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VIRTUAL EVENTAdvancing After-Market Services for Business Resilience
July 22, 2020
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Introduction
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
Tim Baines
Professor of Operations Strategy & Executive DirectorAdvanced Services Group, Aston Business School
Neil Tumber
Senior Industrial FellowAdvanced Services Group, Aston Business School
David Beckoff
VP, Product Development and InsightsMAPI
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A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
THE ADVANCED SERVICES GROUP• Research centre within Aston University
focused on excellence in servitization and advanced services
• The world’s largest and most highly-cited group of researchers and practitioners working on this topic
• Working with business to discover, develop and implement leading thinking about servitization
www.advancedservicesgroup.co.uk 3
Less than $1B41%
$1B to $2.9B33%
$3B to $9.9B16%
$10B or greater10%
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ABOUT THE SURVEY Annual Revenue of Company Share of Revenue from After-Market Services
n=52
Industry (Top-5 Represented)
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
Less than 10%50%
10% - 30%19%
31% - 50%17%
More than 50%4%
Unsure10%
32%20%
14%8%8%
MachineryMiscellaneous
Electrical equipment, appliance, and componentTransportation equipmentFabricated metal product
RoadmapA D V A N C I N G A F T E R - M A R K E T S E R V I C E S
What Advanced
Services Offer
TransformationThrough
ServitizationA Strategic Imperative
Discussion of Challenges
RoadmapA D V A N C I N G A F T E R - M A R K E T S E R V I C E S
What Advanced
Services Offer
TransformationThrough
ServitizationA Strategic Imperative
Discussion of Challenges
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
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Manufacturing, value added (% of GDP) Services, etc. value added (% of GDP)
RoadmapA D V A N C I N G A F T E R - M A R K E T S E R V I C E S
What Advanced
Services Offer
TransformationThrough
ServitizationA Strategic Imperative
Discussion of Challenges
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
THE SERVICES JOURNEY: UNDERSTANDING THE GOAL
?
The services staircase provides a basis for understanding the current and desired services the business offers
www.advancedservicesgroup.co.uk 9© Advanced Services Group 2020
ENABLING BUSINESS RESILIENCE TODAY
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Q: What do you consider to be the most significant enablers of business resilience? Select up to three.
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
n=52 manufacturing executives who completed an online poll in mid-June and early July.
67%
48%
46%
37%
29%
25%
21%
21%
Strong collaboration with customers
Ability to serve different markets
Ability to shift resources between services
Ability to predict changes in demand
Ability to provide services remotely
Income that covers costs at all levels of demand
Access to funding to maintain resources in periods of low demand
Ability to shift production to manufacture different products
WHAT IS “SERVICE-MINDED”?
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Which of the following best describes how your company views services today?
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
n=52
3%5%10%10%10%
39%
23%
19%
29%
19%33%
Less than 10% & unsure10% and above
As an enabler for new sources of value
As a way to build an ongoing relationship with yourcustomersAs a way to distinguish your company from yourcompetitorsAs something that distracts from the manufactureof productsAs a way to obtain product sales
As a way to identify product improvements
As a necessary evil
RoadmapA D V A N C I N G A F T E R - M A R K E T S E R V I C E S
What Advanced
Services Offer
TransformationThrough
ServitizationA Strategic Imperative
Discussion of Challenges
Quick Poll
What is the main challenge for advanced services at your company?
a. Customers reluctant to share datab. Installed base not fitted with sensors and communicationsc. Few staff with credibility to build relationships with the customerd. Internal culture is highly focused on the product
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
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A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
The transformation roadmap provides a basis for understanding the actions needed to achieve the vision
THE SERVICES JOURNEY: UNDERSTANDING THE TRANSFORMATION
www.advancedservicesgroup.co.uk15© Advanced Services Group 2020
PRODUCT MONITORING PRACTICES
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Q: How does the company monitor the performance of the product in use?
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
n=52
29%35%
48%
26% 26%
67%
52% 52%
38%29%
Visit product to carryout maintenance,repair or upgrade
Access productremotely
Visit product andobserve it in normal
operation
Visit product to viewdata held in itscontrol system
Visit product to carryout testing
Less than 10% & unsure 10% and above
REMOTE MONITORING PRACTICES
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Q: What capabilities exist to monitor your product remotely?
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
n=50
41%
55%
38%
17%24%
3%
71%
57%48%
33%24%
14%
Install-base withappropriate
sensors
Secure, reliablecommunications
Data analytics Links tocustomer'smonitoring
system
Location sensing(GPS)
Digital twins
Less than 10% & unsure 10% and above
BARRIERS TO REMOTE MONITORING
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Q: What do you see as the most pressing barrier to remote monitoring?
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
n=52
36%
21%
17%
10%
10%
4%
2%
Customer unwillingness to share data
Lack of appropriate sensors in the install-base
Cost
Security
Incompatibility of older product models with moderncommunications
Poor quality communications with your products
Lack of an accurate install-base directory
MAINTAINING PERFORMANCE
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Q: What is the primary way to maintain your product currently?
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
16%10%
6%4%
3%
16%
10%
19%
19%24%
40%33%
Less than 10% & unsure10% and above
Supply parts to the customer when requested
Send a technician with parts when requested bythe customerSend a technician with parts according to themaintenance scheduleHave the customer bring the product to yourservice centerRemotely carry out maintenance
Remote monitor the product and send atechnician with parts when neededOther
n=52
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
Available for download at: https://www.advancedservicesgroup.co.uk/case-studies21
RoadmapA D V A N C I N G A F T E R - M A R K E T S E R V I C E S
What Advanced
Services Offer
TransformationThrough
ServitizationA Strategic Imperative
Discussion of Challenges
A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
https://www.advancedservicesgroup.co.uk/wsc2020
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A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
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Thank you!
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A D V A N C I N G A F T E R - M A R K E T S E R V I C E S
