Keeping complexity simple

As a company increases the pace of innovation, its profitability can start to start to slide. This is because continually launching new products or line extension adds complexity throughout the company’s operations, and the cost of managing that complexity multiplies while margins shrink.

Management often miss the real reason for this. Complexity begins at the production line and then spreads outward, throughout the entire company operation. The typical response is often to launch one of the lean-operations programs such as Six Sigma, but this will only deal with one area. The hidden complexity issues remain, and profits continue to stall.

What’s required is the right balance between complexity and innovation. LongDog has developed a comprehensive approach to simplifying a business focused on a company’s innovation centre by:

1. Cutting out complexity, and

2. Limiting complexity creep.

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