Consulting projects
Akzo Nobell: Strategic planning for portfolio management
The global pharmaceuticals industry is undergoing dramatic change. Traditional business models are challenged by new technologies, increasing regulation, competition from generics and the rise of new competition from China and India.
Since 2002, Cognitus has been working with Akzo Nobell to build portfolio-planning tools to meet these challenges with integrated long-term growth and value strategies. We have created a unique SD-based portfolio management method that integrates operational and strategic perspectives, enabling the portfolio to be cut in any number of ways across the value chain and value cycle. The method is transparent and supports alignment and communication of portfolio strategies across the whole organization.
GlaxoSmithKline: Pharmaco-economics
Cognitus implemented a model-based approach to evaluate the impact of a new anaesthetic drug on patient flows and operating theatre processes, to assess the potential economic impact of the anaesthetic on the total clinical environment.
Oil and Gas
BP Exploration: Oil field value planning
Cognitus has supported BPX through a number of significant VCD projects. Projects have focused on developing long term field value, the approach being to model “assets” (entire oil fields) at an “intermediate” detail level, linking strategic thinking with operational perspectives, to identify and analyse opportunities for value development.
A major contribution of the “whole systems” VCD approach has been to bring together all the disparate management interests in the asset (e.g. reservoir, production, commercial, financial) around a single, shared perspective of “value”.
On one major North Sea oil field, this value-based approach contributed significantly to a major reappraisal of future field developments, resulting in additional value of around £500 million.
Marathon Oil: Oil field value planning
Supporting the analysis of interdependent operational and technical strategy options in a North Sea oil and gas field, developing and testing options to maximise the value of the field over its remaining life.
Astra-Zeneca: Product life cycle value management
Development of a detailed simulation-based management 'game' - a learning environment (LE) - that explores the complex value trade-offs in agrochemical product life cycle management dynamics. The LE enables managers to 'fly' a product through its entire life cycle from initial R&D investment through product launch , through the period of exclusive sales and into (post-patent) generic competition.
Huntsman Tioxide: Pricing
A model of the pricing dynamics of internationally-traded chemical compounds, including influences of demand fluctuations, capacity management and competitors’ pricing actions.
Astra Zeneca: Supply chain value planning
Cognitus has supported a long-term SD programme to support supply chain development for 30 global products – establishing strategies for cost reduction, capacity rationalisation and production integration. Savings estimated at +£10 million to date.
Most recently, this work has been taken to a higher level and current SD work is focussing on the potential to create value through the integration of supply chains across product lines and with other global organizations.
Scottish Power: Life cycle asset management under regulation
Modelling asset infrastructure in respect of ageing processes and asset performance, to assess the broad impact of alternative investment and repair/renovation strategies on business efficiency, risk and economic value over the full asset life cycle. A significant focus of this work has been to explore interdependencies of asset management strategies within a regulatory framework.
HSBC Leasing: Rail rolling stock asset management
Supporting the development of asset management strategies including maintenance, refurbishment and replacement, to balance risk mitigation with value management over the whole life cycle of rail rolling stock.
Various NHS Health Trusts: Capacity planning
Developing capacity plans for new health care processes, relative to NHS health targets, local conditions and budgetary constraints, to meet waiting list and waiting time targets.
Public Policy Development: Aligning health care and social care
In the UK the National Health Service (NHS) delivers “free” health care to all citizens. The UK Government is particularly concerned about patients who remain in hospital after they are declared “medically fit” to be discharged, because there are insufficient resources available to local social services to receive them. This effect, known as “delayed discharge” is a significant cause of rising waiting lists for treatment.
Solutions to the problem require cooperation between local NHS hospitals and local government departments.
Cognitus has pioneered a systems approach to local multi-agency collaboration in the delayed discharge problem. The approach involves the development and application of systems models with multi-agency management groups.
The approach has been successfully tested with several NHS Trusts and with the Local Government Association. Several projects are currently under way with local NHS and social services agencies.
Royal and Sun Alliance: Strategic planning
Implementing a model-based programme to support learning, decision-making and planning the life cycle of direct sales insurance products.
Yorkshire Bank: Business excellence programme
Supporting a Business Excellence programme by providing training in systems thinking and model-based support for Business Excellence (BE) projects. The first BE project focuses on identifying critical success factors for a European credit card business.
Royal Bank of Scotland: Customer and product portfolio planning
Supporting a bank-wide strategy review and screening of multiple potential products, according to business benefit, feasibility and interaction with other products. The basis of this work is a business model that tests the value impact of product strategies on the customer base.
National Air Traffic Services (NATS): Operational policy harmonisation
Modelling the ATC and ground environment at Heathrow Airport to explore policy interdependencies between ATC and a major airline – to identify potential for policy harmonisation and reduction of aircraft delays on the ground.
Strategy consulting firm: Telecoms market scenario development
Joint initiative to model market dynamics of third generation (3G) mobile telecommunication technology – objective to assist a variety of client organisations to develop robust business strategies against a background of dynamic complexity and uncertainty.
BAC: Research evaluation
Developing broad understanding of the long term (i.e. 10 – 25 years) impact of alternative R and T (research and technology) investment strategies, in terms of defence product and process effectiveness relative to changing defence priorities and conditions.
FMCG
McDonalds: Supply chain management
Modelling the dynamics of the UK meat supply chain – identifying potential for cost reductions and increased security of supply, including potential for strategic alliances with meat processors and distributors.