In the first part of our series, we illustrated the basics of variant management. Even just a few selection options generate a large number of combinations - and therefore increasing complexity in product design.
We have explained the complexity levels PTO - ATO - CTO - ETO and presented the particularly relevant hybrid form CTO+. We have shown what effective variant management can look like depending on the degree of customisation required, and what challenges and opportunities arise from this
Our conclusion: If you want to fulfil individual customer requirements economically, you need efficient variant management and consistently orchestrated processes.
Let's go one step deeper and take a closer look at the sensible use of end-to-end variant configuration in core business processes in this article: Marketing, Sales, Engineering, Planning, Production and Services.
To get you started, we take a closer look at the different areas of application for configuration and automation and show the three typical maturity levels.
How can we drive digitalisation forward and tap into innovation potential? This is not an IT project. This is a step-by-step transformation from traditional manual order construction to a holistic solution configuration for all levels of complexity with extensive automation of the engineer-to-order and fulfilment processes. The figure above shows that a significant reduction in the manual ETO components (red) can be achieved step by step. Based on this illustration, we now look at the product development and manufacturing processes in the specialist areas involved.
At the start of a project, there is often a lot of manual work - whether it's creating technical drawings, coordinating between specialist departments or searching for suitable assemblies. Manual activities are often the rule, especially in CTO+ (CTO Plus) and ETO processes. But it doesn't have to stay that way.
The aim of innovative variant management is to gradually reduce the amount of manual engineering by systematically transferring recurring activities into automated services and integrating them into rule-based processes.
The vision: Consistent end-to-end processes - from customer to customer - with a solution configurator for sales and end-to-end digitalisation and automation of order acquisition and order processing in all areas, i.e. sales, engineering, costing, planning, production and services.
1. sales - offers in real time, not in Excel
The first major lever lies in sales: an intelligent CPQ system (Configure-Price-Quote) makes it possible to respond quickly to enquiries - with offers that are technically feasible and economically viable. The days of confusing Excel tables and multiple technical queries are a thing of the past. The sales department receives a rule-based tool to configure customised solutions, calculate prices and create quotations quickly and without errors.
2. development and design - standardisation creates freedom
A well-maintained modular product system significantly reduces engineering effort. Instead of developing from scratch for every customer enquiry, reuse is facilitated and variant design is supported by configurable, parametric modules. This shortens engineering times and ensures consistent 3D models, drawings, data and documents. This creates scope for real innovation. Special cases can be clearly delineated: Customisations or new developments.
3. planning and production - from variant diversity to production routine
In production, companies benefit from clear product structures and unambiguous production information. These can be derived directly from the configuration - rule-based and automated. This reduces coordination efforts, lowers the error rate and even small quantities and one-offs can now be produced economically. With CTO and CTO+ in particular, the close integration of configuration (e.g. CPQ, ERP, PLM ...) with work preparation and production (e.g. CAD/CAM, PPS, MES, QMS ...) is a key success factor.
4. services - individualised support, systematically planned
Often underestimated advantages lie in service: If all product variants are documented, spare parts, maintenance plans or expansion options can be offered in a more targeted manner. Customers are better understood - and companies develop long-term relationships and additional business. Trends such as "Anything-as-a-Service" (AaaS) show where the journey is heading: from one-off product sales to ongoing service offerings based on individualised product versions.
The introduction of a variant configuration system is not an end in itself - it is a change process that must develop step by step. One thing is particularly important: involve all affected areas, break down silos and focus on an end-to-end process and data strategy right from the start - for consistent configuration and automation.
When the configuration logic does not end at departmental boundaries, but is thought through completely and to the end, variant management unfolds its full effect: greater efficiency, higher customer satisfaction, lower error rates and higher margins. A powerful variant configuration system is embedded in an end-to-end variant management strategy - including intelligent assistance functions to support, guide and relieve users.
Customer centricity does not mean offering as many options as possible, but rather offering the right solutions that fit perfectly and making them understandable, secure and efficient for all parties involved.
In part 3 of our blog series, we take a look at CPQ, a proven tool for selling products with many variants, and look at why digital assistants are the perfect complement to it.
Accumulatorenwerke HOPPECKE Carl Zoellner & Sohn GmbH, founded in Brilon in 1927, is fully dedicated to industrial energy storage systems. The main areas are divided into emission-free drives (trak), secure power supply (grid), storage of renewable energies (sun) and railway and metro systems (rail). The company, which specialises in lead-acid and nickel-cadmium, has expanded its portfolio to include modern lithium-ion storage media through its subsidiary INTILION, founded in 2019, and thus also covers the areas of stationary storage systems for buffering renewable energies, drive storage systems for industrial trucks such as forklift trucks and high-voltage systems for driving trains and other heavy-duty applications.
Dr Martin Peters
e-mail: martin.peters@adesso.de
