Arthur D. LittleArthur D. Little

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At the Other End of Innovation

At the Other End of Innovation

Product Portfolio Complexity Reduction

The focus on innovation, and the ever-faster introduction of products, is building larger and more complex product port-folios. At the “Other end of innovation” we find that many companies are not managing to phase-out old, low volume or low margin products at the same pace that new products are added. Furthermore, market adaptations, customizations, and product line extensions keep adding variants to both new and old products, all with good intentions to generate revenue growth. However, there is a risk that these will drive internal inefficiencies and potential margin erosion. Arthur D. Little’s experience is that companies should devote more attention to, and develop efficient and effective approaches for product phase-out. In this viewpoint we share some fundamental concepts that have produced tangible results for our clients.

Released: January 2014

Download File At_the_Other_End_of_Innovation.pdf (.PDF, 731 Kb)

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