verhaert innovation day 2011 – frederik wouters (verhaert) - who says mechatronic industry is dead
DESCRIPTION
Speaker of Verhaert at the 8th edition of our Innovation Day on October 21st 2011.TRANSCRIPT
INNOVATIONDAY 2011
CONFIDENTIAL
Who says mechatronic industry is dead?
Frederik WoutersVerhaert – Sales [email protected]
INNOVATIONDAY 2011
How to break out of traditional competitive strategic thinking
Blue Ocean
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How can new technologies lead to major innovations
Clear need for new machine features, but which ones ?Smarter, self aware or even self healing machinesHigher performances & yields
• But addressing what market needs and industry trends ?New specialized high value niche marketsNew added value propositions…
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When market drivers become market needs
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it is about the right mix of asset efficiency, performance, productivity and sustainability
… preparing for major trends
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Failure identification
Failure prediction
Performance monitoring
Failure healing
Open standards/platforms
Operational solutions
Remote access
Intelligence
Holistic asset management
Smart sensors
Technologies
ROI
Yield
Machine cost
Maintenance cost
Monitoring cost
Isolated solutions
Currentissues
High reliability & perf.
Lower T.C.O
Higher yield
Knowledge management
Simplified maintenancetasks
Strategic Company goals
Better repair planning
Max. component life
Max. component performance
Lower prediction cost
Less maintenance ‘hands-on’
Tacticalpossibilities
Shift to emerging
Greener production
Lack of skilled personel
Global manufacturingtrends
Economic Slowdown
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Current supply chain
FMTC, 2010
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Machine total cost of Ownership
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Value paths
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Ericsson, Nokia Siemens Networks, Alcatel-Lucent, and Huawei may end up
running three-quarters of the networks on this planet
Success of business model innovation
Telecom outsourcing
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How to deal with today`s business complexity?
Today`s business environment – highly complex, uncertain and volatile
“78% of Benelux CEO`s anticipate even greater complexity in the next 5 years; only 57% believe they have ability to manage it” /IBM, research, 2010/
Incremental changes are no longer sufficient
Operating margin growth in excess of competitive peers(compound annual growth rate over five years)
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Many alternatives…offer a better base for choice
Osterwalder, 2009
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Evaluate other business model strategies formachine industry
Your traditional business model
versus
12 Pathways to different business models concepts
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Traditional machine industry business models
product innovation
customer relationship management
infrastructure management
1. customer relationship businesseconomies of scope, battle of scope (big players), service and customer oriented business culture
2. product innovation businesstime to market, battle of talent (small players), employee centered culture
3. infrastructure management businesseconomies of scale, battle of scale (big players), cost control, standardization and efficiency oriented culture
“ Scope, speed and scale can not be optimized simultaneously; trade off`s …”
three different types of businesses to manage
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Creating a new value proposition
The value of the product from the customer`s perspective
Functionality(usefulness)
Usability
Desirability
Osterwalder, 2009
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Perspective of customers
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Value proposition:Infrastructure services
Resources: large scale of infrastructure units
Activities: infrastructure development and maintenance
Unbundled business modelInfrastructure management based model
Cost structure: high fixed costs (leveraged through scale and volume)
Customers:Usually delivered to B2B
Revenue structure:Monthly rental feeUsually commodity pricingLow margins + high volume
Osterwalder, 2009
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A Mexican customer, running more than 100 OMNI and OMNIplus machines, weaving denim at 700 rpm. In close cooperation with the customer, we were able to raise the efficiency by 5% and the amount of A-grade by 22%.
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HILTI : Fleet management
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Value propositionProduct & service innovation
Resources: strong talent pool
Osterwalder, 2009
Activities: research & development, bringing new products to market
Unbundled business modelProduct innovation based model
Cost structure: high employee costs
Customers:Usually delivered through B2B intermediaries focused on customer relationships
Revenue structure:High premium because of novelty factor
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Value propositionHighly service oriented
Partnerships: product and service innovation, infrastructure acquired from third parties
Resources: customer base and subscriber trust acquired over time
Unbundled business modelCustomer relationship based model
Cost structure: customer acquisition and retention, including branding, marketing
Osterwalder, 2009
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Freemium business model
Value proposition:1) Free basic2) Premium with
additional benefits
Customers:Large group of free
service usersSmall group of
paying customersResources:platform
Customer relationship management:automated and low cost
Osterwalder, 2009
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POM: Free library of predictive modelingalgorithms
- Free basic library of standard set of tools
- Sensor knowledge offering- Customization of algorithms- Delivering datasets for neural net learning- Services for support
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Free library of predictive modeling algorithmsValue proposition:1) Free library2) Remote maintenance
management onexisting processors & sensors
Customers:Large group of free
service usersSmall group of
paying customersResources:Web based platform
CRM: 1) Agoria community2) Brand3) Image throughExpertise
Osterwalder, 2009
Partners:Research communityopen source comm.Sensor buildersAutomate suppliers, …
Customers:Internet directCommunity indirect
Cost Structure:PRExpertise – peopleWeb-platform
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Emerging market business modelValue proposition:a) for low income
countries: fundamental (basic) value for affordable price, minimum service
b) for non-users: specialized value
Customers:a) low-income countriesb) currently non-users
Partners: a) for low income countries – locals as suppliers, distributors etc..
Activities: a) for low income countries -
localized low cost activitiesb) for non-users: specialized and
adapted according to needs
Revenue sources:a) Pay per useb) No frills c) Paraskillingd) Shared channelse) Donations
(subsidized by other segments)
f) Pay with tweatsg) Barter deals, etc
Osterwalder, 2009
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New business modelsNew technologiesNew major market changes / drivers
Create new market spaces
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Thanks to SBO -consortium
POM : Prognostics for Optimal Maintenance, IWT-SBO-090045
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