Manufacturing Leadership Series Strategies For Business Growth
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Transcript of Manufacturing Leadership Series Strategies For Business Growth
Manufacturing Leadership SeriesStrategies for Market Growth
Slide 2May 5, 2011
Marc Rothstein
President
Prime Synthesis
Slide 3May 5, 2011
The four bases:Thymine
Guanine
Adenine
Cytosine
Double Helix
DNA Oligonucleotide
Slide 4May 5, 2011
Controlled Pore Glass (CPG)
Slide 5May 5, 2011
• Established in the late 1980’s
• Located in Aston, PA
• Focused on the development and production of DNA synthesis materials for the biomedical research field
• Recently completed construction of an additional 10,000 square-foot, Good Manufacturing Practice (GMP)-compliant production area
Prime Synthesis
Slide 6May 5, 2011
Situation
• Core product, Controlled Porosity Glass (CPG) for the DNA synthesis market. Losing market share to foreign competition.
• Developed an improved product to regain share.
• Had potential for purification related bio-chemical applications – a new market for Prime Synthesis.
Prime Synthesis
Slide 7May 5, 2011
Situation
• The new CPG product had the capability for higher loading – an advantage in the new target market space
• Rothstein came to DVIRC for support in exploring the market potential for this new product and to develop a strategy moving forward.
Prime Synthesis
Slide 8May 5, 2011
Prime Synthesis
Solution• DVIRC Recognized that Prime Synthesis qualified for
funding from the MidAtlantic Trade Adjustment Assistance Center (MATAAC)
• Prime determined to use this for new product development that will allow them to be more competitive in the world market
Slide 9May 5, 2011
Prime Synthesis
Solution• DVIRC connected Prime Synthesis with Research
Triangle Institute (RTI), who then took on the task of implementing Technology Driven Market Intelligence (TDMI) effort for the company
Slide 10May 5, 2011
Solution• RTI gathered existing market data and reviewed
published academic and scientific literature related to the Prime Synthesis technology and potential applications
• Identified key players in the market and arranged interviews with them
Prime Synthesis
Slide 11May 5, 2011
Solution• Research confirmed that manufacturers needed to
reduce the cost of the drugs while enhancing manufacturing efficiency and productivity
• RTI discovered that Prime Synthesis’ technology addressed the rate-limiting (bottleneck) step in the production process
• The target market offers Prime Synthesis the potential for $100 million in annual sales.
Prime Synthesis
Slide 12May 5, 2011
Results• With the guidance of DVIRC and the research provided
by RTI, Prime Synthesis is ready to begin searching for potential business partners and developing a strategy for entering the new bio-chemical processing market
• We now have the ammunition to go to major players and show that we have the answer to their production efficiency issues
Prime Synthesis
Slide 13May 5, 2011
Results• Avoided the costs of forming a limited potential
partnership with a Korean company
• DVIRC directed Prime Synthesis to the MATAAC funding resources. With DVIRC’s assistance, Prime Synthesis qualified for up to $150,000 in cost share funding, and used the money to pay for work related to their new technology, including patent protection, the RTI research, and the development of a website.
Prime Synthesis
Slide 14May 5, 2011
Lessons Learned
• Time and effort seeking outside help is well spent
• Offering a “me too” lower cost product is not an option in some markets
• “Wishful Thinking” Strategic Plans can be avoided with credible market research performed by third party experts
• Understanding barriers to entry is critical step in new business development
Prime Synthesis
Slide 15May 5, 2011
Next Steps• Getting ready to present to possible investment partners
• Preparing to produce additional laboratory data related to product performance
Prime Synthesis
Slide 16May 5, 2011
Marc Rothstein
President
Thank You!
Prime Synthesis
Manufacturing Leadership SeriesStrategies for Market Growth Bud TylerVice President
Slide 18May 5, 2011
• Established in 1977 as a CNC machine shop fabricating close tolerance, complex parts
• Headquartered in Willow Grove, PA
• Employ 85 people
• 65,000 sq. ft facility equipped with 50 CNC machines and other advanced technologies
The E F Precision Group
Slide 19May 5, 2011
• Today, we are two specialized, autonomous, yet interacting companies
• Full service solutions provider:– High-tech custom mechanical
– Electro-mechanical components
– Full assembly operations
– Engineering services
The E F Precision Group
Slide 20May 5, 2011
• Serve clients in defense, aerospace & medical product markets, including,
– Johnson & Johnson
– Lockheed Martin
– Northrop Grumman
The E F Precision Group
Slide 21May 5, 2011
• Certified to ISO 9001:2008 / AS9100:2004 Rev B
• ITAR and UL508a registered • Registered FDA Critical Device / Contract Manufacturer
The E F Precision Group
Slide 22May 5, 2011
• 1977 – 1997 – Machine shop / assembler
• Mid 1990’s global competition emerged
• Reinvention of company essential to survive
The E F Precision Group Situation
Slide 23May 5, 2011
• 1997 – 2007 revitalized the business
• Expanded capabilities, and invested in advanced technologies
• Added engineering department
• Retrained workforce
• Achieved accreditations to cultivate customers in defense, aerospace, medical markets
The E F Precision Group Situation
Slide 24May 5, 2011
• Approach to Sales and Marketing did not change
• Not a sales driven company
• Focus on business resulted in having blinders on
– How EF was perceived in the market
– Approach to generating new business
The E F Precision Group Situation
Slide 25May 5, 2011
• Despite expanded capabilities, investments, still pigeon-holed as a “machine shop”
• Marketing even more challenging selling advanced machining engineering and assembly capabilities for highly complex, critical components
• Building market awareness of new value proposition became a priority
The E F Precision Group Situation
Slide 26May 5, 2011
• Turned to DVIRC
– Raise company profile in target markets
– Identify potential new business
– Facilitate business networking opportunities
The E F Precision Group Situation
Slide 27May 5, 2011
• DVIRC marketing team repositioned the EF Precision brand to align with the new realities of the business
• Introduced structured rebranding process
– Developed a strategic marketing roadmap
– Implemented a number of tactics, including…
The E F Precision Group Solution
Slide 28May 5, 2011
• Revised Value Proposition
– Articulated the strengths and key benefits of the new brand
– “Attitude is Everything”
The E F Precision Group Solution
Slide 29May 5, 2011
• Performed Market Research
– Benchmarked key clients to identify new opportunities
– Created prospect database of key decision makers
The E F Precision Group Solution
Slide 30May 5, 2011
• Redesigned brand Identification
– Facilitated the redesign of the companies identity and
communications materials
The E F Precision Group Solution
Slide 31May 5, 2011
• Designed new web site
• Conveyed capabilities through 3d animation and video
• Public relations campaign announcing launch
The E F Precision Group Solution
Slide 32May 5, 2011
• www.efgroup.com
The E F Precision Group Solution
Slide 33May 5, 2011
• Direct marketing campaign
The E F Precision Group Solution
Slide 34May 5, 2011
• Manufacturer of the Year Nomination
The E F Precision Group Solution
Slide 35May 5, 2011
• Initiated Public Relations
• Springboard beginning with award
The E F Precision Group Solution
Slide 36May 5, 2011
• Initiated Public Relations– Industry Week
– Bloomberg
– Philadelphia Business Journal
– The NE Manufacturing News
– Design 2 Part Magazine
– The Intelligencer
The E F Precision Group Solution
Slide 37May 5, 2011
• Facilitated Network Opportunities
– DVIRC industry connections
– Member of DVIRC CEO Council
– 15 non-competing members serve as
advisory group
The E F Precision Group Solution
Slide 38May 5, 2011
• Named 2010 Manufacturer of the Year
– Springboard for building market awareness
• New web site and brand image launched
– Reflects value proposition and capabilities of
The E F Precision Group for new prospects
The E F Precision Group Results
Slide 39May 5, 2011
• Public Relations
– coverage amounted to $107,000 value
• Networking
• CEO Forum
• Lead Generation
– resulted in a dozen potential new clients
The E F Precision Group Results
Slide 40May 5, 2011
1. When talking about Public Relations understand that ROI isn’t
always measureable, it is the awareness gained and how you
handle the network that it creates
2. Use all of your tools in the tool box – Articles, Campaigns, Web
Site, etc – utilize them for generating business, improved network,
and new opportunities
The E F Precision Group Lessons Learned
Slide 41May 5, 2011
3. Never be afraid to try something new or uncomfortable,
be creative when you’re in a different environment –
think outside the box
4. Don’t box yourself into one way thinking –
i.e., with Lead Generation – don’t just look for leads, look for how
the people you are talking to can help you find other Leads – not
just doing business with them
The E F Precision Group Lessons Learned
Slide 42May 5, 2011
• Continue investing in marketing to support business development
• Get mechanisms in place for sustained efforts
• Continue building awareness of The EF Precision Group
• Share knowledge… – manufacturing is an excellent career – personal outreach to high schools / colleges
to get message out to young people
The E F Precision Group Next Steps
Thank You!Bud Tyler
Manufacturing Leadership SeriesStrategies for Market Growth
Slide 44May 5, 2011
Welcome toWestinghouse Lighting
Ray AngeloPresident & CEO
Slide 45May 5, 2011
Worldwide Recognition
Few brands have the power of Westinghouse.
With 81% consumer recognition* in the U.S. anda growing worldwide presence, Westinghouse offers the opportunity to increase sales through a familiar, global brand already tested and trusted by consumers.
*June 2010, Caravan Study.
Slide 46May 5, 2011
Who is Westinghouse Lighting?
Westinghouse Lighting:
• Is a privately owned family business, started by Stan and Tim Angelo in 1946.
Slide 47May 5, 2011
Who is Westinghouse Lighting?
Today Westinghouse Lighting:
• Annual sales $100 million +
• Employ 250 people
• Is a full-line lighting supplier of light bulbs, ceiling fans and decorative and spec grade fixtures.
• Is a global marketing and distribution company.
• Cultivates an environment of free enterprise for inventions and ideas.
Slide 48May 5, 2011
Global Brand Presence• Westinghouse Lighting develops and/or markets products in 100 countries on 5 continents
– World Headquarters – Philadelphia, Pa. – Sales/Distribution Office – Montreal, Canada– Sales/Distribution Office – Dusseldorf, Germany– Mexico Company – Mexico City, Mexico– Joint Venture – Colon, Panama– Planned – SE Asia– Planned – Australia
U.S. Distribution Centers• Philadelphia, Pa.• Chino, Ca.• Jacksonville, Fl.• Global Supply Chain
China Offices in Hong Kong & Changan• Sourcing & inspection efforts
Slide 49May 5, 2011
Three Product Categories
Lamps Luminaires Ceiling Fans
Slide 50May 5, 2011
Core Business
Slide 51May 5, 2011
Competitive Landscape
Slide 52May 5, 2011
Litex Design House
Hampton Bay Harbor Breeze
SLI
MaxLightTCP Feit
PQLHalco Satco
Slide 53May 5, 2011
Situation
• Through 1970s and 1980s enjoyed continual successduring DIY growth trend
• Sold through major home centers and hardware retailers
• Products fit the market, prices competitive, demand was high, gaining market share
Slide 54May 5, 2011
Situation
• By mid 1990’s independent retailers replaced by Home Depot, Lowes and other national chains
• Global import competition grew
• Sales declined
• The company “muddled through” the next 15 years
Slide 55May 5, 2011
Situation
• Changes implemented by 2009
• The company was like a “glass half empty, half full stage”
• The business stabilized, global business doing well • Strengthened management team• Restructured sales and marketing culture
Slide 56May 5, 2011
Solution
• Sought DVIRC for assistance
• Guided Westinghouse management team through disciplined process
• Envisioned the future• Assessed current state of business• Conducted SWOT analysis• Created plan, set goals and developed
action plans
Slide 57May 5, 2011
Solution
• Identified core competencies and competitive advantages…
and
• Areas for improvement to achieve strategic objectives• Gaps identified• Action plans put in place
Slide 58May 5, 2011
Solution
• During this process, short term business issues identified
• DVIRC provided framework for some “tough questions about the true state of the business”
• Realistic and achievable plan to deal with challenges emerged
Slide 59May 5, 2011
Solution
• Performance Management Plan• Improve employee performance• Align performance with company goals
• IT Conversion• Replace old system • All departments brought in process
Slide 60May 5, 2011
Solution
• Financial Budgeting Process Created
• Marketing Content Development• 2000 products – centralized database created
Slide 61May 5, 2011
Results
• Enhanced the company’s ability to develop action plans, track and monitor
• Implement and self-correct when necessary
• Ability to follow through on major initiatives
Slide 62May 5, 2011
Results
• Communications throughout organization improved significantly
• Performance Management resulted in consistent and organized process reviewing employees and alignment with company goals
• Employees eager and enthusiastic about their role and contribution
Slide 63May 5, 2011
Results
• May 2011 old VAX system will be converted to a Microsoft system
• Employee ownership and commitment seeing this project through
Slide 64May 5, 2011
Results
• May 2011 a new website will be launched to provide customers with all products, specifications and photos in downloadable formats
• Countless hours have been saved, customers can now obtain information directly in minutes
Slide 65May 5, 2011
Lessons Learned
1.Strategic Planning must be valued by the Owner/President and Senior Management Team
2.Strategic Planning is essential for Westinghouse Lighting with the assistance of a competent facilitator
3.Needs to be a “living, breathing plan” not a binder that sits on a shelf
Slide 66May 5, 2011
Lessons Learned
4. Action Plan Initiatives assigned to project owners with timelines and monthly reviews
5. Plan Implement
Plan Implement
Slide 67May 5, 2011
Lessons Learned
6. Most effective Strategic Plan group size 4 – 8
7. Create an open, collaborative atmosphere
8. Move towards truly key initiatives, 2 – 4 is ideal
“Separate the vital few from the needed many”
Slide 68May 5, 2011
Lessons Learned
9.Communicate Plan to entire company – performance management “all performance starts with clear goals”
10.Rolling three years
Slide 69May 5, 2011
Next Steps
• Westinghouse Lighting in a stronger position to implement additional strategic initiatives
• Continue developing action plans around:• Positive cash flow• Sustainable fixed costs• Creation of global marketing / licensing enterprise
• Efforts already begun focusing on New Product Development
Slide 70September 30, 2010
Manufacturing Leadership SeriesStrategies for Market Growth
Thank you!
Manufacturing Leadership SeriesStrategies for Market Growth