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Sourcing & Procurement - Supply Chain & Operations

Efficiently use limited capital to future-proof your business

By investing in innovation and more efficiently leveraging R&D, companies can benefit from the ever-changing market dynamics by diversifying revenue streams and achieve organic growth.

Overview​

Company tenures are declining due to the increasing pressure from globalization, increasing M&A activities, accelerated growth of disruptive start-ups and digitalization. This establishes an increasingly competitive and unpredictable business environment, requiring companies to become more responsive and adaptable. These aspects should be considered enablers of innovation and invitations to invest, rather than developments that solely curb your business. By investing in innovation and more efficiently leveraging R&D, companies can benefit from the ever-changing market dynamics by diversifying revenue streams and achieve organic growth.
Applied Value proposes four steps which unlock companies’ full R&D potential. Firstly, closely monitor the R&D organization to understand how current megatrends are impacting the industry to identify risks and opportunities the trend entails. This information will outline the next steps for how the company should react and guide the R&D strategy development. 
Secondly, assess the R&D project portfolio and refocus it to prioritize initiatives based on the new budget constraints and strategical objectives. The re-prioritization should cut risky projects to streamline the portfolio and become as relevant and advantageous as possible given the current megatrends and resources available.
Thirdly, institutionalize fast decision-making by adopting battle-tested best-practice processes, either one already existing internally or observed elsewhere. The adoption criteria of these processes are that they should be formulated to quickly identify and shape new growth businesses. Develop supporting processes that ensure that the company becomes truly innovative and avoid letting new ideas resemble what the organization has done before.
Lastly, deep-dive your current R&D organization to understand how the delivery model can be fully leveraged. Evaluate opportunities from re-allocating low vs. high-value staff between R&D sites, redistributing assignments so that high-cost engineers are not doing low-value work and vice versa, mapping R&D site-specific capabilities, outline cultural differences and cost structure between sites to assess the optimal design of the R&D organization’s footprint. It is key to structure the R&D organization to support the incubation, development, and acceleration of innovative initiatives while allocating and optimizing employee capabilities to match their individual skillsets to their job assignments and the specialization of the R&D site.

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