Mid-size IT services company with a successful track record of building IT services and product R&D services businesses.
The client wanted to explore expanding into the new market of knowledge-based services that would complement its IT and R&D services business while competing more effectively against larger competitors.
We conducted a comprehensive analysis of a new market that had very little published information, which required a greater reliance on primary research. We conducted more than 30 interviews with potential customers and existing players both domestically and internationally to gain insights into the market and clusters of opportunities. After developing an evaluation framework that incorporated factors such as potential growth trends, profit pools, and fit with the client’s internal capabilities and strategy, a short-list of potential opportunities was presented to the client.
In collaboration with the client, this short-list was further refined to four opportunities. In the next phase of the project, we then developed detailed market-entry strategies and financial plans for these key opportunities. The entry strategies suggested specific segments to focus on initially and provided subsequent phased ramp-up plans. The project also identified specific areas of initial service offerings. Our summary recommendations included:
An integrated sales approach where the new service offerings form a part of the overall suite of services that the client would offer to its existing and future clients
Setting up a dedicated business unit to pursue these opportunities so there is clarity around the importance of the new services and full accountability for its implementation.
The client agreed with our recommendations and proceeded to set up a separate business unit subsequent to the the project. This business unit has now become an important growth engine for the company.