Engineered Products & High Tech

Pooling experience

The Engineered Products & High Tech Competence Center offers comprehensive strategic management consulting for companies in the capital goods and project-related industries.

Pooling experience

... We combine profound industry and technological expertise with customized Roland Berger tools, an extensive international network of experts, and - last but not least - our perceptive and highly motivated consultants to support our clients and help them enhance their business, products, projects, and services.

Understanding your business

Our wealth of project experience from a variety of consulting assignments, as well as our ability to adapt to the client's true needs, and to develop solutions in a team and in cooperation with the client, ensure that our solutions are ready for implementation and that they create sustainable value. Our goal is to help our clients make the most effective use of the possibilities offered by the Internet. To acquire a better understanding of the different industries, our Competence Center has formed eight highly specialized teams with different focal points.

In China

The “Engineered Products and High Tech” (EPHT) Competence Center covers a broad spectrum of industries, ranging from steel to glass, from software to hardware, from parts to EMS. However, all these industries have common concerns on strategy and operations (e.g. production). While the second-tier players may have achieved temporary success by building on speed, cost, and scale, the top-tier players differentiate themselves on strategy with strong operational capabilities. Strategy formation is complicated, but can be structured in multiple dimensions, e.g. vision/value proposition, business model, synergy creation, core competence, etc.

For the engineered products and high tech industries, China has become a global battlefield. Besides being highly integrated in the global supply chain, the Chinese market is a "can't miss" market with massive potential. Therefore, international players are often tempted to rush in, with or without a carefully crafted competitive strategy. In addition, local Chinese firms have grown to become strong market players in the global playing field. Global competition has been intensifying with eroding margins as a consequence. The winners in the Chinese market will undoubtedly be exerting astonishing impact on the global playing field.

Engineered Products and High Tech is one of the largest Competence Centers within Roland Berger in terms of consulting staff and revenue. We are known for our expertise in Practical Strategy and Strategy-based Fitness and Transformation.

We support international and local clients in:

• Developing vision and strategy for sustainable success
• Facilitating China entries or helping Chinese companies go global
• Understanding consumer needs and assessing competitive dynamics
• Positioning, branding and geographic expansion
• Gemba Power – excelling in operational capabilities that lead to competitive advantage
• Enhancing organizational & operational performance via Fitness and/or Transformation
• Advancing from Good (A) to Excellent (A+)
• Building in winning capabilities, e.g. business planning, performance metrics
• Advising on M&As and strategic alliances, as well as facilitating partner selection
• Anticipating and minimizing JV concerns and achieving consensus

Our project examples:

Client Issues

The international market for industrial lubricants and services (ILS) was going through profound changes. Regional demand had shifted and was driven by overall strong growth in Asia/China and by regional reconfiguration of the global manufacturing footprint of the key customer industries of our client. As a result, margins were expected to decline in mature markets and this was expected to stimulate industry consolidation to counter pressures on margin. Opportunities for new product and service-related value propositions with an industrial customer base emerged at the same time new competitors appeared. In this competitive environment, our client was at a crossroads and required clear recommendations for future strategic direction.

Project Approach

To understand the footprint of our client’s ILS business unit and the effectiveness of current strategy, the project team performed a thorough review of sales split among industries, customer segments, and regions as well as its sales strategy/approach. Following the internal assessment, the team turned toward the examination of the external environment during which the value chain of relevant customer industries were mapped out and shifts in demand along the value chain was analyzed. Opportunity to maximize gross margin was also explored. Based on all the data and completed studies, the team identified market demand pattern as well as the client's competitive advantages and core competencies. Based on this, potential strategic options were evaluated accordingly. Finally, following discussion with client, the team presented key recommendations on future strategic direction and relevant business models were developed, and financial impact was quantified in order to facilitate the client's decision-making and strategy implementation.

Impact

The project team presented recommendations for long-term development strategy to the client's top management and receive its complete endorsement. The client implemented the strategy following our recommendations. Satisfied with the results, the client discussed follow-up projects regarding operational improvements.
Developed long-term strategy for a major domestic minerals and metals trading conglomerate.

Client Issues

In the old days, our client originally accumulated capital as a result of its monopoly in minerals and metals trading. To expand further, it tried to diversify into many other sectors both related and non-related to its core business but due to a lack of relevant experience and qualified personnel these investments encountered great difficulty. On the other hand its core business, import and export trading, faced great challenges as the government removed the protections on its exclusive minerals and metals trading as their share of global trading was eroded by the direct investment of multinational companies seeking to globalize the structure of their production and sales. Plagued by both the failure of internal decisions and changes in its external market situation, the client was eager to review its long-term strategy and to readjust its business portfolio to realize sustainable growth.

Project Approach

As a first step, the project team performed a thorough study of the competitive landscape in major sectors in which the client was currently conducting business and their future evolution. By mapping out the value chain of each sector and identifying key success factors and the client's competitive position within those sectors, the team identified sectors with growth and profitability potential. Then the team directed its efforts to the assessment of the client's own capabilities. Core competencies were identified following detailed financial analysis and intensive discussions with high-level management. Combining that with the results of the previous work and leveraging the experiences and expertise of Roland Berger Strategy Consultants in strategy development, the team presented key recommendations for the vision and mission of the client company as well as for its key strategic objectives in a 3 to 5 year window. A detailed action plan was also outlined to facilitate the implementation of the strategy.

Impact

The project deliverables were well received and adopted by the client. Not only was the overall direction of growth clarified, but corresponding organizational structure and major responsibilities of headquarter's key management functions were also suggested. Following the action plan, the client implemented the strategy step by step. Its business portfolio was readjusted based on strategic objectives and a competitive business model was implemented in all business sectors.

Client Issue

The client is a leading global IT equipment and consumer electronics group. To set it apart from fierce competition and to boost sales growth, the client decided to grow its consumer electronics unit, which it had not previously focused on, into a strategic business. The majority of its current sales, however, relied on distributors that could no longer support its substantial expected growth target. Consequently, the client was eager to exert stronger controls over its channel system and to establish a presence in the retailing end so that it could provide higher quality products and services that would meet the needs of its customers or even influence consumer expectations. Roland Berger was invited to help with the establishment of modern and efficient store formats within the Asian Pacific region.

Project Approach

Based on the needs of the client, a professional team including retail experts and consumer electronics specialists was formed.
To understand the store formats that were most attractive and suitable for local needs, the team decided to conduct benchmarking against best practice in the local market. First, using a systematic approach, certain leading consumer electronics competitors were selected as benchmarking targets. The team then visited the retail stores of the target companies and collected abundant first hand market data. Based on analysis of the data as well as intensive interviews, both internal and external, the team identified competitive advantages of the target companies in a retail setting as well as the client's core competence. Leveraging expertise in retailing and know-how in the consumer electronics sector, the team presented key recommendations for the store formats in the four regional markets including China. Detailed suggestions were elaborated in the areas of store format mix, product portfolio, targeting segment, interior design, service types, etc. The team also developed solutions to ensure a customer experience in the store and created an executable action plan for retail expansion.

Impact

The Roland Berger project team delivered an action plan to the client for the establishment of 1100 retail stores along with relevant store format selection. The client adopted the deliverables with great satisfaction and invited Roland Berger Strategic Consultants to support the establishment of a retail network in Singapore and Malaysia where its Asia Pacific headquarters were located. During implementation, the project team helped the client to establish attractive flagship stores from scratch based on its strategic objectives.

Client Issues

In the old days, our client originally accumulated capital as a result of its monopoly in minerals and metals trading. To expand further, it tried to diversify into many other sectors both related and non-related to its core business but due to a lack of relevant experience and qualified personnel these investments encountered great difficulty. On the other hand its core business, import and export trading, faced great challenges as the government removed the protections on its exclusive minerals and metals trading as their share of global trading was eroded by the direct investment of multinational companies seeking to globalize the structure of their production and sales. Plagued by both the failure of internal decisions and changes in its external market situation, the client was eager to review its long-term strategy and to readjust its business portfolio to realize sustainable growth.

Project Approach

As a first step, the project team performed a thorough study of the competitive landscape in major sectors in which the client was currently conducting business and their future evolution. By mapping out the value chain of each sector and identifying key success factors and the client's competitive position within those sectors, the team identified sectors with growth and profitability potential. Then the team directed its efforts to the assessment of the client's own capabilities. Core competencies were identified following detailed financial analysis and intensive discussions with high-level management. Combining that with the results of the previous work and leveraging the experiences and expertise of Roland Berger Strategy Consultants in strategy development, the team presented key recommendations for the vision and mission of the client company as well as for its key strategic objectives in a 3 to 5 year window. A detailed action plan was also outlined to facilitate the implementation of the strategy.

Impact

The project deliverables were well received and adopted by the client. Not only was the overall direction of growth clarified, but corresponding organizational structure and major responsibilities of headquarter's key management functions were also suggested. Following the action plan, the client implemented the strategy step by step. Its business portfolio was readjusted based on strategic objectives and a competitive business model was implemented in all business sectors.