Complex Index: Portfolio Optimization Through Technical Similarity

There was no structured approach to analyzing product technical complexity and validating whether prices reflected the value delivered. Without a tool for technical comparison of similar models or quantitative criteria for performance, cost, and volume, it was difficult to identify portfolio redundancies, define pricing strategies, and decide which SKUs to prioritize, replace, or discontinue.

We developed a complexity index based on technical similarity between models, using Gaussian approximations to account for subtle specification differences and generate a quantitative coefficient. Integrated with costs, volume, margin, and demand elasticity, the unified dashboard enables users to view top and bottom performers, simulate decisions, identify outliers, and compare products by technical and commercial performance.