Configurator Success Factors

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

I write about this in my book: “Mass Customization: An Enterprise-Wide Business Strategy” available at Amazon.com or directly from my publisher.

Thought for the week:

“Life shrinks or expands in proportion to one’s courage.” – Anais Nin__