Or, the How Fast and Where To of Running
Here, you see, it takes all the running you can do, to keep in the same place.
The Red Queen, Through the Looking Glass, and What Alice Found There
In which we consider how evolution works, how evolutionary ideas have been applied beyond biology, some related concepts in physics and computation, and synthesis an approach to business success.
Keywords: Branding, Product/Service Differentiation, Competition
Introduction
It's a jungle out there... an arctic wasteland... a searing desert... but life manages everywhere: it has evolved into every available niche. Whilst one might not think of organisations as living things, they are just man-made organisms in man-made environments — and however you look at it, it's a dog-eat-dog, big-fleas-have lesser-fleas, and a plenty-more-fish-in-the-sea world we have made.
Generations come and go, the fit survive, the unfit perish. What does it take to survive in the modern business world?
Answer: Intelligence — by which I mean the application of creative but rational thinking based on a clearer understanding of business dynamics at the most fundamental level. It doesn't matter what you do or make, your business has an environment — it's part of an ecosystem and you have to know how the system works and your place in it in order to flourish.
Ecosystems & evolution
An organism's ecosystem is everything that surrounds it and affects it - the physical environment (geography, topography, climate and weather...) and all the other organisms (predators, rivals, mates, food, shelter) it interacts with. It's complex and dynamic, but everything has found — or created — a place for itself through the age-long process of evolution.
The three standard, basic elements of Darwinian Evolution are:
- Heritability of characteristics — progenitors influence the characteristics of their offspring
- Variability of characteristics — offspring are not identical to their progenitors
- Selection — not all offspring become progenitors (some fail to pass on their characteristics to the next generation); on average, the better an organism is at exploiting its environment, the more successful it will be.
What's usually overlooked however is the nature of the selection process. In many simple examples (and here I'll be extremely simple, possibly over-simplistic) such as
Darwin's Finches, a particular characteristic, such as the shape of the beak, evolves to suit the environment: finches evolved particular beak-shapes to suit particular types of food (plant, insects, blood, etc.).
What is taken for granted in such examples is an
effectively static environment. In the case of Darwin's Finches the life-cycle of the food source
In reality, organisms do not evolve independently of their environments and the rest of their ecosystems: they
co-evolve — and on occasion an organism can be said to create its own environment.
Mankind has certainly created its own environment, but other organisms do the same, albeit on smaller scales. The
beaver, for example, fells trees and uses them to build its lodge and
dams, which provide protection against predators and corral its food supply. The beaver creates and maintains its own ecosystem — and since the lodge is accessible only from underwater, few others could get in and fewer still are admitted.
For most organisms however, deliberate alteration of the environment is not an option — they have to work with the environment as it is. However, the direction that evolution takes them also depends on the size of the population. The smaller the population the greater the effect of chance in determining which characteristics get passed on. Natural variations are typically small
Beyond Biology — Physics and Computing
Being rather too small to see, the behaviour of atoms and molecules is obscure, but the bulk behaviour of stuff has been studied for a long time. In metallurgy, the process of
annealing
Landscapes of Thought
... Alice said she wanted to climb the hill.
When you say "hill," the Queen interrupted, I could show you hills, in comparison with which you'd call that a valley.
Of course, Alice object that a hill couldn't be a valley — but it depends what you mean by "hill" and "valley."
As this picture of a "
saddle point" shows the red dot is a local maximum if one were heading front to back, and a local minimum heading side-to-side.
Business Examples
Apple is an interesting example of an organisation that has effectively created its own environment. Apple's brand and offerings are not so much "distinguished" from competitors as . In this respect Apple is not unlike the
beaver, which creates dams as protection against predators and to corral its food supply. ... and you could say that the Apple Store online is Apple's iPhone lodge: access is strictly controlled and only non-threatening and non-competitive
A competitive analysis based on evolutionary principles would therefore say that Apple is a good long term bet
as long as it controls its environment. Once a beaver has established
Further Reading/Browsing
A pleasantly readable introduction to fractals, networks, chaos, power laws, etc. can be found at John McCrone's
Dichotomostic Blog
Read more...