The client's problem
A business unit of a large industrial conglomerate of Danish origin was unsure where to invest future R&D spend to meet market demands and close competitive gaps in the most profitable way. The client wanted a clear strategic roadmap for how to develop the different product lines over the next years. Some of the key dilemmas were: Investment in new versus existing products, standardisation versus customisation, and lead vs. stay at par with competitors.
The client and Oleto Associates formed a joint team to perform three key analyses. First of all, a better understanding of the existing product portfolio was needed, in terms of product lines, financial performance, and current development plans. Secondly, a thorough market analysis was performed to identify spear heads and gaps for the products in comparison with competitors. Thirdly, interviews and research brought about some key trends for industry showing a decline of one product line in favour of another. The insights from this work was used to develop a prioritised roadmap which for each product indicated whether it should stay in the current form, incrementally improve, renew, or discontinue, including key features to advance.
The new product strategy enabled the company to reach its financial targets for the following 3 years and strengthen its long term market position.