Service Offering - Product Portfolio and Complexity Management
Complexity Management and Product Portfolio Management techniques are strategic tools for corporations to maximize the margin generated from their operations. More is not necessarily better, if the cost of retaining that non-productive tail outweighs the advantages. This is especially true in the case of legacy products derived from yesterday’s decisions.
Deliverables :
- Determination of the SKU and product family Pareto curve’s for the business.
- Assessment of value and margin contribution at a product family level.
- Assessment of the degree of standardization within product family.
- Assessment of the cost driving nature of a product family.
- Assessment of complexity and cost derived from geographic diversity.
- Assessment of complexity and cost derived from legitimate marketing strategy.
- Assessment of complexity and cost derived from legacy decisions.
- Determination of switching, discontinuance or change costs.
- Strategic analysis for non fiscal criteria around candidate portfolio decisions.
- Proposal of agenda related to product discontinuance and product standardization, taking account of future business benefits, costs of implementation, business impact, likelihood of success, and responsibility for deployment.
- Buy in and commitment to the change agenda.
- Design of the reporting and review mechanism.
Typical Duration : (contingent on operating unit complexity and EIS capability)
Typical Sponsor
- Director Finance, Strategy, Operations, or Supply Chain.