DESIGN ∙ TRANSFORM ∙ RUN

EXECUTEACTIONS

PROVIDEVISIBILITY

EXECUTEACTIONS

STEER

EFFECTIVENESSPROVIDE

VISIBILITY

PROVIDEVISIBILITY

STEER

EFFECTIVENESS

EXECUTEACTIONS

http://www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization

IMS Industrial Asset Optimization Intelligent OperationsSM

Design, transform and run intelligent industrial asset optimization operations to help OEMs and operators enhance service revenues and reduce costs

Gianni GiacomelliSenior Vice PresidentHead of Genpact Research InstituteChief Marketing Officer

DESIGN • TRANSFORM • RUN 2© 2015 Copyright Genpact. All Rights Reserved.

We design, transform and run the intelligent enterprise operations that strengthen our clients’ competitiveness

Genpact ► Overview

*US$22B is a cumulative figure since 2006

*Cumulative figure since 2006

Wh

at w

e d

o Help leaders of some of the largest enterprises

…design, transform and run

…business-critical operations including the very complex and industry-specific

Ho

w w

e d

o it

Smart Enterprise Processes (SEPSM) crystallizes operational and domain expertise, rigor inherited from GE

Achieve Intelligent OperationsSM through Systems of EngagementTM, Core IT and Data-to-Action AnalyticsSM

The strength of a large company, but flexible solutions; top management directly involved with clients

Unbiased and agile solutions limit upfront costs, reach results faster and enhance adaptability

Our impact

We make clients more competitive:

• More efficient, effective

• Able to better manage costs, risks, regulations, and support growth

The results: US$22B*+ of impact for 800 global clients

DESIGN • TRANSFORM • RUN 3© 2015 Copyright Genpact. All Rights Reserved.

Domain + Technology + Analytics + Operations = Reimagine processes, build Intelligent Operations

Genpact Intelligent OperationsSM

EXECUTE

ACTIONS

PROVIDE

VISIBILITYSTEER

EFFECTIVENESS

EXECUTE

ACTIONS

Smart ProcessesDesign, transformation and operations support generate real impact by aligning tightly to measurable business outcomes thanks to proprietary SEPSM framework

Smart Decision ServicesGenpact Data-to-Action AnalyticsSM leverage Intelligent Process Insight EngineSM and advanced organizational delivery models

Smart Technology Genpact Digital harnesses effective, agile technology including Genpact Systems of EngagementTM and effective Core IT services

Genpact Intelligent OperationsSM

DESIGN • TRANSFORM • RUN 4© 2015 Copyright Genpact. All Rights Reserved.

Industry challenges

Solution

Impact

Case studies

DESIGN • TRANSFORM • RUN 5© 2015 Copyright Genpact. All Rights Reserved.

OEMs face financial and operational challenges in the absence of an effective industrial asset optimization program

Industrial asset optimization ► Industry challenges ► OEM

Difficult service monetization

• Difficult to transition from product- to service-centric organization

• Inaccurate installed base data and inadequate analysis limits service contract sale/renewal causing losses of up to 20% of services revenues

Higher service costs

• Inadequate remote monitoring/diagnostics leads to high field fixes, suboptimal field force scheduling and skill set matching

• Limited parts/tools availability due to inaccurate service forecasts, unplanned shutdown, limited triage across warehouses etc.

Lower asset uptime

• Unscheduled asset downtime impacts end-customer satisfaction and OEM’s market share

Undifferentiated products

• OEMs find it hard to create differentiation without strong value and performance engineering to create more reliable machines

Increasing regulatory oversight

• OEMs and operators need to overcome increasing number of environment (e.g. for oil & gas) and operational (e.g. NERC* for energy equipment) regulations

*North American Electric Reliability Corporation

DESIGN • TRANSFORM • RUN 6© 2015 Copyright Genpact. All Rights Reserved.

Operators face revenue and margin pressures due to asset downtime, expensive servicing and stringent regulations

Industrial asset optimization ► Industry challenges ► Operators

Asset downtimeUnscheduled asset downtime results in overall productivity loss (e.g. oil & gas, wind energy) and revenues (e.g. healthcare, transportation)

Higher service costs

Limited analytics of remotely monitored operational data results in non-coordinated preventive maintenance activities, non-availability of spare parts in inventory and higher than desirable operational disruption

Data security and compliance issues

Equipment operation data is regarded “sensitive” by end-customer/ operators and requires adequate data security measures

Suboptimal contract negotiation

Absence of operational data insights and SLA violations, results in higher costs getting agreed and paid

Increasing regulatory oversight

Operators need to overcome increasing number of environment (e.g. for oil & gas) and operational (e.g. NERC* for energy equipment) regulations

*North American Electric Reliability Corporation

DESIGN • TRANSFORM • RUN 7© 2015 Copyright Genpact. All Rights Reserved.

Intelligent OperationsSM to minimize revenue volatility, maintenance cost and improve controllership

Industrial asset optimization ► Solution ►Intelligent OperationsSM

Continuous learning• Suggest changes to data input

to minimize error • Alter maintenance schedules• Modify confidence intervals for

cost and revenue projections

4

4

Gather feedback

PROVIDEVISIBILITY

Consolidate, Report

Analyze

Run data-to-insight• Master data preparation• Analysis of deviation • Domain driven identification

of contextual root causes (e.g. material tagging)

• Formalize hundreds of business rules to prevent incorrect inputs

2Aviation engine contract analytics:Data-to-ActionSM process

EX

EC

UT

EA

CT

ION

S

Operate

Measure

• Identify target outcome Revenue volatility, maintenance cost, unplanned downtime

• Identify metrics: Data quality, cost estimates accuracy

1

ILLUSTRATIVE

SIMPLIFIED

STEER

EFFECTIVENESS

CorrectStrategy and

Targets

Improve execution practices • Determine data entry error patterns• Implement industrial internet

platform to flag future issues and enable continuous learning

• Change management reduces systematic issues

3

Implement

DESIGN • TRANSFORM • RUN 8© 2015 Copyright Genpact. All Rights Reserved.

An industrial asset optimization portfolio that enhances asset uptime and reduces revenue leakage and service costs

Industrial asset optimization ► Solution ►Portfolio

Structured

Unstructured+

Automated connectivity monitoring

Data

Customerinternalnetwork

IP sec tunnel

Internet Customer network server

Customer provides public routable IP for connection via VPN tunnel

Firewall

Internal network

Performance engineering

Reliability based failure forecasting

Failure mode analysis

Early wear and tear detection

DW

ETL

Big data?

Data quality, collation and segregation

End client utilization

Algorithms, rules, alerts

Model free/model based

Self learning model/rule

Test and monitor connectivity

Connect Collect Compute

Build robust and secure infrastructure for data gathering, rule based filtering and storage

Utilize big data protocols to gather, filter and store data

Derive actionable insights from data

Remote monitoring and diagnostics

Prognostics

Service cost optimization

• Field service management

• Parts management

Service revenue enhancement

• Installed base management

• Service contract management

• New service lines

Asset reliability• Reduce unplanned

downtime• Reduce financial and

operational risk• Lower product failure

rates

Enable proactive maintenance, engineering interventions and streamlined operating practices

Control

DESIGN • TRANSFORM • RUN 9© 2015 Copyright Genpact. All Rights Reserved.

Value drivers

Areas of improvement

• Proactive part replacement

• Better installed base coverage

• Higher contract renewals and win rates

• Field service optimization• Contact center

centralization• Parts inventory

management • Returns optimization

• Remote monitoring• Reliability based failure

forecasting• Lower time to repair• Field force optimization

• New service offerings• New contract revenues• Existing contract

revenues

• Field operations• Contact center• Parts and warranty

management

• Planned downtime• Unplanned downtime

Significant operational and financial impact

Industrial asset optimization ► Impact

What can be achieved

12 - 15%More revenue

8 - 10%Lower cost

6 - 8%More asset

uptime

Revenue leakage

Cost escalation

Riskmanagement

DESIGN • TRANSFORM • RUN 10© 2015 Copyright Genpact. All Rights Reserved.

Genpact’s industrial asset optimization solutions help clients realize measurable impact

Industrial asset optimization ► Case studies

ImpactChallenge Solution

High levels of unscheduled maintenance and low uptime and efficiency of gas turbines

Seamless remote monitoring infrastructure setup and preventive and ongoing maintenance support

10% improvement in asset uptime, and improvement in gas turbine efficiency

Global gas turbine manufacturer

Global aerospace OEM

Incorrect contract pricing leading to revenue leakage, failure prediction solution outdated

Sophisticated contract analytics solution, supported by a reliability life data analysis for failure prediction

US$10B in service contract pricing for all long-term contracts being delivered to the client

Power generation OEM

High cost of maintenance during service contract lifecycle

Advanced service contract process to identify and categorize failure types, and analytics to minimize cost of maintenance

Reduction in maintenance costs by 10%, and more accurate prediction of failure events

DESIGN • TRANSFORM • RUN 11© 2015 Copyright Genpact. All Rights Reserved.

About Genpact

Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex and specific to a set of chosen industries. The result is advanced operating models that support growth and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our Smart Enterprise Processes (SEPSM) proprietary framework helps companies reimagine how they operate by integrating effective Systems of EngagementTM, core IT, and Data-to-Action AnalyticsSM. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have grown to over 68,000 people in 25 countries with key management and a corporate office in New York City. Behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years.

For more information, visit www.genpact.com. 

Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube. 

© 2015 Copyright Genpact. All Rights Reserved.

Genpact Research Institute

The Genpact Research Institute is a specialized think tank harnessing the collective intelligence of Genpact – as the leading business process service provider worldwide - its ecosystem of clients and partners, and thousands of process operations experts. Its mission is to advance the “art of the possible” in our clients’ journey of business transformation and adoption of advanced operating models.

www.genpact.com/research-institute