Let's be clear about what is a complex adaptive system. What's a system? A system is a set of interacting parts that act as a whole. They have a purpose, they have a design function, and there's rules that allow those parts to operate together to fulfill that design function. Where complex comes in is the parts, technical term called agents, but the parts of the system make choices and it's because of those choices that creates complexity. Now there's no real definition of complexity, there's no agreed on definition of complexity, but complexity is generally thought to be: there's so many moving parts moving in so many different directions that it's impossible to predict behavior. So for a simple definition, complex means impossible to predict behavior. And then the final part is adaptive. Adaptive systems come into existence-if they're not adaptive then they don't come into existence, they don't form as a system-and then if they're not adaptive they don't continue to exist because why? As the environment changes, they have to change. So if the system isn't adaptive it goes out of existence when the environment changes, but adaptive systems adapt to their environment. They change meeting the environment. And by the way, as they change they also change the environment.
So a complex adaptive system is a system that has multiple parts that can make choices of various kinds, and by virtue of those choices the system adapts. Now, at the individual level why that's important to you and me is the choices we make, even though we're parts of large companies, the choices we make impact the total system. The choices your company makes impacts the marketplace.