341: The Competitive Advantage of Complexity

Retailers often chase simplicity, hoping that stripping out complexity will make operations leaner and easier to manage. But what if that pursuit of simplicity actually makes you weaker? In this episode, Oliver Banks explores why complexity — when managed well — can become one of the most powerful sources of competitive advantage. From omnichannel experiences to personalisation, expert service and innovation, discover how embracing complexity can help you stand out, build resilience, and make your business harder to copy.

Listen to this episode and:

• Understand the difference between good complexity and bad complexity — and why both matter.
• Discover how complexity acts as a moat that competitors can’t easily replicate.
• Learn how to manage and orchestrate complexity through operating model design and capability building.
• Explore why leaning into the “hard stuff” may be your best path to long-term competitive advantage.

Episode summary

Retailers often strive for simplicity, whether that’s leaner processes, clearer ways of working, or seamless experiences. But in this episode, Oliver Banks explores why complexity isn’t always a weakness. In fact, the right kind of complexity can create a powerful competitive advantage that makes it harder for rivals to copy or catch up.

Simplicity has clear benefits: lower costs, easier communication, fewer problems and rework, and smoother customer and colleague experiences. But oversimplification risks turning a retailer into a generic, copy-and-paste business with no standout uniqueness. Complexity, when intentionally designed, becomes a strategic moat—differentiating your brand, making replication harder, and creating unique value for customers.

Oliver introduces the idea of good complexity versus bad complexity. Good complexity adds value, which could be through omnichannel journeys, personalisation, expert service, or loyalty programmes. Bad complexity, on the other hand, shows up as bureaucracy, duplication, or unclear ownership. The goal isn’t to eliminate complexity but to curate it carefully, embedding it where it strengthens the business while managing it so it doesn’t spiral into chaos.

Examples of companies embracing complexity are Amazon and Apple. Their operations appear simple from the outside but are powered by deeply complex systems. These intricacies are what make their models so defensible and difficult to copy. Retailers like these have reframed complexity so that they’re not continually driving to remove it. Instead, they orchestrate and organise it, finding the balance between complexity in the areas that differentiate, and simplicity everywhere else.

Reflect on their own organisations and experiences:

• Where is good complexity creating uniqueness and value? How does this define you and your brand?

• Where might efforts to simplify actually remove competitive advantages?

• How can you evolve your operating model so it feels simple to customers but is protected by intentional complexity behind the scenes?

Complexity is not weighing you down; instead, it can act as a source of long-term strategic strength.

Discuss complexity further with Oliver Banks

Continue the conversation and reach out to Oliver Banks on LinkedIn, or send an email to oliver.banks@obandco.uk.