Challenges: The market for this mature 25 year old Software & Services company was clearly declining. Their CEO & Board began to explore ways to transform the company without major risk to the existing business and Brand. The company’s Clients were major Fortune 500 companies, whose corporate strategic initiatives required significant collaboration and learning among the various groups of the business. Their business model was difficult to scale….expert groups were formed by the company to develop a highly customized Program for each client that was delivered throughout the Enterprise for maximum results. The company also utilized their ‘world class’ simulation software in each Program that had significant impact on performance. The immediate threat was that eLearning companies were developing rich content in this area for a fraction of the cost of their highly customized solution.
The Accelerator Group was retained by the company to assess the market possibilities & develop a Transformation plan that was market driven. We assembled a small & passionate team to participate in this 6 week Assessment. Our initial activity established the Goals, Objectives, Assumptions, Investment & ROI Metrics, Success Criteria and Guiding Principles for this critical effort. In the succeeding weeks, we analyzed their strategy & business model, financial & operational performance, capitalization and organizational capabilities. We also conducted a thorough Market Analysis, including selected discussions with Industry Analysts and key clients to better understand the market dynamics and competitive landscape.
We provided the CEO & Board with our Findings, as well as a series of ‘high impact’ Recommendations to create a viable Transformation Plan.
- Market Research and extensive discussions with Industry Analysts helped solidify new market opportunities & the competitive landscape. Selected client visits and feedback reinforced that the value of the company’s Brand was tied to mission critical initiatives and the effectiveness of their Simulation Solutions.
- A SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis was conducted to understand the areas of strength that potentially could be leveraged in the Transformation.
- The company had old and outdated business processes, including their systems that would be a liability going forward.
- Major strengths that provided competitive advantage in the market included their Simulation Software and overall relationship & brand with Fortune 500 Executives.
- Risk factors were outlined, including the company’s overall readiness to change. In general, the organization did not understand why this initiative was even underway.
- The market was asking for new solutions & the company was clearly a ‘Trusted Partner’ to their clients.
- Expand and fully leverage the Simulation Software capability; create a “Simulation Factory” concept for the market.
- Develop a business plan to support this new endeavor, including the streamlining of key business processes and enabling technology.
- Organizationally, separate this from the existing business and allow a 12-24 month incubation period for start up and rollout. A new Sales & Marketing Team needs to be established for this Group.
- Rebrand the company around Simulation, allowing enough room for the existing Services business and new Simulation Software groups to successfully maneuver and execute.
- After market acceptance, totally rebrand & relaunch (Note: Caution on all marketing communications…..Treat this as a new set of Offerings, internally and externally, so that the existing company and Clients do not feel that you are leaving them behind).
Benefits / Results of Recommendations being implemented: The “Simulation Factory” business concept was further developed by the company and successfully rolled out in the succeeding 12 months. Critical market Simulations were built for major processes including Sales and Finance and deployed in many new global clients. As the company’s Transformation was nearing market acceptance, the business was sold by Private Equity to a Public company.