Business complexity can be good or bad. Companies that can both add good complexity through product variety and valuable links and decrease bad complexity by promoting simple processes are operating in their complexity sweet spot and exhibit above-average financial performance. This briefing describes how Royal Philips is increasing value-adding product complexity while decreasing non-value-adding process complexity in order to move to its "complexity sweet spot." To do so, Philips is introducing locally relevant innovations, connected products, and integrated solutions, while at the same time standardizing its three core business processes globally.
↧