Business Model Innovation for a CNC Importer

HomeBusiness Model Innovation for a CNC Importer

    Albeit being the industry leader in CNC sales, an established CNC importer was seeking growth and increased profitability in an increasingly crowded market. The firm’s business model was based on import and sales of CNC machines, with additional value-added services like maintenance. Yet their profit margins had been stagnant or dropped over the past couple of years. Management turned to Mentoro for assistance.

    The answer lay in thinking differently and adopting a new business model. Since then, the firm had transformed from a low value adding, low margin CNC importer to a high value player fueled by technology and platform business model.

    The firm now tracks and controls the efficiency of all CNC machines via sensors and collects and analyzes valuable data about its clients and their machinery usages. It also has a separate platform in which its clients can access and hire trained CNC operators and outsource some parts of its production to other, capable manufacturers.

    The new business model has been a measurable success. It has been hailed as a revolution in the industry and the firm’s sales and profitability increased dramatically.

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