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Service Innovation | Dr Shaun West Remote: 4.0! Und Service? It all starts with the right value proposition Swissmem, F&EKonferenz zur Industrie 4.0 19 January 2016 Dr Shaun West

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Service   Innovation  |  Dr  Shaun  West

Remote:  4.0!  Und  Service?  It  all  starts  with  the  right  value  propositionSwissmem,  F&E-­‐Konferenz  zur  Industrie  4.0

19  January 2016

Dr Shaun  West

Service   Innovation  |  Dr  Shaun  West

REMOTE  SERVICES  – WHAT  IS  THE  PROBLEM?

Service   Innovation  |  Dr  Shaun  West

Remote  services  – what  is  the  problem?”Big  data”  can  create  big  problems

How  many  people   have   the  skills   to  analyze   the  data?-­‐ Few people have   the  skills-­‐ Most   traditional   firms  cannot  get  past  Excel

The  equipment   owner  owns the  data-­‐ There   is  limited  value  in   the  data-­‐ Data  must be  shared  within   the  supply  chain-­‐ Data  must  be   transparent

Equipment   owners  consider   the  data  commercial-­‐ The  value   is   in  the  data  analysis-­‐ Benchmarking creates   value   in  the  ecosystem

Service   Innovation  |  Dr  Shaun  West

Remote  services  – what  is  the  problem?  Easy  to  confuse  data  with  information

Data   overload-­‐ There   is  limited   value   in  data-­‐ Real   value  come   from  effective   action-­‐ To  make  action   requires   information   (and  more)

Creating  effective  action  needs-­‐ A  mix   of  commercial   and   technical   dashboards-­‐ Automated   reports   sent  to  appropriate   people-­‐ Reports   for  the  customers   pains/gains   and  goals-­‐ Language   appropriate   to  the  customer

Service   Innovation  |  Dr  Shaun  West

DESIGNING  THE  CUSTOMER  VALUE  PROPOSITION

Service   Innovation  |  Dr  Shaun  West

Find  your  customerDo  know  who  your  customer  is?

Where   are   we  in  the  ecosystem?-­‐ Imagine   we  are   a  train  component   OEM  company…

ProductionBogies

SuspenionOwner

Operator

MaintainerLighting

Regulator

Insurers

Investors

System operator

Spares

”…  we  thought  we  understood  our  value  chain,  on  reflection   we  did  not..."

Development

System integrator

Service   Innovation  |  Dr  Shaun  West

Empathize  Do  you  understand  your  customers  gains  and  pains?

Empathy   mapping  can  help  understanding-­‐ Key customers   and  stakeholders-­‐ Often  more than  one  map  per  customer   group

Check   list-­‐ Where   are   your  customer’s   inconstancies?-­‐ Have  you  identified their  main   pains  and  gains?-­‐ Can  you  quantify their  pains  and  gains?   (Hard)

”…  our  customer’s   revenue  was  based  on  number  of  passengers  and  they  were  hard  to  count…"

Service   Innovation  |  Dr  Shaun  West

Understand  outcomesDo  you  know  what  levers  can  you  pull?

Direct   levers-­‐ Condition/risk   based  maintenance-­‐ Proactive   maintenance   notifications

Indirect   levers-­‐ Identify   training   for  O&M  staff-­‐ Changes   to  equipment   configuration-­‐ Additional   spares

Related   levers-­‐ Root  cause   is  elsewhere   in  the  ecosystem

”…  analysis   showed  that  our  customer’s  breaking   problem   was  due   to  leaves…”

Service   Innovation  |  Dr  Shaun  West

Identify  the  jobs-­‐to-­‐be-­‐doneDo  you  know  the  customer  side  of  the  customer  value  proposition?

A  check   list  for  customer   jobs-­‐ What   jobs  are  you  being  asked   to  perform?-­‐ How  do  you  fit  into   their   processes?-­‐ Do  you  know  why  you  are  being   asked   to  do  these  jobs?

-­‐ Are   there   jobs  that  you  could   do  better   than   the  customer?

-­‐ Are   there   jobs  others   in  your  ecosystem   could  better   perform?

-­‐ Are   there   jobs  the  customer   could  better   perform?

”…our  customer  was  better  at  performing  some  tasks  than  we  were,  so  we  learnt   to  worked  with  them..."

Service   Innovation  |  Dr  Shaun  West

CommunicateDo  you  know  how  to  describe  the  value  that  accrues?

We  must  understand   where  outcomes   accrue-­‐ Top  line   – means   more  sales   for  our  customer-­‐ Bottom-­‐line   – means  cost   savings-­‐ Compliance   and  risk  management   – increases  sustainability

Each  customer   and  market   is  different  so  flexibility  is  required-­‐ Companies   change  strategy-­‐ Market   conditions   change-­‐ New  technologies   make  new  things  possible

More  potential  revenues  (improved  availability,  asset  utilization…)

Improved  safety,  reduced  emissions…

Cost  savings  (improved  fuel  efficiency,  reduce  time…)

”…we  assumed  everyone  with  the  same  equipment  had  the  same  needs.  This   is  not  the  case!"

Service   Innovation  |  Dr  Shaun  West

CLOSING

Service   Innovation  |  Dr  Shaun  West

ClosingPrototype  process  to  combine  Industry  4.0  with  remote  services

Find  where  you  sit  in  the  ecosystem  and  who  brings  what  value

Understand  your  

customer's  gains  and  pains?

Understand  the  customer's  outcomes  and  

their  influencers?

Create  the  customer  value  proposition

Describe  clearly  where  the  customer’s  value  accrues?

The   technology   exists   today  (or  tomorrow…)Much  of  the  customer   value  comes   from  intangibles!

Remember:  look  with  the  eyes  of  the  “customer”  rather  than  as  a  manufacturer

Service   Innovation  |  Dr  Shaun  West

Thanks  for  your  time!