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

71

complecomplexx

simplesimpleInstitute for Simplicity, Dieter Brandes & Nils Brandes

1

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

© Institute for Simplicity, Dieter Brandes & Nils Brandes

HAYIR!HAYIR!© Institute for Simplicity, Dieter Brandes & Nils Brandes

HAYIRHAYIR!!

1

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

© Institute for Simplicity, Dieter Brandes & Nils Brandes

Autonomy and Autonomy and ResponsibilityResponsibility

© Institute for Simplicity, Dieter Brandes & Nils Brandes

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

© Institute for Simplicity, Dieter Brandes & Nils Brandes

1

現 地 現 物

© Institute for Simplicity, Dieter Brandes & Nils Brandes

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

1

Small is beautifulSmall is beautiful

© Institute for Simplicity, Dieter Brandes & Nils Brandes

DetailsDetails

© Institute for Simplicity, Dieter Brandes & Nils Brandes

341© Institute for Simplicity, Dieter Brandes & Nils Brandes