What Makes Innovation So Complex?

Over the years, I’ve noticed that many organisations view innovation as inherently “complex,” often describing it as difficult, unclear, or uncertain. But what truly lies at the heart of this complexity? Let’s dig deeper.

Seth Lloyd, an American physicist and professor of mechanical engineering at MIT, researches the information science of complex systems such as quantum mechanics. Over the years, he has gathered more than thirty different definitions of complexity, almost all of which include the same three characteristics:

1.???? a large number of variables,

2.???? a high degree of uncertainty,

3.???? and the unpredictability of outcomes.

For instance, consider the UN’s Sustainable Development Goals (SDGs). Take Goal #1: No Poverty. Achieving it requires addressing countless interconnected factors—local employment, corruption, tax systems, global trade agreements—all with multiple stakeholders involved. Tackling these interconnected issues globally makes outcomes almost impossible to predict.

Similarly, the social science concept of wicked problems (introduced by Horst Rittel and Melvin Webber) highlights the challenges of solving issues within interdependent systems. When you think you have found part of the solution within the system, new problems arise elsewhere due to the interdependencies within the system. A prime example of a wicked problem is the climate issue. When biofuel production started to reduce CO2 emissions, the demand for corn, sugar beets, and sugarcane increased. To meet this demand, large areas of forests were cleared, while trees absorb CO2. The cure was worse than the ailment.

Australian historian David Christian states that cultural systems on Earth are the most complex systems in the entire universe. In the documentary "American Factory", a local General Motors factory in Dayton, Ohio, is central, recently acquired by the Chinese company Fuyao. The Chinese aim to transform the factory into a high-tech production facility for car windows. The documentary follows the Chinese CEO trying to manage American workers according to the Chinese leadership style. Despite all his efforts, he cannot solve the problems arising from cultural differences. Culture proves not so easy to export.

The Complexity of Innovation

Innovation shares many of these complexities. Here’s what I’ve observed in practice:

• Cross-functionality: Innovation involves multiple domains (tech, finance, operations, etc.), increasing complexity as more functions are added.
• Interconnectedness: Solutions are made up of multiple building blocks. The more interconnected and unclear these blocks are, the more complex the challenge.
• Sequencing: The order of development and implementation matters significantly; more possible sequences mean greater complexity.
• Uncertainty: Outcomes often carry unpredictable risks, amplifying the challenge.
• Culture: Innovation thrives in context, and the interplay of corporate cultures adds another layer of complexity.

Source: K. Klokgieters, “INNOVATION PARADOX THINKING - An Innovative approach to Innovate”, 2024

Addressing the Complexity

In 2013, I founded InnoPlot with the tagline: Driving complex innovation. Our mission has been to help organizations tackle their most intricate innovation challenges. At InnoPlot, we developed Innovation Paradox Thinking to navigate these challenges, fostering clarity amidst uncertainty and delivering impactful results.

What complexities have you faced in your innovation journey? Let’ me know. ??

#Innovation #Complexity #WickedProblems #Leadership #Sustainability #InnovationStrategy

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