The state of profitability and cost analysis in most complex businesses is rather alarming, given the amount of data that exists in most companies these days. You would think it easy to accurately calculate customer and product profitability for thousands, tens of thousands, and even millions of customers. But it's not. So complex companies, regardless of size, had to come up with what does work for them. Unfortunately, it's pretty limiting. Many of our clients' cost analysis includes scores of models (50+ in some cases) just to handle the complexity and scale of their business. One customer had over 500,000 products. The solution they purchased could only give them profitability for their top 1000 products. (Based on what? Revenue.) The other products were placed into product categories with hundreds of products each. We analyzed their least profitable category at the individual product level, and found fewer than 5 unprofitable products out of over 500. Here is just a sampling of the separate analyses that companies commonly perform: analysis for departments, functions (supply chain, HR, IT), cost type, operational dimensions (customer, product, channel, and segment).