Mastering product complexity
Increasingly competitive environments and the strong expansion into global markets are driving product complexity. In fact, it has more than doubled over the last 15 years. This trend makes complexity management a key success factor, as companies have to lower their production and distribution costs to remain competitive.
The automotive and consumer goods industries have played a pioneering role when it comes to complexity management. Both sectors have succeeded in containing the growth of complexity in products and components by means of intelligent strategies.
By contrast, engineered products, chemicals and pharmaceuticals are not in good shape on this score. Over the last 15 years, they have seen a surge in product complexity along with complexity issues in production and distribution. In the case of the chemical industry, complexity has risen by as much as 213%. The potential for savings here is very large. Dedicated complexity management could enable the global chemicals industry to reduce its production costs by up to EUR 49 billion a year. The same approach could save engineered products companies as much as EUR 54 billion, while pharma sector savings are potentially EUR 9 billion.
These are some of the findings of our study "Mastering product complexity".
Read more about our approach to complexity management on our expertise website "Optimized Product Value"