the industrial equipment & machinery industry: challenges and opportunities

© Hedera Consulting 2016

INDUSTRIAL EQUIPMENTA new landscape of challenges and opportunitiesHedera’s Point Of View



INDUSTRIAL EQUIPMENTA N E W L A N D S C A P E O F C H A L L E N G E S A N D O P P O R T U N I T I E S

1 GLOBAL TRENDS AND “AS-IS” SITUATION2 CHALLENGES AND OPPORTUNITIES

• FACTORY OF THE FUTURE• B2B COMMERCIAL EXCELLENCE• INNOVATION IN ALL AREAS• NEAR/BACK SHORING

3 HEDERA’S EXPERTISES AND CASE STUDIES4 YOUR STRATEGIC AGENDA : THE 6 CHALLENGES TO SUCCEED5 ABOUT HEDERA

CONTENT

Global trends and “As-Is” situation

1



GLOBAL TRENDS

Greater global connectionsTechnological change

Urbanization

Social/Demographic change

New King countries

Climate Change

Technology Innovations

Mobility

Digitalization

Smart technologies

Global markets

Health and wellness

IoT and Industry 4.0

Future of energy

Environmental Conditions

SOME DRIVERS UNDERLYING GLOBAL TRENDS


Increasing processing power of ICT and more sophisticated analytical tools and software. “Big Data has entered Zettabyte era”

Increasingly interconnected markets and developed economic/IT tools to manage the interconnectivity

Economic growth and power shift to East and South countries, driving new ways of doing business

Creating smart products characterized by intelligent sensing technologies to manage energy, infrastructure, mobility, tourism, social life industries within cities. “Sensor devices are driving our day to day life”

Increase of energy prices and strict regulations on climate policies

Increasing attention to e-mobility solutions and autonomous cars due to climate policies restriction and regulation issued by local government

A shift in spending away from treating towards predicting, diagnosing and increasing of health services provided to the hospital

New requirements for competences related to the expanded use of sophisticated changing technologies and new market strategies


“As-Is” situation Industrial Equipment1 . G L O B A L T R E N D S A N D “ A S - I S ” S I T U A T I O N

After the economic downturn, industrial equipment manufacturers faced many difficulties to grow to pre-crisis levels in production and turnover (European market)

Production (EU 28) per year (2010=100)

Turnover in non domestic market (EU 28) – percentage change

Source: Statista 2015

2010 2011 2012 2013 2014 20150

100020003000400050006000700080009000

10000

Sales (MEur) Ebit (MEur) Orders received (MEur)Order book (MEur)

Industrial equipment manufacturers able to ride the wave of new opportunities experienced a positive trend during the last 5 years

Kone Group – Year Results

Challenges… … Opportunities

Gap

2


Challenges and

opportunities


The shift to new paradigms2 . C H A L L E N G E S A N D O P P O R T U N I T I E S

B2B COMMERCIAL EXCELLENCE NEAR/BACK SHORINGINNOVATION IN

ALL AREAS

INTERNATIONALIZATIONFACTORY INNOVATIONMULTI-LAYERSUPPLY CHAINCUSTOMERS

FACTORY OF THE FUTURE

Select from the catalogue pleaseYour delivery has been delayed

Sorry, our offices are closed

Products, products, products…It happens in the Lab

DATA Intelligence & Relevance M2M Community

ProactivitySmart Robotics

Customer Centricity 2.0Everything is a Service

Excellent!

All-areasAccelerate

Foster an innovation cultureCollaborate

Customers are empowered, high-demanding, expect excellence from

products & services and want companies to be available at their

convenience

Companies are implementing Big Data & Analytics to transform

business as usual into a service-driven business with a focus on Total-

Lifecycle-Value

Companies consider innovation as a complete journey taking into account all different areas through the open innovation approach as emerging

paradigm

Companies are reconsidering their internationalization strategies by

back/near shoring production activities and offices

Low labour cost countries Low cost suppliers

Higher competencesHigher quality

Improvement in delivery time

Stand-alone & Reactive Non-optimal Operations

High inventory levelsBehind closed doors


Opened questions for Industrial Equipment companies2 . C H A L L E N G E S A N D O P P O R T U N I T I E S

B2B COMMERCIAL EXCELLENCE NEAR/BACK SHORINGINNOVATION IN

ALL AREAS FACTORY OF THE

FUTURE

Which are the major opportunities for our company with IoT and Data analytics? Do I have a clear strategic roadmap?

Which is the level of maturity of digital technologies within the company?

Is our organization designed for using IoT and Big Data? Do I need to adjust internal operation and business processes?

Did we scout potential partners to implement new industrial challenges?

Do we analyse and monitor:• margins of each department?• each product/service?• profitability and potential of

each customer?

Do we know in which customer segments, products and geographies we should investto let the business grow?

Which are the main marketing channels we have to consider according to our strategy and product portfolio?

Did I implement cross-sell and up-sell campaigns?

Is our innovation strategy linked to the future business opportunities? Are we taking into account the impact of major trends?

Is our organization promptly structured to foster innovation? Do we have internal innovation labs and the right culture?

Are we giving the right attention to innovation in business processes, sales, customer services and business models?

Did we find or select the right partners to implement the innovation journey?

Is our company analysing all the factors to implement the right-shoring strategy?

Did I perform a cost breakdown analysis to understand the convenience coming from back and near shoring?

Did I analyse potential partnerships to assess the right-shoring solutions ?

Did I perform a benchmark analysis of companies belonging to my business area on right-shoring solutions?

3


Hedera’s expertise and case studies


Hedera: A pragmatic approach to translate vision into implementation

3 . H E D E R A ’ S E X P E R T I S E A N D C A S E S T U D I E S


Market and Hedera’s examples3 . H E D E R A ’ S E X P E R T I S E A N D C A S E S T U D I E S

Market example Description Hedera’s example Description

Factory of the future

JOY GLOBAL INC.

Company that manufactures heavy machineries installed

sensors in their machines to let clients make predictive

maintenance

B2B commercialexcellence

EATON

Eaton offers a new remote monitoring service that

provides 24×7 monitoring of connected Uninterrupted

Power Supply (UPS) systems to their customers

Innovation in all areas

MICHELIN

Provide an innovative service to truck fleet companies by analysing data coming from

tyres with embedded sensors that measures temperature,

pressure and speed

Near/Back shoring

FIAMM

Italian manufacturer of batteries decided to move

back the industrial production from Czech to Italy to have

higher productivity and higher product quality

AUTOMATED MATERIAL HANDLING MANUFACTURER

ENERGY STORAGE MANUFACTURER

Defined and implemented a new business model consisting in creating partnerships and open collaborations with system integrators to approach

customers belonging to the emerging market

Performed a market analysis on new B2B and B2C marketing programs to

implement a growth strategy in existing and new markets

MULTINATIONAL ENERGY UTILITY

Back shoring and reorganization of customer service operations

performed by a multinational energy utility

INDUSTRIAL TOOLS AND EQUIPMENT MANUFACTURER

Defined and implemented a digital marketing strategy from multichannel, multi-branding product database and

website to innovative marketing automation and e-commerce working

with indirect channel partners

*Experience of Hedera consultants prior to joining Hedera

*

*


Let’s look at a company with flat revenue and profitability over the past 5 years where management believed there was untapped potential to restore growth…


“We have no view on the real margin in each of our

departments and products in our portfolio”

“We lack visibility on profitability and potential of each customer; If there were a hidden gem out there, our sales force wouldn’t know”

“We do not know in which customer

segments, products and geographies we

should grow business”“We do not offer different

service levels to customers, everything is gold plated; It costs a lot of money, and at

the same time, we know there are customers out there who deserve even

better”

CONTEXT


Extensive portfolio analysis across all departments and across all dimensions

Analysis of key buyer values and identification of areas where the company has competitive advantage

Definition of “must-win battles”: a manageable selection of focus points that will yield maximum results in short-, mid-, and long-term

Development of actionable growth plan and roadmap for the “must-win battles”, in cooperation with relevant stakeholders that will own and drive its implementation

First time visibility on portfolio performance across all departments and dimensions; Identification of products and customers to embrace and pamper

Identification of growth areas where the business has a competitive advantage

Clear action plans for a focused selection of “must-win battles” and detailed roadmaps to position the business for profitable growth

Practical help and coaching for sales, marketing and service staff, e.g. for segmentation of accounts (key vs. non-key) and sales planning using the new insights

ACTIONS

OUTCOME

…and how Hedera helped to get it back to profitable growth3 . H E D E R A ’ S E X P E R T I S E A N D C A S E S T U D I E S


CONTEXT

“Which channels should we take into

consideration?”

“We have very little experience with partnerships; What is the best way to construct a basis for third party partnerships as

indirect sales channel? “Once we have a

solution, what would be the best way to sell it

internally and externally? ”

“How can we create a solution to better integrate our B2B customers? What

are our industry peers doing in this area and what should we do to stay ahead of our

competitors?”

Or another company struggling to develop a multi-channel go-to-market strategy for its B2B e-commerce segment…



Created a solution that transformed the company from a follower to an innovator within the e-Commerce area

Developed partnerships to create a new indirect sales channel and improved image within the e-Commerce market

Defined short-term and long-term partnership management framework to grow, retain and manage performance of partners

Create business case and perform market research & benchmark to qualify customer needs

Define, implement and launch partnership management framework for indirect sales channel

Sell solution to prospects & customers, as well as to internal customers and top management as base for future development

ACTIONS

OUTCOME

…and how Hedera helped to develop and implement its multi-channel B2B e-commerce strategy


Your StrategicAgenda

4



Ready to start ?

Do I have a legitimacy to access and use key data (customers, machines, processes,…)? How can I manage these data to generate revenues?

How can I build the relevant ecosystem (Factories, Customer Centres, Warehouses, Freighters,…) to fill gaps in my offering?

Do I infuse enough innovation and entrepreneurship within my organization, and do I consider all innovation areas ?

What are the major opportunities for me deriving from the new challenges? Do I have a clear strategic roadmap for new solutions?

Do I have enough, frequent and quality touch-points with customers along the customer journey across channels? Do I really put the customer in the centre of my universe?

Did I analyse the right-shore strategy for my company? Did I exploit all the opportunities coming from new dynamics in the external environment?

To be prepared, you need to address the 6 strategic questions …

4 . Y O U R S T R A T E G I C A G E N D A


… and align your organization to start your transformation journey

4 . Y O U R S T R A T E G I C A G E N D A

CUSTOMER JOURNEY

STRATEGY ROADMAP

Boost innovation in your organization (Innovation change program, Innovation Lab, Data driven innovation)

INNOVATIONPROGRAM

ACCOUNT & PARTNERSHIPMANAGEMENT

PROJECT MANAGEMENT

DATA ANALYTICS

3

1

2

4

6

5CUSTOMERJOURNEY

Build your data analytics capability to understand and optimize your processes and your interaction with customers

Bring key people together to map all new business opportunities from factory of the future, B2B marketing, innovation and back/near shoring, then define your roadmap

Define strategy and execute accounts and partnership management programs to exploit new opportunities and optimize your B2B and B2C commercial capabilities

Implement new project management process to speed up go-to-market, processes and organisation changes

Design the idealcustomer’s journey for B2B (distributors, OEM, B2B clients) and B2C (end users)

We are Hedera. To us, growth is more than a target. It's a passion.

5


About Hedera


Founded in 2009 in BelgiumFast-growing50+ peopleActive in Belgium, Netherlands, Switzerland, Poland and ItalyLaunched a practice in Big Data and Analytics

Our story5 . A B O U T H E D E R A

HISTORY

Passionate about growth related topics: marketing, sales, growth strategy, innovation3+ years experience in business/strategy consulting, project management and/or sales & marketing rolesStrong academic backgroundExcellent business track recordPEOPLE

VALUES

Challengers Innovative, focused, ambitious, striving for excellence

Entrepreneurs Pragmatic, actionable, no-nonsense, just do it

Connected Team players, supportive, trusted, fun


Every client is unique

Our approach is based on building blocks, which are always tailor-made to client needs

We are pragmatic: only do what adds value

Our differentiators5 . A B O U T H E D E R A

TAILORED APPROACH

We are able to offer excellent value for moneyBy our lean structure andBy employing good people with excellent academic background and business track recordVALUE FOR

MONEY

COLLABORATION

You know your business bestWe bring project expertise and domain knowledge from other industries and companiesClose and extensive collaboration benefits from complementary skills, experience and knowledge

Vast experience in Strategy, Customer Relationship, Multichannel and Human Resource ManagementStrong project & change management skills, including experience in business and ICT alignment Cross-industry expertiseEXPERTISE

20 50

© Hedera Consulting 2016 22

CONSULTING, INSIGHTS, VENTURES5 . A B O U T H E D E R A

C O N S U LT I N G I N S I G H T S V E N T U R E S

Our consultants work with clients that have a growth challenge.

We identify and quantify the growth opportunity, come up with

a solution to capture this opportunity, and support in

realizing growth in a sustainable way.

In today’s world, where more and more data is being generated, it is an absolute necessity to have a clear vision for what you want to

achieve with this data.

Hedera Insights can help you formulate this vision and translate

it into reality.

We love start-ups. That’s why we launched Hedera Ventures.

We help start-ups accelerate growth, help corporates become more innovative

through innovation labs and in-company ventures, and pursue

our own business ideas


Our focus and expertise5 . A B O U T H E D E R A

Growth Strategy

Digital / Omni-Channel

Innovation

Marketing, Sales, Customer Service

BUSINESS CONSULTING

PROJECT & CHANGE MGT

ANALYTICS & INTELLIGENCE


We have offices in 5 countries

- Belgium- The Netherlands- Poland

- Switzerland - Italy

We can deliver projects across borders

5 . A B O U T H E D E R A

Hedera’s locations


Selection of Hedera Subject Matter Experts

PhilipLahey

Functional• Digital & Omni-channel• Sales/Marketing/Service

Optimization• Innovation & Venturing• Partnership Development• HR / Change Management

Industries• Utilities• Banking/Insurance• Telecom

Hedera Group is able to bring best practices and experiences from other companies in other countries, as well as creating business opportunities in other geographical markets by leveraging their network.

Belgium Office

Evelyne Dewitte

Functional⁃Responsible Hedera Insights

(B.I. & Analytics)⁃Data-driven Product

Development (IoT)⁃Data Governance⁃Data mining & Machine

learning

Industries• Pharma• Retail• Banking/Insurance• Technology & High-Tech

KristofSuykerbuyk

Functional• Product Development• Strategy development &

realization• Innovation• Sales/Marketing/Service

Optimization

Industries• Industrial Equipment• Machinery• Technology & High-Tech

Belgium Office

Patrick Fransen

Functional• Innovation• Strategy development &

realization• Off-shoring/back-shoring• IoT

Industries• Energy• Utilities• Banking/Insurance• Technology & High-Tech

Belgium OfficeBelgium Office


Selection of Hedera Subject Matter ExpertsHedera Group is able to bring best practices and experiences from other companies in other countries, as well as creating business opportunities in other geographical markets by leveraging their network.

Marcel Bila

Functional• Strategy development &

realization• Sales/Marketing/Service

Optimization• Business Intelligence &

Analytics• Research, analysis & scenario

development

Industries• Industrial equipment• Manufacturing• Technology & High-Tech

Switzerland Office

LorenzoBoscherini

Functional• Energy innovation,

renewables, energy storage systems

• Strategy development & realization

• Research, analysis & scenario development

Industries• Energy• Utilities• Technology & High-Tech

Functional• Strategy development and

realization/operationalization• Sales strategy and

partnership excellence

Industries• Utilities• Energy• Heavy Industry & Mining• Automotive

Piotr Obidziński

JaiRambaratsingh

Functional• Innovation and venturing• Commercial Strategy &

Excellence• Internet-of-Things

Industries• Telecom• Technology & High-Tech• Utilities• FMCG

Italy Office Poland Office The Netherlands Office


K r i s t o f S uy k e rbuy kMANAGEMENT CONSULTANT HEDERA GROUP

+32 495 56 65 95

[email protected]

Contact us for more information

P h i l i p Lah eyPARTNER HEDERA GROUP

+32 477 59 74 92

[email protected]


www.hederaconsulting.com