Case Study 1: Industrial Manufacturing Feasibility Study
Client Challenge
The client is a large government department, looking to help deliver on the South African government's plan to deliver 5 million jobs by 2020. Understanding the critical role that manufacturing growth could play in stimulating the economy and in creating employment, the Department was keen to explore the feasibility of establishing an industrial cluster in one of South Africa's less prominent provinces.
Redflank Approach
Reflank adopted a best practice-led, solution-oriented approach to the feasibility study. Formulating best practices for industrial clusters involved an in-depth literature review, 6 intensive cluster case studies, and extensive consultation with industry specialists. This then allowed the proactive definition of a possible cluster solution that would meet the cluster terms of reference. The cluster solution blueprint included a definition of the cluster business model, operating model, organisation structure, and technology architecture. The modelling of resultant socio-economic impacts, and implementation considerations, then allowed a proper assessment of feasibility.
Value Delivered
The feasibility report delivered, and the presentations to client senior executives undertaken, demonstrated feasibility for the proposed industrial cluster, and articulated the significant socio-economic benefits to be realised. The implementation of the industrial cluster, which is a multi-year journey, is currently underway.
Case Study 2: Strategic Research
Overview
Overview
This case study relates to two similar, yet independent, projects, conducted separately for two client companies, about two years apart.
The client companies are blue-chip financial services companies. Both have historically utilised conventional distribution channels, and both are keen to explore opportunities to distribute their products through alternate, new-age channels. Given that certain market segments are not easily accessible through broker channels and given the revenue and cost benefits of non-broker intermediated channels, the financial services companies were keen to explore opportunities to distribute their products through these alternative channels.
Redflank undertook indepth desktop research and field research, coupled with extensive consultation with industry specialists to understand target markets and potential distribution partners. One of the clients was particularly interested in a broad scan of the entire distribution landscape to identify specific sectors to concentrate on, together with a list of potential distribution partners to approach for initial discussions. This required fundamental analysis at the industry level, together with the definition of partnership models and frameworks to guide the partnership discussions. The other client had already decided which particular sectors it wanted to focus on, and required detailed analysis and insights into each of a list of potential distribution partners. Case studies of leading product houses and distributors were undertaken, which, together with other research, enabled the formulation of relevant distribution best practices. These best practices were then leveraged as input to formulating key strategic choices, and in putting forward recommended strategic decisions. The strategic research conducted produced the key insights required for the clients to decide their distribution strategies.
Client Challenge
The client companies are blue-chip financial services companies. Both have historically utilised conventional distribution channels, and both are keen to explore opportunities to distribute their products through alternate, new-age channels. Given that certain market segments are not easily accessible through broker channels and given the revenue and cost benefits of non-broker intermediated channels, the financial services companies were keen to explore opportunities to distribute their products through these alternative channels.
Redflank Approach
Redflank undertook indepth desktop research and field research, coupled with extensive consultation with industry specialists to understand target markets and potential distribution partners. One of the clients was particularly interested in a broad scan of the entire distribution landscape to identify specific sectors to concentrate on, together with a list of potential distribution partners to approach for initial discussions. This required fundamental analysis at the industry level, together with the definition of partnership models and frameworks to guide the partnership discussions. The other client had already decided which particular sectors it wanted to focus on, and required detailed analysis and insights into each of a list of potential distribution partners. Case studies of leading product houses and distributors were undertaken, which, together with other research, enabled the formulation of relevant distribution best practices. These best practices were then leveraged as input to formulating key strategic choices, and in putting forward recommended strategic decisions. The strategic research conducted produced the key insights required for the clients to decide their distribution strategies.
Value Delivered
The research conducted, and the strategic insights generated have helped both clients decide on the particular sectors and companies to focus their distribution partnerships on, and to formulate the partnership models, as well as the strategic choices that have driven, and continue to drive successful distribution partnerships going forward.
Case Study 3: System Assessment, Specification and Selection
Client Challenge
The client is a subsidiary of a leading South African bank. Senior client leadership was concerned that the company's legacy systems were not effective in meeting current business needs and not well positioned to enable the business going forward.
Redflank Approach
Redflank worked with client management to define key current and anticipated future business needs, taking into account the strategic business context as well as detailed operational flows. The project team documented detailed business requirements, and mapped these to key system functions. Implications for the gaps thus established formed the key input into quantifying the financial impacts. These findings were then presented to the client Executive Committee and the Board, together with various options to address the current situation. The Board approved two key options for further investigation. Redflank assisted in narrowing down the options to a decision to replace the existing legacy systems with an enabling core business application. Redflank then assisted with the definition of detailed system specifications, and managed the RFI and RFP process for the choice of a new system.
Value Delivered
Redflank's assistance enabled the client to confidently decide two things. Firstly that the legacy systems were retarding business performance, dispelling conflicting views from management that prevailed prior to the project. Secondly, to clearly map out fairly exhaustive ways forward, with a clear choice of how to address the existing issues. These two decisions enabled the Board to ratify a clear way forward. A structured and well managed system selection process then ensured an effective and efficient choice of a new system. This helped managed the key risk of potential backtracking with decision-making. A clear and detailed system and implementation specification helped vendors better understand, plan for, and cost the new system. The new system has now been in operation for 2 years, functioning well as a business enabler, rather than a constraint and source of frustration, as with the previous legacy system.
Case Study 4: Systems Requirements Definition and Implementation Advisory
Client Challenge
The client is one of the top 5 engineering services companies in South Africa. Rapid business growth over the preceding years had resulted in ageing and archaic core systems straining to keep up with business demands. While business managers were in agreement that the systems were not meeting business needs, prior attempts to replace current systems had succumbed to indecision and backtracking of the selection process.
Redflank Approach
Redflank proposed the definition of detailed business requirements, developed within the context of a holistic view of the business across the 4 key business units. A number of workshops were convened within and across the various business units, to understand the business model and operations, and to document key business requirements. This lead to the definition of detailed business requirements per area, supplemented with key system specifications. Given the goal of selecting and implementing a new system, the business requirements and system specifications were documented in a way that allowed for ease of incorporation into an RFP framework. Redflank's advisory role during the system implementation project by the vendor, took the form of specialist input, review, guidance, and facilitation.
Value Delivered
The business requirements definition enabled a clear articulation of business needs, in a way that facilitated the choice of a new system. The consultative approach adopted allowed business representatives the opportunity to state their needs, in their own language, which could then be articulated in the necessary technical format by the project team. The consultation empowered client executives and managers to become an integral part of the software selection process, thus encouraging buy-in to the system during implementation. A new system has been selected using the system requirements as a point of reference. Redflank's advisory role during the implementation has guided project planning and delivery, helping address schedule, budget, and quality issues.
Case Study 5: Implementation of a Point System Solution
Client Challenge
The client is a new division of an leading South African insurer. Given the 100 year plus history of the parent company, new divisions often struggle to establish a separate identity, in particular with the establishment of distinct and appropriate technology support. Not long after its genesis, the client found itself facing the probability of having to use legacy systems to meet very new business needs.
Redflank Approach
As part of a broader project focused on defining the business plan, and establishing core infrastructure in support of the new business division, Redflank assisted with the identification of key business requirements that could not be adequately accommodated within existing legacy systems. These key requirements were then investigated to see how they might be practically addressed. One of these requirements in particular emerged as a key dependency for a pivotal new business partnership. The Redflank team recommended a point systems solution, to be custom built to address this key business need. Business requirements were then defined for this point systems solution, systems specifications documented, potential vendors shortlisted and a final selection made, the system developed, tested and rolled out, all in a matter of weeks.
Value Delivered
The project delivered a fully working point systems solution in a very short period, to enable a cornerstone business deal, without which the new business division may not have delivered the sterling performance it has in its 5 years since inception. Such a point solution allowed the new business division to provide a customised offering to its client base, something that would not have been possible with existing legacy systems, within a timeframe that a fully fledged system implementation would not have been possible.
Case Study 6: Project Review
Client Challenge
The client is the acquisition subsidiary of a 6.8 billion Euro asset management group. Given poor prevailing returns in Europe, and given its interest in promoting development in Africa, the client is keen to explore opportunities to acquire interests in promising Sub-Saharan companies. One such target company earmarked as a potential investment was in the midst of a large scale technology project, the impact of which the client was keen to better understand prior to proceeding with the potential acquisition.
Redflank Approach
Redflank was contracted by the client to undertake a review of a core systems replacement at a healthcare company based in Kenya. Redflank undertook a detailed review of the system replacement programme, including a review of programme structures, programme processes, programme controls, programme performance, and programme impact. An experienced project management professional from Redflank was assigned to the project, supported by a seasoned project assurance specialist, also from Redflank. The programme review conducted indicated areas of programme strength and weakness, formulated as key considerations to be taken into account in the deal pricing and deal shaping. The review also put forward recommendations regarding programme areas to be addressed.
Value Delivered
The client proceeded with the company acquisition, which has exceeded planned business performance, as well as expected investment return in its first year.
Case Study 7: Project Rescue
Client Challenge
The client is a leading bank in South Africa, that found itself in a situation where the project sponsor was not comfortable with project progress. A critical checkpoint with the project sponsor had not gone well, and the client sponsor was threatening to withdraw funding for the project.
Redflank Approach
Redflank was presented with an opportunity to assist getting the project back on track, and to help regain the project sponsor's confidence. A senior project management and financial services specialist from Redflank was deployed to work with the project team to understand the issues retarding the production of required project outcomes, and to suggest and help implement remedial actions.
Value Delivered
Redflank's involvement helped the project team understand shortcomings in its approach, and in the project outcomes produced. The Redflank project management specialist operated in coaching mode, assisting the project team reshape deliverables and reposition the project, resulting in a much more comfortable and satisfied client sponsor. With a follow up checkpoint with the project sponsor being positively received, the project found itself back on its feet, and able to proceed without further hiccups.
Case Study 8: Company Diagnostic and Benchmarking
Client Challenge
The client is the acquisition subsidiary of a 6.8 billion Euro asset management group. Given poor prevailing returns in Europe, and given its interest in promoting development in Africa, the client is keen to explore opportunities to acquire interests in promising Sub-Saharan companies. Its strategic map highlighted 2 companies in West Africa as potential investment targets. Given that the client was not familiar with the region, it needed some assurance with regard to the associated regional and company risks and insight into relevant opportunities.Redflank Approach
Redflank conducted a diagnostic of both companies, incorporating a review of industry context, business strategies, business models, solution architectures, financials, and key capabilities. Critical input was gained from interviews with key stakeholders as well as desktop research and consultation with industry specialists. Maturity levels for existing business capabilties were benchmarked against Redflank's Best Practice Capability Framework, and were compared to industry benchmarks for Southern Africa and for East Africa. These comparative regional benchmarks provided context for the capabilities of the companies under review, allowing for the distinction between regional differences and company strengths and weaknesses. Financials were also reviewed, with a view to understanding company performance.
Value Delivered
Based on the analysis undertaken by Redflank, the client was able to make an informed decision regarding the risks associated with the companies it was considering as potential acquisition targets. Regional differences highlighted by the capability benchmarking exercise, as well as regional industry trends highlighted by the industry analysis, provided insight into key considerations to be taken into account when valuing the investment targets.
Case Study 9: Business Turnaround
Client Challenge
The client is an SME jewellery manufacturer, focused on producing high quality jewellery and corporate gifts incorporating Swarovky crystals. A couple of years post inception, the company found itself in a situation where business performance was not living up to expectations. Despite the difficult economic climate, client management was convinced that the business had untapped potential which could be leveraged to boost sales and improve profits and cashflow.
Redflank Approach
Redflank conducted a review of the client business, to better understand the business model, customer value proposition, marketing and sales, finances, staffing, and operational controls. Key business financials were modelled, to better understand business performance, and to identify key opportunities for improvement. Business fundamentals were analysed to establish key issues and areas for improvement. Redflank, working closely with client management, proposed 10 key initiatives to improve business performance. These practically oriented recommendations were supplemented by a number of simple sales, operations, and controls tools, designed by Redflank in conjunction with the client.
Value Delivered
Two years later, Lauren Michelle has not only survived the financial market crisis but is also experiencing unprecedented growth, with a 200% increase in revenue, and a client base that now includes a number of blue chip corporates. Business performance and cashflow has also stabilised, allowing management to focus more of its time on business expansion and growth.
Case Study 10: Due Diligence
Client Challenge
Client Challenge The client is the acquisition subsidiary of a 6.8 billion Euro asset management group. Given poor prevailing returns in Europe, and given its interest in promoting development in Africa, the client is keen to explore opportunities to acquire interests in promising Sub-Saharan companies. To manage the risks associated with acquisitions, potential acquisition targets needed to be put through the due diligence process, in an effective, yet cost-efficient fashion.