A system for cost reduction

A system for cost reduction

In multiple client engagements we’ve helped clients implement a Cost Leadership Initiative (CLI) methodology that combines decision analysis (to select the right cost reduction projects), a common planning methodology (to get consistent project planning and tracking), and a reporting system (to manage the execution) so that savings are achieved on or before the target commitment dates.

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From target market to product definition using VOC

From target market to product definition using VOC

Voice-of-the-Customer (VOC) process we applied with a client developing a new Greentech product. The product had the potential to serve many market segments and perform many functions. The question for the development team was; "which segment would drive 80% of the functionality requirements and where could they get the fastest and biggest bang for their investment?" The goal was to accelerate time-to-revenue. They essentially had one bullet in their gun and needed to hit the target with the first shot.

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80-20 Rule

80-20 Rule

20% of the projects generate 80% of the benefit. We see the Pareto Principle at play over and over again as we model NPD project portfolios with clients. Many times, 20% of the projects (i.e. the $'s) generate 80% of the benefit towards reaching an organization's objectives. This means that 80% of the projects fall on the “diminishing returns” part of the cost-benefit curve. Why still do them?

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