The world is moving away from a “one-size-fits-all” product and service strategy. Based on my experience, a few of the top success factors for implementing a product configurator include:
- Approaching the implementation a product configurator holistically across the enterprise–don’t allow the configure-price-quote (CPQ) process to be disconnected from back-office processes
- Focusing on CPQ as a tool and process to engage customers rather than a back-office process
- Establishing a product management function that owns the evolution of products and services
- Creating and engaging cross-functional product teams who own the success and profitability of a product line
- Acknowledging a product configurator is not going to solve all the problems
- Selecting appropriate product configurator technology
- Pre-engineering around product modularity and offering previously rationalized choices within a coherent product configurator system that supports CPQ
- Implementing a sustainable, scalable process for adding new features and options
- Stop trying to be all things to all people leading to an unprofitable or low margin business that is not sustainable while hoping things will get better–hope is not a strategy
- Having and engaging in a strategy to drive down the cost of variety
Thought for the week:
“Life shrinks or expands in proportion to one’s courage.” – Anais Nin__
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