Creative Downsizing
Issue
Your company has invested
in vertically integrated internal resources that support all phases of your
product cycle (development, manufacturing, customer support). Competition
forces evaluation of the expense to support non-mission critical internal
resources. A consideration in all cases is the loss of the proprietary value
added by internal resources.
Conventional Solution
Sell
operations in soft market taking capital loss or shut down
activities incurring the cost of layoffs and writing off equipment, losing
proprietary assets in either case.
Creative Solution
Generate revenue and lower expenses through creative outsourcing of
non-mission critical technical resource
Creative Process
Work with senior
management to identify:
· Identify
non-mission critical operations
· Determine
commercial value
· Develop
outsourcing strategy
Priorities:
· Satisfy
existing customer commitments
· Maintaining
mission critical resources
· Eliminate
expense while retaining proprietary technology
· Generate
maximum revenue from sale of asset
· Recover
cost of shut down
Outsourcing Strategies:
· Spin
off operation
· Sell
off operation
· Offer
capabilities to commercial customers
· Identify
commercial elements for sale
· License
proprietary technology