A window of opportunity for VELUX
VELUX is a Danish success story. For more than 70 years, VELUX has provided everyone with a view through high-quality windows. A story of placing focus on creating better indoor environments, and bringing more daylight and fresh air into our homes. It is one of the success stories that – being a billion EUR business - have made a significant impression globally as well. But like most other corporations, VELUX must grow and develop to stay relevant. They do this by having bold ambitions, promoting a learning culture and driving change.
VELUX’ primary audience is consumers. But increasing competitiveness internationally and the fact that the residential market has a latency of 30 years, i.e. people don’t usually build a new house every five or ten years, it is a challenge to keep customer loyalty. In order to accelerate growth, VELUX must look for new opportunities. And those opportunities are not to be found in brand extensions, such as doors and furniture, says Peter Bang, Group CFO at VELUX.
“Our path to growth comes from our heritage, which is windows. Our core product is the essence of our core business. But what we can do is focus on expanding our target group and evolving the way we interact with our customers. We need to build on our existing legacy and trust in the market and keep bringing new and better experiences to our customers.”
Since VELUX’ new CEO David Briggs came onboard to lead the company in January 2018, the goal for VELUX is to achieve 20 % growth by 2022. To execute on the new growth strategy, a set of strategy pillars have been identified as a basis for the transformation: grow the core business – but to new audiences; increase quality standards – building on the existing high-quality, good service reputation; change core systems – make the organization more data-driven and agile through more effective systems.
Part of the new strategy is to focus on the commercial segment, delivering window solutions for offices, museums, airports and business buildings. By broadening the target groups for the existing product portfolio, VELUX will be able to harness a new potential by using the core competences while mitigating risks associated with market fluctuations.
Using data insights to foresee market trends and interact with customers
One of the key levers for VELUX is to increasingly use data strategically to gain insights for better business decisions. Deloitte’s role in the partnership with VELUX is to design and help drive the digital transformation to assist VELUX in becoming more alert on how the market is reacting as well as reach the customers, where they are. Deloitte and VELUX collaborate within a partnership model, which focuses on delivering advanced data insights across the organization and ensure best in-class support for strategic decision-making.
As an example, VELUX is looking to harness the untapped potentials among existing customer segments with intelligent windows that have sensors to measure indoor climate, open and close windows. By collecting data on how to achieve ideal indoor climate, and controlling the systems remotely, VELUX is now able to provide Internet of Things solutions where windows are able to ‘talk’ to other systems in the home to provide the best living conditions.
“As our business transformation partner, Deloitte has helped us become much more data-driven and customer-centric. Through the adoption of advanced analytics, big data, artificial intelligence and next generation financial controls, we now have real-time insights, that will help us to better understand customer behavior patterns and respond quickly to changing market conditions,”