1.3 Our strategy
At Nedap, we strive for market leadership in every market we are active in. We focus on industries that offer a clear path to market leadership, a sustainable competitive edge, attractive financial returns and sufficient potential for organic growth. This, combined with our well-established and long-standing position in these markets, has led to the selection of Healthcare, Livestock, Retail and Security as our four key markets.
We capitalize on the growth potential of our key markets with innovative digital twin solutions. We commit to these solutions with the investments in research, development and commercial capabilities needed to fulfill that potential.
Digital twins
Digital twins are virtual representations of the physical world, whether it is people, animals, assets, processes or systems, that are critical to unlocking the potential of advanced technologies such as deep learning, AI and big data. That makes our focus on digital twin solutions a key element of our strategy.
Step Up! represents our ongoing, organization-wide efforts to step up our performance and hone our competitive edge as competition intensifies. It is a commitment to changing and improving the way we work to support our strategic ambitions. Step Up! involves setting a clear path forward, keeping our commitments and making optimal use of our collective knowledge, expertise and experience. By upholding our values Radically clear and Always deliver, we have laid a foundation for the structural acceleration of our growth. Our strategic driver Full Nedap Power is key to unlocking our full potential.
Nedap's business units' distinct capabilities offer a strategic advantage. Full Nedap Power is about maximizing our potential by uniting these capabilities and leveraging our collective resources. To this end, we are building a shared culture, identity and capabilities. In this way of working, we facilitate the exchange of knowledge and ideas, and we promote alignment between business units to enhance collaboration, improve efficiency and foster our culture.
Create & Scale growth strategy
Create & Scale is our strategy for achieving organic growth. It guides us in developing innovative solutions and scaling them to market leading positions, delivering lasting value. It also keeps us agile and ready to adapt. Create & Scale is built on three pillars: the Create, Scale, Core (CSC) methodology, scaling by surfing, and driving growth through market leadership.
CSC methodology
Our structured approach to developing new innovations while gaining market share with our existing solutions, clearly defining when to take what steps.Scaling by surfing
The way we navigate the wave of changing market dynamics, from new customer needs to emerging technologies. We leverage our technological and market experience to identify these paradigm shifts, catching and surfing the right wave, to lead transformations rather than adapt to market changes. We follow this approach to achieve market share, and when we have achieved it, we leverage our credibility and customer references to strengthen our position.Driving growth through market leadership
Expanding our customer base to new sectors and regions, while simultaneously growing our value per customer with new applications and features.
CSC methodology
The CSC methodology guides decision-making, the prioritization of efforts and allocation of resources across three phases of a solution's lifecycle. As solutions progress through these phases, it informs strategic investments in teams and infrastructure. With CSC, we also create insight into our solutions pipeline. By differentiating between create, scale and core, we gain a clear picture of our future growth opportunities, our current growth potential and our steady baseline. All solutions in the pipeline have long-term value potential.
Create
The primary objective in the Create phase is to validate the market potential of a new solution. We work with selected customers to ensure the solution offers strong competitive differentiation, and we remain flexible by returning to the drawing board if necessary. The end goal is to develop a validated, scalable business model with the first paying customers.
Scale
In the Scale phase, the focus shifts to gaining maximum market share. We only scale when market and technology readiness reach the right level. Once conditions are right, we expand sales, marketing and customer support, and design processes to be standardized and scalable. By scaling strategically, we maximize value while ensuring long-term success in the markets we serve.
Core
When a solution reaches maturity, it enters the Core phase. In this phase, we expand our focus to optimizing profitability and ensuring continued relevance in the market. We make strategic investments to align solutions with evolving customer needs and strengthen their long-term value. In doing so, we remain a positive force within our markets. The success of our Core phase in turn strengthens our ability to create and scale innovative solutions.