Recurring Revenues Solutions Strategy
Project scope
Categories
Sales strategy Marketing strategySkills
sales & marketing business strategy consulting strategic analysis marketing strategyThis particular challenge focuses on helping Wenco increase the amount and relative percentage of predictable recurring revenues.
The company has a well established strategic plan that will be shared in detail, but needs to transition its revenues from traditional "one deal at a time" high capital expense (CAPEX) sales to recurring, predictable operating expense (OPEX) sales. The company strategy identifies key growth areas such as data/IoT and autonomy, and has been funded by its parent, Hitachi Construction Machines, to develop a cloud platform to be able to deliver global solutions to a larger and wider global market. With these new initiatives comes the opportunity to create a solutions and serviced based pricing model that will achieve the goal of increasing recurring revenues.
To help us deliver our goal to increase recurring revenues, students are expected to:
- Research our current strategy, through a detailed case study and confidential strategic plans that will be provided
- Develop a strategy to price existing and new solutions in a manner that shifts from one-off CAPEX to predictable, recurring revenue OPEX models.
- Prepare a business plan and presentation delivered to executives of the company
About the company
Wenco International Mining Systems Limited (Wenco), is a major provider of data technology to the global mining industry. Since its inception in 1987, the company has acquired over 30 years of experience in developing fleet management systems and mining software technology. Wenco was acquired by Hitachi Construction Machinery in 2009. Headquartered in the Vancouver area suburb of Richmond, British Columbia, Wenco operates offices on five continents and over 150 installations worldwide, helping mining customers raise productivity, decrease operating costs, extend the running life of mining equipment, improve mine safety, and increase the efficacy of decision making. Wenco has entered a period of rapid growth, but with that growth comes a number of major strategic challenges surround all aspects of its business. The company would like your support in addressing those challenges.