what is discount what can we learn from aldi and bim? © institute for simplicity, dieter brandes...
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What is DiscountWhat is Discount
What can we learn from What can we learn from ALDI and BIM?ALDI and BIM?
© Institute for Simplicity, Dieter Brandes & Nils Brandes
Why is simple so Why is simple so difficult?difficult?
© Institute for Simplicity, Dieter Brandes & Nils Brandes
Jetzt auf türkisch
© Institute for Simplicity, Dieter Brandes & Nils Brandes
© Institute for Simplicity, Dieter Brandes & Nils Brandes
199522
6.800.000.0003.62720.000
5.500.000.00010.000.000.000
ComplexityComplexity
Institute for Simplicity, Dieter Brandes & Nils Brandes
1. work1. work
2. efficient2. efficient© Institute for Simplicity, Dieter Brandes & Nils Brandes
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complecomplexx
simplesimpleInstitute for Simplicity, Dieter Brandes & Nils Brandes
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The Complexity Curve Complexity (cost)
Number of components
Number of options´ Number of items
Number of employees
Number of suppliersNumber of
customersNumber of rulesNumber of...Elements
© Institute for Simplicity, Dieter Brandes & Nils Brandes
-1-
Avoid Complexity
© Institute for Simplicity, Dieter Brandes & Nils Brandes
1. limited Assortment1. limited Assortment
2. daily consumption2. daily consumption
3. easy to handle3. easy to handle
4. best Quality4. best Quality
5. lowest price5. lowest price
© Institute for Simplicity, Dieter Brandes & Nils Brandes
600600© Institute for Simplicity, Dieter Brandes & Nils Brandes
“Wenn uns bei der Kalkulation etwas
beschäftigt, dann nur, wie billig wir eine
Ware verkaufen können und nicht, welchen
höchsten Verkaufspreis wir erzielen können“ –
Karl Albrecht, 1953© Institute for Simplicity, Dieter Brandes & Nils Brandes
Different Types 624
Customer looked 40 %60 %
Customer bought 30 % 3 %
(15) (2)© Institute for Simplicity, Dieter Brandes & Nils Brandes
ALDI versus Wal Mart
Items 120.000 1.800
Sales wwBil. USD 450 80
Sales/ItemMil. USD 3,75 44
© Institute for Simplicity, Dieter Brandes & Nils Brandes
-2-
Reduce Complexity
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HAYIR!HAYIR!© Institute for Simplicity, Dieter Brandes & Nils Brandes
HAYIRHAYIR!!
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Market Research
Marketing
Public Relations, Interviews
Fancy offices, expensive company cars
Staff Departments
Budgets
Data Warehouse
Controlling
Consultants© Institute for Simplicity, Dieter Brandes & Nils Brandes
-3-Manage Complexity
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Autonomy and Autonomy and ResponsibilityResponsibility
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Delegation and Delegation and DecentralizationDecentralization
© Institute for Simplicity, Dieter Brandes & Nils Brandes
© Institute for Simplicity, Dieter Brandes & Nils Brandes
... as much
decentralized as possible – central only when necessary and reasonable
© Institute for Simplicity, Dieter Brandes & Nils Brandes
Trust and ControlTrust and Control
1© Institute for Simplicity, Dieter Brandes & Nils Brandes© Institute for Simplicity, Dieter Brandes & Nils Brandes
Trial & Trial & ErrorError
© Institute for Simplicity, Dieter Brandes & Nils Brandes
© Institute for Simplicity, Dieter Brandes & Nils Brandes
Real / actual Real / actual numbers instead of numbers instead of plans and budgetsplans and budgets
Less (data) ist Less (data) ist moremore
Just enough is Just enough is moremore© Institute for Simplicity, Dieter Brandes & Nils Brandes
Continuous Continuous improvementsimprovements
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現 地 現 物
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現 地 現 物Genchi genbutsuGenchi genbutsu
© Institute for Simplicity, Dieter Brandes & Nils Brandes
““Continuous improvements are
better thandelayed
perfection“ — Mark Twain— Mark Twain
© Institute for Simplicity, Dieter Brandes & Nils Brandes
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Small is beautifulSmall is beautiful
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DetailsDetails
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341© Institute for Simplicity, Dieter Brandes & Nils Brandes