Smart-home ecosystem
Digital company transformation

Developing a strategic positioning and business model for a window and door manufacturer


Challenge

The client is the EU’s largest wooden windows and doors OEM, primarily present in the Nordic region, with some additional sales in four other European countries.

  • The client needed support in defining a strategic direction for its smart-home initiative.
  • The client, having a strong decentralized organization with multiple brands in each market, did not master alignment of its “smart” projects across markets.
  • Ongoing “smart” projects were mainly technologically driven, without a defined customer value proposition and business case.
  • The management team had not yet developed clear objectives for its short-, mid- and long-term smart-home ambitions, and the organization was not prepared for a “services” business.

Approach

Arthur D. Little structured the project in three phases: 

  • External market analysis 
  • Internal analysis
  • Development of strategic directions in smart home

 

The external analysis covered EU smart-home trends and developments, including customer behavior, size and monetization potential, as well as key competitors’ activities and value-chain positioning. 
The internal analysis – primarily based on workshops with the management and business teams – was structured along five dimensions:

  • Smart-home strategy
  • Services portfolio & business models
  • Partnering strategy
  • Organizational set-up
  • Technological architecture

 

Based on the analyses, ADL developed strategic positioning and business-model options for the client (including, e.g., value-chain positioning, technical IoT platform, operating model).

Value

  • The management team obtained a thorough analysis including market trends, key-competitor analysis, definition of key value chain-positioning options, business-model designs including related partnering approaches, recommendations on the future operating-model design, and assessment of platform options.
  • Arthur D. Little managed to align both the management and the business (operational) teams, i.e., enabled the client to find a jointly agreed strategic direction in smart home and created an understanding of organizational requirements. 
  • Finally, Arthur D. Little was invited to discuss possible further engagements.