Complex adaptive systems

The simplest of services are complex, adaptive, and systems. Services are systems because several parts work together to produce an effect that’s different from what each part can produce on its own. Performance and affordance are how elements of demand and supply co-produce the dual effect of outcome and experience. In services, demand is the environment for supply. Supply is the environment for demand. Therefore, services are adaptive because demand and supply adapt to changes in each other. Services are complex because the parts respond to changes in a nonlinear fashion through the feedback loops connecting the two sides. The behavioral responses are nonlinear due to the bounded rationality of people and the intangibility of their things.