Variety sounds good - but it quickly becomes confusing. And this is where the challenges of variant configuration begin.
In the industrial environment, it's not about topped dough patties, but generally about components, modules, machines or production systems with many variants. However, the basic principle remains the same: Customers want advice and choice, companies need methodology and structure.
In this article, we explain exactly how variant management helps with this and why it is a real competitive factor today.
This applies to bicycle variants, and therefore also to industrial manufacturing. Manufacturing companies must be able to conceive, calculate, offer, and sell standards, variants, options, minor modifications, and extensive customisations quickly and effectively. CPQ serves as a central element at the customer interface. After an order is received, the customer variant must be manufactured correctly, completely, and cost-optimally, and delivered on time.
CPQ (Configure-Price-Quote) is a tried-and-tested tool in the sales of highly variable products. CPQ facilitates rule-based configuration of variants. After selecting the base product, interactive configuration takes place. CPQ supports the calculation of prices and delivery times and concludes with the creation of an offer.
CPQ suites for sales and marketing are standard software. There are basic packages and additional features. This enables a quick and easy implementation. In productive application, it quickly becomes clear: CPQ suites also have limitations.
State-of-the-art variant management must map the end-to-end process – from customer to customer – seamlessly, master all levels of complexity, connect all core business areas, and integrate all involved IT systems.
CPQ alone does not achieve this. A holistic approach requires complete and end-to-end configuration logic – i.e. sales, functional, technical, manufacturable and calculable – as the basis for value chain automation. Variant configuration must be flexibly integrated into all leading IT systems. Key objectives are the best possible customer focus, optimal customisation and profitable manufacturing.
While CPQ can excel in core disciplines, CPQ suites encounter principle-based limitations with complex, highly variable, and explication-heavy products. Digital assistants introduce intelligent guided selling ahead of CPQ. Customers come with problems and requirements but often don't know the portfolio well. Guided selling helps understand problem statements better, advises as a digital subject matter expert, suggests solution alternatives, and guides towards configuration.
What digital assistants can do today: Capture and clearly specify technical requirements, explain complex configurations and solutions comprehensibly, guide users safely and intuitively. Instead of overwhelming customers, partners, or sales teams with a multitude of technical options, intelligent assistants navigate the solution space – based on specific requirements and considering feasible combinations. They draw on the same rule logic as the configurator, ensuring consistency, completeness, and transparency.
Digital assistants bring clear added value, for example, in the following scenarios:
Customers receive suitable offers faster, employees are relieved of burdens, and companies benefit from stable, continuous processes without media breaks.
The bicycle example shows that customisation is in demand and brings real added value when it is mapped out economically and efficiently. CPQ forms the entry point, digital assistants extend functionality and usability with intuitive user guidance and decision support. Smart variant configuration links marketing, sales, engineering, manufacturing and service into a seamless process. Complexity is manageable. Those who rely on modular product architectures and knowledge models create the basis for smooth processes, high quality and satisfied customers – today and in the future.
In Part 4 of our blog series, we'll be looking at new methods and tools for smart variant management across all levels of complexity. We'll clarify the differences between tool-based and code-based modelling and highlight potentials.
Optimally defining complex variants, modelling them efficiently and utilising them in a distributed manner? We'll demonstrate the technical success factors of open configuration systems – from modular structuring to IT integration.
Andreas is Managing Director of adesso manufacturing industry solutions GmbH. He has many years of experience in software development and system integration in mechanical and plant engineering. His areas of expertise primarily include variant management and product, system and solution configuration
Andreas Liesche
e-mail: andreas.liesche@adesso-mis.de