Channel capacity

Information Theory
Channel capacity
Also: shannon capacity

Channel capacity is the maximum rate at which information can move through a channel without errors piling up, set by its bandwidth and its signal-to-noise ratio. Claude Shannon proved every channel has one, and that you can approach it by encoding smartly rather than by brute force.

We read it as a business lens: most operations run well below their real ceiling. Cleaning up noise and cloning a proven process raises effective throughput, though the gain is not unlimited. Relieve one bottleneck and the constraint moves to the next one.