Challenge How to move a traditional applications software company to a new business model. Landscape The client was a leader in its software niche (human resources applications) however; larger players had taken over this segment. Revenues were declining for several years and the stock price was at an all-time low. The company needed a strategy for future growth, preferably with an Internet flavor. As a public company, the pressure was on to come up with a solution that could quickly improve shareholder value. Company employees were frustrated as they saw their traditional business decline with no clear direction from senior management about how to identify new business opportunities. Even if ideas were brought to the table, they didn’t move past the discussion phase. A structured process was needed to evaluate new concepts or products that could lead to future growth.
Process MIDIOR worked with the client to develop an e-Business plan that uncovered new opportunities for growth. Through talking directly with the client’s customers, MIDIOR identified the client’s core competencies that could support a successful e-Business transformation. MIDIOR created procedures and tools for the client to quickly, and quantifiably, screen new product ideas so that informed product decisions could be made to move forward. The ConceptScan? process enabled the client to generate “success ratings” for new product ideas, based on risk/reward, business, and market alignment factors. MIDIOR not only came up with an e-Business plan, but helped the client implement the plan and make the structural changes necessary to operate as an e-Business. Results With MIDIOR’s direction, the client was left with a process that helped them evaluate new product investments in an expedient manner guided by an e-Business strategy. This enabled the company to hold on to existing customers while introducing a new platform and attracting new customers with a delivery model that was well matched to customer needs. After MIDIOR’s engagement, enhanced shareholder value made the company an attractive acquisition target for a larger competitor. |
