validus management consultancy UK

Utilities Case Study

Metering business within a major utility


Re-focusing the strategy...
To deliver enhanced value

THE ORGANISATION

The Metering business within a major utility

THE ISSUES / PROBLEMS

  • Currently a 'commodity' based supplier of metering hardware and associated telephony
  • Lack of marketing information leading to incorrect conclusions on the size of the market
  • Lack of visibility of customer management and prospective contracts
  • Downward price pressure in the market
  • Change in proposed delivery of some products leading to reduce operating margins
  • New market entrants offering enhanced services - potential to erode current market share
  • Aspiration to move from being a 'commodity' supplier to a solution based 'value added' service provider
  • Business at a crossroads – need to evaluate strategic options and select best way forward

PROJECT ACTIVITIES

  • Set up and coached Metering management team in strategic thinking and evaluation processes
  • Carried out a series of strategic workshops to examine:
    • External Imperatives:
      Economic developments / Industry developments / Socio-political trends / Competitive trends and strategies / Customer trends and strategies / Regulatory concerns
    • Detailed Market Analysis:
      Half-hourly / Non-half-hourly / Energy Consultancy / Energy Services Companies / Customer base / Current share of business / Who should be targeted and why? / Current and future margins
    • Internal Capability:
      Core business processes / Organisation structure / Capacity / Skills / Supporting IT
  • Developed model to identify and evaluate strategic options including:
    • Sectors options / Routes to market / Product & service offering / Delivery channels / In-house capacity & capability / Strategic Partnerships / Acquisitions / Financial outcomes
  • Ensured corporate coherence with other key initiatives
  • Developed implementation plan
  • Presented strategic options and recommendations to senior management for endorsement

PROJECT RESULTS

  • Agreed strategy approved to:
    • Address current delivery requirements
    • Position the business for major and sustainable growth
    • Enable the move form 'commodity' business to supplier of 'high value' energy services
  • Strengthened the strategic awareness and thinking amongst Metering management team
  • Provided a model for ongoing monitoring and evaluation of strategy implementation and outcomes