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BBP 3/5. Guido Abbenhuis, Océ Business Services


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At April 15th, in the Amsterdam Breitner Building, the seminar Business Beyond Products took place. These are the slides of the presentation by Guido Abbenhuis, of Océ Business Services. (part 4 of 5)

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BBP 3/5. Guido Abbenhuis, Océ Business Services

  1. 1. Managing the Document Services Opportunity Organizational transition at Oc é Guido Abbenhuis Manager Business Development Oc é Business Services Europe Exser seminar ‘Business beyond Products’ Amsterdam, April 15th, 2010
  2. 2. Profile Oc é N.V. <ul><li>Mission statement: </li></ul><ul><ul><li>Oc é enables its customers to manage their documents efficiently and effectively by offering innovative print and document management products and services for professional environments. </li></ul></ul><ul><li>Global sales 2009: € 2,7 billion </li></ul><ul><li>Total Employees worldwide 2009: 21.600 </li></ul><ul><li>Global pressence: </li></ul><ul><ul><li>Direct sales and operations organisations in more than 35 countries at all continents </li></ul></ul><ul><ul><li>Indirect sales channel in more than 80 other countries around the globe </li></ul></ul><ul><li>Organizational set up / Business Units: </li></ul>
  3. 3. Océ Business Services - Overview <ul><li>Leading document service provider in on-site document process outsourcing services for large corporate customers in all profit and public segments </li></ul><ul><li>2009: € 0,5 billion revenue (60% Europe vs. 40% USA) </li></ul><ul><li>7000 employees worldwide </li></ul><ul><li>Product vendor independent / products & technology supporting element in services offering </li></ul><ul><li>Customer Pitch = continuous process between: </li></ul><ul><ul><li>Reduce total costs (TCO) for our customers </li></ul></ul><ul><ul><li>Help our customers build their business value by improving processes </li></ul></ul><ul><li>1200 customers worldwide like: </li></ul>
  4. 4. OBS Outsourcing Services Portfolio Document Process Services Advanced Document Services Operational Document Services Creative Services Print On-Demand Digital Mail & Input Management Managed Office Services Digital Dossier Management DTP & Design Scanning Capturing Mail & Logistics Archive & Records Mgt Office Services Print Mgt Creative services Office Services Print Mail Scan Archive Trade & Industry Accounts payable & Invoicing Services Trade & Industry TechDoc / Engineering Document Control Services Education Educational Information Services Finance / Insurance Policy Statement Lifecycle Services AEC market Project & Engineering Document Control Services Utilities / Telco Customer Communication Services
  5. 5. Oc é business mix: ‘Industrial’ Services and ….SERVICES!!!
  6. 6. Choose or lose in the services domain! Strategic Intent Sources of competitive advantage Economies of scale Economies of skill Protect or enhance products Expand independent services Oc é Business Services Technical Maintenance / Industrial Services Pre sales Consultancy for print environments
  7. 7. Avoid the technology denial trap !!!! MORE MORE Technology / manufacturing knowledge Knowledge about customer processes and how to support them Technology development only Customer knowledge development with a loss of technological knowledge Customer knowledge development supported by technological knowledge (especially on application of technology)
  8. 8. Transition experiences : phases of services business at Oc é Phase External business situation Internal organizational situation <ul><li>START - Providing additional document services and resources around products </li></ul>Customers demand / need for services Dedicated delivery attention at first customers OBS as a start up within product BU Autonomous status per Oc é country No strategy from C-level <ul><li>GROWTH & STRUGGLE Building own market presence, business model & services portfolio but </li></ul>Uncontrolled strong growth Larger accounts with more risk First loss making contracts Conflicting business approach with product BU / Discussion about consistency of services business Investment in new people !! No strategy on C-level <ul><li>CONSOLIDATION & PROFESSIONALISATION </li></ul>More focus on profitable business at existing customers Controlled growth with new customers Separation Phase of 3-4 years OBS development “outside” Oc é Substantial profit development / consistent profit growth per year Autonomous status but no offensive transition strategy from C-level <ul><li>STRATEGIC - OBS as Strategic BU </li></ul>Market opportunity for strong growth at existing and new large corporate customers Document outsourcing dominant proposition top 500 Strategic attention at C- level Strong Business management Structural innovation of organization, service lines and competences
  9. 9. Services Business Development starts at customers! Initiation Development Productization Services Delivery Evaluation & Modification # customers Profit in € 0 ++ Lead customer phase Services ROI Product ROI
  10. 10. Service innovation stages & process Go / No go Result <ul><li>Lead customer case </li></ul><ul><li>Sound Business Idea </li></ul><ul><li>Plan for: </li></ul><ul><li>Market Benchmark </li></ul><ul><li>Business concept </li></ul><ul><li>development </li></ul>Requirements for ‘GO’ Sponsorship Innovation Board Clear goals and start up plan Initial resources available Criteria for Business case Service offered in Continue improvements Business growth Developed Business Concept Business case for exploitation lead customer Plan for testing and employment Ownership BU mgr Positive business case Clear business goals for Evaluation lead customer + service line development Proven concept + results at several customers Business plan / case for exploitation service line Go-to-market plan Management commitment BU Positive Business Plan Investment plan for exploitation New Services Opportunity Generation Phase Concept Development Phase Proof of Concept Phase Exploitation Phase Go / No go Go / No go 1 2 3 4
  11. 11. Tips for a real transition to a services business <ul><li>Choose or lose in the services domain: </li></ul><ul><ul><li>Strategic focus and commitment necessary for full services potential capture </li></ul></ul><ul><ul><li>Choose between industrial services around products or real services business </li></ul></ul><ul><ul><li>Product vendor independency to apply to diversified customer needs & demands </li></ul></ul><ul><ul><li>Invest in the right skills, knowledge, competences and behaviour in your organization </li></ul></ul><ul><li>Criteria for a successful services business : </li></ul><ul><ul><li>Redefine the business mission and strategies from a services perspective </li></ul></ul><ul><ul><li>Redefine your ‘products’ as a process with a clear added value for the customer (=service) </li></ul></ul><ul><ul><li>Tune the interfaces with your customer to be services proof: </li></ul></ul><ul><ul><ul><li>From transaction driven at beginning and end of contract to dedication during the contract </li></ul></ul></ul><ul><ul><ul><li>Entrepreneurship close to the customer </li></ul></ul></ul>
  12. 12. Questions?