Data explains complex systems. 

Complex systems can sometimes behave in ways that are entirely unpredictable. Like Windows Vista for example.

"in other-words something that's more than the sum of its parts" "egg..."

Data does an ELI5 on fundamentals and everyone just goes along and pretends that after more than 300 years this is still a completely new Idea.

I love the look on Picard's face here, as if he is having some difficulty with consciousness himself at that moment.

Jordi understands warp technology but is only now hearing about complexity

"In other words, something that's more than just the sum of it's parts." "Egg."

I do love when shows explain things to the audience by having a character explain it to people who definitely already know what it is.

This is one of the most brilliant 26 seconds in all of Television...and years ahead of its time. I watched TNG as a kid, went to college a number of years later, and then even more years later, to grad school, and still, a large portion of Ph.D.-level scientists and grad students were completely unaware of the ideas conveyed in this brief clip. I still encounter people approaching phenomena mechanistically, that are clearly emergent properties. But this approach is extremely limited; you need different tools to understand and study emergent properties. Even nowadays a lot of people still don't get this...

Picard internal monologue: "Just keep blinking and pretend like you understand"

Picard has no clue what he's babbling about, but hides it well.

"Could the editing on this video act in unexpected ways?"

He pull that up from the Starfleet network Wikipedia.

Picard is thinking "I wish I was playing the flute in the Jeffrey's Tube with that lady who transferred off my ship after one away mission".

“Thank you for your expertise, Lieutenant Commander Obvious.”

Cool I'll put this in my essay and reference Mr. Data ^-^

As a neuroscientific researcher in consciousness, I love this, and love Data

Wasn't this Picard's defence of Data's humanity, in an earlier season?

I love how it’s always Data delivering complex monologues and exposition, and the crew goes Duh? and then another crew member paraphrases in far simpler terms, and the crew is like, Ahhhh , you’re so smart! Classic TNG dialog construction.

I swear Picard nearly falls asleep for a moment in this scene

The fact that I heard this explanation from Data, of all people, makes this entire simulation worth its hourly charge.