1.2 Our strategy
At Nedap, we aim for market leadership in Healthcare, Livestock, Retail, and Security. We have chosen these markets for their long-term value potential. Our markets offer a sustainable competitive edge, attractive financial returns, and sufficient opportunities for organic growth.
We foster an entrepreneurial culture that facilitates innovation. Our strength lies in maintaining our market focus while leveraging our collective knowledge and capabilities to deliver value through technology. We invest in research and development and the commercial capabilities needed to fulfill our markets’ growth potential.
Digital Twin Technology
With our Digital Twin Technology, we bridge the physical and digital worlds. Our solutions create digital representations of healthcare delivery, dairy farm operations, retail environments, and security infrastructure. These digital twins help unlock the power of advanced technologies such as deep learning, AI, and big data, making them key elements of our strategy.
Step Up!
Always in motion is our promise to our customers. It means that what works today gets even better tomorrow. It also represents our commitment to continuously improving our own way of working under Step Up! We do this by creating focus and reducing complexity. Our Step Up! efforts have ranged from making strategic decisions about our markets and solutions to creating opportunities for sharing technical and commercial know-how across our organization.
Step Up! today is about increasing our impact. We do this by encouraging entrepreneurial thinking and innovation while assessing the business impact of our ideas. This ensures we focus on activities that deliver financial results and long-term stakeholder value. As we move forward, we stay true to our values: Radically clear, Always deliver, and Full Nedap power.
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 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, and leading transformations rather than adapting 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, prioritization of efforts, and allocation of resources across the three phases of a solution's lifecycle. Each phase has distinct needs. By mapping our solutions to their specific phase, we can focus more clearly, get the right teams in place, and invest in the necessary 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, current growth potential, and steady baseline.
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. Our goal is to move quickly toward 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 we 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 make strategic investments to align solutions with evolving customer needs and ensure their long-term value. By keeping our solutions relevant, we are able to capture value from our investments. Solutions in the Core phase support our investments in creating and scaling innovative solutions.
Value creation model
Our value creation model shows how we use resources to create value for our people and organization, customers and end-users, and partners throughout the value chain. It also connects our purpose, strategy, and CSC methodology to our sustainable impact. In this annual report, we provide insight into the financial and non-financial results of our value creation process.
