Case History #5 - 100 % revenue growth and management buyout
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Company Type:
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Division of
Fortune 500 company. |
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Company Profile:
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Division of large multinational software
company. Provides niche market solutions in specific area of data
center management automation. |
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Technology MarketForce Tasks:
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TMF called in when this division was
running at less than 50% of projected business plan performance. TMF
tasked with analysis of problems and recommendations of solutions,
in light of threatened divisional downsizing. |
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Methodology Highlights:
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TMF conducted Fast-Track Action Plan
program. Analyzed product application, development status, sales,
marketing, and overall business strategy. Conducted customer and prospect
research, and visited key trade shows. |
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Key Results:
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TMF discovered over 10 key problem areas
- all of them addressable within immediate 1-12 months period. Division
changed name, redirected target customer focuses, revamped software
products and "modularized" it. Significantly improved product
quality. Redirected sales forces toward "solution selling".
Introduced "managed trial" concepts. Identified need for
major improvement in product demonstrability, and requirement for
an improved report writer. TMF subsequently actually created PC-based
report writer and software demonstration disk for this mainframe-based
software product, which our client acquired from us, on a mutually
beneficially basis. Subsequently, the whole corporation was acquired
and TMF facilitated a mangement buyout of this division from the new
owners. |
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Main Benefits of Technology MarketForce
Involvement:
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TMF facilitated radical
improvement in business fundamentals with complete division "make
over". TMF's incisive recommendations and implementation assistance
resulted in revenue growth exceeding 100% within 12-months, and an
increase in profitability and positive cash flow, even in excessive
revenue growth. Company exceptionally pleased with TMF's report writer
software and subsequently bought out the royalty-based agreement. |
