The Von Neumann bottleneck refers to a limitation in computer architecture where the speed of data transfer between the central processing unit (CPU) and memory is a constraint. In this design, both instructions and data share the same bus, which can lead to delays as the CPU waits for data to be fetched or instructions to be executed. This bottleneck can hinder overall system performance, especially in applications requiring high data throughput. Solutions like cache memory and alternative architectures, such as Harvard architecture, aim to alleviate this issue by allowing simultaneous access to instructions and data, improving efficiency.