文档介绍:Complementing Product Businesses with Solutions – An Approach for Multi-panies
PD Document
June 15, 2001
CONFIDENTIAL
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Authors: Ted Dezvane (NY), Jochen Heck (NY), Joe Heel (MI), Eric Roegner (CL), Mark Steen (MI)
The potential for higher margins, deeper customer relationships and increased switching costs attracts many suppliers to solutions businesses, but only a relatively small percentage of suppliers (on the order of 25%) have essfully leveraged solutions to capture superior economic returns. The panies have demonstrated a number of important qualities which can be used to guide the efforts of new entrants.
Potential solution opportunities can be identified and evaluated based the client’s distinctive skills and expertise, its underlying product/service portfolio and detailed knowledge of customer needs. A methodology has been developed to facilitate this process and plemented by a framework to develop initial top-down market and revenue potential estimates for these potential solutions.
Prospective solution providers have to decide which approach allows them to capture the most value from the solutions business given the degree of risk and investment they are willing to take on (,. full transformation versus incrementally adding capabilities to existing businesses). In situations where full transformation presents significant implementation hurdles and risks which the client is not fortable with, they may consider an incremental approach.
An “incremental layer” which sells solutions across one or more business units can be set-up and launched relatively quickly (., within 3-6 months) if it has the full support of the participating