We are focused on executing our plan to capture the industrial LED market opportunity. The shift in the Group’s operating model strategically positions us to focus on long term sustainable growth.
One of the key elements in the Strategy was to transfer assembly of our lighting products to a manufacturing partner. This provides us global scalability and allows faster response to changes in customer demand. A pre-requisite to the transfer has been the standardisation of product design (platform engineering).
The move to a platform concept has allowed Dialight to deliver solutions to customers that better match their specific need while being configured from a greatly reduced set of sub-assemblies. This has improved forecast accuracy for manufacturing planning and will result in reduced inventory once the transition is completed.
Pivoting to growth
As we finalise the foundations of a robust and scalable manufacturing platform, we pivot our attention to driving revenue growth.
Our new strategic framework is below:
We are driving growth by continuing to focus on the value proposition. Purchase decisions are driven by payback and risk, our value proposition continues to ensure that Dialight products provide the best cost of ownership to heavy industrial customers with paybacks based on energy savings, maintenance cost avoidance backed by a ten year warranty.
There has been continued progress in integrating Dialight lighting with leading factory automation solutions. Dialight and its strategic customers continue to explore new ways to use these solutions to enhance factory safety and productivity.
Dialight’s sales model is direct specification sale to end users, transacting through distributors. Direct sale allows for the value proposition to be articulated, distributor inclusion enables simplified contracting and support for larger supply contracts.
The main barrier to LED conversion is capex budget constraints. There are three key approaches to proactively drive accelerated market adoption by changing spending paradigms:
- Enable maintenance spend – target a one year payback
- Access different budgets – the corporate sustainability and safety budget, design engineering budgets and process productivity budgets
- Promote market awareness of advantages of LEDs
Dialight recognises the opportunity to drive focus on corporate wide LED conversion programmes. The majority of Dialight’s targeted strategic customers have a public commitment to sustainability, including carbon footprint reduction and energy savings programmes. Additionally, customers place a premium on work place safety. Driving awareness of the economic benefits as well as the sustainability and safety benefits of our lighting at the corporate level can change the perception of lighting away from a just maintenance cost savings. We target corporate energy, sustainability and EHS directors and maintain a team focused on serving large global EPCs.