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Working Paper: Technical Research Report

Mastering Business Complexity—MIT CISR Survey Results

We surveyed 255 executives to investigate how companies are managing business complexity.
By Martin Mocker, Jeanne W. Ross, and Karthic Prasad Kosgi
TECHNICAL RESEARCH REPORT

A traditional academically rigorous research paper with detailed methodology, analysis, findings, and references

Abstract

The MIT Center for Information Systems Research surveyed 255 executives in 2015 to investigate how companies are managing business complexity. This report details the findings from our analysis of the survey data: (1) Some product complexity adds value, some does not. Specifically, companies with more links (aka integration) in their product and service portfolio are higher performing. (2) Product variety makes it more difficult for customers and employees to get things done. These customer and employee difficulties impair a company’s performance. (3) Companies that excel at making it easy for employees and customers to get things done differentiate themselves by applying a set of complexity management practices around enterprise architecture, role reconfiguration, and the use of metrics and incentive systems. Based on these findings, we recommend that companies make product complexity a strategic choice, invest in the abovementioned complexity management practices, and use customer and employee difficulties ...

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About the Authors

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Martin Mocker, MIT Sloan Center for Information Systems Research (CISR)

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Jeanne W. Ross, MIT Sloan Center for Information Systems Research (CISR)

MIT CENTER FOR INFORMATION SYSTEMS RESEARCH (CISR)

Founded in 1974 and grounded in MIT's tradition of combining academic knowledge and practical purpose, MIT CISR helps executives meet the challenge of leading increasingly digital and data-driven organizations. We work directly with digital leaders, executives, and boards to develop our insights. Our consortium forms a global community that comprises more than seventy-five organizations.

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AlixPartners
Avanade
Cognizant
Collibra
IFS
Pegasystems Inc.
The Ogilvy Group
MIT CISR Sponsors
Alcon Vision
Amcor
ANZ Banking Group (Australia)
AustralianSuper
Banco Bradesco S.A. (Brazil)
Banco do Brasil S.A.
Bank of Queensland (Australia)
Barclays (UK)
BlueScope Steel (Australia)
BNP Paribas (France)
Bupa
CarMax
Caterpillar, Inc.
Cemex (Mexico)
Cencora
CIBC (Canada)
Cochlear Limited (Australia)
Commonwealth Superannuation Corp. (Australia)
Cuscal Limited (Australia)
CVS Health
Dawn Foods
DBS Bank Ltd. (Singapore)
Doosan Corporation (Korea)
Fidelity Investments
Fomento Economico Mexicano, S.A.B., de C.V.
Fortum (Finland)
Genentech
Gilbane Building Co.
Johnson & Johnson (J&J)
Kaiser Permanente
King & Wood Mallesons (Australia)
Mercer
Nasdaq, Inc.
NN Insurance Eurasia NV
Nomura Holdings, Inc. (Japan)
Nomura Research Institute, Ltd. Systems Consulting Division (Japan)
Novo Nordisk A/S (Denmark)
OCP Group
Pacific Life Insurance Company
Posten Bring AS (Norway)
Principal Life Insurance Company
QBE
Ramsay Health Care (Australia)
Reserve Bank of Australia
RTX
Scentre Group Limited (Australia)
Schneider Electric Industries SAS (France)
Stockland (Australia)
Tabcorp Holdings (Australia)
Telstra Limited (Australia)
Terumo Corporation (Japan)
Tetra Pak (Sweden)
Truist Financial Corporation
UniSuper Management Pty Ltd (Australia)
Uniting (Australia)
USAA
Webster Bank, N.A.
Westpac Banking Corporation (Australia)
WestRock Company
Xenco Medical
Zoetis Services LLC

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MIT CISR wishes to thank all of our associate members for their support and contributions.

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