Kalypso Drives Client Savings of Up to $100M with New Complexity Management Service

May 27, 2009

Firm launches service offering based on best practices to help clients cut unnecessary complexity and strategically control the rest

BEACHWOOD, Ohio - Kalypso, the world's premier innovation consulting firm, announces the introduction of Complexity Management, a new service offering based on best practices that have helped clients achieve savings of up to $100 million. Kalypso's Complexity Management methodology addresses the complete range of complexity management issues that companies face today, from eliminating under-performing products to gaining greater cost-efficiency across complex business processes-internally and throughout the supply chain.

"Whether it's reducing unprofitable projects or products, streamlining operations, or managing process complexity effectively, a strategic Complexity Management initiative can drive upwards of five points of profit growth from significant efficiency and right sizing gains across the organization," said Bill Poston, a founding partner of Kalypso. "Complexity Management is helping clients fund the future and grow their way out of a challenging economy."

Companies employing Kalypso's Complexity Management methodology achieve significant cost savings and operational efficiency gains. The near-term payback can then be reinvested into driving accelerated profitable innovation and sales growth. Already, Kalypso has helped clients with $1 billion-plus revenues deliver from $13 million to $100 million in cost savings, which was then reinvested to fund strategic growth areas.

"Consultants can help with value analysis, such as Kalypso LP's Complexity Management methodology, which helped a specialty materials company rationalize 50 platforms into four categories by linking platform attributes to common customers and channels," said Michael Burkett, vice president, AMR Research.

Other Complexity Management benefits include improved cash flow and working capital utilization, improved resource utilization and effectiveness, and increased R&D focus to more innovative and strategic "big idea" products.

For many companies, it's not the amount of spending in R&D that's the problem but rather the return on those investments, according to Poston. A typical company will generate 120% of its profits from 20% of its most productive products, while the bottom 20% can erode up to 80% of product potential. With Kalypso's Complexity Management methodology, companies can drive cost savings and improve R&D ROI by eliminating low-value products.

"Regardless of the complexity issues companies face in a recession or in good times, organizations need to be smarter about their R&D investments," said Poston. "That means shifting the focus to work on the right things, and work on things right: allocating funds, people, and resources to the right place to maximize the return on investment."

About Kalypso

Kalypso is the world's premier innovation consulting firm, helping clients improve profitability by delivering on the promise of innovation. Kalypso offers clients full service capabilities including Business and Innovation Strategy, Front End of Innovation, Portfolio and Pipeline Management, Development and New Product Introduction, Value Management, PLM Technology, Leadership and Learning, and Intellectual Property Services.

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