Complexity, Chaos, and System Dynamics

• Published in: Information-Driven Business pp. 103 - 120
• Main Author: Hillard, Robert
• Format: Book Chapter
• Language: English
• Published: United States Wiley 2010; John Wiley & Sons, Inc
• Subjects: Business & management; chaos theory; complexity theory; flows; Information management; stocks; system dynamics simulation
• ISBN: 9780470625774; 0470625775
• DOI: 10.1002/9781119200338.ch9

This chapter provides an overview of three concepts—complexity, chaos, and system dynamics—in the field of information management. It describes why information is complex. It is worth remembering that the theory of chaos falls into the discipline of complexity. Chaos theory is used to understand and make predictions about the apparently random behavior of complex systems with interacting nonlinear components. The key aspect of chaotic systems is that they are very sensitive to even small changes of initial conditions. This means that nearly identical systems will quickly behave very differently. Complexity theory can then be broken into two subject areas: organized complexity, covering those Weaver systems that have many nonlinear components but fall into a stable pattern of behavior, and chaotic systems that have apparently similar structures but, despite coherent results, do not ever fall into a stable pattern. The data model simply records the state of data at a point in time and reflects the content created by business processes and activities. One technique to understand the content and structure of a data model is to use a system dynamics simulation. System dynamics is a form of simulation that allows stocks and flows to be interconnected, including the creation of feedback loops. The chapter presents an easy way to visualize system dynamics, with stocks being represented by containers of fluid and flows being variable taps that permit fluid flow between the containers.