Target operating model for a PoS terminal manufacturer


Initial situation and project goal

The customer belongs to the leading global suppliers of Point of Sale (PoS) terminals. In the past, the company has grown quickly both organically and, in particular, through acquisitions without an integration of the acquired company in the assets being integrated into a uniform target operating model. In order to increase the efficiency and lower the costs, EY Innovalue was asked – in coordination with the most pertinent regional companies – to create a target operating model for the core functions IT development, logistics, maintenance and repair, as well as customer service.


Project steps

The most important project milestones include:

  • Analysis of procedures, structures and costs in the core functions, per country
  • Functional analysis in order to determine the actual resource requirements in the core functions
  • Development of a European-wide target operating model for the core functions with interfaces to global service providers
  • Implementation of "make or buy" analyses and Rfl/Rfp processes
  • Compiling a budget for each core function


Project results and outlook

  • Transparency regarding the process costs and times
  • Definition of a European-wide target model per function, including detailed structural suggestions, target processes, class of resources, costs and investment budgets
  • Inclusion of specialised third-party suppliers for the provision of services
  • Reduction of process complexities, redundant functions and other inefficiencies
  • Realisation of significant cost savings potentials and increasing the EPS (earnings per share)