Point of departure
Fundamental changes within their market environment present companies with the challenge of adapting their corporate and functional strategies and securing and improving their market positions with innovative business models, products and services.

One funding instrument at European level is aimed exclusively at start-ups, SMEs with growth potential, for concepts with an elevated degree of market potential and innovation. Available funding is usually between 0.5 and 2.5 million euros. Boasting a funding volume of around 70 billion euros, it is the largest self-contained research and innovation programme in the world.
The programme is very popular and has an extremely competitive character. 

Solution
Applications are assessed by independent experts. An essential criterion is the market implementation feasibility of proposed concepts for pioneering technological developments, innovative customer solutions and products or new and disruptive business models.

Outcome/benefits
Inotectis has previously evaluated more than 40 proposals. Exceptional projects are funded and help to further develop and establish within the market solutions for safer, cleaner and more efficient energy, climate protection, environmental conditions, resource efficiency and raw materials.

Point of departure
The company in question with turnover of around 200 million euro, a subsidiary of an engineering group, comprised a series of enterprises that were acquired together over a number of years and were barely integrated. Service offer within the units were extremely heterogeneous, as were the cultures, processes and organisational aspects.

Problem
A consistent strategy applied over the long-term and sustained by all stakeholders had never existed. Over the years, the stakeholders had pursued a variety of diverse, changing and conflicting strategies. The upshot was that all the units and consequently the company became less competitive, which resulted in an accelerated downwards spiral and substantial losses over a number of years.

Solution
Based on the underlying framework, an overriding global strategy was formulated and drawn up. Essential starting points were the company’s capabilities (‘DNA’), the potential for market leadership in the core areas and the anticipated market developments. The strategy was kept as simple, practical and implementation-based as possible. It had its foundations in the understanding of business and success factors within the business units.

The full-scale involvement of all the stakeholders encompassed communication, intermediate results and regular coordination with the advisory board. Important in this respect was gaining a mutual understanding and acceptance of the future strategic priorities.

Outcome/benefits
Following adoption of the global strategy, individual strategies for the respective business units and action plans were prepared. Specific implementation began almost simultaneously to ensure that the strategy quickly became both perceptible and tangible. As a consequence the company regained a sustainable position.

Point of departure
A group subsidiary generated a total of approximately 120 million euros with two companies in Germany. In contrast to the subsidiary, which was primarily concerned with installation and service, the parent company was a technology and engineering company.

Problem
The business management system in the parent company was introduced after the takeover of the subsidiary company, but in the business understanding of the operative unit it was lacking foundation. Structures introduced encumbered the identification of problems and causes as well as efficient management on the basis of key performance indicators critical to success. The organisation as a whole lacked the necessary requirements to be effective in the competitive environment.

Solution
Issues that hampered improvement were identified and prioritised. 

In particular, the organisation has been decentralised and reorganised to give those managers responsible for results more extensive entrepreneurial freedom.

To be able to better measure the contribution of managers to the success in their respective areas of responsibility, the existing full-cost accounting was dropped in favour of direct costing. Managers responsible for results were provided with the operative KPIs critical to success on a regular basis. The management bonus system was consequently adapted accordingly. 

Many of the processes were ill-designed and too slow, effectively and regularly impeding managers from taking advantage of business opportunities. Process improvements created, amongst other things, the opportunity for operative areas to facilitate uncomplicated procurements directly and quickly. 

Outcome/benefits
The changes generated significant improvement in terms of the acceptance and transparency of the fundamental figures and helped to apply optimisation measures to the right areas. In addition, the competitiveness of the units as self-managed, decentralised and client-oriented business entities was strengthened.

Point of departure
Generating turnover of around 20 million euros, the business in question was part of a larger corporate group and a market leader in the manufacture, installation and maintenance of insulation, fire protection and soundproofing solutions for industry and building technology.

Problem
The conclusion of large-scale investment projects with various major clients also saw the end of a number of sizeable contracts. At the same time, spending in the key industrial markets of oil & gas, chemical and energy was extremely restrained, giving rise to an expectation of a sharp, double-digit percentage decline in sales and similar earnings figures. The situation was further aggravated by increasing pricing pressure triggered by client savings measures and competitors that found themselves in a similar situation.

Solution
To replace the drop in turnover, a sales campaign was aimed at offsetting the discontinued orders with new services and clients in related industries. 

As experience dictates that the acquisition of new business requires a lead time of over a year, an efficiency improvement and restructuring programme was also simultaneously launched. The move focused on cost reduction measures and resource optimisation, such as the closure of a branch, reorganisation of various locations and subsequent overriding coordination of human resource placement, targeted insourcing of parts manufacture, switching of suppliers, personnel adjustments, a reduction of labour costs and flexibilisation of administration costs.

Outcome/benefits
Although sales dropped significantly over the next two years, in terms of EBT the turnaround was achieved in year two following respective design and implementation of the programme during the first year. In contrast to many of its competitors, the company generated a positive result in every quarter.

Point of departure
The enterprise was a holding company comprised of various firms in Europe and the Middle-East, generating a total turnover of 200 million euros. Its sphere of activity encompassed plant construction, automation technology, equipment installation, maintenance, power plant technology and piping engineering and construction.

Problem
The holding company found itself caught in an accelerating downward spiral over a number of years. Numerous restructuring measures had failed and significantly reduced employee and client trust in the company. The departure of important personnel caused the business base to collapse, while the decline in oil prices and the energy transition also triggered a reduction in sales and earnings within the core market segments.

Solution
The main priority was to stabilise the business base and organisation in addition to establishing operational capabilities. New employees were also acquired and an effective management team assembled. Simultaneously, the business model was defined and a comprehensive strategy and road map for implementation worked out.

Owing to the poor business situation, continuous cost reductions – including, for example, the removal of management levels – were accompanied by the planning and application of comprehensive restructuring measures. These encompassed broad structural modifications and personnel streamlining in all the companies, including the closure of entire business units and firms.

Outcome/benefits
Factors of success for the action plan were a thorough understanding of the business and its success factors, a sustainability-based strategy, a precise approach to the problems and intensive communication between all the various stakeholders. All this enabled the measures to be quickly and successfully implemented.

Point of departure
The company in question – a subsidiary of a French group – had comparatively modest business activities within the DACH region, generating around 70 million euros of turnover. The group’s goal was to become a more adequate market player and multiply the turnover within a few years.

Problem
Due to the existing modest business base, the goal was unlikely to be achieved through organic growth with minor contracts. Furthermore, company appraisals with regard to taking over suitable companies had reached a point that only allowed for a highly selective approach in the case of acquisitions.

Solution
On the basis of the parent company’s broad range of expertise, business segments with strong growth potential were identified within the target region. Estimation of future growth required forecasts of global and pan-EU trends from which, in turn, commensurate changes to the industrial structure and the regulatory environment could be drawn. These business segments were evaluated according to specific criteria and the selection then narrowed down further. Ultimately, areas were selected that were deemed difficult for other investors, but played to the strengths of the parent company.

One growth trajectory was the anticipated development of decentralised energy generation in Europe, including waste-to-energy solutions. A further business segment involved gaining a foothold in the management of highly complex infrastructures and industrial parks. 

The implementation plan followed a course of organic and inorganic growth. This occurred through commensurate deal origination, project development and strategic sales including development of a network of decision makers, development of comprehensive solution packages and presentation of compelling offers.

Outcome/benefits
Within a short period of time, acquisition and development progressed to the signature stage for industrial power plant projects in contracting and partnership models (e.g. DFBO ‘Design-Build-Finance-Operate’) with accumulated sales in excess of 1 billion euros and a total investment volume of over 500 million euros. Numerous acquisition targets were identified over the same period and the entire process of company take overs implemented up to the offer stage. Exclusivity agreements or entry into the round of preferred bidders were achieved with five companies boasting a total turnover of over 200 million euros.

Point of departure
Generating around 120 million euros of sales in Germany, the company had in the past built up a sizeable business and excellent profitability through the provision of services to nuclear power plants. 

The business was split up into four business units. These units had a good reputation with clients, excellent knowledge of their respective areas and covered a broad domain with their services. 

Problem
As a whole, the business was deficient and without prospects in the face of energy transition. The business units were reluctant to cooperate with each other despite the fact that the business model they had been operating was doomed in the short- or long-term due to the dwindling demand caused by the decommissioning of nuclear power plants. 

Solution
Through analysis of future market developments, it emerged that demand for the dismantling of nuclear power plants would increasingly be directed towards overarching projects. Future opportunities could therefore only be exploited through the combined services of the business units.

Outcome/benefits
To use an example (a ‘lighthouse’ project) to trigger further activities in a decentralised way, the innovation project ‘Dismantling’ was initiated with the managements of the business units.

Emerging from the previously separate and uncoordinated procedures, the team defined an overall ‘Dismantling’ solution utilising the expertise of all the participating business units and positioned this on the market. The response from clients was excellent and led to a number of joint offers and various orders.

Point of departure
The group, which generates sales of around 4 billion euros, consciously opted for medium-sized structures with many independent, small and medium-sized subsidiaries. This enabled rapid on-the-spot decision making, consistent client and market orientation and lean cost structures. 

Problem
In specific situations, a disadvantage for the more generally positioned individual companies was the lack of specialist know-how and a coordinated approach in the market. To achieve the growth objectives required by the group, sales efforts needed to be structured much more exhaustively and professionally, with more expansive service portfolios and using existing client bases.

Solution
The development of a ‘Sales & Marketing’ network group achieved a significant improvement in terms of networking and cross-selling within the group. This simultaneously provided the platform to professionalise sales activities and, in the form of a ‘think tank’, pick up on market developments and work out growth strategies.

Outcome/benefits
Communication within the network helped to circulate and establish best practices in sales in many of the individual companies. In addition, joint projects and offers were bilaterally agreed. A series of strategic themes and overarching recommendations were formulated and implemented in part across the group.