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Case Studies

Product & Innovation

R&D improvement of a high-end home electronics company

A high-end home electronics client needed support with R&D efficiency. Applied Value built an activity roadmap for increasing quality levels, proposed a hybrid design operating model, and identified yearly savings of 12 MUSD.

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Situation

A high-end home electronics client needed support improving R&D efficiency across four areas: project portfolio prioritization, development process simplification, product quality deep-dive, and product design deep-dive.

Approach

Applied Value collected qualitative data and built a survey for mapping project timing and resource levels. AV collected additional data to understand the project funnel, portfolio size, and gate criteria. To understand quality levels, Applied Value assessed internal data, customer insights, and distributor data and developed negotiation material for driving fact-based cost-out activities.

Results

Applied Value built an activity roadmap to increase quality levels, saving cost through beta testing, and building internal quality robustness. A hybrid operating model targeting cost efficiency, speed, design control and design consistency was proposed. AV implemented an immediate 1.4 MUSD in savings with an additional 12 MUSD run-rate potential from increasing supplier competition and driving additional fact-based negotiations.

12 MUSD million USD

cost savings

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