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Case Study

NCC Construction Danmark (B): Transforming the industry

By Balaji S. Chakravarthy and Sophie Linguri Coughlan

7 pages

November 2011

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Reference: IMD-3-2203

Case B of the NCC Construction Danmark series describes the proactive approach taken by NCC DK’s top management seeking to find new and more profitable growth opportunities for the company. Top management believed that the company’s growing competence in constructing energy efficient buildings and in virtual design construction (VDC) gave it the credentials to build active partnerships with architects and material suppliers. NCC DK would transform the inefficient and fragmented Danish construction industry by creating a network of partners and becoming one of the “nodal” players. The goal was to transform the current linear sequence of transactions in the industry from concept, architecture, engineering & design, and construction to a “co-creation” model where the industry actors will work simultaneously with each other and the customer. The customer, whether a business, public sector or residential customer, would be at the center at all times and receive inexpensive and yet energy-efficient and customized solutions to all their construction needs. Case B provides a platform for discussing the opportunities and challenges that NCC DK faced in attempting to transform its industry and reposition itself for the future. A four part video (total runtime 21′ 44”) supplements the case. The first (7′ 17”) is an interview with Torben Biilmann (CEO, October 2006 – May, 2012) and Martin Manthorpe, Senior Vice President (Strategy) on the tough restructuring and renewal described in Case A. The second (5′ 19”) is an interview with the same two executives on the role of VDC in moving the construction industry to the 21st century and creating new opportunities for NCC DK. The third (7′ 4”) is an interview with Klaus Kaae (the company’s CEO since June 2012) and Manthorpe on the concept of “Co-Creation” and the opportunities and challenges for the company in driving this concept. The final part of the video (2′ 4”) is a short reflection by Biilmann on the lessons for other European companies from NCC DK’s experience.

Learning Objective

Provide a basis for senior executives (especially from European companies) to discuss company and industry transformation so as to sustain profitable growth even in maturing industries. Even though the context is construction, the disciplined approach to execution of NCC DK and its proactive approach to strategic renewal can offer pointers to other European companies as they battle industry maturity. The case can also be used in MBA class rooms to address restructuring and renewal.

Keywords

Customer Insight, Corporate Transformation, Corporate Renewal, Profitable Growth, Co-creation, Industry Transformation, Sustainability, Construction, General Management, Strategy

Settings

Denmark
2010

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

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This case study is part of a series

NCC Construction Danmark (A): Back to profitability
NCC Construction Danmark (B): Transforming the industry

2012 AESE AWARD WINNER (New Times, New Opportunities)

This case study is part of a series

NCC Construction Danmark (A): Back to profitability
NCC Construction Danmark (B): Transforming the industry

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