Modern communication technology, especially the Internet, facilitates unsupervised organizational learning (self optimization) in business ecosystems. Furthermore, businesses that participate in ecosystem learning get smarter and prosper while those businesses that don't are failing.
The idea that business ecosystems are capable of learning (self optimizing) , and that this so-called learning takes place without conscious supervision of the participants, is a restatement of the hidden hand of Adam Smith. But now, with the explosive growth of the Internet and world-wide transportation networks, we can see how smart networks improve productivity through unsupervised learning. Evolutionary forces have already promoted intelligent networks to the point that they are determining what we wear, what we drive, how we are entertained, and what we eat.
It is vital for politians, businessmen, and national populations to understand the concept and be able to benefit from it rather than being obsoleted by it.
All businesses and all economies follow a cycle of birth, growth, and decline. This dynamic is determined by two opposing fundamental principles: the first is that power begets power. The second is that broadly distributed power promotes creativity and growth. All businesses and nations start out with power being broadly distributed. As the concentration of power progresses, it strangles innovation which first kills expansion and later leads to decline.
On the other hand, there are mechanisms for reversing the first principle, short of destroying the nation or business. Knowledge is power. Technologies such as the Internet take power back from those that concentrate it. The Internet redistributes power more broadly. This is leading to worldwide economic growth, growth guided by economic intelligence.
Some references follow. Most are also located under the tabs in the menu bar.
I welcome feedback and questions from anyone who cares to offer an opinion.
Blogs & Comments:
The GG bridge: marking the northern end of Silicon Valley
Singapore, a managed economy
New York, financial capital
Qatar, oil funded new beginnings