“In a few hundred years, when the history of our time will be written from a longterm perspective, it is likely that the most important event historians will see is not technology, not the Internet, not ecommerce. It is an unprecedented change in the human condition. For the first time – literally – substantial and rapidly growing numbers of people have choices. For the first time, they will have to manage themselves. And society is totally unprepared for it.” — Peter Drucker
Examples of some nonlinear relationships (from HBR article below)
From an article in the Harvard Business Review:
“In recent years a number of professions, including ecologists, physiologists, and physicians, have begun to routinely factor nonlinear relationships into their decision making. But nonlinearity is just as prevalent in the business world as anywhere else. It’s time that management professionals joined these other disciplines in developing greater awareness of the pitfalls of linear thinking in a nonlinear world. This will increase their ability to choose wisely—and to help the people around them make good decisions too.”
The article discusses some simple examples that might crop up in a marketing scenario.
Whilst knowing the relationship between quantities, even qualitatively, may be difficult to determine in practice, simply being aware that nonlinearity may be important could be enlightening and suggest alternative ways forward.
Worth thinking what impact that little 1% change may lead to!
See here (in connection with money).