servitization izaskun jimenez
DESCRIPTION
3rd International Business Servitization Conference 13-14 November 2014 BilbaoTRANSCRIPT
Defining business
model in a
servitization scenario:
a Spanish case study
from a manufacturing
company
International Conference on
Business ServitizationBilbao, 13th November 2014
Izaskun Jiménez- Tecnalia
CONTENTS
1. Background and context
2. MSEE project approach and main assets
3. Case study- Defining a business model in a
servitization scenario
4. Conclusions
Background and
context
Background and context
Why servitization in the manufacturing domain?� Increased competition from emerging countries� reinvent strategies and re-think value
propositions.
� Other authors mention
• Higher profit margins.
• Delivery of integral solutions.
• Reduce resource consumption.
Why collaborative networks (CNs) in the manufacturing domain?� According to Camarinha-Matos & Afsarmanesh (2006), CNs show a high potential:
• Survival capability
• Innovation needs
• Uncertainty
• Competition
� Complementarity and convergence of competencies.
New ways of value creation� New offerings � consumer-centric services
� Closer customer relationships
� Integration of new business partners
MSEE project
approach and
main assets
MSEE project overview
Project Full Name: Manufacturing Service Ecosystem
Duration: 36 months
Start date: October 1st 2011
Partnership: 19 partners, 9 countries
Strategic Objective: FP7 FoF-ICT-2011.7.3
Virtual Factories and Enterprises
Total Eligible Cost: € 15,200,000
EC Contribution: € 9,870,000
Industrial partners: Indesit
Bivolino
TPVision
Ibarmia
http://www.msee-ip.eu/
MSEE- objectives and scope
VISION: By 2015, novel service-oriented management methodologies and the Future
Internet universal business infrastructure will enable European virtual factories and
enterprises to self-organise in distributed, autonomous, interoperable, non-hierarchical
innovation ecosystems of tangible and intangible manufacturing assets, to be virtually
described, on-the-fly composed and dynamically delivered as a Service, end-to-end
along the globalised value chain.
Collaborative service innovation
Service orientation Business collaboration
MSEE- main assets: Business collaboration- Manufacturing Service Ecosystem
1- Definition of ecosystem from MSEE project approach and requirements
A Manufacturing Service Ecosystem is a non-hierarchical form of collaboration where various
different organisations and individuals work together with common or complementary
objectives on new value-added combinations of manufactured products and product-related
services.
2- Definition of Conceptual Model for MSE 3- Methodology for MSE set-up and governance
MSEE- main assets: Service strategy and business model
1- Pre-analysis
Implementation of MSE Servitization
Transformation of
company’s strategy and
business model
2- Current strategy and business model
3- Identifying new opportunities for new strategies and
business models
4- New strategy and business model
Case study- Defining
a business model in
a servitization
scenario
Case study- Ibarmia’s context
� Family company founded in 1949.
� Started its activity producing universal drilling machines� nowadays
manufactures special and customised machine-tools (multitask
machines, 5 axes machining centres and machines for circular
pieces).
� 80 employees and exporting 85% of their production to Germany,
France, China, Brazil, etc.
� Currently 94% of revenues from machine-tool
sales.
� Services offered:
- Phone & e-mail support
- Tele-assistance
- Physical intervention
Growing competition from low-cost manufacturing
countries
Need to differentiate from competitors
Need to reduce warranty costs
Offer new value-added services
Case study- Service strategy and environmental influences
1- Ibarmia’s current strategic profile
+ customisation level
+ branding/reputation
+ price
- service quality
- availability/reliability
2- STEEP analysis
Case study- Ibarmia’s servitization and collaboration level
Case study- Ibarmia’s Intelligent Maintenance Service for machine-tools
Intelligent MaintenaceServices
Machine-tool Maintenance
Ecosystem
Business model innovation New service strategy requires:
� Monitoring Ibarmia’s machines in any part of
the world.
� Integration of IT artefacts in Ibarmia’s
machines.
� Detecting or predicting machine failure.
� Designing value-added services
� Network of highly specialised maintenance
technicians.
Lack of in-house resources and knowledge
Creation of a Machine-tool Maintenance Service
Ecosystem
IT tools allowing monitoring machines
+
Automatically triggering maintenance
operations
+
Appropriate resources and alliances
Intelligent Maintenace
Services
Case study- Machine-tool Maintenance Service
Ecosystem
Strategy definition
• Mission definition
• Definition of
ecosystem
objectives
“Machine-tool Maintenance Services ecosystem aims to identify,
design and deploy innovative services related to the
maintenance of machine-tools worldwide”
�Identify new business opportunities related to intelligent maintenance
services for machine-tools.
�Foster the collaboration among the members of the ecosystem to
address such business opportunities.
�Create and deploy worldwide new services able to address customers’
needs.
Strategic partner
selection and
recruitment
• Criteria for partner
selection
• Analysis of current
supply chain
• Formalisation and
recruitment of
partners
Case study- Machine-tool Maintenance Service
Ecosystem
T/I assets mapping
and virtualisations
• Analysis &
Identification
• Formalization &
Population
• Definition of IPR
rules & Constraints
• Deployment &
Operation
Case study- Machine-tool Maintenance Service
Ecosystem
ICT infrastructure
implementation
• Business Process
Management
• Ideation Process
Management Tool
• T/I assets
Repository
• Performance
Indicator
Management
Case study- Machine-tool Maintenance Service
Ecosystem
Case study- Business model innovation
Distribution channels
Value proposition Customer relationship Customer segments
Revenue streamsCost structure
Key activitiesKey partners
Key resources
Customisation/Problem solving
Conclusions
Conclusions
� On-going process, Ibarmia is in the process of further developing and implementing IT solutions and
testing them on machines.
� However, Ibarmia has the necessary information and tools in order to complete and refine the work
carried out.
� Competitive advantage of servitization and of working collaboratively is more evident for Ibarmia
after going through the process described.
� Additionally, the company is now more aware of the implications of having a well-defined and
oriented business model.
� Analysis of the organisational and managerial implications of the new business model is being
developed.
� Organisational changes pose a challenge for the company: integration of new IT solutions in
production process and resources needed to address those transformations in the production
process.