Complexity Management

Complexity in portfolios, products, technologies, processes and systems has been part of the automotive industry for many decades. Facing transformation requirements such as electrification, software, and sustainability, many automotive companies are struggling to balance customer needs with efficient operations and delivery along their value chains.
Our team has supported multiple automotive OEMs and suppliers with the implementation of an impact-driven complexity management approach. We focus on an integrated view including customer and financial impact, enabling sustainable financial performance improvements and freeing up resources for the transformation ahead.

Our approach to complexity reduction is characterized by a holistic view of measures, evaluating both, the customer and the cost perspective.
 

On the customer perspective, it is important to visualize and consider customer purchase decisions in case of portfolio changes. With the removal of options, both, negative and positive effects are possible. This is why it needs to be ensured that at least sales neutrality of the measures is given. The best possible outcome, of course, is sales increase induced by the changes of the product offering.

Looking at the cost perspective, the whole value chain needs to be considered and cost drivers in individual departments have to be evaluated. Depending on the scope and on the type of measure under consideration, specific levers will be pulled.
 

More details on the approach are available upon request.