Strategic levers

Industrial Footprint

Development strategically aligned

Strategic allocation of expertise and assets in the R&D area

Optimisation of the R&D structure and global innovation networks

In the area of development, it is important to combine market-specific customer proximity with efficiency. The targeted allocation of expertise and R&D resources in a global context is crucial. This requires the following levers to be addressed:

• R&D strategy
  In response to global challenges, an R&D strategy is needed that builds on a technology roadmap and defines where country-specific clusters make sense, e.g. to promote research partnerships with universities and start-ups and to take full account of local regulations.

• Dimensioning & allocation
  In the global network of R&D locations, the focus is on optimising cost structures while at the same time ensuring the availability of developer expertise. This can be ensured through modular development structures and continuous talent management.

• R&D assets
  Modern laboratories and test facilities form the backbone of the R&D area and are therefore also the focus when considering the industrial footprint. In particular through mutual synergies with production facilities as well as the advantages and disadvantages of outsourcing these assets.

Industrial Footprint

Production – efficient and flexible

Lean and resilient core value creation

Plant structure, vertical integration and capacity control

Production forms the core of global value creation. This must be organised in such a way that an optimum balance of costs, market proximity and resilience is achieved in the global value creation network. The levers here range from the organisation of the plant network to the dimensioning of an individual plant.

• Depth of added value
  Strategic balance between in-house production and outsourcing – reducing complexity and strengthening core competencies. The fundamental decision on vertical integration must be driven by strategic core competencies, cost and complexity reduction, manufacturing flexibility and the exploitation of regional advantages.

• Allocation of plants
  When allocating the plants globally, it is important to weigh up the optimisation of costs and the necessary proximity to the market. The role allocation of the plants is then also based on this. The utilisation of economies of scale, possible flexibilisation strategies and relocation potential must be evaluated.

• Rightsizing
  Optimised dimensioning is crucial when it comes to avoiding over- or undercapacity. An end-to-end concept is required here, from the optimal use of plant and space, to the adaptation of the organisation (e.g. capacity adjustment to demand or product mix) and the automation of processes.