With a crash in telecommunications spending and a slowdown in the networking industry, a leading equipment supplier struggled to find and exploit new growth opportunities while reining in R&D spending. SDG worked with the company’s video networking division to clarify distinct markets for various technologies, determine what opportunities existed within each market, and quantify the value potential of those opportunities. We also looked at the cost of delaying commercialization for developing markets.

Through evaluating several alternative market/product approaches, we determined that the momentum strategy was the worst use of available resources. Further, the effort uncovered a very attractive opportunity that had previously gone unnoticed, which itself is expected to be twice as valuable to the company as all the areas included in the momentum approach. With this opportunity, a moderate investment would likely yield a high return, while deferring the investment meant risking much of the value. The message: Now is the time to act.

The work resulted in an aligned team that has rapidly shifted its priorities, discontinuing development of a set of limited-opportunity products and focusing activities around a set of high-value opportunities that are well aligned with company competencies.