TY - JOUR U1 - Wissenschaftlicher Artikel A1 - Mocker, Martin A1 - Weill, Peter A1 - Wörner, Stephanie T1 - Revisiting complexity in the digital age JF - MIT sloan management review N2 - As businesses grow and diversify, they almost inevitably make their range of offerings more complex. Complexity brings costs - but smart use of today’s digital technologies can help companies finesse the trade-offs between complexity´s costs and benefits. Imagine a retailer that has 10 million products and hundreds of variations for each product yet keeps it simple for customers to make a choice. Impossible? Not today. Amazon.com Inc. creates value from its product complexity with simple customer-facing processes, such as search, ratings, reviews and suggestions. Now imagine a diversified high-tech company with locally differentiated products in 60 categories in more than 100 different countries. A mess of internal processes and systems? Not necessarily. Royal Philips creates value by providing locally relevant products to different markets, while keeping the vast majority of its processes standardized on digitized platforms. Until now, managing business complexity has usually involved a trade-off. This trade-off forced companies to compromise between creating value from complexity and benefiting from the efficiencies of simplicity. As businesses entered new geographies, developed new products, opened new channels and added more granular customer segments, they made their offerings more complex with the intention of adding value. But, as an almost inevitable consequence, companies also made it more difficult for customers to interact with the company and more unwieldy for employees to get things done. However, with today´s increased digitization, companies can finesse this trade-off; they can increase valueadding complexity in their product offerings while keeping processes for customers and employees simple. Our research suggests that companies operating in this "complexity sweet spot" outperform their competitors on profitability. In this article, we explain how companies achieve this breakthrough in the digital world. KW - business process optimization KW - customer acquisition & retention KW - data & analytics KW - organizational culture KW - technological innovation Y1 - 2014 UR - http://sloanreview.mit.edu/article/revisiting-complexity-in-the-digital-age/ SN - 1532-9194 SS - 1532-9194 VL - 55 IS - 4 SP - 73 EP - 81 S1 - 5 PB - MIT CY - Cambridge, Mass. ER -