Machine. Ecosystem. (4) – Marc Andreessen on Systems Thinking

Think about it [systems thinking] through the lens of a new tech product, which is kind of the centre of what we do [at Andreesen Horowitz]… If you’re not a systems thinker basically you say “I’m going to build a really great product, and then I’m going to have a really great product, and it’s going to be great, because it’s a really great product.”

The systems thinking more is that that’s just the first step because it’s not just about the product. It’s about okay, now the product is going to enter into the marketplace, and there are going to be customers that are going to have a point of view on your product, and there are going to be competitors that are going to be trying to take you out with a better product. And you’ll put your product in retail, and the retailers are going to try to gouge you on price, and make your product uneconomic to manufacture, and the press is going to write a review of your product, and maybe the reviewer is going to have a really bad day and he’s going to say horrible, horrible things… and your employees are hard at work and they build the first product, and you assume they’re going to be with you to build the second product, and maybe they will, or maybe they won’t, because maybe someone else will hire them.

And so with any kind of creative endeavor, with anything we do in our world – and this is for products or for companies – they’re launching into technically what is called – there’s actually a mathematical term – a complex adaptive system – the world. And inherently it’s not a predictable system, it’s not a linear system, it doesn’t behave in ways that you can expect, kind of by definition. So they say “complex” because there are many, many dimensions and variables, and then “adaptive”, like it changes. Things change. So the introduction of a new product changes the system and then the system recalibrates around the product.

And so as a consequence, to launch a new tech product and have it succeed you have to have a keen awareness of all the different elements of the system. You have to have a willingness to engage in the entire system, and it’s a gigantic problem generally if you’re in denial about that, if you’re not willing to think in systems terms.

Marc Andreessen on The Moment with Brian Koppelman*

*Full transcript here.

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