Industrial product support services using digitalization

TheOptimizationofIndustrialProductSupportServicesusingDigitalization

Swissmem,F&E-KonferenzzurIndustrie4.011January 2016

Dr ShaunWest(HSLU)Dr Meierhofer Jürg(ZHAW)

Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg

IntroductionIndustry4.0meanswehavetounderstandthecustomer’sbusinessesbetter

TodescribedifferentoperationallayersinIndustry4.0thatmustbeunderstoodtoallowoptimizationofindustrialproductsupportservices

Contextofdigitalization

Whatandwhereisvalue

Challengesthatfacedevelopmentofservices

Designmethodologyfordigitalization


ContextWhatarethegrowthdimensionsfordigitalization?

WherecanDigitalization

supportsuppliersand/or

customers?

Increase service(product)offering

Increaseglobal/marketreach

SparesRepair

Upgrades/RetrofitsMaintenance

Solutions…

Increasecustomer/installed-basepenetration

Optimizepricing

ItisimportanttounderstandthecurrentstateSource:RolandBerger


Digitizationcanhelpinmanyways

ContextWherecandigitalizationhelpus?

Source:RolandBerger

Newdigital(enabled)

serviceproducts

B

Digitizationoftraditional

serviceproducts

A

Increaseglobal/marketreach

Increasecustomer/i-basepenetration

Optimizepricing

ENewpricingmodelsbasedondigitization

Increase service(product)offering

Remote access/deliverybasedondigitization

C

Highertransparencybasedondigitization

D

Howcandigitizationcanhelp?


FivedifferentareastocapturevalueFirmsneedtoadapttooptimizetheirIndustrialProductSupportServices

Objectives

Newpricingmodelsbasedondigitization

Digitizationoftraditionalservices

A Newdigital(enabled)value-basedservices

B Remoteaccess/deliverythroughdigitization

C Highertranspa-rency basedondigitization

> Improvepricingaimingforoptimi-zation and customerlock-in

> Improveownserviceoperationsaimingforhigherperformanceorefficiency

> Improvecustomeroperationsaimingforhighervalue

> Improvemarketaccessaimingforbetterpenetration

> Improvecustomertransparencyaimingforhighershareofwallet

> Improvedcustomerrelationships

> Bundlingofservicesalongpricingschemes

> Risk-mitigation> Highermargins

> Betterknow-howofcustomer'sserviceneeds/buyingbehavior

> Lowercostofoperations

> Differentiationbasedonadvancedservices

> Newrevenuestreams> Businessmodelinnovation

> Betterglobalcoverageandperformance

> Highereffectiveness> Potentiallynewcustomers(thatcouldnotbeservicedbefore)

> Moreintegratedsalesapproach

> Proactive,consultativeselling

> Highereffectivenessand efficiency

> Alignmentofpricingwithvaluecreation

> Paywhenuse> Risktransfer

> Higherconvenience/performancelevel

> Lessstock

> Improvedoperations> Improvedassetmanagement

> Reducedrisk/reducedcosts

> Fasterproblemsolving

> Similarservicequalityworld-wide

> Lessserviceproviders(OEMsinglesource)

> ServiceneedsaddressedproactivelybyOEM

D E

Benefitsfor

OEM

sBe

nefitsfor

Custom

ers

Howcanwemeasurevalue?

DigitizationbenefitsboththeOEMandthecustomer


Methodologiesexistthatcanhelpusbutthisneedsasystemsapproach

WhatiscustomervalueWecanmeasurecashasaproxyforvaluewithdigitalization

Measuringvalue• Leanthinking– whereisthevalue andwaste?• Cash canbemeasuredinternally bythefirm• Cash canbeestimatedinacustomer’sbusiness

Whichservices

really createvalueandfor

whom?

Valueis• Defined bythe’customer’• Linkedtoaspecificbusinesscase• Dynamic andfuture oriented


ValuecapturefromservicesWhendoservicesreallycreatevalue?Whichservicescouldbeeliminated?

Dependingonthevaluecontributionofaservice,therearedifferentstrategiestofollow!

Examples• Companycontactscustomertoconvincehimtochangetoacheaperpaymentmethod

Examples• Customercontactsthecompanybecausehewantstopurchaseanewproduct

Examples• Customerhaspurchased

wrongproduct• Customercannotactivate

theproduct

Examples• Customerlosthispasswordandcallsthesupport

• Customerwantsacopyoftheinvoice

Valueforthecustomer

Valueforthe

supp

lier

low

low

high

high

Eliminate

Simplify

Automate(selfserve)

Increase

BillPriceand D.Jaffe,TheBestServiceis No Service,JohnWiley &Sons,2008

Areonlycustomer

andsupplierperspectivessufficient?


ChallengesDifferentequipmentlevelsmustbeconsidered

Who shouldbeinvolved

intheoptimization

process?Singleproducts(eg,acompressor)

Systems(eg,WoodsideLNGproduction)

Portfolio(eg,ShellLNG)

Supp

lier’sperspectiv

e

Customer’sperspective

Technicaldata+Operationsdata=betteroptimizationatalllevels


ChallengesManagementlevelsmustbeconsidered

Howcaneachlevel

beoptimized?

Technician

MaintenancemanagersOperationsmanagers

Portfoliomanagers

Thisisacomplexecosystemwithdifferentdriversateachlevel

OEM


C

M

Y

CM

MY

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CMY

K

pic.pdf 1 13.11.16 22:43

Sowhatdoesthismeanforus?Wewillfocusourresearchsupportingpeopletotaketherightaction

RightinformationRighttimeRightformRightperson

Rightaction

Howcanthisbe

delivered?

Actionmustbeunderpinnedwith’data’thatistransformedtosupporttherightaction?

Rightdata

C

M

Y

CM

MY

CY

CMY

K

pic.pdf 1 13.11.16 22:43

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CMY

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pic.pdf 1 13.11.16 22:43

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MY

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CMY

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pic.pdf 1 13.11.16 22:43

C

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pic.pdf 1 13.11.16 22:43


C

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Thisprocessisdesignedtohumanisetheinformationprovidedtosupportbetterdecisionmaking

Create&testprototypesvaluepropositionsForeachpersona testanditerate

PersonaempathymapsDescriberelationshipsbetweentheactors

CustomerjourneyUnderstandthestepsofthejourney

SituationalanalysisUnderstandvalueintheecosystem

Job-to-be-doneWhatisthepersonsjob-to-be-done?Whatistheirdesiredoutcome?Ecosystem visualization

Analysistoidentifykeyactors

Byunderstandingtheecosystemsandbusinessmodelswecanoptimizesupport

Whatisourmethodology?Wewillsupportfirmstodesignservicesthroughunderstandingtheecosystem

C

M

Y

CM

MY

CY

CMY

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ClosingConclusions

Tocreateoptimizeddigitalservicesrequiresamethodologythatdelivers:- therightinformation- attherighttime- intherightform- totherightperson(to

taketherightaction)

Digitalizationprovidesoptimizationopportunities

Cashisaproxyforvalueandcanbefoundinmanyplaces

Therearedifferentlevelsandperspectivesthatmustbeunderstood

Acoherentmethodologyisneededtooptimizeservices


http://www.advancedservicesgroup.co.uk/ssc2017


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