Risto Gyldén, ABB Oy Marine Services, 2012. Co-creation ... · Safe offshore oil and gas exploration Global increase in container transportation ... 15 Crane Service Centers (CSC)

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Co-creation and rapid prototyping in service product development

Risto Gyldén, ABB Oy Marine Services, 2012.

© ABB Group June 1, 2012 | Slide 1

Co-creation & rapid prototyping of services

Risto Gyldén

Naval Architect, M.Sc. (Aalto University)

Senior Azipod Specialist

1) Introducing ABB Group and ABB Marine

2) Co-creation and rapid prototyping in service product development

Experiences from ABB Marine

Content


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Introducing ABBABB Group



ABB’s visionPower and productivity for a better world

As one of the world’s leading engineering companies, we help our customers

to use electrical power efficiently,

to increase industrial productivity and

to lower environmental impact in a sustainable way.


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A global leader in power and automation technologiesLeading market positions in main businesses

135,000 employees in about 100 countries

$38 billion in revenue (2011)

Formed in 1988 merger of Swiss and Swedish engineering companies

Predecessors founded in 1883 and 1891

Publicly owned company with head office in Switzerland


Power and automation are all around usYou will find ABB technology…

crossing oceans and on the sea bed,

orbiting the earth and working beneath it,

on the trains we ride and in the facilities that process our water,

in the fields that grow our crops and packing the food we eat,

in the plants that generate our power and in our homes, offices and factories.

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Introducing ABBABB Marine and Cranes



Moving people and goods safely and efficiently

New regulationsNew technology

Major changes over vessel life time

Key business drivers:

Energy efficiency

Safety and environmental sustainability

Safe offshore oil and gas exploration

Global increase in container transportation

You will find ABB marine solutions

opening new seaways between Europe and Asia

powering efficiently world’s largest cruise ships

propelling LNG-carriers into new era of energy efficiency

on more than 125 offshore drilling platforms


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Global Marine Services network

19 Marine Services Centers (MSC)

15 Crane Service Centers (CSC)

Securing availability

ABB Marine and Crane Service Center


Co-creation and rapid prototyping in service developmentExperiences from ABB Marine



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Co-creation and rapid prototyping

First:

Co-creation and rapid prototyping in service product development

Experiences from ABB Marine

Second

Development of new, high-end training service products DEC20/30

Presentation structure


Co-creation and rapid prototyping in service developmentExperiences from ABB Marine

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Service product development

This presentation is about the challenges of an industrial corporation in its’ service product development

Same challenges can be identified in most service development processes

It’s NOT a question of size of the company

(Industrial) services happens between people

in most cases

Service is actualized in the mind of the receiver

Challenges of an industrial corporation


Customer process understanding

ABB is traditionally an equipment supplier

With equipment related services

Less emphasis on customer processes and systems

Swiss – Swedish – Finnish corporate culture

Assertiveness is a riskHow to be humble?

Approaching customer hat in hand

Maritime business value chain is complex

ABB Marine => Ship yard => Ship owner => End customer => End user

Understanding value creation?

Assertiveness:

Boldly self-assured

Aggressively confident

Cocky

ABB’s approach


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ABB’s traditional product development process

ABB has strong R&D

Long tradition in organizing product development projects

Standard corporate model is STAGE-GATE

Linear process

Strict GO/KILL-decisions

No feed-back loop

Gate 0: Agreement to start

Gate 1: Agreement on scope

Gate 2: Agreement on start project execution

Gate 3: Confirm Execution

Gate 4: Agreement on readiness for introduction

Gate 5: Release / Handover

Gate 6: Close Project

Gate 7: Capture return on investment

Stage-Gate -model

G0 G1 G2 G3 G4 G5 G7G6

Agreement to start

Agreement on scope

Agreement on startproject execution

Confirmexecution

Agreement on readinessfor introduction

Release /Handover

Close project Capture returnon investment


ABB’s Product development process

Stage-gate model suits

Tangible, capital goods development

With significant financial risks

Missing:

Listening

Understanding, i.e. dialogue

Service product development is different

Less financial risk, less resources

Requires communication with customer

Traditional Stage-Gate -model


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Service product development

Reasons to create new services?

Business case based on customer needs

Top management approval

Get a sponsor

Internal sales

Resistance, change managementSponsor’s responsibility

Internal challenges


Co-creative process

Find out and define customers needsNOTE: Not the same as wants or requests

Engage customers in open discussionInvolve customer’s top experts Open questions reveal competence gaps

Customer’s and own

Open exchange of views builds trustBonus: Use trust to increase market knowledge

Gathering data with qualitative methods


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Co-creative process

Analyze customer data

Utilize all available own, internal corporate knowledge and skills

Both substance and business

Use third party resources when needed

Come up with best practical solution

Promise only what you can deliver

Present to customers in a structured, realistic manner

Get feedback

Rapid prototyping


Co-creative process

Let your customers audit your new product

i.e. reveal to a certain extent what is being developed

Let customer’s experts evaluate your proposition

This may be the key to trust and success

Be humble

Be honest

This is important!

Auditing by customers


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Co-creative process

Publish first version without delays

No service without purchase order

i.e. piloting for a price

Financial input from customers ensures commitment

This is also important!

Piloting after auditing


Value assessment

Internally

Usually quantitative KPIs

Revenue, GM, EBIT

Externally

i.e. customer value proposition

In optimized processes quantitative KPIs difficult

Use qualitative KPIs?Change in customer behavior

Measuring service value


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SUMMARY

Identify initial business case

Ensure management support

Engage customer in open discussion

Involve all resources in development

Do not promise more than you can deliver

Early demo and feedback

Piloting for money, i.e. no service without PO

Customer value measurement by qualitative KPIs

SUMMARY

Co-creation and rapid prototyping


Documents

Risto Gyldén, ABB Oy Marine Services, 2012. Co-creation ... · Safe offshore oil and gas exploration Global increase in container transportation ... 15 Crane Service Centers (CSC)