This company provides global microwave technologies and support to businesses, various government bodies and private network operators with communications networks designed to accommodate the exploding growth of IP-centric, multi-gigabit data services.
Although the Company had more than 750K systems installed across 100 countries, they did not have the necessary resources and infrastructure to compete in high stress markets and remain profitable.
Further hampered by a declining customer base, the Company suffered significant operating losses over the prior 3-year period: -$33.5M, -$18.3M and -$18.1M, respectively. A cost takeout of $20M was required just to reach break-even.
Our business analysis diagnostic identified the following focus areas that made a significant financial impact:
- Sales effectiveness and funnel management processes in all areas where they lacked discipline, visibility and forecast accuracy (which resulted in $8M in savings)
- R&D labor tracking and reporting tools to effectively manage an R&D roadmap for resources and to track utilization details
- Enterprise KPIs for management operating reviews for all functions focusing on vital few exceptions, especially those requiring fact-based intel for improved accuracy
- Deployment of a business and profitability model that has proven to be sustainable