Teaser

Case by

IMP

IMP

Strategic turning point for a technology leader

  • Level of difficulty:
  • Expert
  • Leadership & Organization
  • Innovation & Growth
  • Strategy Development
  • Growth Strategy

Prompt

Wenn bewährte Stärke zur Hürde wird – und neues Denken gefragt ist

An internationally active technology company headquartered in northern Germany has established itself over decades as a reliable partner for highly complex automation solutions. The combination of in-depth engineering knowledge, excellent implementation expertise and established customer relationships has made the company one of the leading providers in the context of industrial production and logistics environments.

However, the market in which this strength grew is changing fundamentally. Customers are thinking in longer cycles, investing more cautiously and demanding more at the same time. At the same time, new competitors are appearing, offering products at significantly lower prices or completely rethinking automation.

As a result, the company's business model, which has been successful for decades, is coming under structural pressure. The pure sale of technology, however outstanding it may be, is losing its strategic viability.

The management recognizes that a new business logic is needed that proactively shapes change instead of chasing after it. IMP is involved as a partner for strategic business model innovation - with the task of jointly developing and validating trend-setting options for a future-proof positioning and transferring them into an effective transformation architecture.


(A) Welche Muster und Strukturen prägen das heutige Geschäftsmodell? (B) Welche Fragen wirft dies mit Blick auf künftige Wettbewerbsfähigkeit und Differenzierung auf?

A)

  • One-off sale as the dominant logic: The main focus is on the sale of individual technical products - without long-term customer loyalty, without system integration of its individual products or recurring revenues
  • Product and technology centricity: Differentiation is primarily based on „engineering skill“ and product quality, not on value proposition or solution expertise
  • Low scalability due to individualizationHigh project character of the services prevents standardization and efficiency gains
  • Reactive customer orientation: The business model only addresses changing requirements (e.g. service expectations, digitalization) to a limited extent

B)

  • Sustainable positioning: What does a coherent, unique and sustainable positioning for the company look like that takes into account the following points, among others?
  • Changing customer needs: How is the weighting between price and quality shifting - and what implications does this have for our offering?
  • Integration of software and services: How can the service portfolio be expanded to include digital, data-based and service-related components?
  • Rethink the depth of added value: Which parts of production can be outsourced to improve costs and flexibility? Which production capacities or partners are required for new offerings?
  • New competitive logics: From which directions do threats to the existing business model arise - for example from platform providers, low-cost players or software/data-driven attackers?

Wie könnte ein Projektvorgehen aussehen, das neue Geschäftslogiken strukturiert erkundet – und zugleich Orientierung, Geschwindigkeit und interne Anschlussfähigkeit gewährleistet?

Ein typisches IMP Projekt könnte bei dieser Problemstellung wie folgt aussehen:

  1. Record & illuminate: Understanding the specific business context, relevant market trends, drivers and competitors as well as potential disruption risks
  2. Align & focus: Define the strategic direction - how do we position ourselves and from this: what do we do & how do we do it?
  3. Design & detail: Designing a unique, sustainable and coherent business logic derived from the strategic orientation
  4. Set up & empower: Derive the organizational implications and transformation challenges and translate them into a realistic implementation roadmap

(A) Welche Möglichkeiten siehst Du für eine zukunftsfähige Positionierung des Unternehmens? (B) Welche Dimensionen der Geschäftslogik müssten wie angepasst werden?

A)

Various tools and methods can be used to develop a sustainable positioning - for example to analyze customer needs, market logic or strategic differentiation approaches. One possible approach would be to position the company as a solution provider: The company would focus more on selling complete systems - i.e. machines in conjunction with software, service and other services. This would allow customer needs to be addressed in a more targeted manner, while at the same time enabling a clearer differentiation from the competition.

 

B)

Depending on the chosen positioning, the individual dimensions of the business logic must be further developed in a coherent manner. In the case of a solution-oriented approach, this applies not only to the range of services but also to value creation in particular - for example through the targeted expansion of software and service expertise. The market approach is also changing: sales are becoming more consulting-intensive, solution orientation and system understanding are moving more to the fore. And last but not least, this has an impact on the revenue logic: instead of one-off sales, recurring revenues or usage-based variants can arise - depending on the model - all the way to „Automation as a Service“

Welche Spannungsfelder könnten den Wandel bremsen – und wie gelingt es, Raum für das Entstehen und die Verankerung neuer Geschäftslogiken zu schaffen?

Hier sind insbesondere kulturelle Aspekte zu berücksichtigen. Beispielsweise:

  • Past success makes new beginnings difficult à create protected spaces for new things
  • Employees„ resistance to the desired goal à Continuous involvement of various internal stakeholders in the project (“open strategy")
  • Technological focus neglects other competencies à Strengthen software, service & thinking in terms of customer benefits in a targeted manner
  • Individualization prevents scalability à develop modular, standardizable offerings that still leave room for individualization
  • Old incentive systems let sales force one-off sales à introduce new KPIs for customer benefits and recurring sales
  • Ambidexterity becomes central à no either or, but an intelligent as well as of both business models
  • Lack of orientation à common narrative provides orientation and reduces uncertainty

Be in Good Company

Hidden Champions provide various advantages compared to large consultancies such as McKinsey, BCG and Bain or the Big 4.

Read more >

Your career with IMP!

You can join IMP in different ways - depending on where you are in your professional life.

To the career profile >