A strategy tailored to meet a changing market
Consumer and market dynamics are driving change, and we are evolving our business under our ‘One ITAB’ Strategy to further support our customers, as well as to take advantage of new opportunities.
The Group’s market and customers have been permanently changed by the disruption caused by online and mobile usage growth, and its impact on consumer behaviour. As a result we have been evolving the current ITAB business to better support customers in this new retail landscape, and to meet the expectations of all our key stakeholders.
The future direction of the Group has been co-created with input from our colleagues, customers and consumers from all over the world. During the last quarter of 2019, a number of ‘One ITAB’ Design Thinking workshops were held, involving the ITAB Executive Management Team and key Senior Management, and facilitated by a specialist agency. Input was gathered from our colleagues, customers and consumers from all the Group’s regions. As a result our ‘One ITAB’ Strategy is based on an in-depth understanding of current and future consumer expectations and market demand. It builds on current strengths and future opportunities, and it will provide everyone in our business with a clear direction and understanding of our strategic goals and desired business model.
We are continuing to refocus our business to meet our customers’ changing needs, building on our existing strengths and creating new revenue streams for growth. We are updating our offer in order to develop a more sustainable revenue model, creating new demand and selling more of our equipment and service portfolio to more customers. On the one hand, we will improve our traditional product and service supply; on the other hand, we will build on existing and new strategic customer relationships to satisfy the growing demand for outcome-based solutions. This combined approach will help us to grow our service-based revenues, and to smooth out the current demand peaks and troughs.
- OUR STRATEGIC PRIORITIES
- BEING A SOLUTION PROVIDER
- RE-ENGINEERED COST STRUCTURE
- EMPOWERING PEOPLE AND COMMON WAYS OF WORKING
- DEVELOPING AN ECOSYSTEM OF PARTNERS
- EXCELLENCE IN OPERATIONS
- EXPANDING OUR MARKET POSITION
- SUSTAINABLE FUTURE
OUR STRATEGIC PRIORITIES
We have identified a number of Strategic Priorities to streamline and help drive growth and change in the business. Specific goals and detailed action plans have been prepared for the initiatives supporting the priorities to help us move towards our wished position.
From brand experience to physical reality
Our mission statement is as follows: “At ITAB we help customers turn consumer brand experience into physical reality with our know-how, solutions and ecosystem of partners.”
Through the physical realisation of engaging, efficient and seamless environments, we are delivering measurable results for customers in terms of their key performance metrics – experience, sales, efficiency, service and costs. We provide them with expert support to achieve their store profitability goals, from new concept and solution design, through tactical performance improvement initiatives, to more efficient store project implementation and refurbishment programmes.
Consumers are looking for better experiences everywhere. There are new opportunities for us to deliver value. We have adopted an approach which not only enables us to expand the share of our existing markets, but also allows us to explore various new markets where we can add value. It is about doing what we have been good at, but better, whilst also exploring new emerging opportunities.
Our Value Propositions provides a flexible approach driven by insight innovation across multiple touchpoints of the consumer journey. By learning from consumers and analysing how their expectations and spending patterns continue to evolve, and understanding the impact online and social media is having on society and consumer behaviour, the physical store can be helped to satisfy the expectations and relationship needs of shoppers. Please click on any of the Value Propositions to read more on itab.com.
Adapting to a changing market – Three core building blocks
1. Reposition to Solution Provider
Our strategic vision is to develop a solution-based business model, building on the Group’s intrinsic knowledge base and its success in delivering innovative solutions. Where we have developed more strategic relationships with customers and address their new market challenges, we drive greater value both for them and for our business. One of our strategic priorities is to build on this success and expand our solution design approach to a wider range of customers where we have identified a current need, and where they will benefit from working within our proven solution design process which is both customer and consumer centric.
2. More Agile Manufacturer
We are further reengineering our operational structure and processes to reflect changing demand, improving our production agility and flexibility. In general, our market is no longer characterized by long-term roll-out programs with large volumes. Instead, customer demand is increasingly based on projects with smaller volumes and shorter lead-times. Over the years our manufacturing base has been developed around more traditional demand patterns, and as a result we have identified a number of opportunities to increase operational efficiency and consistency throughout the Group.
3. Become One ITAB
The ‘One ITAB’ workshops highlighted issues caused by the Group’s structure, which consisted of 45 individual business units based on product offer and country of origin. These included inefficiencies in communication, shared knowledge and common ways-of-working, as well as disparate unit cultures, which we are now addressing. More positively, the workshops also revealed that a number of the desired strategic components were either already in place or in development in different parts of the Group, including consultative selling activity, an existing solutions portfolio, senior customer relationships and Group training programmes.
Take a few minutes to listen to our President & CEO Andréas Elgaard talking about ITAB’s strategy.