Background
The client operates in the IT sector, providing hardware and software in the
- Security Sector
- Home Automation
- Retail Intelligence
Decline of revenue (last 12 months), high dependency on key accounts and non-performing products/services represented the key challenges the client faced.
Hence, a review on the options for the Business Model, Go-To-Market strategy and Transformation in Sales was highly demanded by the client.
Our intervention
From a Business Model perspective we reviewed and initialised the implementation of a turnaround from a product driven sales strategy to a solution sales strategy composed of products, services, after-sales support and a new subscription revenue generation model.
This Strategic shift had implications on supply, demand, finance and operations of the business. Following a change management approach we helped the client through workshops to build capacities for the transition; which would support other team members in the company.
Reinventing the Business Model
Transition from a Product-centric lump sum sales model
To a Solution oriented service with a subscription sales model
As part of the intervention was to map the product to market fit dimensions. By doing so, we mapped the current and future demand patterns of the business.
This helped the client map the total solution and identify bottlenecks in the current capacity/capability framework. By doing so, we set an action plan of activities which the client's team had to undertake on various functions of the business.
Key areas were activities had to be conducted related to the supplier base and their product portfolio, sales strategy, marketing initiatives and technical customer support (Level 1 and Level 2).
results
The insights of the strategy introduced by XPR Consulting helped the company to clearly understand the market segments and its new business model launch in the market.
Hereby, the company benefited from a monthly revenue model with consistent revenue streams, a clear marketing & strategy and optimisation of the stock levels for products.