August 24, 2009 – 10:43 am
I want to apply the discussion of entropy to the features of a configurable product. But first we have to introduce the important concept of a “take rate”. In different industries this is called an “attach rate”, or a “penetration rate”. The idea is very simple: the take rate of an option is the fraction [...]
A product is a collection of features, and each feature has alternative options. Understanding features helps determine strategies such as late staging. Some features are tangible, material things about the product: which engine, how much memory, Bluetooth. Other features are abstract or soft, like geographic region or sales channel. Among tangible features, distinctions can be [...]
By Roy Marsten
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Posted in Uncategorized
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Also tagged algorithm, analytics, choice combinations, customers, demand, demand driven, features, long tail, margin, orders, POS data
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One of the most important components in choice complexity is the product configuration itself, the mixture of product options that give a product its unique signature. Obviously the typical product orderable options are needed to analyze the complexity of a product, but other more abstract options can offer surprising insights into product and customer behaviors.
A [...]
By Mike Merrill
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Posted in Uncategorized
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Also tagged algorithm, analytics, attribute, attribution, choice combinations, complexity, configuration, customer fulfillment, customers, demand driven, demand shaping, long tail, margin, product, product extension, product mix, quality, sales mix, trends
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Possible combinations
This is a question with several answers. The easiest answer is the least useful. The number of possible build combinations, or unique configurations, is easily computed by multiplying the number of options for each feature. For example, if your product has feature A with 3 options, feature B with 2 options and feature C [...]
By Roy Marsten
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Posted in Uncategorized
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Also tagged algorithm, analytics, BTO, build combinations, build to order, choice combinations, configuration, customer fulfillment, customers, demand driven, demand shaping, features, manufacturing, product management, product mix, proliferation, sales data, sales history, SKU
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