In ecology, the fragmentation of natural environments has been linked to stress - mostly caused by humans. This fragmentation results in a loss of biodiversity and the further collapse of critical ecosystem functions. Several studies have shown that this stress also stimulates adaption. In environments that demonstrate high resilience these adaptions have resulted in two key traits: functional redundancy(3) - whereby multiple species take on the same task at slightly differing degrees, and response diversity where the same or multiple species responds differently to stress(1).

Stress is a good analogy for the pressures our economic, social and cultural systems have been under. If this analogy holds - then the fragmentation we are witnessing is similarly induced by stress. The re-unification or rebuilding of universal systems might not be the correct goal. Instead, should we perhaps take inspiration from nature and be striving for functional redundancy and response diversity?

A more resilient economy might mean a series of separate, vertically integrated systems that are aiming to achieve the same goals in different ways. These systems might exist at a company, community, city or region level - perhaps within nested, fractal structures - yet these independent systems might still have some light coordination or connection to other systems, providing functional redundancy, diversity response and resilience to the systems as a whole. On a more pragmatic level, this might mean successful businesses and brands might be rearchitected away from scale and uniqueness as a default - and towards vertical integration and variation instead.

Indeed, we are witnessing these very dynamics in many of the successful new growth industries we follow. New markets are forming around a critical mass of companies pursuing similar strategies. The breakdown of global supply chains has rewarded companies that were more integrated and is bringing asset-heavy, vertically integrated companies (like Tesla) back to the forefront.