Complexity Management

Businesses are more complex today than ever before. In many industries, product offerings today are twice, three times, even ten times as varied and complex as they were just a few years ago. Further, the organizations and business processes required to support this growth are also becoming increasingly complex.

  • As complexity continues to increase, which elements truly create customer value?
  • How does one measure and trade off the costs and benefits of complexity?

Strategic Management Solutions can help your business to manage complexity through:

  • Identifying unnecessary sources of complexity in your business
  • Mapping out and measuring the impact of complexity on your business’ cost structure
  • Assessing the value of complexity to your customers
  • Defining processes and guidelines for managing complexity decisions on an ongoing basis

Example Projects:

1. Advising a global computer equipment manufacturer on management of product line complexity in its desktop PC and server businesses. By measuring the complexity-driven costs in the businesses and trading these off against the incremental margin projections from its products, the client identified a range of products for elimination and established processes for ongoing product line variety control.

2. Conducting an assessment of the achievable cost savings and service improvement from consolidating end-customer box designs in Europe and Asia for a large printer manufacturer. By utilizing more languages per box, the client could reduce inventory holdings and excesses, as well as eliminate shortages in these regions.

 

Research:

Click here to access Strategic Management Solutions’ recent articles on complexity management:

Understanding the Dynamics of Value-Driven Variety Management, MIT Sloan Management Review, Fall 2006.

Managing Product Line Complexity, Operations Research / Management Science Today, June 2005.

 

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