Toolbox: Key organizational issues for
services
Keynote for Roland Berger’s Service 3.0
workshop, 12 December 2013

Dr Sha...
Manufacturing+and+services+are+different+and+our+customer’s+value+
these+differences+

Both'examples'from'GE'–'the'OEM'value...
Service+is+humanis<c+and+manufacturing+is+technocra<c+and+this+
difference+creates+misunderstandings+in+product=based+busin...
Benchmarking+of+your+business+and+your+compe<tors+posi<ons+on+
Mathieu’s+matrix+is+important+for+service+excellence+
Organ...
Value+chains+for+manufacturing+are+not+the+same+as+for+services+–+the+
service+value+chain+fosters+open+coopera<on+
Manufa...
The+installed+base+is+key+to+securing+service+–+it+is+paramount+that+
you+have+names+and+addresses+

Maps.google.com'data'...
The+opera<onal+outcomes+define+the+markets+

GE'published'data'for'Frame'
9FA/FB'gas'turbines'

Do'you'know'how'the'equipme...
The+life=cycle+of+the+equipment+helps+you+to+iden<fy+poten<al+
service+revenues+
Installa'on/
commissioning.

100"

Decomm...
What+is+the+impact+on+the+organiza<on+of+shiQing+to+services?+–+
some+key+ques<ons+to+ask+<me+and+again…+
R  What'impact'w...
Service+excellence+in+prac<ce+–+Caterpillar’s+service+model+
What+is+the+Caterpillar+model?+

What+can+be+learnt?+

R  See...
Any+ques<ons?+

Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switze...
Caterpillar+in+prac<ce+–+they+are+able+to+deliver+what+their+customers+
really+want+in+terms+of+outcomes+
What(we(tradi@on...
Produk<nnova<on+|+Management+Competency+Centre+at+the+
Lucerne+University+of+Applied+Sciences+and+Arts+

Markus'Raschke'

...
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Keynote at Roland Berger Service 3.0 evening in Zurich 12 Dec 2014

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Toolbox: Key organizational issues for services
Keynote for Roland Berger’s Service 3.0 workshop, 12 December 2013

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Keynote at Roland Berger Service 3.0 evening in Zurich 12 Dec 2014

  1. 1. Toolbox: Key organizational issues for services Keynote for Roland Berger’s Service 3.0 workshop, 12 December 2013 Dr Shaun West Lecturer for Service Innovation Blog: dokumenton.com
  2. 2. Manufacturing+and+services+are+different+and+our+customer’s+value+ these+differences+ Both'examples'from'GE'–'the'OEM'values'the'equipment,'the'service' business'values'experience+ Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  3. 3. Service+is+humanis<c+and+manufacturing+is+technocra<c+and+this+ difference+creates+misunderstandings+in+product=based+businesses+ Manufacturing+ Service+ Mathieu++ Technocra<c;'Suppor1ng' product;'Efficiency'based' innova1on'' Humanis<c;'Suppor1ng' the'customer;'ClientR based'innova1on'' Herrmann++ Factual' Emo<onal'' Kotler++ Tangible'goods'with' minor'services'' Service'with'minor'goods'' Bretani++ Separate'produc1on'and' delivery'' Combined'produc1on' and'delivery'' CoppeE++ Service'is'a'cost++ Service'creates'value++ Normman++ Complex'structures'' Simple'structures'' As'‘good'engineers’'our'ins1nct'is'to'the'technical'rather'than'the' human,'how'do'we'challenge'this?' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  4. 4. Benchmarking+of+your+business+and+your+compe<tors+posi<ons+on+ Mathieu’s+matrix+is+important+for+service+excellence+ Organiza;onal"intensity"" Service"specificity"" Tac$c% Strategic% Cultural% Customer% services% A"Toll&free" numbers" Dell"on& line" Toyota/ Lexus" Product% services% Basic" extended" warran;es" GE" Medical" systems" Caterpillar" Service%as% a%product% Non&OEM" repairs" Fiat"in"IT" IBM"Global" Services" Mathieu If'you'are'tac<cal'you'will'follow'–'if'your'culture'is'‘service’'you'lead.'' Where'is'your+business+on'the'matrix?' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  5. 5. Value+chains+for+manufacturing+are+not+the+same+as+for+services+–+the+ service+value+chain+fosters+open+coopera<on+ Manufacturing+ Services+ ≠' Chesbrough' Porter' The'differences'create'conflict'and'require'different'organiza1onal'structures' Can'you'iden1fy'the'pain+points+and'find'strategies'to'limit'their' impact?' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  6. 6. The+installed+base+is+key+to+securing+service+–+it+is+paramount+that+ you+have+names+and+addresses+ Maps.google.com'data'for' “power'sta1ons,'Germany”'' Do'you'know'who'buys'the'equipment?'Do'you'know'the'opera<ons/ maintenance'team'at'every'loca<on?' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  7. 7. The+opera<onal+outcomes+define+the+markets+ GE'published'data'for'Frame' 9FA/FB'gas'turbines' Do'you'know'how'the'equipment'is'used'to'generate+value+for+your+ customers?' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  8. 8. The+life=cycle+of+the+equipment+helps+you+to+iden<fy+poten<al+ service+revenues+ Installa'on/ commissioning. 100" Decommissioning. Ini'al.spares. and.rou'ne.mtc. 40" M'USD' 90" Upgrade. 50" 80" Rou'ne.mtc. 70" 60" 30" 50" 40" Unplanned. outage.. 12M.USD. 20" Inspec'on/ revision. 30" 20" 10" 10" 0" ,3" ,2" ,1" 1" 2" 3" 4" 5" 6" 7" 8" 9" 10" 11" 12" 13" 14" 15" 16" 17" 18" 19" 20" 21" 22" 23" 24" 25" 26" 27" 28" 29" 30" Years'(note:'1'is'the'start'of'opera7on)' CAPEX" OPEX"fixed"costs" OPEX""inspec>ons" 0" Original.design.life. Reliability" Usage" Do'you'understand'your+customer's+cost+base?'' How'much'of'the'life=<me+revenues+do'you'capture?' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland' Percent' 60"
  9. 9. What+is+the+impact+on+the+organiza<on+of+shiQing+to+services?+–+ some+key+ques<ons+to+ask+<me+and+again…+ R  What'impact'will'the'cultural+changes+create?' R  What'changes'will'be'required'to'align'to'the'service+ value+chain?' R  What'has'to'be'done'to'track'the'loca<on+of+equipment?' R  How'can'the'employees'be'empowered'to'provide' reliable'outcome=based+informa<on?' R  What'will'be'needed'to'fully'understand'the'equipment+ life=cycle?' R  What'tools'and'resources'are'needed'to'create'and' sustain'a'service+network?' Culture' People' Processes' Change' How'oQen'do'you'check'how'journey'into'services'is'progressing?'' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  10. 10. Service+excellence+in+prac<ce+–+Caterpillar’s+service+model+ What+is+the+Caterpillar+model?+ What+can+be+learnt?+ R  Seed' R  Culture' R  ValueRbased'products'and' services' R  Design'and'development' R  Grow' R  Large'installed'base' R  Many'channels' R  Harvest' R  Pursue'parts'and'services' R  Unmatched'dealer'support' R  Customer'first' R  Value'products'and'services' equally' R  Value'chain' R  Mul1Rchannel,'dealers'as'equals' R  Installed'base/use' R  Know'where'it'is,'support' outcomes' R  LifeRcycle' R  Driving'to'lowest'lifeRcycle'costs' How'does'your'service'business'model'compare?' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  11. 11. Any+ques<ons?+ Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  12. 12. Caterpillar+in+prac<ce+–+they+are+able+to+deliver+what+their+customers+ really+want+in+terms+of+outcomes+ What(we(tradi@onally(do(for(customers…( What'is'tradi1onally'delivered…' What'customers'really'want…' What(our(customers(really(want…( + ' Outcomes' R  Beier'efficiency' + ' R  Improved'revenues' R  Reduced'costs' + ' R  Mi1ga1on'of'risk' R  Improved'safety' + ' + + + sell'equipment,'parts'and' technical+services'hours+ R  …' ' ' ' is'to'achieve'the'outcomes'and' improve'the'boEom+line'results' Source:'Cameron'Ferguson,'Caterpillar' They'are'able'to'deliver+services+what'their'customers'really'want'in'a' form'in'which'they'are'willing'to'consume+ Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
  13. 13. Produk<nnova<on+|+Management+Competency+Centre+at+the+ Lucerne+University+of+Applied+Sciences+and+Arts+ Markus'Raschke' Dr'Sabine'Sulzer' Dr'Shaun'West' Dr'Christoph'Imboden' Peter'RadcliffeRLunn*' Fabio'Mercandel*' Innova1on'research'and'its'impact'on'business'models'and'people' R  Direct'mandates'and'KTI/SNF'sponsored'research' R  Student'projects'–'PhD,'Master,'bachelor'or'industrial'projects' Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
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