About the new Formula 1 rules

Formula three racing car at Hockenheimring. #2...
Image via Wikipedia

This season, FIA has introduced new rules in order to improve the show. The main objective of this action is to facilitate the overtaking on track. The drivers have recognized that their work is more complex this year. They need to control a greater number of variables and devices to make their work. Engineers will need to implement strategies with different variables.

This one is another example of complexity changes in an innovative market. Regulation can introduce complexity in a market, and this situation can be seen as an exogenous (not endogenous) source of complexity.

When we control a business we use a set of ratios that shows us the state of our business, but if we want to analyze external changes we will need to use a holistic approach. When the source of complexity is external we will not be able to reduce it acting only on our control variables, probably we will need to change our vision of business model in the same way that racing teams have develop new ailerons and KERS for their cars to adopt the new rules.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s