Complexity and InnovationRichard Adams

I have tried to quote all sources but may have erred occasionally – let me know and I’ll correct accordingly

21st century businesses are complex adaptive systems20Th century businesses are rigid mass production processes

ManualComputerised Top downFocus groupsResearchDBSecurity appsDesigned services

•Automated•Digital•Bottom up•Data•Realtime•Blockchain•AI Security•Evolving services

Emergent PropertiesNew ServicesNew Products

A standard Enterprise in ten years time will have;

1. Automated 99% of customer service µ

2. Automated around 50% of its day to day

management

3. Automated its public published PR and

news content

4. Automated most of Finance and HR

Automated CRM Automated shareholder

management

• Its marketing will be smart, predictive and AI

driven in terms of CRM and related

measurement

• Its dealings with governments and other

companies in terms of taxation and invoices

will be continual and always-on

• Sales will start to use AI techniques

• It will be Complex

DataCustomers

Insight

Partners

AI

Operations/Public

Automation

Distributed DBs

Security

Moderators

Sensor Layer

Feedback Layer

Service Layer

CX

Humanising

Roles are changing

Working patterns is changing

Interaction is changing

People will have to be;

Creative instigators/directors

Technical overseers

Moderators, checking things are fine

Real voices - as businesses become computing so the value of a human voice will rise

Businesses are Complex Adaptive SystemsCAS Characteristics

https://www.futurelearn.com/courses/complexity-and-uncertainty/0/steps/1836

Emergence

Sudden transitions/ tipping-points/ non-linearity

Limited predictability

Large events

Evolutionary dynamics

Self-organisation

Fundamental Uncertaintyhttps://www.futurelearn.com/courses/complexity-and-uncertainty/0/steps/1836

Collaboration

Openness

Responsiveness

Usefulness

Empowerment

Innovation in businesses has many of the characteristics of CAS

The results are often unpredictable and certainties, that people built their routines on, disappear which really stresses people.

Except…Research indicates that the time of stress is the most innovative time.Research says that businesses should learn to embrace this time

https://business.nmsu.edu/~dboje/655/quantum_systems_theory.htm

Sensing and Navigating a DisruptionLook backward, not forward.

Measure the evolution of complexity in the space by analyzing the distribution of product sizes in terms of the number of unique components in products.

If complexity is low and stable, it’s an indication that the space is still in its infancy. Here, choose an impatient strategy.

If complexity is high, then the space is maturing and a patientstrategy will be the best approach.

Information-Enabled Innovation Strategies Outperform Patient strategies are for stable environments

Source: BCG Henderson Institute and London Institute

ApproachAdopt or develop components that enable you to bring relatively simple products to market quickly.

An MVP approach is not always viable. If your space implies that a patient strategy is more appropriate, your objective is to maximize future innovation options.

1. Reframe innovation as an information-enabled search process.

2. Collect information on components and innovations to characterize the space.

3. Analyze the maturity of the game, and adapt your strategy accordingly.

4. Innovate the game of innovation itself through an information advantage.

5. Respond to or create disruption by adapting your managerial approach.

Source: BCG Henderson Institute and London Institute

A disruption always requires innovators to reset their innovation strategy and to return to an impatient approach.

Progress and prosperity will depend increasingly on solving hard problems that require less direct and more patient strategies.