Complexity reduction helps companies to simplify their strategy, organization, products, processes and information technology. Reducing complexity aims unnecessarily complex processes which in return hinder change, speed,growth or increase cost.
Complexity reduction forces management to rethink products and processes from a customer point of view. The combination of lean and agile product lines, simplified end-to-end processes and a business-oriented portfolios, enables companies to growth faster. Complexity reduction goes beyond cost cutting.
Radical complexity reduction requires companies to:
- Understand the sources of complexity, their interdependences and potential trade-offs for specific products or services.
- Identify opportunities to simplify products, organizational structures, business processes and information systems.
- Strengthen focus on customer needs while maintaining an effective top-down management approach.
- Re-consider effects of complexity or organically grown, bureaucratic structures for innovation capabilities and new business development opportunities.
- Simplify decision making by clarifying roles and processes
Effective complexity reduction eliminates hidden cost, improves quality of products and services and forces an in-depth understanding of problems and customer needs.
If you like to have some more in-depth background on how you can resolve IT Complexity problems, please read our paper!