Client Engagements

Initial situation

• In 3 verticals a manufacturing goods company for building equipment was lagging behind market development. Due to a lack of an objective analysis many opinion driven recommendations were on the table.

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• 5 focus countries in Latin America were stagnating despite of an upper single digit market growth. Due to high focus on short term operational challenges a 3 years few on business development was not existing.

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• The 5 year strategic planning process and the 3 year annual budget process were weakly linked, led to inconsistencies, different priorities, dilution of focus and resources, and loss of credibility.

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• Impact of new technologies on the existing service business model was highly uncertain from a risk and opportunity perspective

Solution

• Re-prioritization of the 2 year product development road-map, sales, marketing and pricing approach and vertical specific growth plan with focus on key customers was established, and tracked regularly.

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• Joint development of 3 years growth plan with local leadership team including revision of product and sales strategy, geographic expansion in growth hot spots with focus on local key account development.

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• Set up of cross functional teams with strategy, finance and operations department to jointly understand market trends and opportunities, and to align on future growth road map and underlying key initiatives.

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• A technology impact screening of 5G, big real time data analytics, machine learning , block chain on field labor workforce and spare parts management, customer journey

Impact

• Focus on 2 out of 3 verticals drove accelerated growth without margin compromise and secured future high margin service and repair business. Opportunistic service of the low margin vertical avoided distraction of the sales organization.

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• Accelerated growth led to an return of investment within 3 years. The local teams decided to apply approach annually to evaluate further growth opportunities and related investments needs in a structured way.

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• High consistency between strategic targets, financial objectives, strategic programs including their strategic and financial contribution as well as their KPI driven operations impact. Strongly gained credibility.

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• The prioritization of technologies was reflected in the R&D roadmap and translated into 3 major programs for spare parts excellence, predictive service model and digital customer journey.

Initial situation

• The high urgency for digital product launch driven by market demand was unknown territory for a manufacturing and service focused company.

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• Geographically dispersed finance and IT functions across 13 countries lead to higher G&A costs, inefficient processes and lack of control including high audit risks.

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• Redesign of service business for large asset maintenance company was enabled by acquisition of vibration analytics company.

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• Data availability for physical assets were a potential threat to the existing cost+ and time based service model. The executive team took a decision to invest in this opportunity.

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• Redundant organizational structures, 11 levels of hierarchy and overlapping responsibilities lead to slow decision making, high internal focus and elements of frustration for field service operations.

Solution

• Setting up a blue print approach from agile product development, piloting, supply chain , sales and after sales support readiness leveraging existing structures.

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• Consolidation of IT function and underlying IT landscape to enable service from one hub. Workflow tool and Shared Service Center implementation for region

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• Development of value focused service delivery model complementary to existing cost+ model.

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• Set up mobile and cloud based data collection and analytics infrastructure, piloting pattern recognition approach and link into existing ticket based service process.

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• After the alignment on the challenges and key principles for the future organization the revised organizational design focused on separated sales and operations leadership with efficient, mutually exclusive set up.

Impact

• Launch first digital product within 3 month to secure competitiveness in hospitality and health vertical as the digital requirement became RfP standards.

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• IT cost reduction by 20% and G&A cost reduction by 30% coming along with improved service quality, standardized financial processes and reduced audit risks.

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• Extension of asset up time by 20% and shorten of maintenance intervals to introduce value based pricing as a win win situation.

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• Increased customer satisfaction and retention due to proactive malfunction recognition and fix, higher transparency and reduced costs by focused field labor management.

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• Implementation from kick off to go live within 6 moth including reduction of hierarchy levels by 25% and related cost saving, faster decision making process and focused customer orientation.