Telecommunication -
Strategic Transformation Program
Challenge and Objectives
Our client was the leader in a rapidly maturing market, facing increasing competition in both the consumer and corporate segments. Market share was down by 10% within the last five years. The next two years were critical to capture growth before mobile penetration would reach saturation. Additionally, operational inefficiencies were holding back the client in reaching the desired growth and stopping the market share erosion.
In a challenging environment, the client wanted to address a number of key inefficiencies, including strategy execution, service differentiation, innovation, regional footprint, business intelligence and customer relationship management. Furthermore, the client wanted to ensure that it could continue its growth pattern and remain as a market leader.
How We Helped
A business transformation program was developed and launched, incorporating a new operating model and several initiatives to address the identified gaps.
In the first part of the project, we analyzed customer and market requirements and reviewed the company’s vision and strategic goals. We then baselined the existing operating model (structure, processes and governance as well as KPIs) and conducted a gap analysis. We identified and built a case for change, based on market developments and the relative company position. Based on the findings, we defined transformation objectives, outlined strategic priorities and designed a new operating model.
In the following steps, we set up a business transformation program to address the identified and prioritized issues, including the establishment of a Program Management Office, design of the transformation master plan as well as change and program objectives communication. Following the planning phase, we successfully launched the company-wide business transformation program and drove forward the identified strategic initiatives.
Results Achieved
The commercial organization was redesigned and re-organized to enhance customer centricity, efficiency and time to market. A Program Management Office was set-up, co-coordinating more than 15 strategic initiatives.
Additionally, a cultural change program was successfully launched, including change management as well as team building. Overall, the client’s market position was strengthened and the customer perception, market share, internal structures and processes were significantly improved.
Our client was the leader in a rapidly maturing market, facing increasing competition in both the consumer and corporate segments. Market share was down by 10% within the last five years. The next two years were critical to capture growth before mobile penetration would reach saturation. Additionally, operational inefficiencies were holding back the client in reaching the desired growth and stopping the market share erosion.
In a challenging environment, the client wanted to address a number of key inefficiencies, including strategy execution, service differentiation, innovation, regional footprint, business intelligence and customer relationship management. Furthermore, the client wanted to ensure that it could continue its growth pattern and remain as a market leader.
How We Helped
A business transformation program was developed and launched, incorporating a new operating model and several initiatives to address the identified gaps.
In the first part of the project, we analyzed customer and market requirements and reviewed the company’s vision and strategic goals. We then baselined the existing operating model (structure, processes and governance as well as KPIs) and conducted a gap analysis. We identified and built a case for change, based on market developments and the relative company position. Based on the findings, we defined transformation objectives, outlined strategic priorities and designed a new operating model.
In the following steps, we set up a business transformation program to address the identified and prioritized issues, including the establishment of a Program Management Office, design of the transformation master plan as well as change and program objectives communication. Following the planning phase, we successfully launched the company-wide business transformation program and drove forward the identified strategic initiatives.
Results Achieved
The commercial organization was redesigned and re-organized to enhance customer centricity, efficiency and time to market. A Program Management Office was set-up, co-coordinating more than 15 strategic initiatives.
Additionally, a cultural change program was successfully launched, including change management as well as team building. Overall, the client’s market position was strengthened and the customer perception, market share, internal structures and processes were significantly improved.
Consumer Products -
Operational Restructuring
Challenge and Objectives
Our client wanted to embed a profitability-focused decision making approach in its core processes such as product and channel strategy formulation, product and customer portfolio management, demand planning, production planning and distribution. The existing product profitability and cost model provided limited differentiation among channels, geographies and customers.
The client aimed to improve its operations in order to gain sophisticated profitability monitoring capabilities among business and sales units, and achieve better performance by establishing a profitability focused operational mindset backed up with an appropriate IT structure.
How We Helped
A comprehensive operational restructuring program was designed to help the client gain the capability of monitoring performance in a detailed and accurate manner and to enable improved and focused strategic decision making in all business units and functions.
Within this framework, we validated and improved cost and profitability calculations, detailing differentiations among regions, channels and customers. We then supervised the establishment of an advanced cost model along with the required reporting tools. We designed product and channel rationalization and management processes and restructured daily demand and capacity optimization processes. In order to ensure successful implementation of the designed structures, we developed algorithms for new IT tools to be used in optimizing supply, demand and production planning with a focus on profit maximization and supervised the outsourcing of the IT tool software development.
Results Achieved
The process improvements, methodologies and tools were approved by the Board of Directors. The designed profitability analysis and decision making processes and tools were successfully implemented.
Our client wanted to embed a profitability-focused decision making approach in its core processes such as product and channel strategy formulation, product and customer portfolio management, demand planning, production planning and distribution. The existing product profitability and cost model provided limited differentiation among channels, geographies and customers.
The client aimed to improve its operations in order to gain sophisticated profitability monitoring capabilities among business and sales units, and achieve better performance by establishing a profitability focused operational mindset backed up with an appropriate IT structure.
How We Helped
A comprehensive operational restructuring program was designed to help the client gain the capability of monitoring performance in a detailed and accurate manner and to enable improved and focused strategic decision making in all business units and functions.
Within this framework, we validated and improved cost and profitability calculations, detailing differentiations among regions, channels and customers. We then supervised the establishment of an advanced cost model along with the required reporting tools. We designed product and channel rationalization and management processes and restructured daily demand and capacity optimization processes. In order to ensure successful implementation of the designed structures, we developed algorithms for new IT tools to be used in optimizing supply, demand and production planning with a focus on profit maximization and supervised the outsourcing of the IT tool software development.
Results Achieved
The process improvements, methodologies and tools were approved by the Board of Directors. The designed profitability analysis and decision making processes and tools were successfully implemented.
Retail M&A - Commercial Due
Diligence
Challenge and Objectives
A private equity firm, subsidiary of one of the world’s largest international finance groups, was considering investing in two department store chains that were the leaders of their own segments.
Within this framework, the client requested a commercial due diligence, which included the projection of market demand, the evaluation of competitors and future prospects as well as the assessment and validation of the target company management plans.
How We Helped
A commercial due diligence focusing on the most critical issues was performed to support the client’s decision and negotiation processes. Our analysis was based on interviews with the managers of the target companies as well as data room and desktop research on market trends, competitors and regulatory developments. We reviewed the business models of the target companies in full detail to assess the validity of their growth prospects. We developed alternative business plans based on plausible scenarios and performed a sensitivity analysis.
Results Achieved
The assessment was successfully completed. The client finalized the deal based on the outputs of the study.
A private equity firm, subsidiary of one of the world’s largest international finance groups, was considering investing in two department store chains that were the leaders of their own segments.
Within this framework, the client requested a commercial due diligence, which included the projection of market demand, the evaluation of competitors and future prospects as well as the assessment and validation of the target company management plans.
How We Helped
A commercial due diligence focusing on the most critical issues was performed to support the client’s decision and negotiation processes. Our analysis was based on interviews with the managers of the target companies as well as data room and desktop research on market trends, competitors and regulatory developments. We reviewed the business models of the target companies in full detail to assess the validity of their growth prospects. We developed alternative business plans based on plausible scenarios and performed a sensitivity analysis.
Results Achieved
The assessment was successfully completed. The client finalized the deal based on the outputs of the study.
Retail - Financing Due
Diligence
Challenge and Objectives
Two global banks were considering to provide funding for the company that obtained the exclusive rights to conduct vehicle inspections in Turkey for a 20-year period through a government tender. The clients needed a detailed evaluation of the Turkish vehicle inspection market and the borrowing company.
The clients required an evaluation of the current status and the future potential of the vehicle inspection market in Turkey as well as the assessment of the target company business plan with a specific focus on expected revenues and costs for the 20-year concession period.
How We Helped
A detailed commercial and technical due diligence was performed. Within this framework, we evaluated the planned roll-out activities of the target company in detail, with a specific focus on the alignment with government requirements, the technical suitability of planned facilities and the suitability of the roll-out time plan. We assessed different types of revenues, operational costs and investment costs during the roll-out period and evaluated the expected revenues and operational costs during the 20-year concession period. We also prepared a Syndication Report after the clients’ decision to provide funding to the target company with the support of other interested financial institutions.
Following the initiation of roll-out operations, we were asked to monitor the related activities from an operational and financial perspective on a regular basis.
Results Achieved
The clients utilized the outcomes of the study as a basis when deciding to provide funding for the target company and monitoring its roll-out activities. The clients’ syndication process with eight other banks was extensively supported by our Syndication Report. In addition, our detailed monitoring and reporting activities during the roll-out period have led to a timely completion.
Two global banks were considering to provide funding for the company that obtained the exclusive rights to conduct vehicle inspections in Turkey for a 20-year period through a government tender. The clients needed a detailed evaluation of the Turkish vehicle inspection market and the borrowing company.
The clients required an evaluation of the current status and the future potential of the vehicle inspection market in Turkey as well as the assessment of the target company business plan with a specific focus on expected revenues and costs for the 20-year concession period.
How We Helped
A detailed commercial and technical due diligence was performed. Within this framework, we evaluated the planned roll-out activities of the target company in detail, with a specific focus on the alignment with government requirements, the technical suitability of planned facilities and the suitability of the roll-out time plan. We assessed different types of revenues, operational costs and investment costs during the roll-out period and evaluated the expected revenues and operational costs during the 20-year concession period. We also prepared a Syndication Report after the clients’ decision to provide funding to the target company with the support of other interested financial institutions.
Following the initiation of roll-out operations, we were asked to monitor the related activities from an operational and financial perspective on a regular basis.
Results Achieved
The clients utilized the outcomes of the study as a basis when deciding to provide funding for the target company and monitoring its roll-out activities. The clients’ syndication process with eight other banks was extensively supported by our Syndication Report. In addition, our detailed monitoring and reporting activities during the roll-out period have led to a timely completion.