M. Reeves

S. Levin

T. Fink

A. Levina

Insights from biology, physics and business shed light on the nature and costs of complexity and how to manage it in business organizations.

In business, complexity gets bad press. That’s not surprising. It can be cognitively demanding to understand how a system or organization made up of many very different interconnected elements actually works. But the fact that such systems or organizations are difficult to understand doesn’t make them inherently bad. In addition to its more obvious costs, complexity confers critical benefits, especially in dynamic and uncertain environments. In the following pages we draw on our experience and perspectives in business, biology, and physics to offer some reflections on the nature, benefits, and costs of complexity and provide some guidance on managing it in business organizations.

Taming complexity

Next generation structures and materials are key to aerospace, the built environment and exploring space. Hierarchical materials, fractal structures, and polydisperse systems offer dramatic gains in efficiency. Advances in 3D printing and self-assembly mean that these novel technologies can be practically manufactured.

Extreme materials

Silicon-based electronic computing is hitting energetic and technological barriers, and quantum computing remains a theoretical challenge of the future. To maintain an exponential increase in computing power, we require alternative frameworks. Two which we are studying are memristors and photonic computing.

Low-energy computing

Information science underpins modern society. Quantum information science is creating the next generation of information technology, where effects like superposition and entanglement are exploited to envisage qualitatively new technologies. This field also gives an alternative perspective on physics, wherein information takes centre stage.

Quantum information

Innovation is to organizations what evolution is to organisms: it is how organisations adapt to changes in the environment and improve. New mathematical models of component recombination and the building blocks of economic complexity offer fundamental insights into how firms, countries and technologies develop.

Science of innovation

The global behaviour of local processes depends on the geometry of their underlying space. Studying processes on ideal graphs and on irregular networks derived from real data uncovers surprising behaviour in biological, social and financial systems. The tools of this field include spectral, replica, community and combinatoric techniques.

Graph theory

Institutional risk originates from ordinary economic uncertainties. But when these risks propagate across inter-connected institutions, internal amplification can lead to dramatic exposures. These systemic risks can be mitigated by applying ideas from cascading failures, diversification and extreme value theory.