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Feedback Loops for Skype

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Identify one Balancing Loop and one Reinforcing Loop for Skype. These feedback loops should be critical to Skype's performance and success.

Explain each one of these loops - what are the causal factors and how do they affect each other? For the Reinforcing loop, look for an area where there is growth and for the Balancing loop, look for goal behaviour. After identifying and explaining these critical feedback loops, identify how Skype has generated organizational learning, AND how they can go further and generate additional organizational learning. What do they need to do to improve their performance further?

Determine the two critical feedback loops. Describe each Feedback Loop and explain why they were selected. Make sure you explain the Loop, and the cause and effect process within the Loop. You could also include a Causal Loop Diagram. If you do, show the arrows and direction of effect (+ or -).

Briefly discuss the theory of organizational learning. Identify the learning activities in each feedback loop that Skype has already taken. Then identify the opportunities for organizational learning in each Feedback Loop. Make a Case that these are learning opportunities. Logically show how the feedback process provides an opportunity for the organization to learn and improve its performance.

http://www.systems-thinking.org/intst/int.htm on 2/20/12.
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Solution Preview

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In systems thinking, a balancing loop attempts to move a current state to a desired state through some action. A reinforcing loop is one in which an action produces a result which influences more of the same action leading to growth. Skype is a service that allows users to communicate with peers by voice using a microphone video by using a webcam, and instant messaging.

Skype operates in a highly competitive market. Its competitors include H 323 and SIP services, Mumbie, Hall.com and Google Talk Service. To improve its competitiveness Skype has used the balancing loop by introducing full HD video-calling on 2nd February 2012. This balancing loop attempted to move Skype from weak video quality to HD video calling. This service is important for Skype. Skype also provides support for Facebook audio and video calling, allows group screen sharing, and allows push to talk.

The reinforcing loop of Skype is the increase in features of Skype to increase its registered user base. ...

Solution Summary

The answer to this problem explains Feedback Loops. The references related to the answer are also included.