@peteiron & I have a new book on #trueprofitability https://t.co/BesslXOQ3u to help managers maximize profits from the multitude of SKUs (& services) sold by companies in their “long tails.”
Here's some of our free advice on #complexity https://t.co/wBUfCbapqV
#profitability
Do you have a clear picture of True #Profitability?
You need a costallocation methodology that's meaningful & repeatable with 80/20 thinking. Many allocation methods are impractical. But here's another method: https://t.co/9ljobb2CEr
#SupplyChain#operations#complexity
"Is there ever a good time to do a price increase?" Short answer: NEVER & ALWAYS!
A price increase is difficult to achieve successfully & yet doing nothing is a gradual recipe for financial disaster. Longer answer: https://t.co/7MskpsY6uH
#pricing#strategy#productmanagement
Living with #complexity demands a clear understanding of true #productprofitability. #Dataanalytics coupled with a complexity reduction process, to differentiate between the vital few & trivial many — can lead to a successful strategy #EBIT
Casestudy: https://t.co/n3SL2hl4iQ
" #Profit Decoded" https://t.co/sjhhznbpSq " #Transformation is intended to make radical organizational change, yet rarely addresses #changemgmt at the greatest inflection point of profit — how the collective business teams execute on customer relationships." #pricing
As companies succeed, they tend to grow business by adding parts & vendors. Add complexity, you add more costs.
You must decide if the incremental cost of adding elements is worth the potential impact on margins.
More: https://t.co/vx1UR7IFRL
#PortfolioComplexity #8020 #mfg
Some long-tail customers cost more than they’re worth. Learn how can you turn infrequent low-budget customers into new profit sources.
Read the article "Tangled Up in Your Long Tail? Straighten It Out!" https://t.co/vkB3AZpeYk
#longtail#complexity#manufacturing#lean
Many businesses using 80/20 rule are hesitant to raise prices for those low-volume customers in 80% bracket, for fear of losing sales. Break out of the cycle of working for a dime, not a dollar — don’t be held ransom by fear.
https://t.co/vVaYZuDeMJ
#8020 #pricing#profitability
Margin-driven profiles of clients & products show which need specific pricing actions. As a result, businesses are able to observe which clients &/or products are most profitable within their portfolio, including those in 80% bracket.
#DataAnalytics#BusinessStrategy#8020rule
Keep products fresh but it’s equally important to understand costs & complexity that new features introduce. One key to reducing complexity is to eliminate products that aren’t profitable enough.
Know the true cost of your products?
#DirectCost#Analytics#8020rule
"The Dangers of Unfocused Growth: Tackling the Hidden Costs of Complexity in Your Company" Growth comes with cost, thereby creating complexity. What are the hidden costs of complexity in your company? Read here: https://t.co/OLJRaQE4TY #complexity#growth#productportfolio
Before new features for latest product versions, how will they affect your bottom line? READ https://t.co/oYNE1am6xT "Upgrades at What Price? Leveraging Direct Costing to Uncover the Hidden Costs of New Product Features" #complexitymgmt#directcosting#hiddencosts#productmgmt
Unnecessary complexity is bad for business. Layers of processes stifle innovation, slow productivity & hinder growth. Faced with complexity in workplace, teams in silos focus on their specific jobs
More: https://t.co/OLJRaQE4TY
#BusinessGrowth#ProductComplexity#8020rule
Breaking out direct costs gives a better grasp on the effect of costs for each new product or feature.
Direct costing makes it easier to understand cost of complexity & difficult to hide low-value products.
More: https://t.co/oYNE1am6xT
#DirectCost#8020rule#BusinessStrategy
Global manufacturing is complex enough already. Why complicate it more with parts and vendors you don’t need? READ https://t.co/vx1UR7IFRL article on "Simplify Manufacturing by Saying Goodbye to Dead Weight" #manufacturing#complexity#parts#margin