1. http://www.advancedservicesgroup.co.uk/#!blog/czwt
Being radical just to stand still
1 Feb 2016
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Des Evans
I often say it took us (MAN Truck and Bus UK) ten years to become an overnight
success. Changing the business model was a huge transformation for my team and me
to lead, but having seen sales of trucks across the industry reduce by 50% in the
previous 40 years, we knew we had to do something radical just to stand still.
We recognised that not only was our own profitability from product sales declining, but
so was the profitability of our customers (fleet operators and hauliers); we couldn’t
continue trying to sell to a customer that couldn’t afford to buy. We knew that we had to
help our customers become more profitable themselves, in order to secure future
business. This is something Tim and the team at Aston refer to as delivering ‘gains’ for
the customer.
We set about creating a whole new value proposition, based not on the cost of selling a
truck in a single transaction, but around helping the customer understand, reduce and
predict the total cost of operation of their MAN fleet. One of the ways we would do this
was by assisting transport operators to design and implement driver performance and
incentive programmes to improve operator cost control, and ultimately profitability.
This was enabled by the new technology with which we were equipping our trucks, but
our competencies in technology and data collation were just one aspect of the full
business model.

2. http://www.advancedservicesgroup.co.uk/#!blog/czwt
We also had to build a new revenue model that fitted this value proposition- one based
on paying for the capability (in this case kilometres moved) that we were delivering. This
meant we became more selective about who we sold to, since we were involving
external financiers and credit arrangements.
Our services, sales and marketing teams and activities operations had to buy into the
new vision and be transformed to support this completely new organisational mind-set.
The organisational buy-in that my team and I generated through communication and
explanation over the years were what made this work for MAN in the UK. Getting the
right people in place was crucial to making the business model work in practice, and
helped to differentiate us from the competition, provide a unique competitive advantage
and lock out our competitors for a number of years.
MAN UK went from being a £50m turnover business to a £500m business in ten years,
the increase being generated from services such as financial services, service
contracts, fleet management contracts and vehicle rental, which now account for 50% of
the turnover.
The fleet management portfolio is made up of over 10,000 vehicles travelling 1billion
kms per annum and this is now a mobile R&D function, providing real time data of
customer use and experience as well as the ability to identify not only component life
costs but also service competence amongst the franchised network partners.
When I left MAN, I knew I wanted to share my experiences with companies across other
industries, and do what I could to help them adopt an advanced services business
model. I really believe this is the best option for a sustainable future for a lot of
companies in a whole range of industries. My role in the Advanced Services Group has
given me that opportunity.
Des spent over 40 years in commercial vehicle
sales and marketing in the UK, including more than
two decades with MAN Truck & Bus UK. He led the
development of MAN and its dealer network into a
leading player in the market, by transforming the
company into one of the country’s leading providers
of advanced after sales and fleet management
services for the haulage industry.
Through over 40 years of experience in the industry, Des developed a reputation as a
service innovator. He helped set the standard for other companies to follow in this
industry.
The Advanced Services Group at Aston Business School is delighted to announce that
our Honorary Professor Des Evans was awarded the Officer of the Most Excellent Order
of the British Empire (OBE) for services to the motor industry in the recent Queen’s
Birthday Honours, April 2016.