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How Royal Philips Is Moving Toward Its Complexity Sweet Spot

Title Author(s) Type Topic(s) Comments Date
How Royal Philips Is Moving Toward Its Complexity Sweet SpotMocker, Martin
Ross, Jeanne W.
Research BriefingBusiness Models
Enterprise Architecture
IT-based Business Transformation
Digital Innovation
Digitizing Business Processes
Business Complexity
Abstract: 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.

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