Product complexity kills profitability, but most product simplification approaches only focus on the symptoms. Few companies have a formal process to manage portfolio optimization, product line simplification or complexity governance.
The key is to better manage the long tail and heal existing products. So how do you even begin to tackle this complexity challenge?
80/20 Align provides a data driven complexity management process that better manages the causes of complexity and diminished margins.
80/20 Align enables the focused effort, data analysis and customer-centric strategies to reduce and prevent complexity.
- Quickly understand symptoms of complexity - An automated data insight driven process correlates large data-sets across your business and provides instant feedback on different optimization strategies to guide portfolio management decisions.
- Generate true profitability – See how your pricing and product offering strategies impact your true profitability curve and focus on high value segments, growing profitable revenues and innovation
- Drive complexity reduction – By focusing on analytics, 80/20 methodology and portfolio optimization, using contribution margin dollars and cost of complexity as economic drivers
- Results beyond product portfolio - Drive complexity reduction across other data intensive areas to drive further cost and profit improvements such as; BOM, Inventory, Vendor and process as well as behaviour improvements i.e Tailored parts
Impact: Phase I typically increases EBIT by 3-5%
Results are fast and robust utilizing our data analytics capability, software, industry experience and 80/20 methodology.
Impact: Phases II & III an additional 2-5%
Phase I, II & III (Portfolio, Product and Process Optimization)
On our 80/20 Cloud Engine Platform we undertake everything from data ingestion, integration, enrichment and modelling through to visualization to deliver robust structures, repeatable algorithms and, most importantly, sustainable results.
All our data work ensures necessary insight is gathered to actively reduce complexity and improve portfolio profitability.
Dynamic and Shareable Analytics
Powerful cloud based tools provide instant feedback on different optimization strategies.
Create your own dynamic tables and charts on the cloud. Securely share with others and update whenever you need.
Add 80/20 metrics and KPIs seamlessly to your New Product Introduction process to avoid complexity.
Drill Down & Simulation
Drill down in the 80/20 contribution matrix (or any table or chart) to create new insight about customers and products.
Understand the impact of different pricing and portfolio optimization strategies to your profitability.