industrial product support services using digitalization
TRANSCRIPT
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
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
ContextWhatarethegrowthdimensionsfordigitalization?
WherecanDigitalization
supportsuppliersand/or
customers?
Increase service(product)offering
Increaseglobal/marketreach
SparesRepair
Upgrades/RetrofitsMaintenance
Solutions…
Increasecustomer/installed-basepenetration
Optimizepricing
ItisimportanttounderstandthecurrentstateSource:RolandBerger
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
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?
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
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
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
Methodologiesexistthatcanhelpusbutthisneedsasystemsapproach
WhatiscustomervalueWecanmeasurecashasaproxyforvaluewithdigitalization
Measuringvalue• Leanthinking– whereisthevalue andwaste?• Cash canbemeasuredinternally bythefirm• Cash canbeestimatedinacustomer’sbusiness
Whichservices
really createvalueandfor
whom?
Valueis• Defined bythe’customer’• Linkedtoaspecificbusinesscase• Dynamic andfuture oriented
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
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?
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
ChallengesDifferentequipmentlevelsmustbeconsidered
Who shouldbeinvolved
intheoptimization
process?Singleproducts(eg,acompressor)
Systems(eg,WoodsideLNGproduction)
Portfolio(eg,ShellLNG)
Supp
lier’sperspectiv
e
Customer’sperspective
Technicaldata+Operationsdata=betteroptimizationatalllevels
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
ChallengesManagementlevelsmustbeconsidered
Howcaneachlevel
beoptimized?
Technician
MaintenancemanagersOperationsmanagers
Portfoliomanagers
Thisisacomplexecosystemwithdifferentdriversateachlevel
OEM
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
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Sowhatdoesthismeanforus?Wewillfocusourresearchsupportingpeopletotaketherightaction
RightinformationRighttimeRightformRightperson
Rightaction
Howcanthisbe
delivered?
Actionmustbeunderpinnedwith’data’thatistransformedtosupporttherightaction?
Rightdata
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Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
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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
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Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
ClosingConclusions
Tocreateoptimizeddigitalservicesrequiresamethodologythatdelivers:- therightinformation- attherighttime- intherightform- totherightperson(to
taketherightaction)
Digitalizationprovidesoptimizationopportunities
Cashisaproxyforvalueandcanbefoundinmanyplaces
Therearedifferentlevelsandperspectivesthatmustbeunderstood
Acoherentmethodologyisneededtooptimizeservices
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
http://www.advancedservicesgroup.co.uk/ssc2017
Swissmem F&E-Konferenz zur Industrie 4.0|January2017|ShaunWest/Meierhofer Jürg
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