Semiconductor Manufacturing

Client Challenge: A semiconductor manufacturer developed a radio frequency identification system (RFIS) as an outgrowth of its core business. It had the potential to get them into exciting new markets but came with high risk, particularly given the inexperience of the new product team.

CAP Consulting Service: We became the advisor to the venture leader, coaching his team of engineers through early stage development and, at the same time, facilitating the dialogue with the corporate advisory board on the timing and scale of investments in the venture.

Discovery and Outcome: The new business was launched within six months of concept identification and today is the leader in the field with almost a billion dollars in revenue. The venture also became the model for future new business exploration within the corporation.

...top

Transportation & Logistics

Client Challenge: A leader in transportation and logistics introduced a new service that appeared highly successful, though senior management suspected its meteoric rise masked critical uncertainties and that sustained growth could be at risk.

CAP Consulting Service: We facilitated a rigorous examination of the business case including market target selection, proposed next generation products, delivery strategies and competitive action. Through quantitative and qualitative modeling critical assumptions were documented and tested, followed by the development of mitigation and contingency plans.

Discovery and Outcome: The exercise proved timely and valuable. Financial modeling revealed one critical assumption not initially expected by the senior team – price competition. A few months later a major competitor entered the market, dropped prices, but the client was ready.

...top

Consumer Electronics

Client Challenge: A consumer electronics company had a small, ancillary business in monitoring video systems. A new service offering, based on monitoring software, promised to greatly expand this business but appeared to require that the company invest heavily upfront in additional people and marketing.

CAP Consulting Service: We partnered with the services group, which was made up largely of service engineers with no formal business training. We explored the assumptions behind alternative delivery strategies, for example, that technical support had to be provided by in-house staff. We then prepared a recommendation to management to pursue the opportunity, but to do it by placing a sequence of small, low risk bets.

Discovery and outcome: The new business flourished and today is a cornerstone for the corporation’s strategy to get further into software-based support services. At the same time, the team felt empowered by the discovery process and became the change agents in the transformation of the business unit from service engineers to business managers.

...top