Imposed Complexity
Regulations and procedures that are required to operate the business. For example, a global investment bank that must comply to financial regulations in multiple jurisdictions.Industry Complexity
The complexity of business processes, products and services that are required to compete in an industry. For example, a bakery that produces bread is significantly less complex than a technology company that designs and manufactures microprocessors that feature billions of transistors on each unit.Variety
The variety of brands, products, services and distribution channels offered by a firm. For example, a fast moving consumer goods company that has dozens of brands, thousands of products and an efficient global distribution network may be quite complex despite offering products such as candy that are relatively simple.Stakeholders
The stakeholders of a business such as investors, regulators, communities, customers, partners and employees.Design Complexity
The design of a firm's organizational structure, processes, systems, infrastructure, products and services.Accidental Complexity
Design complexity that is inefficient such that a firm could achieve more with less. For example, a software system with 12 million lines of code that underperforms a system with 30,000 lines of code.| Overview: Business Complexity | ||
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Definition | The information that would be required to completely document a firm. | |
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