plans are interpreted and implemented by agents. This page discusses the properties of agents in a complex adaptive system (CAS).
It then presents examples of agents in different CAS. The examples include a computer program where modeling and actions are performed by software agents. These software agents are aggregates.
The participation of agents in flows is introduced and some implications of this are outlined.

agents in the network.

The aggregate agents generated within the system will compete adaptively the most successful deploying the best associated strategies that selection provides them. As such parasites, predators and other niched specialists should be expected. The system makes itself resilient epistatically.

Ridley's position of 'Rational Optimist' depending on networked innovation to ensure progress still seems overly optimistic, in a number of ways:

History indicates that networked innovation has been intimately connected with: exploitation of resources and people and constraint of trade to capture value; as detailed by Sven Beckert in
Sven Beckert describes the historic transformation of the growing, spinning, weaving, manufacture of cotton goods and their trade over time. He describes the rise of a first global commodity, its dependence on increasing: military power, returns for the control points in the value delivery system(VDS), availability of land and labor to work it including slaves.

He explains how cotton offered the opportunity for industrialization further amplifying the productive capacity of the VDS and the power of the control points. This VDS was quickly copied. The increased capacity of the industrialized cotton complex adaptive system (CAS) required more labor to operate the machines. Beckert describes the innovative introduction of wages and the ways found to mobilize industrial labor.

Beckert describes the characteristics of the industrial cotton CAS which made it flexible enough to become globally interconnected. Slavery made the production system so cost effective that all prior structures collapsed as they interconnected. So when the US civil war blocked access to the major production nodes in the American Deep South the CAS began adapting.

Beckert describes the global reconstruction that occurred and the resulting destruction of the traditional ways of life in the global countryside. This colonial expansion further enriched and empowered the 'western' nation states. Beckert explains how other countries responded by copying the colonial strategies and creating the opportunities for future armed conflict among the original colonialists and the new upstarts.

Completing the adaptive shifts Beckert describes the advocates for industrialization in the colonized global south and how over time they joined the global cotton CAS disrupting the early western manufacturing nodes and creating the current global CAS dominated by merchants like Walmart pulling goods through a network of clothing manufacturers, spinning and weaving factories, and growers competing with each other on cost.

Following our summary of Beckert's book, RSS comments from the perspective of CAS theory. The transformation of disconnected peasant farmers, pastoral warriors and their lands into a supply chain for a highly profitable industrial CAS required the development over time: of military force, global transportation and communication networks, perception and representation control networks, capital stores and flows, models, rules, standards and markets; along with the support at key points of: barriers, disruption, and infrastructure and evolved amplifiers. The emergent system demonstrates the powerful constraining influence of extended phenotypic alignment.

Empire of Cotton.
The cascade of niche creation is not typically stable and can collapse rapidly if conditions change as described by Jared Diamond. Significant collapse of niches in the biosphere is already seen as detailed by E. O. Wilson in 'The Future of Life'. The exponential growth of human population detailed by Jeffrey Sachs is shown to be impacting key resources that sustain our development. Additionally Sachs shows successful trading economies have
This page discusses the benefits of bringing agents and resources to the dynamically best connected region of a complex adaptive system (CAS).

significant positional benefits that are not general. For other disadvantaged states significant capital is the sum total nonhuman assets that can be owned and exchanged on some market according to Piketty. Capital includes: real property, financial capital and professional capital. It is not immutable instead depending on the state of the society within which it exists. It can be owned by governments (public capital) and private individuals (private capital).
transfers seem necessary if they are to escape the poverty trap. Sachs is also optimistic, but he admits that rich nations like the USA, with multi-ethnic populations, have tended to limit their capital transfers to poor nations that differ from the donors most powerful political groups. The implications of living longer and the reduced size of families are
Gawande uses his personal experience, analytic skills and lots of stories of innovators to demonstrate better ways of coping with aging and death. He introduces the lack of focus on aging and death in traditional medicine. And goes on to show how technology has amplified this stress point. He illustrates the traditional possibility of the independent self, living fully while aging with the support of the extended family. Central planning responded to the technological and societal changes with poorly designed infrastructure and funding. But Gawande then contrasts the power of bottom up innovations created by experts responding to their own family situations and belief systems.

Gawande then explores in depth the challenges that unfold currently as we age and become infirm. He notes that the world is following the US path. As such it will have to understand the dilemma of integrating medical treatment and hospice strategies. He notes that all parties involved need courage to cope.

He proposes medicine must aim to assure well being. At that point all doctors will practice palliative care.

Complex adaptive system (CAS) models of agency, death, evolution, cooperation and adaptations to new technologies are discussed.

explored by Atul Gawande. Brynjolfsson and McAfee
Brynjolfsson and McAfee explore the effects of Moore's law on the economy. They argue it has generated exponential growth. This has been due to innovation. It has created a huge bounty of additional wealth. But the wealth is spread unevenly across society. They look at the short and long term implications of the innovation bounty and spread and the possible future of technology.

Following our summary of their arguments RSS comments from the perspective of CAS theory.

explore the effects of technological power laws. The resulting bifurcation of the American population into rich nuclear families and poor unstable families isolated into separate communities is detailed by Robert Putnam.
Networked innovation has to promote beneficial combinations and support phenotypic alignment. That can depend on successful strategic choices. The recent bubble and depression referenced by Ridley forced resources into housing and then destroyed the capital. This process is general and as in the internet bubble can result in
This page reviews the inhibiting effect of the value delivery system on the expression of new phenotypic effects within an agent.

alignment that ensures
The IPO of Netscape is defined as the key emergent event of the New Economy by Michael Mandel. Following the summary of Mandel's key points the complex adaptive system (CAS) aspects are highlighted.

capitalized agents destroy other innovators and capture their niches before collapsing themselves. The emergence of elites often results in power hierarchies that inhibit catalysis when the tools which enforce power are preferentially available to the elites. The technologically amplified food chain Ridley promotes has been described and compared with alternatives in some detail by Michael Pollan in the Omnivore's Dilemma. While the World seems likely to need the technological amplifiers Ridley praises to avoid the Malthusian, Thomas Robert Malthus was an English cleric and scholar. He described the geometrical expansion of populations supported by sufficient resources and the population's subsequent collapse as the land used to grow the resources became fully deployed.
collapse,
Through the operation of three different food chains Michael Pollan explores their relative merits. The application of complex adaptive system (CAS) theory highlights the value of evolutionary testing of the food chain.

the potential risks of the approach also seem large.
Successful inter-connected economies must also be aware of the risk of
This page reviews Christensen's disruption of a complex adaptive system (CAS). The mechanism is discussed with examples from biology and business.

disruption. While wholesale innovation may offset this risk politicians often resort to strategic mechanisms that help ensure maintenance of a powerful position. Military and economic control of key networks transporting resources, such as water, oil and gas, are an obvious example with the political goal of turning a shared
This page reviews the catalytic impact of infrastructure on the expression of phenotypic effects by an agent. The infrastructure reduces the cost the agent must pay to perform the selected action. The catalysis is enhanced by positive returns.

infrastructure amplifier into an
This page reviews the strategy of setting up an arms race. At its core this strategy depends on being able to alter, or take advantage of an alteration in, the genome or equivalent. The situation is illustrated with examples from biology, high tech and politics.

evolutionary amplifier. Patent control of genetically engineered seeds offer similar possibilities.

Ridley argues that it is the networking of innovations that makes man so different. CAS theory sees the difference as being that man's:

Plan - Introduction of the scientific method for testing hypothesis. The network of memes and
The agents in complex adaptive systems (CAS) must model their environment to respond effectively to it. Samuel modeling is described as an approach.

models is maintained and
This page discusses the benefits of bringing agents and resources to the dynamically best connected region of a complex adaptive system (CAS).

centralized in the minds and libraries of academics. Support for trainee engineers interested in the valued processes, and theories they may leverage.
Check - rigorous hypothesis, that allow effective checking.
Act - gathering, valuation, recording and distribution of alternative memes that associate engineering goals with implementation strategies success.

While bees use memetic signals when describing where food has been found, they have avoided the cooperative sharing of food between the sexes which Ridley promotes as the initiator of networked trading.

Market Centric Workshops

Politics, Economics & Evolutionary Psychology

Business Physics
Nature and nurture drive the business eco-system
Human nature
Emerging structure and dynamic forces of adaptation

integrating quality appropriate for each market

This page looks at schematic structures and their uses. It discusses a number of examples:

Schematic ideas are recombined in creativity.
Similarly designers take ideas and rules about materials and components and combine them.
Schematic Recipes help to standardize operations.
Modular components are combined into strategies for use in business plans and business models.

As a working example it presents part of the contents and schematic details from the Adaptive Web Framework (AWF)'s operational plan.

Finally it includes a section presenting our formal representation of schematic goals.
Each goal has a series of associated complex adaptive system (CAS) strategy strings.
These goals plus strings are detailed for various chess and business examples.

Strategy | Design |

This page uses an example to illustrate how:

A business can gain focus from targeting key customers,
Business planning activities performed by the whole organization can build awareness, empowerment and coherence.
A program approach can ensure strategic alignment.

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