A.T. Kearney’s complexity optimization methodology
Complexity cost is not always easy to structure. Consequences are mostly known only at aggregate levels. Often, companies react too late—when costs are exploded and profits have declined significantly.
4 pillars of complexity optimization
A.T. Kearney’s unique complexity optimization methodology, based on 4 pillars, takes a holistic view of complexity across the value chain and optimizes it to realize substantial benefits.
Transparency of value / costs through Multi-Cube
Based on our client experience, we believe that it is essential to develop transparency of complexity costs and value in detail, so that the underlying root causes can be addressed and controlled.
To do so, we create a Multi-Cube model as an enterprise-wide view of the basis of the company’s ERP system data and process information—creating superior, fact-based transparency about the causes and effects of complexity.
Complexity optimization levers and benefits
Complexity optimization typically yields between three to five percentage-points EBIT improvement along the entire value chain, split into different levers:
Complexity optimization project steps
A three-step approach is proven to deliver tangible measures:
- Transparency is created over the existing complexity and cost and drivers
- Measures and business cases are developed for concrete complexity optimization
- Implementation is laid out with a hand-over to the client
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