Channel capacity
Information TheoryChannel 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.
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