Thriving in today’s volatile economy requires constant innovation. But as businesses add products, channels, markets, and customer segments, they become more complex. Despite the common belief that too much complexity is bad, MIT CISR has found that it is a company’s combination of product and process complexity that determines whether value is destroyed or created. Top-performing companies find the right balance between the two—their “complexity sweet spot”—with high product complexity and low process complexity, resulting in profits that are higher than the industry average.
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