North American Industrial Equipment Manufacturer
Case Study: IT Services Subsidiary Divestiture
Our client’s captive Dealer Business Systems subsidiary required substantial investment to build a next generation DBS solution. Having decided that the DBS solution was “critical but not core” to its strategic priorities, our client wanted to understand the viability of divesting the subsidiary to enable it to become a non-proprietary DBS provider to multiple OEMs.
Most eBusiness and technology investments were treated from a "point solution" perspective. This treatment was keeping the enterprise from realizing the true operational and strategic benefits of its potential eBusiness investments.
Morningstar consultants conducted basic strategic analysis, including:
- An assessment of the market opportunity
- A validation of the potential business model
- A strategic assessment of the criticality of a proprietary, differentiated DBS solution
In addition, we were able to create:
- A market-segmentation-based growth strategy
- A business development/partnering plan
- An operational strategy for transforming the business into a market-driven company