The Power of Power Laws
John Hagel has written an article on how having a perspective -- either Gaussian or Paretian can affect your business. Gaussian perspective deals with averages, while the Paretian perspective looks at relationships and how to excel at them.
Business executives also are drawn to a Gaussian world. At one level it is much simpler – there is a meaningful “average consumer” that can be used to scale products and operations around – and it is a much more predictable world. In many respects, the history of Western business in the twentieth century represents an effort to build scalable operations through standardization designed to serve “average consumers”.
Permalink | Saturday, June 02, 2007
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