ABI’s ROBUST BUSINESS TRANSFORMATION ADVISORY FRAMEWORK

Our five-pronged approach is helping companies get ready for future using today’s strengths and acquiring capabilities required for future.

• Visualize: the future; industry attractiveness, competitive dynamics, profit pool across value chain
• Evaluate: the company’s performance relative to its peers – on functional, process and business valuation
• Assess: identify and quantify the sustainable revenue maximization and cost optimization opportunities
• Strategize: prioritize and prepare the plan for performance improvement
• Execute: work with the company management to implement the plan and reassess regularly

At ABI, we truly believe that business transformation is all about envisioning the future and then optimizing the resources and business drivers to attain that future. A unique combination of internal and external bench-marking is integral to ABI’s Business Transformation advisory services. While internal assessment evaluates contribution to business value relative to costs for each business functions, external assessment evaluates the company’s business value creation at each business function level to the same for its peers in the industry.

At ABI, we take pride in our superior service delivery based on a structured approach to conduct incisive analysis. This not only helps us in understanding our clients’ risk profile and financing & investment needs, but also helps us in designing optimal solutions.

ABI’s Robust Framework For Preparing Business Transformation Plan And Implementing It

ABI brings Business Consultants, Sector Experts & Implementation Advisers based on the specific requirements of the client. ABI brings other relevant experts – as needed – either from its own employee base or from its “experts’ network” spread across the globe.

A typical engagement includes:

1. Initial Assessment In discussion with the Client’s Management Team and key stakeholders
2. Proposal document outlining the scope of the work, solution framework, team profile, key milestones, engagement & communication governance, related timelines and commercials
3. ABI sets a Project Management Office (PMO) including ABI Consultants and Key Professionals from the Client’s team
4. The engagement is executed through a well-defined and collaborative Engagement Governance Framework. The key aspects of this framework include:

The Client

An SME engaged in manufacturing and servicing of industrial parts in India. Started by a first-generation entrepreneur, within 15 years of its existence, the Client grew impressively on the back of its high-class engineering technology and end-to-end solutions, customized to client’s specific requirements.

Scope Of Work

In recent years, the company started growing slower than its industry peers. The problem was compounded by the drop in its operating profit margins.

The Client was looking to transform the company from family-run business to professionally run business and strategic overhauling to propel itself on a sustainable and much-more predictable higher growth trajectory. All these with an aim to eventually going for listing on stock exchange.

ABI Solution

• ABI conducted a holistic and deep-dive analysis of the client’s existing business, growth strategy, product & services portfolio and technological prowess vis-à-vis the industry trends, competition and opportunities in domestic and export markets
• Put specifically, ABI designed & implemented transformation around six specific areas:

1. Accelerate growth and explore international business expansion opportunities
2. Productivity & cost optimization to enhance the margin profile
3. IT & Digital transformation initiatives to exploit emerging growth channels and realize costs efficiencies
4. Human capital transformation, with succession planning
5. Effective corporate structure and incorporating the ‘Best Management Practices’ of a professionally run organization
6. IPO readiness assessment and implementing necessary changes, including corporate governance framework

• ABI deployed a multi-disciplinary team of domain experts and consultants comprising:
• A strategic consultant to study existing business, competitive dynamics, growth opportunities etc. to identify and quantify various strategic options available to the company
• A financial consultant to closely work with strategic consultant, technical and HR experts to assess financial feasibility through rigorous cost-benefit analysis
• A technology transformation expert to study global best practices and visualize the key components of the proposed digital transformation in business and operational domains.
• A human capital transformation expert to understand current capabilities and the capability required for future, design and implement organizational structure, provide clarity on roles & responsibilities across levels, revamp talent management practices and create effective succession plans
• ABI team followed its five-stage business transformation framework with effective engagement
• Defined the future of the industry – industry attractiveness and profit pool across the value chain – based on key macroeconomic and technological disruptions around the industry
• Review ‘As Is’ business performance & inefficiencies thereof
• Opportunity assessment with deep-dive analysis & benchmark to identify improvement areas
• Defined “To-Be” business and finalized strategic goals and business plan for transforming the business
• Implemented – working with the company management and key stakeholders – transformation initiatives as per the prepared business plan

Engagement benefits:

• Within one year, the Client was able to grow its existing business by 40%
• The Client entered into JV partnership with two international corporations – to boost export in the Middle East and North American markets, these will enable the company to become 3X in terms of revenue within 5 years
• Within one year, the operating margins improved by 12% points with much better cash conversion cycle. Ongoing transformation and automation initiatives are expected to further enhance the margins
• The Client has attracted professionals to run key strategic business functions with clear mandate and professional performance evaluation as the cornerstone
• Decentralized decision making with proper checks-and-balances means faster decision making, with positive impact on growth and margins