Patrick Mosimann and I have just released the second edition of True Profitability. We have added a practical example of a Pareto-model study and included a new section describing True Profitability’s application to optimize the investment companies make in inventories.
Loyal customers and profitable products (or services) are two of the most valuable assets a business can have since they create the entirety of the operating cash. True Profitability is a measurement of complexity-adjusted profits and a business process to focus on the essential activities to improve performance continually. A practice to keep the focus on the most profitable products and customers.
High performing companies use the long tail of product diversification to attract new clients and boost sales without falling into chaos. In this book, we have captured the methods and approaches used by many “masters of complexity” to customize solutions and carry extreme items in their offerings while minimizing complexity costs.