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.

Short Vita

Vita

I welcome feedback and questions from anyone who cares to offer an opinion.

gwhite3@gmail.com

Blogs & Comments:

  1. Howard Schultz
  2. Silicon Valley

Economic Vision

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  1. A Grand Challenge for Singapore
  2. Description of speech technology and entrepreneurial opportunity
  3. Description of leadership, innovation and entrepreneurial activities
  4. Description of other aspects of leadership and innovation
  5. How to get a standing ovation by Guy Kawasaki
  6. Leadership ideas from Fortune Magazine
  7. Some lessons about leadership and teaming told by the hare and the tortoise
  8. Nature or nurture: making geniuses after they are born
  9. Regional advantage and the essence of Silicon Valley
  10. Richard Florida's views on regional advantage and creativity
  11. My thoughts on the evolution of mobile phones as building blocks for Web 3.0
  12. Nature versus nurture: more evidence the stars are made not born
  13. Inspirational message by a truly charismatic business leader and friend
  14. More Richard Florida: the Rise of the Creative Class
  15. How to be a Star at Work
  16. Web Promotes Democracy
  17. The power of simplicity Jack Trout
  18. Organizational IQ
  19. Balanced Scorecard

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New York, financial capital

Qatar, oil funded new beginnings