Notes from recent readings - credited where at all possible.

1. Complexity and
Innovation
Richard Adams
I have tried to quote all sources but may have erred occasionally – let me know and I’ll correct accordingly

2.  21st century businesses are
complex adaptive systems
20Th century businesses are
rigid mass production processes

3. Manual
Computerised
Top down
Focus groups
Research
DB
Security apps
Designed services
•Automated
•Digital
•Bottom up
•Data
•Realtime
•Blockchain
•AI Security
•Evolving services
Emergent
Properties
New Services
New Products

4. 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
Data
Customers
Insight
Partners
AI
Operations/Public
Automation
Distributed DBs
Security
Moderators
Sensor Layer
Feedback Layer
Service Layer
CX

5. 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

6. Businesses are Complex Adaptive Systems
CASCharacteristics
https://www.futurelearn.com/courses/complexity-and-uncertainty/0/steps/1836

7. Emergence
Sudden transitions/ tipping-points/ non-linearity
Limited predictability
Large events
Evolutionary dynamics
Self-organisation
Fundamental Uncertainty
https://www.futurelearn.com/courses/complexity-and-uncertainty/0/steps/1836

8. Collaboration
Openness
Responsiveness
Usefulness
Empowerment

9. 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

10. Sensing and Navigating a Disruption
Look 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 patient
strategy will be the best approach.

11. Information-Enabled Innovation Strategies Outperform
Patientstrategiesareforstableenvironments
Source: BCG Henderson Institute and London Institute

12. Approach
Adopt 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.

13. 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

14. 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.