In October 2017 an early stage deep tech startup approached challenge advisory to build and execute an adjacent market entry and repositioning strategy.
In October 2017 an early stage deep tech startup approached challenge advisory to build and execute an adjacent market entry and repositioning strategy. The client had built an IoT platform enabling the adoption of industrial IoT by connecting sensory data to a cloud platform and analytics engine. The applications for original equipment manufacturers were almost limitless including scheduling of preventative maintenance, future failure prediction and improve functionality. Industrial IoT is promising to unlock the 4th industrial revolution, predicted to be worth £318bn by 2023 with a growth rate (CAGR) of 20%.
The client’s primary challenge was a positioning issue. The client had delivered on several ad-hock consultancy proof of concepts projects rather than applying a minimal viable to solutions to strategic use cases. Relationships and industry experience then took the client to the aerospace industry, with the client believing their initial proof of concepts provided sufficient validation. After a proof of concept with a large OEM, the client had failed to make further traction in the industry. The client was unprepared for the long sales cycles, high entry barriers and centralized decision-making processes of the aerospace industry.
Challenge Advisory’s strategy team implemented their 3 part strategy formulation process to establish the clients new positioning based on where the client could create superior value and where the greatest need is. Challenge Advisory applied process for 3 industries; automotive, manufacturing and energy (oil and gas).
Quantitative analysis and forecasting included; demand forecasting, value chain analysis, competitive intensity assessment, entrance barrier and market sizing/structural analysis.
Qualitative analysis included; interviews, focus groups, workshops, customer segmentation analysis with senior executives and field engineers.