Profitability increase through optimization of the product portfolio
Often, a product portfolio has grown historically and not every product contributes equally to the value creation, some products possibly even yielding negative margins. On the other hand, the products with the highest margins are often unknown and therefore not in the main focus of sales activities.
This is where our product portfolio optimization (PPO) comes in. It addresses the company’s products so that the portfolio best meets the company’s financial and strategic objectives and resources are optimally deployed.
A typical PPO project consists of three phases:
- screening of the existing portfolio
- feature and requirement analysis
- streamlining of the product portfolio, balancing financial and management objectives
At the same time, the maturity of the portfolio is examined in terms of modularization and standardization. The result is an adjusted product portfolio. In this, the high-margin products have more weight and complexity costs are reduced.
Project results
- Transparency concerning the margins of all products
- Reduction of complexity costs
- Margin-optimized product portfolio
