Remote 4.0! und service? it all starts with the right value proposition

Service Innovation|DrShaunWest

Remote:4.0!UndService?ItallstartswiththerightvaluepropositionSmartRemoteServices,we-connect,Berlin

22.September2015

Dr ShaunWest


ObjectivesWhatistherightcustomervaluepropositionforsmartremoteservices?

Buildingcustomerconfidence andtrust

Learningtounderstandwhatdrivesthecustomer

Helpingcustomerstoachieve theirgoals

Ifweunderstandtheseaspects,wecanmaketherightcustomervalueproposition

Creatingtwo-waycommunicationwiththecustomer


Customervalue propositionWhere are you?


CustomervaluepropositionThisisthemodelIusetoidentifyandvaluethecustomervalueproposition

Adapted from Anderson Adapted from Osterwalder

Va lue


BUILDINGCUSTOMERTRUSTSmartremoteservicesisnotabouttechnology,butaboutimprovingthecustomerexperienceandbuildingarelationshipoftrust


BuildingcustomertrustDoknowwhoourcustomeris?

Where are weintheecosystem?- Imagine weare atraincomponent OEMcompany…

ProductionBogies

SuspenionOwner

Operator

MaintainerLighting

Regulator

Insurers

Investors

System operator

Spares

”…wethoughtweunderstoodourvaluechain,onreflection wedidnot..."

Development

System integrator


BuildingcustomertrustAtwhatlevelarethesmartremoteservicesbuildingtrust(orotherwise)?

Trustbuilding- Supporting operations- Supporting maintenance planning- Supporting training- Spares finding- Jointproblem solving

Trustbreaking- Warranty protection- Spyinthecab- Inadvertent sharingofdataandanalysis

”…monitoring toprotectourwarrantypositionpoisonedourrelationship…"


BuildingcustomertrustDataownership,confidentialityandlitigation

Theequipment ownerowns thedata- There islimitedvaluein thedata- Datamust besharedwithin thesupplychain- Datamustbe transparent

Equipment ownersconsider thedatacommercial- Thevalue is inthedataanalysis- Benchmarking creates value intheecosystem

Riskoflitigation with‘bigdata’- Over20yearsofdataat20mswill showaviolation

”…thevalue isinanalysisatthesystemlevelandthisneedstheecosystemtoanalsyise it..."


BuildingcustomertrustPeoplebuildtrust…

Themachine…- Istosupportnot replace people- Provides asingle pointofdata- Supports joint problem solving

The team in theecosystem mustlearn…- Toshare andwork together- Onepersonmaythecause ofanother’s problem- Oneperson's ideamaybeanother's opportunity

”…byworkingtogetherbetter solutionscanbefoundmorequickly..."

Chesbrough, " Open innovation "


LEARNINGTOUNDERSTANDWHATDRIVESYOURCUSTOMERSSuccessfulremoteservicesmustbefoundedontheunderstandingwhatdrivesyourcustomers


LearningtounderstandwhatdrivesyourcustomersWhatareyourcustomerslookingforintermsofoutcomes?

Wemustunderstand whereoutcomes accrue- Topline – means moresales forourcustomer- Bottom-line – meanscost savings- Compliance andriskmanagement – increasessustainability

Eachcustomer andmarket isdifferentsoflexibilityisrequired- Companies changestrategy- Market conditions change- Newtechnologies makenewthingspossible

Morepotentialrevenues(improvedavailability,assetutilization…)

Improvedsafety,reducedemissions…

Costsavings(improvedfuelefficiency,reducetime…)

”…weassumedeveryonewiththesameequipmenthadthesameneeds.This isnotthecase!"


LearningtounderstandwhatdrivesyourcustomersDoyouunderstandyourcustomersgainsandpains?

Empathy mappingcanhelpunderstanding- Key customers andstakeholders- Oftenmore thanonemappercustomer group

Check list- Where are yourcustomer’s inconstancies?- Haveyouidentified theirmain painsandgains?- Canyouquantify theirpainsandgains? (Hard)

”…ourcustomer’s revenuewasbasedonnumberofpassengersandtheywerehardtocount…"


LearningtounderstandwhatdrivesyourcustomersYouknowthepainsandgains;timetocheckthecustomer’sjobs?

Acheck listforcustomer jobs- What jobsareyoubeingasked toperform?- Howdoyoufitinto their processes?- Doyouknowwhyyouarebeing asked todothesejobs?

- Are there jobsthatyoucould dobetter than thecustomer?

- Are there jobsothers inyourecosystem couldbetter perform?

- Are there jobsthecustomer couldbetter perform?

”…ourcustomerwasbetteratperformingsometasksthanwewere,sowelearnt toworkedwiththem..."


HELPINGCUSTOMERSTOACHIEVETHEIRGOALSThebestvaluepropositionistheonethatfocusesongivingcustomerswhathelpsthemtoachievetheirgoals– theythengetmoreoutoftheirequipment


HelpingcustomerstoachievetheirgoalsWhatleverscanyoupullinthecustomersprocess?

Direct levers- Condition/risk basedmaintenance- Proactive maintenance notifications

Indirect levers- Identify training forO&Mstaff- Changes toequipment configuration- Additional spares

Related levers- Rootcause iselsewhere intheecosystem

”…analysis showedthatourcustomer’sbreaking problem wasdue toleaves…”


Improvedsafety,reducedemissions…

Costsavings(improvedfuelefficiency,reducetime…)Value

HelpingcustomerstoachievetheirgoalsCanyoudescribedclearlywherethecustomer’sbenefitsaccrue?

Acheck listto improveclarity- Usethecustomer language- Beproactive and feedback yourvalue creation- Provide benchmarks tohelp them identifyimprovements

- Understand yourcustomers jobsandprocesses- Customer pains– showhowyourelieved them- Customer gains– showhowyoucreated them

”…ourfleetmanangement solutioncreated largefuel savingsforourcustomer…”


Value

HelpingcustomerstoachievetheirgoalsHowwellareyouabletohelpyourcustomersachievetheirgoals?

Check list- Do thegains/gain creators match?- Dothepains/pain relievers match?- Dothecustomer jobs/products andservice match?

Thisisnotaonetimeprocess!

“…wewantonesystemintegrated,wedon’twantdifferentsystemsfromeachOEM…"


COMMUNICATINGNOTREPORTINGTheimplementation ofanysystemmustfocusontwo-waycommunication- theconversionofdataintoinformationthatcansupportacustomertomaketherightbusinessdecisionandtheOEMtolearntoprovidebettersupportarecritical


CommunicatingnotreportingDoweknowhowtocommunicatewithourcustomers?

Ownersusedifferentvocabularies- Overall equipment effectiveness

- Waiting time- Safety

- Equipment efficiency- Fuelefficiency- Availability- Reliability

“…CATpresents information fromtheir systemsin thelanguage(businessandtechnical)oftheir customer…"

http://www.cat.com/en_GB/support/operations/cat-connect-solutions/cat-emsolutions/improve-operations.html


CommunicatingnotreportingDoyouoverloadyourcustomerswithdata?

Data overload- There islimited value indata- Real valuecome fromeffective action- Tomakeaction requires information (andmore)

Creatingeffectiveactionneeds- Amix ofcommercial and technical dashboards- Automated reports senttoappropriate people- Reports forthecustomers pains/gains andgoals- Language appropriate tothecustomer

"…wewanttohavecommercial reports thathelpusrunourbusinessmoreeffectively…"


CommunicatingnotreportingCanyoulearntosupportjointproblemsolvingatasystemslevel?

http://cdn.osisoft.com/corp/en/media/presenta tions/2015/UsersConference2015/PDF/UsersConference2015_Verso_CardJohnHume_ReducingEnergyandWaterUsageatVersosAndroscogginMill.pdf

Atan individual level- Creates lasting/trusting relationships- Leads toadeeper understanding ofsystem issues

FortheOEM- Cheaper solutions (morebrains)- Better understanding ofthecustomer’s processes- Ideas forproductdevelopment- Solutions forupgrades

Forthecustomer- Quicker andbetter solutions (morebrains)

“…problem solving:Equipmentknowhow+processknowhow=quicker,better, cheaper solutions…"


CLOSING


ClosingWhatdoesagoodcustomervaluepropositionlooklike?

Adapted from Anderson Adapted from Osterwalder

Wert

“…there isnosingle solutionforallsituations…"


ClosingTwosuperexamplestherightvalueproposition!

Acase booksoltions isneeded coupled withconceptual scenarios willhelpuslearn

Bobst https://youtu.be/G8Z7nvGdQFk Cathttps://www.youtube.com/watch?v=N7tb5R1PGNw&


ClosingDidwefindawaytodiscoverthecustomervalueproposition?

Trustandcustomerexperience canbeenhanced

Differentcustomersmaydifferentdrivers

Thesolutionmustbebasedonsupportingcustomeroutcomes

WithSmartRemoteinplaceyoucanbewithyourcustomerandsupporttheiroperationaloutcomes.

Youde-riskthebusinessesandhavemoreoptionsforprovidingadvancedservicesValueisinthecommunicationwithintheecosystem


Thanksforyourtime!

Business

Remote 4.0! und service? it all starts with the right value proposition