ROI approach to reduce complexity

By meeting challenging customer wishes, a company can set itself apart from the competition, thereby solidifying its market position. But doing so inevitably results in a broad range of products with a diverse number of variants and, in some cases, complex product functions – thus leading to a high degree of complexity within the company. Development and production processes are often not designed to accomplish this, and the consequences are undeniable: the need for resources increases, processes become intransparent through short-term buy-in of added value, and costs rise.

Particularly when basic economic conditions are formidable, it is therefore important for a company to take a critical look at its processes and structures. Because it leads to substantial cost savings, the ability to reduce complexity is more than ever coming to represent a decisive competitive advantage.

ROI Consulting has spent many years dealing with this issue in detail, resulting in the development of a modular program with six toolkits. This program aims to reduce complexity within the company, with the objective of significantly lowering costs in development as well as through development.

The six modules contain dynamic, practice-proven designs and methods for finding the right balance between efficient processes and an effective product portfolio containing products that meet requirements and have minimal development costs. This means that in addition to addressing the company’s product portfolio and its expertise profile, complexity management likewise has to focus on the development and production process and the resulting products and variants.