Lean Transformation Process Improvement
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The Appleton Greene Corporate Training Program (CTP) for Lean Transformation Process Improvement is provided by Mr. Oleinek Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 12 months; Program orders subject to ongoing availability.
Personal Profile
Mr. Oleinek began his career in large electronics and automotive supply companies, where he gained hands-on industry experience in innovation, product development, technical sales and project management.
For the past 15 years, Mr. Oleinek has worked in management consulting with a focus on lean development and innovation. He has extensive expertise in optimizing product development processes and implementing lean development methods.
His industry experience includes automotive, aerospace, construction and industrial, energy, machinery and equipment, chemical, and medical. His clients range from small, specialized companies to global corporations.
Mr. Oleinek has conducted a large number of consulting projects to optimize his clients’ product development. Results have included a 30% reduction in development time, a 50% reduction in prototype costs, a significant reduction in quality issues during development and after product launch, and improved collaboration between cross-functional development teams.
To request further information about Mr. Oleinek through Appleton Greene, please Click Here.
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Executive summary
Lean Transformation Process Improvement
Lean Development optimizes value creation by specifying and maximizing customer value, identifying the value stream, minimizing waste (Muda), focusing on flow, creating pull, fostering interdisciplinary collaboration and being a learning organization striving for perfection.
In this context, waste refers to activities that do not directly benefit the customer. This includes things that serve nobody and should be eliminated (Muda type I), for example overproduction, unnecessary waiting times or unplanned errors. But the term “waste” also refers to activities that are necessary for an organization to be able to do its work, but not necessary from the customer perspective, like internal meetings, process maintenance or documentation (Muda type II). Waste in product development processes is created and grows continuously if nothing is done about it.
Fig. 1: The development work typically consists of value creating and non-value creating activities, where waste has the dominant share (Muda type I and II). Customers only benefit from the results of value creating activities (Value).
But before we can fight waste, we need to understand exactly what the value from customer perspective is and how we actually create this value. A large part of the lean development process deals with these two questions, and experience shows that many companies have difficulty providing concrete answers.
Fig. 2: Typical efficiency effects of the lean development process on the required capacity (-20% to -30%) and the development lead time (-90%).
The next step is to create a flow in the product development process that is as continuous as possible, avoiding strong fluctuations, increasing flexibility and thus also improving planning and resilience against unexpected changes.
The pull principle describes a decentralized, autonomous control of workflows. It was developed in the production area, but can be easily transferred to product development areas, for example, using Kanban boards.
Fig. 3: In this version of Kanban board, team members can pull new tasks whenever free capacity is available. This makes the actual flow of work progress transparent and manageable.
In the course of value stream-oriented development, the people who work directly on the value stream should also work together directly. This necessarily leads to interdisciplinary teams in which members of different departments work together in a transparent and goal-oriented manner.
Since lean development is largely concerned with maximizing customer value and minimizing waste, there is always room for improvement, regardless of how much has already been achieved. That is why continuous improvement and a constant striving for perfection are integral parts of lean development.
As a company, you are likely to face several or even all of the following pain points, which pose a serious threat to the competitiveness of your products or services. You may be aware of some of them, while others may represent untapped potential that you are currently unaware of.
With Lean Development, you can mitigate or even get rid of these pain points and significantly increase your competitiveness.
1. Long development cycles: Long development cycles cause companies to miss market opportunities and prevent them from adapting their products to customer needs in a timely manner. Inefficient processes, excessive coordination loops, and additional design loops for corrective actions delay time to market and consume resources that can be dramatically reduced through lean development. Lean development focuses on eliminating waste by removing unnecessary steps from processes and setting clear priorities. With faster feedback loops and iterative development approaches, products can be brought to market much faster.
2. High development costs: Inefficient processes and unproductive activities unnecessarily drive up development costs and reduce profitability. Lean development systematically identifies and eliminates all non-value-added activities. With lean processes and a stronger focus on customer needs, costs can be sustainably reduced.
3. Low market orientation: Products often fail because they are not based on real customer needs and because market feedback comes too late. Lean development integrates customer feedback into the development process from the start, ensuring that products are better tailored to the market. Iterative testing and a systematic focus on customer value ensure better product acceptance.
4. Overworked teams: Multitasking and high work pressure lead to high error rates, low output, declining efficiency, dissatisfied customers, and high stress levels among managers and employees. Lean Development creates clear workflows and prioritizes tasks by limiting parallel work (work-in-progress limits). This frees up teams to work more productively and focus on their core tasks.
5. Quality defects: Defects discovered late in the development process result in costly rework and missed deadlines. Lean development relies on preventive approaches such as early testing, continuous improvement, and quality assurance throughout the process. This significantly reduces defects and improves product quality.
6. Poor collaboration: Silo mentality and lack of communication between teams lead to inefficient collaboration, delays, and duplication of effort. Lean Development promotes open communication and stronger collaboration through cross-functional teams, transparent processes and balanced capacity utilization. This increases efficiency and ensures that everyone is working toward a common goal.
7. Missed deadlines: Unrealistic deadlines are often based on wishful thinking rather than realistic assessments, leading to frustration and delays. Lean development establishes reliable planning based on customer feedback and actual capacity through takt times and pull systems. Teams can plan their work more reliably and meet deadlines more confidently.
8. Lack of innovation: Rigid processes and a risk-averse culture stifle innovation and lead to stagnant products and portfolios. Lean development creates an environment that fosters innovation through iterative experimentation and rapid feedback loops. Minimum Viable Products (MVPs) allow new ideas to be tested quickly and cost-effectively without taking too much risk.
9. High resource utilization: Inefficient processes and unnecessary waste of material and time significantly increase resource consumption. Lean development optimizes the use of resources by streamlining processes and eliminating overproduction. With just-in-time and a stronger focus on value creation, companies can significantly increase their efficiency.
10. Weak decision making: Decisions are often made based on assumptions or incomplete information, which can lead to undesirable outcomes. Lean development relies on data-driven decision-making processes that enable informed and objective assessments. With clearly defined decision paths and iterative validations, organizations can act with purpose and confidence.
A prominent case study is that of Daimler AG, Stuttgart, Germany.
Daimler AG has undergone a major transformation in recent years, integrating lean development and digital technologies into its corporate strategy. This transformation was characterized by a clear reorientation towards a software and service company. The transition from a pure carmaker to a software-driven company took place on several levels: both in internal product development and in interactions with customers.
As part of its lean development strategy, Daimler has introduced digital tools into its engineering and production processes. By utilizing big data models and computer-aided design (CAD) solutions, the company has been able to create digital prototypes of vehicles before building physical models. This has allowed for a significant reduction in development times and greater precision in vehicle design. Furthermore, Daimler has introduced augmented reality (AR) devices such as Google Glass to increase efficiency and safety in production. These measures led to a significant improvement in production processes and helped to reduce operating costs.
Daimler has also been working intensively on the digitalization of its vehicles and the interface with the customer. One example is the introduction of autonomous driving functions and the increased use of software solutions in vehicles. Over 100 electronic control units (ECUs) coordinate functions ranging from the drive system to safety mechanisms in Daimler’s modern vehicles. The digital transformation has enabled Daimler to develop new business models, such as the digital showroom concept, where customers can use virtual reality to experience vehicles without being physically in a dealership.
Daimler AG’s lean development transformation began in 2016 as part of the strategic project “Leadership 2020.” The goal of this initiative was to fundamentally change the work culture and processes to create more flexibility, speed, and creativity in the company. A central element of the transformation was the introduction of so-called “swarm organizations”, in which Daimler formed agile teams (swarms) that were able to work autonomously across departments.
These “swarms” were based on agile methods such as sprints and enabled simultaneous collaboration in different areas of the product development process. This enabled Daimler to shorten innovation cycles and bring projects to market faster. The transformation took several years, and the goal was to integrate 60,000 of the 300,000 employees into swarm organizations. The efficiency and speed of development were significantly increased by using these methods. For example, the planning time for new programs was reduced from eight to four weeks, and forecasts were created in four hours instead of six days.
The transformation faced challenges, particularly in terms of integrating the new structures into the existing hierarchical system. However, the new ways of working led to a significant improvement in cross-departmental collaboration and the speed of innovation. Proven improvements in several areas are:
• Development time: By using digital prototypes and agile working methods, the development time for new vehicle models was significantly reduced. This enabled Daimler to bring new technologies and products to market faster.
• Costs: The use of augmented reality and digital tools reduced production costs through better error prevention and optimized production planning.
• Quality: The improved integration of software solutions has increased vehicle quality, particularly with regard to safety and assistance systems, which can now draw on highly complex software.
These transformation steps have helped Daimler to position itself as a pioneer in the field of digitalization and lean development in the automotive industry and to successfully manage its transition to a technology company.
This program will guide you through the lean development change and implement the lean development process for future use in your organization.
You will learn the theoretical principles and how to apply them to your own organization. You will carry out a lean development transformation by installing a lean development process and learning how to use it properly, laying the foundation for future independent application of lean development. You will be able to autonomously and confidently carry out future product development using the lean development process and reap the benefits.
Curriculum
Lean Transformation Process Improvement – Part 1- Year 1
- Part 1 Month 1 Lean Principles
- Part 1 Month 2 Lean Thinking
- Part 1 Month 3 Value Streams
- Part 1 Month 4 Reducing Waste
- Part 1 Month 5 Continuous Improvement
- Part 1 Month 6 Agile Lean
- Part 1 Month 7 Pull Principle
- Part 1 Month 8 Problem Solving
- Part 1 Month 9 Error Prevention
- Part 1 Month 10 Lean Development
- Part 1 Month 11 Digital Lean
- Part 1 Month 12 Sustainable Implementation
Program Objectives
The following list represents the Key Program Objectives (KPO) for the Appleton Greene Lean Transformation Process Improvement corporate training program.
Lean Transformation Process Improvement – Part 1- Year 1
- Part 1 Month 1 Lean Principles – In this workshop we lay the foundation for the lean development process by looking at the basic principles of lean development. The lean principles will be explained in detail using examples and case studies. All the key differences between a lean development process and traditional development processes are explained and the benefits associated with the lean process are highlighted. The focus is on how the lean principles can help companies to use lean development to develop faster, more efficiently and in a more customer-oriented way. Participants will learn about the five key principles – define value from the customer’s perspective, identify value stream, create flow, implement pull principle and continuous improvement (kaizen) – and how they structure and improve the entire development process. The basic lean methods and tools that support the lean development process are also introduced: Kaizen, kanban and value stream mapping (VSM).
- Part 1 Month 2 Lean Thinking – The second module covers key aspects of the lean mindset and how it shapes daily activities in development, production and management. The focus is on introducing the lean mindset – as a fundamental mindset focused on customer value, efficiency and continuous improvement. Another focus is on lean leadership: What leadership principles support a lean organisation? How do leaders encourage empowerment, problem solving and improvement in a team? Building on this, we look at creating a culture of continuous improvement. The focus is on concrete actions that companies can take to develop a learning organisation beyond short-term optimisation. Finally, we discuss decision-making based on data and facts: How can fact-based decisions be systematically anchored in order to manage and develop processes in a targeted manner?
- Part 1 Month 3 Value Streams – Now we focus on the targeted analysis and optimisation of value streams. The aim is to make existing processes visible, identify waste and improve the flow of value. We start by analysing existing processes to systematically identify waste (muda) in its seven classic forms – such as overproduction, waiting times or unnecessary movements of information and artefacts. On this basis, participants learn to create value stream diagrams for both the current and future state. Another focus is on distinguishing between value-adding and non-value-adding activities. This clarity is essential in order to target resources where they will actually benefit both the customer and the organization. Finally, we develop specific approaches to optimising value streams, with the aim of shortening lead times, reducing the load on processes and enabling a stable, continuous flow.
- Part 1 Month 4 Reducing Waste – Once we understand the value stream, we can start with reducing waste (muda) as a central objective of lean processes. Participants begin by learning about the seven types of waste and how they manifest themselves in product development: overproduction, waiting, unnecessary transportation, overprocessing, inventory, redundant motion, and defects or rework. Practical examples are used to show how these forms of waste slow down development processes and tie up resources. Methods for reducing waste are then presented, from simple observation techniques to structured problem-solving approaches. Special emphasis is placed on an introduction to the 5S method: Sort, Systematise, Sanitise, Standardise and Self-Discipline. This method not only organises the workplace, but also creates the basis for stable, efficient processes. Participants apply what they have learned directly in practical exercises: they analyse their own processes, identify waste and develop concrete ideas for improvement – for more efficiency, quality and team satisfaction in their daily work.
- Part 1 Month 5 Continuous Improvement – The lean development process is never perfect. A key part of the lean development process is to continuously improve itself. We look at how companies can establish and sustain a culture of continuous improvement (kaizen). The starting point is the importance of standards in development processes: they create comparability, make deviations visible and form the basis for targeted improvements. Building on this, participants will learn about the Kaizen concept – a philosophy of small, incremental changes that are rooted in everyday life and have a lasting effect. To ensure structured implementation, proven tools for continuous improvement are introduced, including the Plan-Do-Check-Act (PDCA) cycle and A3 reporting. Both help teams systematically analyse problems, develop solutions and measure progress. Another focus is on the practical implementation of improvement programmes in teams: How can people be activated, ideas encouraged and responsibilities clearly defined? The aim is to create a working environment in which improvement becomes part of everyday thinking and action.
- Part 1 Month 6 Agile Lean – Lean and agile have a lot in common. Participants learn how agile methods can be combined with lean principles to make development processes both flexible and lean. To get started, participants are introduced to Kanban boards – a visual tool for managing workflows. You will learn how to make development tasks of interdisciplinary teams transparent, visualise bottlenecks and clearly manage priorities. The difference between Scrum and Kanban is then explored: While Scrum is based on fixed roles and sprints, Kanban is based on continuous flow and high adaptability – ideal for dynamic environments. A key element is the definition of WIP (work in progress) limits. Limiting work in progress reduces overload, improves flow and increases quality. Participants will learn how to combine the two approaches for faster feedback cycles, greater customer focus and continuous improvement of the development process.
- Part 1 Month 7 Pull Principle – Next, the participants will learn about the pull principle as a central element of lean processes and how to master its practical application in the product development process. Unlike the push principle, where work is “pushed” regardless of whether the recipient is ready for it or not, the pull principle is strictly based on actual demand – both internal and external. The basics of just-in-time (JIT) are taught at the beginning. This principle aims to provide products or information exactly when they are needed – no earlier, no later. It then explores the application of the pull principle in the development environment. How can work be organised so that teams only take on as much as they can handle – without overloading or creating bottlenecks? Methods for optimising inventory in the form of information or development artefacts and reducing lead times, for example through WIP limits or coordinated cycle times, are also presented. Finally, Heijunka, the concept of smoothing, is introduced. Heijunka helps to smooth out fluctuations in workload and demand, resulting in more stable processes and reliable delivery times of work results.
- Part 1 Month 8 Problem Solving – In product development, there will always be problems. This module focuses on structured and effective problem solving by cross-functional development teams – a core skill in lean development. The aim is to distinguish symptoms from real causes and to develop sustainable solutions as a team. Participants are first introduced to proven problem-solving methods, including the 5 Whys technique, the Ishikawa diagram (cause-and-effect diagram) and the 8D report. These tools help to systematically identify problems, analyse their causes and document solutions in an understandable way. Another focus is on collaboration in problem-solving processes: What roles and processes help teams work together to find solutions? How can different perspectives be used without getting lost in discussions? Methods for root cause analysis are also presented, which go beyond initial assumptions and promote fact-based work. Participants apply the methods directly in practical exercises: the entire problem-solving process is run through, from problem definition to sustainable action, using specific cases.
- Part 1 Month 9 Error Prevention – In the lean development process, a great deal of importance is placed on good preparation. The aim is to avoid the need for subsequent corrections, as these cost disproportionately more time and resources and can be regarded as pure muda. So, this module focuses on error prevention through intelligent process design. Rather than making corrections after the fact, the aim is to prevent errors from occurring in the first place – thus ensuring quality in the long term. To get started, participants are introduced to the Poka Yoke principle: simple but effective mechanisms that prevent errors from occurring or being passed on unnoticed. Practical examples are used to show how even small changes in the process can have a big impact. Building on this, other methods of error prevention and quality improvement are presented – from checklists and visual inspection to automated inspection processes. Another focus is on Total Quality Management (TQM). Participants will learn about TQM as a holistic management approach in which quality becomes everyone’s responsibility at all stages of product development. Finally, the implementation of proactive quality management in development processes will be discussed: How can quality goals be defined early on, responsibilities clarified and continuously monitored? The goal is a stable, learning development process with high product and process quality.
- Part 1 Month 10 Lean Development – We now apply the lean principles and the insights from the previous modules to the networked product development work of interdisciplinary teams – for better collaboration, shorter development times and customer-oriented results. Emphasis is placed on short feedback cycles, interdisciplinary teams and a clear focus on customer value. This is followed by an introduction to Lean Product and Process Development (LPPD). Here participants learn how to design product development as a learning process – with stable standards and room for innovation. A key element is the use of set-based concurrent engineering: instead of committing to one solution at an early stage, several options are pursued in parallel and systematically narrowed down – an approach that minimises risk and promotes better decisions. The module is rounded off by methods for developing customer-oriented products, for example through early user feedback, clear problem definitions and structured requirements analyses. The goal is a lean, cross-team development process with a consistent focus on customer value.
- Part 1 Month 11 Digital Lean – In this module, participants learn how to effectively apply lean principles in digital environments. The focus is on combining proven lean methods with modern technologies to achieve greater transparency, agility and efficiency in product development. A key aspect is the link between lean and Industry 4.0: What potential do big data, the Internet of Things (IoT) and digital twins offer for identifying waste, stabilising processes and anticipating customer needs? This will be followed by an introduction to digital lean tools, such as collaborative value stream mapping, digital kanban, process visualisation and automated data collection. Participants will learn about specific applications and potential benefits. Finally, the challenges and opportunities of digital transformation will be highlighted. How is collaboration changing in the digital space? What are the risks to lean principles – and how can companies use digital technologies to support rather than hinder lean processes? The goal is a reflective, forward-looking application of lean in the digital context.
- Part 1 Month 12 Sustainable Implementation – In this last session, participants will learn how to embed the lean development process in the organisation beyond the initial successes. The focus is on the design and implementation of a lean transformation project: from defining goals and planning to implementing specific measures in product development. One focus is on change management and communication strategies. After all, lean is not just a set of methods, it is a cultural change. Participants learn how to involve managers and employees, identify resistance early on and build trust through clear, transparent communication. Lean development also introduces key performance indicators (KPIs). These help to make progress visible, monitor target achievement and intervene when necessary – without diluting the principles of lean development. Finally, the question of how to keep lean initiatives alive in the long term is addressed. Strategies for the sustainability and continuous development of lean programmes show how organisations can learn from experience, develop routines and embed lean as part of their corporate DNA.
Methodology
Lean Transformation Process Improvement
Implementing lean development in an organization is always a serious change project because it affects the behavior of managers and employees and leads to a cultural change in the organization.
Therefore, the methodology not only includes the lean development methods themselves, but also methods for implementing lean development in the organization.
Set the stage:
The first step is to establish a basic understanding of lean principles and development within the organization and to provide an initial insight into the improvement potential that lean brings.
At the same time, a lean vision for product development is created, concrete initial targets for a future lean state are formulated, and a need for action is determined and communicated throughout the organization. Existing pain points, the improvement of which would primarily benefit critical stakeholders, can be used to advantage here.
In addition, the change project is set up organizationally with a change agent, a change team, a mission and a control structure.
Map the value stream:
Knowledge and understanding of the value streams is the basis for all further steps. Value streams in product development are often more complex and less clear than those in manufacturing. The process of value stream mapping and value stream analysis in product development is described and methodically learned. The analysis of the sub-value streams and the entire development value stream is performed to identify waste (e.g., waiting time or unnecessary steps) and classify it into type I and type II Muda. We refer to the types of waste in product development. The result is a value stream map of the development process on which the wastes contained in it are marked and specified.
Fig. 4: The value stream mapping includes the work stream, the information stream and the material stream. Along with these streams, all possible kinds of Muda type I and type II are documented and specified.
Eliminate waste:
Once we understand the value stream and the elements of waste in it, we can begin to apply additional lean processes and methods to redesign the value stream into a lean development process. This includes eliminating or reducing waste, maximizing customer value, creating flow and pull, fostering interdisciplinary collaboration, and striving for perfection.
We will start by eliminating waste that has no value (Type I Muda) and continue by reducing waste that the organization needs to some extent (Type II Muda). Depending on the circumstances and complexity, the elimination of the identified cases of waste requires further root cause analyses, problem-solving and other lean processes, which will be defined in an implementation plan.
Now we can sketch out a value stream for the future state of product development that has a lot less waste in it.
Fig. 5: A) Development process with typical amounts of Muda type I and II; B) development process where Muda type I has been eliminated, Muda type II has been reduced to a minimum, and value has been optimized, resulting in a shortened lead time.
Maximize customer value:
We strengthen our customer focus through processes that enable early, frequent, and focused customer feedback on our actions and plans. These include voice of the customer integration, rapid prototyping, experimentation frameworks, and minimum viable products.
At the same time, we are increasing the flexibility of our development process and working methods so that we can deliver prototypes frequently and respond quickly to changes that result from customer feedback.
Fig. 6: Frequent customer interaction and a lean development process result in an increase in customer satisfaction.
Create flow and pull and foster interdisciplinary collaboration:
We are now learning various lean processes to create a steady, smooth flow in our development work. This helps us to avoid major fluctuations in resource utilization as well as batch-based, isolated processing within individual departments.
With set-based concurrent engineering, we enable quick and informed decisions by working on several solutions at the same time.
Work-in-progress (WIP) limits restrict the number of tasks that can be worked on simultaneously to avoid overloading and to increase focus.
Special Kanban boards visualize the workflow to identify and eliminate bottlenecks at an early stage.
Cross-functional teams break down silo thinking and improve the necessary communication between departments.
Daily stand-ups, regular short team meetings, help identify obstacles and promote smooth collaboration.
Pull systems automatically ensure that tasks are only started when capacity is available.
With Just-in-Time (JIT), we ensure that information, materials and resources are only provided when needed and at exactly the right time, avoiding outdated information and minimizing the overproduction of development results.
Strive for perfection:
For us, striving for perfection means never being satisfied with what we have achieved and constantly improving our lean development process. We can always aim higher, optimize our processes and improve our skills. We learn and implement various processes that help us get better and better.
Industries
This service is primarily available to the following industry sectors:
Automotive
History
Over the past three decades, the automotive industry has undergone profound changes, evolving in a highly dynamic and competitive environment. Initially, the industry was dominated by classic lean approaches aimed at achieving efficiency gains, reducing costs and continuously improving operational processes – particularly in manufacturing. During this period, many original equipment manufacturers (OEMs) and suppliers focused intensively on optimising their production value streams, often with considerable success. Lean principles proved particularly effective when implemented systematically over the long term and actively supported by senior management.
By the mid-2010s, however, the industry’s focus began to shift. Alongside traditional manufacturing processes, development workflows, software skills and agile methodologies became increasingly important. This shift was driven by several factors, including the influence of Toyota’s early adoption of lean development, increasing pressure to improve efficiency, growing digitalisation, and later the rise of electric vehicles and new mobility concepts. Many companies sought to extend the benefits of lean manufacturing to other areas of the business, particularly product development.
Responses to these evolving requirements varied widely. Some OEMs and suppliers acted early to introduce lean principles into their development departments, forming cross-functional teams and adopting new working models. Others, however, encountered significant barriers – such as entrenched cultural norms, siloed organisational structures and inflexible decision-making frameworks – that prevented meaningful transformation.
A persistent challenge across the industry was the lack of integration between lean development and established lean manufacturing systems. While lean manufacturing was often treated as a stable, proven foundation, development processes often lacked clear direction, end-to-end visibility and a consistent focus on waste reduction. In many cases, companies failed to systematically align their development efforts with value creation.
Nevertheless, many positive examples emerged. Organisations that embraced change, invested in employee empowerment and embraced lean as a mindset rather than a toolkit achieved measurable improvements. In these cases, improved time-to-market, better product quality and more efficient use of resources were realised across departmental boundaries.
Current position
The automotive industry is caught between the need to transform and the pull of structural inertia. The challenges it faces are many: electrification, software-defined vehicles, autonomous driving, the restructuring of global supply chains, and increasing political and regulatory pressures are all demanding far-reaching technological, organisational and cultural change. At the same time, severe cost pressures often limit the ability to invest in transformation initiatives.
Two opposing trends have emerged in the field of lean development. On the one hand, there is a growing recognition that traditional development models are no longer adequate. Organisations are increasingly recognising the need to accelerate time-to-market, identify and eliminate non-value-added activities early, and foster cross-functional collaboration. As a result, efforts to adopt agile structures, modular systems and end-to-end digital development processes are gaining momentum.
On the other hand, the implementation of such initiatives often lacks depth. Frameworks such as Lean, Scrum or SAFe are sometimes adopted without internalising their core principles. This results in hybrid organisational models that fail to deliver the benefits of either traditional line hierarchies or agile, product-focused structures. Decision making is often complex, accountability is unclear and value streams remain fragmented.
The companies currently leading the way are those that see lean development as an integral part of their overarching strategy. These organisations operate with a clear product vision, defined development goals and a relentless focus on customer value. Progress tends to be most visible where senior management not only endorses lean methodologies, but also promotes a change in mindset and encourages learning across organisational boundaries.
Overall, the industry is at a pivotal moment. Legacy structures and established ways of thinking are proving insufficient to cope with the complexity of today’s transformation. Companies that fail to adopt a holistic approach to lean – one that encompasses manufacturing, development and leadership – risk falling behind in an increasingly competitive landscape.
Future outlook
The automotive sector is expected to undergo a transformation of historic proportions over the next decade. The traditional vehicle-as-product paradigm will give way to a more integrated view of mobility as a service-oriented ecosystem. As a result, OEMs will need to broaden their focus, embedding themselves in digital platforms, providing end-to-end software services and becoming key players in networked mobility systems.
In this future landscape, lean development is likely to take on a new strategic importance. It will no longer be limited to improving process efficiency, but will serve as a guiding framework for building adaptive, learning organisations. Companies that are able to view their development process as a seamless value stream – from initial customer requirements to series production and ongoing support – will significantly increase their competitive advantage.
Modularisation, consistent availability of real-time data and short feedback cycles will become essential elements of successful product development. Meanwhile, the role of leadership will be more important than ever. In a volatile and complex environment, leaders must provide direction, build trust and encourage decentralised decision-making. Organisational structures must be designed to facilitate innovation, collaboration and continuous learning, not to stifle them.
Lean thinking will become a cultural cornerstone across the industry. Not as a rigid doctrine, but as a shared mindset that fosters purposeful action. Companies that strategically invest in employee empowerment, combine agility with long-term clarity and remain focused on customer needs will be best positioned to thrive. The future of the automotive industry will be shaped not only by technological innovation, but also by the ability to respond quickly, collaboratively and effectively to ever-changing demands. Lean development, understood in this comprehensive and strategic way, may prove to be one of the most critical factors for long-term success.
Aerospace
History
The aerospace industry has long been recognised as a sector characterised by extraordinary technological complexity, stringent regulatory requirements and lengthy development cycles. Companies in this sector demonstrate extensive technical expertise and consistently meet exceptionally high quality standards. However, these strengths are often accompanied by slow decision-making and development processes. There is a clear tension between long-established organisational structures and the increasing need for agility and efficiency.
The traditional reliance on linear, waterfall development models has become increasingly problematic in the face of growing pressure to reduce development timescales and costs, while maintaining uncompromising safety and quality requirements. The industry’s shift towards lean development and agile methodologies has been gradual, hampered by strong functional silos, deeply embedded processes and extensive documentation requirements.
However, there has been significant progress in recent years. Forward-thinking companies that have been willing to challenge established norms have achieved measurable competitive advantages. Examples include the avoidance of planned obsolescence, the early involvement of interdisciplinary teams and the implementation of set-based design in the early stages of development. In innovation-driven segments such as zero-emission propulsion systems and satellite technology, the value of lean thinking and iterative methods has become increasingly apparent.
One of the key cultural challenges has been to move away from a rigid “zero-error” mindset to an environment that is more accepting of uncertainty, experimentation and learning. Emerging players – particularly start-ups – have demonstrated alternative development approaches, increasing competitive pressure on incumbents and accelerating the industry-wide call for change.
Current Position
Today, the aerospace industry finds itself in a delicate balance between maintaining operational stability and responding to a growing number of transformative forces. Civil aviation has largely recovered from the downturn caused by the COVID-19 pandemic. However, global geopolitical instability, disrupted supply chains and increasing demands for climate-neutral operations continue to put pressure on both OEMs and suppliers.
In response, a re-evaluation of traditional processes is underway. Lean development and agile principles are increasingly seen as strategic levers for long-term competitiveness, rather than just tools to improve efficiency. Companies are taking a more differentiated approach to transformation, tailoring change efforts to the maturity of specific business units. Common approaches include setting up pilot programmes, initiating organisational learning journeys and cultivating internal change agents.
At the same time, organisations face a growing number of strategic demands: driving digital transformation, aligning with sustainability goals, rethinking business models, and responding to changing geopolitical conditions. These pressures often lead to conflicting priorities and stretched teams. In this environment, setting clear goals and adopting structured, lean development processes are critical – not only to improve efficiency, but also to reduce the burden on management and staff by focusing attention on value-creating activities.
The industry is currently in a phase of experimentation and learning, with a clear drive towards transformation. However, this ambition requires both structural flexibility and the courage to simplify. A consistent focus on value creation – combined with targeted investment in organisational culture, leadership and development capabilities – will be essential to maintain technological leadership and long-term resilience.
Future Outlook
In the coming years, the aerospace industry is expected to undergo structural changes that go far beyond technological innovation. Overarching issues such as climate neutrality, geopolitical sovereignty, digital integration and systemic resilience are likely to redefine the strategic landscape. As a result, organisations will need to fundamentally rethink how they develop, produce and collaborate.
Future-ready organisations are expected to adopt more agile, customer-centric structures. Development processes must become both more robust and faster – not by speeding up existing routines, but by simplifying complexity, enabling early learning, and fostering cross-disciplinary collaboration. Lean development will increasingly serve as a strategic mindset, emphasising value orientation, systems thinking and iterative decision making.
Companies that succeed in embedding these principles throughout their organisations, rather than as isolated initiatives, will gain sustainable competitive advantage. The traditional OEM-supplier hierarchy is likely to evolve into more dynamic networks that allow for more flexible knowledge sharing and co-responsibility. This shift will be driven in part by new players from emerging sectors such as “new space” ventures and sustainable aviation, bringing fresh ideas and new models of collaboration.
A growing shortage of skilled workers is also expected to be a catalyst for cultural change. Organisations will need to foster an environment of trust, continuous learning and innovation. Leadership models will increasingly emphasise empowerment, clarity of purpose and a deep understanding of customer value. The aerospace industry of the future will be defined by its ability to combine technological excellence with cultural adaptability. In doing so, it will continue to lead the world in delivering sustainable high-tech solutions in an ever-changing environment.
Electronics
History
Over the last few decades, the electronics industry has become a highly dynamic, technology-driven and increasingly complex sector. Characterised by intense innovation cycles, global competition and increasing cost pressures, the industry faces the constant challenge of balancing rapid technological progress with operational efficiency. Companies are expected to develop high-quality, leading-edge products in ever shorter timeframes, while managing thin margins and fragile global supply chains – challenges that have been exacerbated by the COVID-19 pandemic and the semiconductor crisis.
In response to these conditions, lean development has often been explored as a strategy for managing complexity and meeting time-to-market demands. However, holistic implementations have remained the exception rather than the rule. Many companies initially adopted selective lean methods such as value stream mapping, Obeya rooms or individual elements of agile frameworks such as Scrum. Meanwhile, software development departments have embraced agile more fully, leading to coordination difficulties between hardware and software teams.
Managing product variants and engineering change processes has also been an ongoing challenge. Many organisations have struggled with overly complex bills of materials, complicated configuration systems and limited visibility into requirements management. In such cases, lean practices have proven useful in establishing clear decision-making processes and aligning development activities more directly with customer value.
The electronics industry, with its high level of technical complexity and generally strong willingness to embrace change across departments, seems well suited to lean development. However, the main hurdle often lies in the cultural shift required – from a model that celebrates individual technical prowess to one that values structured, team-based learning. Where this cultural change is successful, companies often report shorter development cycles, more robust products and highly engaged, cross-functional teams.
Current Position
The European electronics industry currently presents a mixed picture: it remains a hub of innovation and cutting-edge technologies, but faces significant structural pressures and external uncertainties. Many companies are in the midst of a strategic realignment, driven by the lingering effects of the pandemic, ongoing geopolitical disruptions, volatile commodity prices and persistent skills shortages. These factors are putting additional pressure on delivery times, cost structures and innovation capabilities.
At the same time, the rise of electrification, artificial intelligence, sustainability initiatives and Industry 4.0 are opening up new avenues for growth. As a result, platform strategies and modularisation are gaining ground in engineering departments. Organisations are seeking to reduce internal complexity in order to respond more quickly and reliably to market demands, even as product diversity increases.
However, there is also a widespread sense of being overwhelmed. Many development units are operating at their limits, pushed by customer-specific projects, last-minute design changes and a high degree of technical uncertainty. In such an environment, there is often little room for systematic learning, root cause analysis or continuous process improvement. Although digital transformation is progressing, the integration of new tools and data systems into existing workflows remains slow, creating friction and inefficiencies.
A notable positive development is the growing openness to cross-departmental collaboration. Development teams are increasingly working closely with production, purchasing and quality functions to solve problems together. In this context, agile formats and lean practices – such as set-based design and structured knowledge development – are gaining traction and delivering tangible benefits.
The industry is undergoing a profound process of change, marked by uncertainty but also rich in opportunities for forward-looking transformation.
Future Outlook
The electronics industry is poised for a profound transformation, driven by rapid advances in artificial intelligence, energy efficiency, sensor technologies and connectivity. The strategic focus is shifting towards the creation of sophisticated systems that are simultaneously efficient, sustainable and tailored to user needs.
Future development processes are expected to be increasingly data-driven, model-based and digitally integrated. Digital twins, simulation-based decision-making and automated test environments are likely to become industry standards, provided that companies invest in systematically improving data quality and availability.
Lean development is expected to play a central role in this transformation, albeit in an evolved form. Rather than focusing solely on efficiency, lean will serve as a framework for resilience, adaptive learning and systemic thinking. Organisations that can strategically build knowledge, identify interdependencies early and base decisions on transparent, iterative logic are likely to gain competitive advantage.
Corporate culture is also expected to evolve. The siloed, function-based approach that has long characterised the industry is gradually being replaced by interdisciplinary teams that emphasise individual responsibility and customer focus. In this context, the role of leadership is shifting from that of decision-maker to that of enabler and facilitator.
Mechanical Engineering
History
Europe’s mechanical engineering sector has long been regarded as a cornerstone of industrial innovation. With deep-rooted engineering expertise and a strong base of small and medium-sized enterprises (SMEs), the industry has traditionally thrived in specialised niches and customised machinery. In recent years, however, it has come under increasing pressure from globalisation, digitalisation, rising customer expectations and increased international competition.
Historically, the success of engineering companies has been based on highly customised, technically sophisticated products. But this model has come under increasing strain. Fast, low-cost competitors – particularly from Asia – have entered the market, while customers are demanding shorter delivery times, greater flexibility and enhanced service offerings. In many cases, companies have responded reactively, addressing superficial issues without fundamentally rethinking their structures or development processes.
In this context, Lean Development emerged as a promising lever for sustainability. Where it was applied as a comprehensive management approach – not just a production method – it proved capable of delivering measurable benefits. These included shorter development times, more robust processes, fewer inefficiencies and a sharper focus on customer value. Efforts to promote customer focus and cross-functional collaboration were particularly effective.
Cultural change also played a key role. Organisations that were prepared to deal with ambiguity, share responsibility, break down rigid hierarchies and encourage a constructive approach to mistakes adapted more successfully to a changing market environment. The industry’s growing labour shortages and demographic shifts have accelerated this evolution – not only by reducing capacity, but also by shifting the expectations of younger professionals towards a more participative and values-driven work culture.
Current Position
Today, the European engineering sector is at a crossroads between the need for change and the potential for renewal. Companies are challenged to remain economically viable while integrating digital technologies, pursuing sustainability goals and positioning themselves for long-term competitiveness. The pressures come from volatile global markets, rising energy costs, supply chain instability, talent shortages and increasingly complex customer demands.
Particularly acute is the growing demand for faster time-to-market and greater adaptability. Customers are demanding highly customised solutions, often combined with digital services, delivered in ever shorter cycles. Traditional sequential development models are reaching their limits under these conditions. Despite clear strategic needs, many companies remain reluctant to invest, as they must simultaneously address pressing operational issues and increasing regulatory burdens.
However, a positive dynamic is emerging. A growing number of companies are moving beyond optimising legacy processes to embrace new forms of collaboration, deeper customer understanding and cultural change. Lean development and agile methods are moving beyond isolated pilot projects and are being implemented with increasing maturity.
A generational shift in leadership is particularly evident in family businesses. New leaders are emerging with a proactive approach to change and a greater openness to structural change. At the same time, skills shortages are leading to a critical reassessment of internal value creation and organisational models. In short, the sector is undergoing a fundamental transformation. Its future will be secured not only through technological leadership, but also through organisational resilience and cultural adaptability. Companies that continually invest in people, processes and culture will be best positioned to succeed in the global marketplace.
Future Outlook
The engineering industry is at a strategic crossroads. In the coming years, engineering excellence alone will no longer be enough to maintain a competitive edge. Instead, success will depend on speed, adaptability and systemic thinking. Traditional industry boundaries will dissolve. Engineering companies will increasingly become integrated solution providers, offering ecosystems that combine hardware, software, services and data.
Digital platforms, intelligent machine control and data-driven business models will become standard, even for SMEs. At the same time, sustainability will become a core component of strategic decision-making. Carbon neutrality, circularity and resource efficiency will be demanded not only by regulators but also by the market itself. Companies that adapt their development, production and services accordingly will gain significant competitive advantages.
Organisational adaptability will become a key skill. Companies will need to learn to continuously reposition themselves – through flexible structures, self-organising teams and a learning culture that enables innovation. Leadership will need to shift from control to empowerment and creative facilitation.
In this evolving environment, lean development will play a key role. It will provide a structured framework for learning under uncertainty, using resources efficiently and optimising value streams across departmental boundaries.
In ten years’ time, the engineering industry is expected to be less focused on technological fascination and more defined by customer centricity, connectivity and adaptability. Companies that proactively manage this transition will not only remain competitive, but will become pioneers in a new industrial era.
Med Tech
History
The European medical device industry has long been recognised as a highly regulated, innovation-driven sector. Known for its strong engineering culture and commitment to quality, the industry has produced outstanding solutions in product development. However, this strength has often come at the cost of longer development times, high costs and, at times, unnecessary complexity.
Particularly influential have been the increasingly stringent requirements of regulatory bodies such as the European Medical Device Directive (MDD) and the US Food and Drug Administration (FDA). These frameworks have led to a significant increase in documentation requirements. In practice, many companies have responded with additional process layers, repeated validation steps and overlapping responsibilities – measures that have delayed rather than streamlined development, production and market access.
Initial reactions to lean development approaches in this environment have often been sceptical. A reduction in documentation, meetings or validation activities was perceived by some as a risk. However, experience has shown that lean principles can be highly effective when appropriately tailored to the highly regulated context of medical technology.
Cross-functional collaboration, early feedback from clinical stakeholders and iterative development cycles have been shown to improve outcomes. These practices have contributed to shorter time-to-market, better alignment with market needs and fewer last-minute design changes. Crucially, the key to success lies in translating lean thinking into the language of the industry – focusing on patient safety, compliance and demonstrable quality gains.
While the industry as a whole shows a high degree of adaptability, small and medium-sized enterprises (SMEs) often show greater pragmatism and flexibility in implementation. With decisive leadership, SMEs are often quicker to act and more open to innovation. In this context, lean development is proving valuable not only as a tool for improving efficiency, but also for improving overall development effectiveness.
Current Position
The medical technology industry in Europe is currently under increasing pressure from several fronts: the need to innovate, rising operating costs and a complex regulatory landscape. The MDR has prompted a shift in thinking within many companies – away from a narrow focus on compliance and towards a more structured, strategic approach to product development. Nevertheless, the weight of regulation continues to impact on the ability to innovate. Product portfolios are being narrowed, resources are being diverted to regulatory tasks, and truly novel projects are often stalled.
At the same time, economic conditions have become more challenging. Rising energy and material costs, a shortage of skilled labour and increasing competition from international players have heightened the need for efficient operations. In this context, efficiency is no longer seen as a competitive advantage, but as a basic requirement for survival – even in a sector that has historically focused on quality rather than cost.
Against this backdrop, interest in lean principles is growing. Clearer roles, leaner development processes and sharper product focus are increasingly seen as strategic imperatives. Lean development is no longer dismissed as a methodological experiment, but is increasingly recognised as a critical lever for managing complexity.
The momentum for change is particularly strong in mid-sized companies. What is often lacking, however, is practical guidance: How to meet regulatory requirements in a lean way? How to encourage teams to adopt new ways of thinking? And how to measure results in terms of real impact rather than activity?
Successful transformation depends not only on technical expertise, but also on the ability to implement change in a gradual, culturally compatible and practical way. Under these conditions, significant improvements are achievable – even in a sector as demanding as medical technology.
Future Outlook
The medtech industry is at a pivotal point in its evolution. The traditional focus on technical excellence and regulatory compliance will no longer suffice. Future success will depend on the ability to integrate customer focus, digital capabilities and system-level innovation.
Healthcare systems will continue to demand more efficient, affordable and personalised solutions. Companies that focus solely on product quality will struggle to meet expectations. What will be needed are holistic offerings that improve healthcare delivery while remaining economically sustainable.
Digital technologies – including AI, data science and advanced simulation – will play a central role not only in product innovation, but also in the development process itself. Virtual validation, model-based design and data-driven decision-making will become core elements of future lean development frameworks. The regulatory environment will remain complex, but is expected to become more manageable through digital integration.
Lean development will become a strategic operating system. Its role will shift from simply driving efficiency to enabling focus, adaptability and a culture of continuous learning – always aligned with clear customer and patient value. Companies that radically reorient their innovation processes around user needs and treat regulatory compliance as a designable, integrable component – not an obstacle – will lead the way.
SMEs in particular have significant potential to shape this transformation. With bold leadership, a learning culture and targeted investment in team capabilities, these companies can not only remain competitive, but actively set new standards. The future of medical technology will depend not only on technological advances, but also on the industry’s ability to deliver solutions that are effective, accessible and humane.
Locations
This service is primarily available within the following locations:
Berlin
History
Over the past decade, Berlin has emerged as a notable location for lean management and lean development, albeit with a different profile from traditional industrial strongholds such as Stuttgart or Munich. Unlike these manufacturing-heavy regions, Berlin’s development has been shaped by a dynamic ecosystem of technology-oriented SMEs, international corporations with development sites and a growing number of start-ups.
This mix has given new impetus to the lean landscape. Many Berlin-based organisations integrate lean principles with agile methods, user-centred product development and a high degree of openness to digital process tools. Particularly in industries such as medical technology, electronics and mobility, lean principles are being adapted in innovative ways that reflect Berlin’s interdisciplinary and experimental working culture.
At the same time, some challenges remain. Compared to more established industrial regions, lean thinking is not always anchored at the top management level to the same extent. In addition, high staff turnover and the prevalence of project-based work can make the long-term establishment of lean systems more difficult. Nevertheless, Berlin stands out as a place where unconventional ideas meet open-minded teams and where lean thinking is increasingly interpreted in new and context-specific ways.
Current Position
Berlin’s business ecosystem is currently undergoing a period of consolidation. After a period of rapid growth driven by start-ups and technology-driven innovation, companies are now facing increased economic pressures. Efficiency, process stability and long-term value creation have come to the fore, giving new relevance to lean principles.
There is a clear maturation process underway. Organisations that once relied on agile methods or design thinking in isolated initiatives are now beginning to develop more systematic approaches to continuous improvement. In particular, companies facing increasing product and process complexity are increasingly embedding lean development as a strategic element.
Emerging teams are focusing not only on optimising development times, but also on improving quality, resource efficiency and the stability of end-to-end value streams. Lean initiatives are even beginning to emerge in Berlin’s public administration and municipal enterprises, where transparency and accountability are becoming important drivers of change.
Nevertheless, challenges specific to the Berlin environment remain. A highly diverse stakeholder landscape, above-average staff turnover and fragmented project structures can make sustainable implementation of lean systems difficult. However, the city’s openness to experimentation and its vibrant culture of innovation continue to provide fertile ground for new approaches to lean development.
Future Outlook
In the coming years, Berlin is expected to further consolidate its role as a centre for lean development – defined not by industrial tradition, but by hybridity, diversity and integrative thinking. The city’s lean landscape will be driven not by large-scale manufacturing, but by a mix of technology-oriented service providers, product-developing companies, digital start-ups and research-driven organisations.
In this context, lean development will increasingly serve as a bridge between agility, technical excellence and economic viability. Berlin companies are likely to focus more on aligning their innovation potential with structured development processes. This includes lean product development, strategic portfolio management and the design of value streams that extend from customer needs to market-ready solutions.
Demand for holistic improvement approaches is expected to grow, driven by competitive pressures, skills shortages and increasing regulatory requirements. In sectors such as medical technology and public services, regulatory frameworks are likely to reinforce the need for lean approaches by requiring greater process transparency, traceability and compliance.
In addition, the integration of lean principles with digital technologies, data analytics and artificial intelligence represents a key opportunity for the region. Berlin’s vibrant tech scene offers locational advantages that position the city to become a pioneer in digital lean systems.
Overall, Berlin is set to become a leading centre for modern lean development – not because of its industrial heritage, but because of its ability to combine diversity, openness and the integration of different working cultures into cohesive, forward-looking approaches.
Wien
History
In recent years, Vienna has continued to develop as an industrial location, successfully balancing modernisation with established structures. A growing dynamism can be observed in various sectors, driven by internationally networked companies that strategically invest in research, digitalisation and advanced manufacturing technologies. Key location advantages include a well-developed infrastructure, proximity to universities and research institutes, and a highly skilled workforce.
Mechanical and plant engineering in Vienna is characterised by a focus on specialisation and the development of niche expertise – particularly in areas such as precision engineering and automation. A strong innovation dynamic is emerging in medical technology, often based on cooperation with scientific institutions. The electronics industry benefits from both global technology trends and a strong regional base, supported by international supply chains.
Despite global challenges – including supply chain disruptions and volatile energy prices – many Viennese companies are responding with strategic foresight. There is clear evidence that industrial value creation in the region is not in decline, but in transition, with a focus on quality, flexibility and sustainability. Vienna is increasingly perceived as a location that not only adapts to industrial change, but actively shapes it – anchored in a city known for its ability to combine innovation and tradition.
Current Position
Today, Vienna presents itself as a stable yet ambitious industrial location. While geopolitical uncertainties, energy costs and skills shortages remain challenges, the local economy has shown remarkable resilience. Industrial companies in the engineering, electronics and medical technology sectors are showing a high degree of adaptability. Targeted investments in digitalisation, automation and sustainable production processes underline a clear commitment to long-term competitiveness.
Sustainability has become a key issue – not only in production processes, but across the entire value chain. Key issues such as circular economy models, CO₂ reduction strategies and energy-efficient infrastructure are gaining traction. These developments are supported by active regional policies and funding initiatives to help companies in their transformation efforts.
Collaboration between industry, research institutions and start-ups has intensified in recent years. Vienna offers a dynamic environment for innovation, particularly in areas such as sensor technologies, robotics and medical technology. Technological developments are systematically advanced through joint initiatives and interdisciplinary cooperation.
Despite this positive dynamic, companies are still under considerable pressure to improve their innovation capabilities, accelerate time-to-market and secure talent. Vienna today stands as a mature industrial location – ready for the complexities of the present and committed to shaping its economic and technological future.
Future Outlook
Vienna will continue on its path towards becoming a specialised, sustainable and globally connected industrial location. While the core industrial base is expected to remain stable, future competitiveness will depend on the consistent implementation of technological and organisational innovation.
In sectors such as medical technology, electronics and mechanical engineering, data-driven processes, AI-based applications and flexible production systems are expected to play an increasing role. The integration of digital technologies will not only increase productivity but also support the development of robust and adaptive industrial systems.
Vienna’s strength as a business location will increasingly lie in its ability to connect science, industry and talent. Closer cooperation with universities and universities of applied sciences is expected to promote industry-oriented research and development. At the same time, vocational training and upskilling will gain strategic importance to address labour shortages and enable digital and ecological transformation.
Viennese companies are likely to strengthen their position in international innovation networks, expanding cooperation both within Europe and with partners in Asia and North America. Sustainability will evolve from a regulatory obligation to a core strategic advantage.
In the long term, Vienna is expected to consolidate its role as a highly developed, resilient and competitive industrial centre, characterised by a clear focus on technology, collaboration and social responsibility. Rather than simply managing change, the city is poised to become a proactive force in shaping the industrial landscape of the future.
Zürich
History
Zurich has evolved into a highly dynamic and internationally oriented business location. Traditionally known for its strong financial and insurance sectors, the city has seen a notable increase in the importance of technology-driven industries. Many medium and large industrial companies – particularly in the mechanical engineering, medical technology and electronics sectors – have expanded their presence in the region or increased their investment in research and development.
Zurich benefits from a combination of key factors: excellent infrastructure, political stability and a highly skilled workforce. Proximity to leading academic institutions such as ETH Zurich and other universities enhances the region’s appeal to both multinational corporations and agile small and medium-sized enterprises (SMEs). These companies bring innovative products and technologies to market, positioning Zurich as a growing centre of industrial innovation.
The local business landscape is characterised by a strong willingness to embrace change, driven in part by skills shortages, increasing international competition and the need to integrate digital technologies into existing systems. The prevailing work culture is characterised by professionalism, precision and a consistent focus on quality. As a result, Zurich is widely regarded as an economically stable, forward-looking and well-connected region with a clear ambition to achieve technological leadership across a range of sectors.
Current Position
Zurich continues to demonstrate economic resilience, even as the region’s businesses face increasingly complex challenges. The city remains a sought-after location for technology-oriented companies, research institutions and knowledge-intensive industries, even as operational demands increase. Companies are under increasing pressure to accelerate innovation cycles, while meeting evolving expectations around sustainability and digital transformation.
Skills shortages, particularly in technical and IT-related fields, have become more acute, prompting organisations to rethink collaboration models, build internal capabilities more systematically, and invest more heavily in workplace culture. At the same time, a more volatile geopolitical environment is making long-term planning more difficult, especially for globally integrated companies with complex supply chains.
Despite these pressures, many Zurich-based companies are taking a strategically proactive approach. Collaboration with world-class institutions such as ETH Zurich is being intensified to accelerate the application of emerging technologies. Public sector support – through cluster-based economic development and targeted infrastructure initiatives – continues to strengthen the region’s innovation ecosystem.
Nevertheless, Zurich’s locational advantages can no longer be taken for granted. To maintain their competitive edge, companies need to prioritise more decisively, invest selectively and align their innovation efforts closely with tangible market outcomes.
Future Outlook
Looking ahead, Zurich is expected to maintain its status as a leading European business location, albeit in a more challenging environment. The city’s future competitiveness will depend not only on its ability to foster innovation, but also on its ability to scale and commercialise new technologies effectively.
The strategic focus is likely to shift towards high-impact areas such as life sciences, artificial intelligence, energy efficiency and smart manufacturing. Zurich’s global attractiveness is expected to remain strong, but active efforts will be needed to maintain it – through progressive education policies, streamlined regulatory processes for start-ups, and stronger links between research and industry.
The pressure to innovate will intensify, requiring companies to adopt more agile strategies and become increasingly responsive to market disruption. Organisations that emphasise customer-centric development, flexible organisational structures and continuous capability building are expected to lead the next wave of industrial transformation.
Zurich may be seen less as a traditional “safe haven” and more as a place where speed, quality and strategic clarity define business success. This shift presents significant opportunities for companies prepared to meet these demands with purpose and ambition.
Paris
History
Paris has become an increasingly dynamic and diversified business location. Traditionally dominated by large corporations – particularly in the aerospace, luxury goods and energy sectors – the French capital is now experiencing a structural shift within its industrial base. Over the past decade, a growing number of technology-oriented SMEs and specialised subcontractors have emerged, bringing agility and innovation to established value networks.
This transformation has been facilitated by targeted industrial policies and strong institutional links between industry, universities and research organisations. The Île-de-France region has become an environment where industrial transformation is not only possible but actively pursued. At the same time, product development activities are becoming more international and digitally integrated, reflecting a broader trend across industries to reconcile long-standing traditions with growing innovation pressures. However, certain structural and cultural challenges remain. Complex regulatory frameworks and deeply rooted corporate cultures can slow down change, especially in legacy organisations. At the same time, there is a notable increase in openness to inter-enterprise collaboration and platform-based innovation models – particularly visible in clusters such as Aerospace Valley and in the healthcare sector.
Current Position
The Paris region is currently undergoing a period of accelerated industrial transformation, driven by digitalisation, decarbonisation and changing geopolitical dynamics. Many companies face the challenge of making their production and development systems more resilient and sustainable, while at the same time coping with rising cost pressures linked to volatile commodity prices and a tightening labour market. These challenges are particularly pronounced for medium-sized companies.
Despite these headwinds, Paris remains a forward-looking and innovation-friendly location, supported by a strong scientific infrastructure. Cross-sector collaboration between industry, start-ups and research institutions is increasing – often with the aim of accelerating the application of new technologies. Key industries such as medical technology, electronics and aerospace are showing high levels of investment in forward-looking areas such as artificial intelligence, robotics and sustainable materials.
There is also growing evidence of a cultural shift within organisations. Hierarchies are becoming flatter and decision-making processes more agile. However, barriers to implementation remain, often due to rigid corporate structures, regulatory ambiguity or hesitant middle management. While the appetite for change is strong, speed and consistency of execution remain key challenges.
Overall, Paris is positioning itself as an economically powerful and globally connected location, characterised by both ambition and complexity. The potential for transformation is significant – but it depends on the ability to accelerate implementation.
Future Outlook
Paris will further consolidate its role as one of Europe’s leading industrial and technological hubs. With a strong industrial base, a dense network of world-class research institutions and a growing pool of digitally skilled professionals, the region is well positioned to drive sustainable, digital and resilient value creation.
SMEs are expected to play an increasingly influential role in this development. Their ability to respond quickly to change and integrate new technologies into existing processes is a competitive advantage. Government-backed innovation programmes and European funding mechanisms are likely to further support this trend. Key sectors – including aerospace, mobility, medical technology and sustainable materials – are expected to be key drivers of innovation and growth.
Environmental transformation will also become increasingly important. Energy efficiency, circular economy models and carbon neutrality will move from regulatory expectations to core competitive factors. With its policy incentives and high density of pilot initiatives – particularly in urban development – Paris is well positioned to lead the way in this area.
Culturally and organisationally, a gradual shift towards more agile, collaborative structures is expected, particularly in product development and innovation functions. In addition, companies are expected to become more active in international partnerships and to further develop their global networks.
In summary, Paris represents a location with significant creative and economic potential. The extent to which this potential is realised will depend on the region’s ability to match its ambitions with the speed and execution required in today’s rapidly changing industrial landscape.
London
History
London continues to assert itself as a leading global business centre, underpinned by its proximity to major financial institutions, technology hubs and multinational corporations. The city remains a magnet for investment and innovation, and a notable trend is emerging: a growing number of mid-sized companies are setting up operations in the city’s periphery. These companies seek to reduce location costs while maintaining access to central networks and talent pools.
At the same time, many manufacturing companies in the region are facing increasing pressure to improve efficiency. These challenges stem from a combination of factors, including the lasting impact of Brexit, rising energy and logistics costs, and growing expectations around sustainability and supply chain resilience. In sectors such as medical technology and engineering, these pressures have led to the regionalisation of value networks and a renewed focus on local sourcing and production.
Entrepreneurial pragmatism is a defining characteristic of the current climate. Business leaders in London show a strong openness to innovative organisational models, collaborative structures and forward-looking issues such as digitalisation, automation and the future of work. This fusion of innovation and adaptability continues to make London a compelling environment for economic development – even in the midst of structural challenges.
Current Position
London remains a powerhouse in services, technology and finance, and despite ongoing structural change, its industrial base has shown remarkable resilience. Nevertheless, many businesses are navigating a complex landscape of transformation and stabilisation.
The lingering geopolitical impact of Brexit remains a key concern, particularly for export-driven companies in the engineering and electronics manufacturing sectors. These businesses face continued trade barriers, regulatory uncertainty and limited access to skilled labour from the European Union.
Sustainability has emerged as a critical driver of business strategy – not only in response to regulatory requirements, but also because of changing customer and investor expectations. Environmental and social considerations are increasingly central to long-term competitiveness.
Against this backdrop, many organisations are undergoing a strategic realignment. While expansive growth initiatives have receded into the background, the focus is now on consolidation and efficiency. Companies are re-evaluating operational structures, exploring strategic partnerships and seeking ways to increase agility and resilience. The focus has shifted to optimising processes, refining business models and improving product portfolios.
At the same time, London is experiencing significant innovation momentum, particularly through collaboration between start-ups and established companies. The region’s ability to translate emerging technologies – such as artificial intelligence, robotics and sustainable manufacturing – into scalable business solutions remains a key advantage. As a result, London remains a relevant, albeit increasingly complex, place to do business.
Future Outlook
Looking ahead, London is expected to further strengthen its role as a centre for knowledge-based services and technology-driven business models. Growth is likely to be selective and focused, particularly in areas such as digital platforms, sustainable technologies and data-driven industrial solutions.
Within the industrial sector, a focus on highly specialised, knowledge-intensive niches is expected. Companies able to combine technological excellence with operational flexibility and rapid responsiveness will benefit in an increasingly volatile market environment.
Cross-sector partnerships and innovation networks are expected to grow in importance. Organisations that collaborate effectively – sharing expertise across industries and disciplines – will be better positioned to compete in a dynamic global economy. Proximity to leading research institutions and innovation clusters will remain a key competitive advantage for the region.
Regulatory complexity will continue to shape the business climate. However, companies that see these constraints as opportunities for innovation can gain strategic advantage. London’s future as a business centre is likely to be defined by a mix of entrepreneurial agility, technological leadership and intelligent networking strategies.
Program Benefits
Customer Service
- Customer focus
- Customer value
- Customized solutions
- Lead times
- Response time
- Less escalations
- Reliable commitments
- Harmonized communication
- Customer satisfaction
- Customer rating
Operational Excellence
- Operational flow
- Waste reduction
- Resource efficiency
- Quality improvements
- Robust processes
- Continuous improvement
- Transparent operations
- Measurable results
- High adaptability
- Personal responsibility
Product Development
- Development cost
- Time-to-market
- Product features
- Modification flexibility
- Market testing
- Development risk
- Fast learning
- Transparent results
- Managed dependencies
- Crossfunctional collaboration
Testimonials
SCANSONIC MI
“Dr. Oleinek has excellent practical and methodological experience in the areas of lean management and agile development. He always found systematic and pragmatic solutions and was thus able to make a significant contribution to increasing effectiveness and efficiency. The cooperation between him and the team was always professional, even in difficult change situations, so that the changes could be implemented punctually and jointly.”
REHAU Automotive
“During our collaboration, Dr. Oleinek has proven himself to be a proven expert in streamlining product development processes and the associated change work. The most important contributions to the content include the redefinition of the calculation process for offers and changes, but also the realignment of communication in the project teams. Dr. Oleinek’s approach to the necessary changes is characterized by broad knowledge and is proactive at all times. He works in a team-oriented and always integrative manner, thus ensuring the necessary sustainability of implementation. As a consultant and implementation advisor when changing product development processes, I can fully recommend Dr. Oleinek.”
MTU Aero Engines
“Mr. Oleinek supported my project team in testing agile methods. It can clearly convey complex content. His methodological expertise is excellent. In doing so, he is able to combine the team’s methodology and requirements in an excellent way.”
More detailed achievements, references and testimonials are confidentially available to clients upon request.
Client Telephone Conference (CTC)
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