ai-case-study-2

FutureScaleX helps a global inspection company evaluate new digital-enabled business models for investment opportunities.

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Executive summary

Situation: A global leader in inspection services aimed to explore AI's potential to disrupt its industry, identify growth opportunities, and craft a robust strategy to protect its market leadership while mitigating competitive threats through strategic acquisitions.

Challenge: Uncertainty around market readiness for digital and AI solutions, coupled with ambiguous growth trajectories, created challenges in evaluating and prioritizing investments, hindering the development of a focused and impactful growth strategy. 

Solution: FutureScaleX (FSX) evaluated the addressable market and pinpointed optimal investment timing for maximum impact. Leveraging robust frameworks, FSX assessed market readiness, conducted scenario analyses, and recommended a tailored investment strategy suited to the current industry landscape. 

Impact:
  • Developed addressable market scenarios. 
  • Identified the five "most promising" target companies for partnership or investment. 
  • Delivered a high-level business model for scalable service delivery. 
Exploiting AI and digital technology to create a new decarbonized business model

 

Business Context: Our client, a global leader in testing, inspection, and certification services, operates within the fragmented compliance market for building codes and standards. They sought to explore how AI and digital technologies could drive market transformation, reduce resource use, and enhance efficiency. Additionally, they aimed to evaluate the viability of emerging technologies and their potential to enable a unified market strategy despite the localized nature of code compliance. FutureScaleX (FSX) was engaged to assess AI-powered compliance solutions and deliver actionable recommendations to unlock new market opportunities, provide strategic insights, and promote a sustainable growth strategy.

 

Business Requirement: Our client aimed to determine the best approach for assessing market readiness, sizing opportunities, and evaluating growth potential to inform strategic decisions on research, investments, and partnerships. Once opportunities were identified, they required  a clear, actionable roadmap for their go-to-market strategy, including options to build, buy, or adopt a hybrid model. Timing was critical---when to act for maximum impact?

Additionally, the client explored leveraging advanced technologies such as digital twins and AI to enable an innovative, "always-on" business model. This approach aimed to unlock new revenue streams through monitoring and certification services while simultaneously transforming operations and redefining the competitive landscape. 

Key deliverables
  • Delivered a detailed breakdown of the addressable market (PAM, TAM, and SAM) with growth projections, highlighting key trends to uncover expansion, opportunities, and market shifts. 
  • Developed a strategic investment framework, evaluating market dynamics, customer readiness, and geographic opportunities to guide data-driven decisions. 
  • Designed a competitive analysis tool focused on market access and technological advancements, supporting targeted M&A strategies to drive innovation and growth. 
  • Identified the top five potential partners or investment targets, aligning with strategic goals and proposing tailored business models to maximize synergy and long-term value creation. 
The FSX solution framework FSX utilizes a 3-step process to evaluate digital-enabled business models for investment opportunities.
Assess
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Step 1:

Opportunity Assessment

Evaluated the legitimacy of market claims for the role and growth potential of AI in target market

  • Market assessment: Validated AI-based building code systems' growth by estimating PAM, TAM, and SAM and analyzing stakeholders, trends, drivers, and challenges.
  • Competitor landscape: Analyzed business models, customer segments, offerings, strategies, revenue streams, and value propositions for stakeholders. 
  • Customer analysis: Analyzed key customer segments, needs, influencers, adoption drivers, challenges, and emerging trends. 
  • Common business practices: Identified industry practices, including customization, servicing, partnerships, certifications, structure, and metrics. 



Step 2:

Target Assessment

Evaluated companies and their claims to identify potential partners company landscape & database

  • Shortlisting of targets: Implemented systematic scorecard-based filtering of top 5 "most promising" companies to target. 
  • Comparative prioritization: Assessed the top 5 targets based on management, assets, market reach, and unique selling points. 
  • Brief profiles of top 5 targets: Profiled 5 of the highest priority targets covering ownership, services, structure, market access, and USPs. 
Most preferred companies
Model of engagement
Viability of GTM strategy
Entry barriers & success factors

Credibility of market claims
Action
Step 3: Recommendation
FSX utilized a 3-step process to evaluate digital-enabled business models for investment opportunities. 
‘GO’ vs ‘HOLD’ Decision
  • Informed investment decisions by assessing serviceable obtainable market (SOM).
  • Evaluated market and industry readiness. 
Market Approach
  • Recommended investment and risk mitigation strategies. 
  • Prioritized customer segmentation, identified competitive advantage, and optimized value proposition. 

FSX sample output

Total addressable market projection
Market and Technology Readiness
Investing pitfalls

The FSX methodology

Sustainable-growth-as-a-service: A systems-level approach that connects the dots, identifying critical tipping points and solutions that matter. 

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Policy & Regulation

Carrots vs. Sticks

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Innovation & Technology

Potential vs. Scale

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Techno-economics

Tipping points vs. ROI

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Supply Chain

Technical vs. Capital Readiness

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Digitalization

Time-to-market vs. Payback Period

Partnership & Ecosystem

Risk vs. Reward

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