The Beauty of Simplicity in Business

FastCompany has a great article talking about The Beauty of Simplicity, using examples from Google to the Apple iPod. And for the consumer electronics business, they have some very interesting data:

In a 2002 poll, the Consumer Electronics Association discovered that 87% of people said ease of use is the most important thing when it comes to new technologies. "Engineers say, 'Do you know how much complexity we've managed to build in here?' But consumers say, 'I don't care. It's just supposed to work!' " says Daryl Plummer, group vice president at Gartner Group.

But the case study that gets my simplicity award is that of Philips, a company that clearly grasped the issue of the tyranny of too much and did something about it.

Strategists recognized a huge opportunity: to be the company that delivered on the promise of sophisticated technology without the hassles. Philips, they said, should position itself as a simple company. Ragnetti was dumbstruck. "I said, 'You must be joking. This is an organization built on complexity, sophistication, brainpower.' " But he and Kleisterlee responded with an even more audacious plan. Rather than merely retooling products, Philips would also transform itself into a simpler, more market-driven organization.

That initiative has been felt from the highest rungs of the organization to the lowest. Instead of 500 different businesses, Philips is now in 70; instead of 30 divisions, there are 5. Even things as prosaic as business meetings have been nudged in the direction of simplicity: The company now forbids more than 10 slides in any PowerPoint presentation. Just enough, they decided, was more.

Technorati Tags: Philips, Google, iPod, Consumer Electronics, Marketing