Value Creation / Cost Cutting Programs
Value Creation is based on company’s sustainable competitive advantages in efficiently fulfilling the identified customer needs. There are various measurements for the value creation capability of a company including Shareholder Value and Enterprise Value.
The prerequisites for value creation for any company include:
- identifying the need (which can be recognized or latent)
- creating the solution for fulfilling this need (product or solution)
- demonstrating the benefit of the company’s product or solution to the customer (value proposition)
The targeted competitive advantages are typically derived from the company’s strategic positioning, which can be e.g.:
- product leadership
- customer orientation
- operative excellence
It is not uncommon to observe in the discovery phase of a strategy development project that these basic elements for the company’s value creation are not sufficiently defined and implemented.
Regardless of the company’s strategic positioning, the efficiency of the operations must be under management’s constant attention. In certain circumstances a more dramatic measures are called for, in particular on the cost structure of the operations. The applicable starting point for this is an Independent Business Review (or “Smoke Diving”) –project in which the company operations are reviewed from the outside by experienced consultants. The reviewed areas include:
- business environment
- company structure and management
- risk analysis and mitigation
- conclusions and recommendations
The outcome for such a review is a short-to-medium term concrete action plan for efficiency improvement and/or financial resource requirements and utilisation.
- Market intelligence
- Foresighting and roadmapping
- Strategy development
- Technology strategy
- Independent Business Review / “Smoke Diving”