People, organizations, and devices are all digitally connecting to each other and the Internet in a way like we’ve never seen. More data is being created than ever before, and at an exponential rate.
As a result, a new Networked Economy is emerging, creating an economic shift, faster than any other transition in history. As individuals, we are experiencing, and contributing to this shift in our daily lives – in the way we shop, the way we work, and the way we play.
For business managers, the Networked Economy presents three specific changes.
- A shift in Customer Expectations
- A shift in the Workforce
- A shift in Resource Management
Fortunately, a perfect storm of technology innovations has developed to navigate these changes. New in-memory based platforms can crunch data in an instant, revealing insights never thought possible before. There is an “App” for practically everything. Business networks are redefining commerce from trade to travel. Everything is shifting to the Cloud, making computing more affordable, accessible, and more elastic.
Despite these opportunities, most companies aren’t able to capitalize on them. Why? Complexity.
The Problem with Complexity
Complexity has become the most intractable issue of our time. Eighty percent of global CEOs say complexity is the biggest problem they are facing in running their business. Think of complexity as you would cholesterol – good (HDL) and bad (LDL). Some complexity is inevitable – a positive sign that your business is growing and maturing, perhaps through more products and services, more employees, and expansion into more geographies. But, in every business, complexity eventually reaches a tipping point, when it begins to hinder and cripple your prospects for further growth.
In fact, according to a Global Simplicity Index,* a study from Henley Business School, close to $237B profits are lost annually by the top 200 global companies, due to the hidden costs of complexity.
The Road to Simplicity
So what’s the solution? It is to Simplify without compromising sophistication. It is to simplify the way you make decisions, execute business processes and consume technology.
The upside is huge. Effectively managing complexity can yield a 25–100% increase in profit margins, according to a study by The Boston Consulting Group.**
To learn more about how to Run Simple, check out the embedded infographic:
*Global Simplicity Index by Henley Business School
**Mastering Complexity: Capture the Hidden Opportunity by The Boston Consulting Group