Okay so we have come to the end of the programme today almost... I´ve been looking forward to share with you our insights within the industry. And what I would like to do here is to use the last presentation to give you an overview of all the different offerings we have observed in the industry. This morning we have heard three best practice cases (of how companies actually have managed the transition of going from product to product-service business), and this afternoon we have also seen three extremely interesting cases from both the supplier and the customer side, of how they are managing this transition from product to PS-business With this presentation I would like to provide clarity of what the maritime industry currents offerings are, together with the transition the companies are on their way to.
This morning you found a book on your chair, and I´m very pleased to present to you the actually first book in our series.The Maritime branch analysis. Which you are more than welcome to bring home with you today. This book is an in depth analysis of the maritime branch. Where we in detail are describing all the different offerings we have observed in the industry by describing all the companies and their offer portfolio and examples of PSS thinking.This book is the results of many many hours of work, and I´m happy to share the content with you today.
My agenda for today is: First I will focus on how to navigate servitisation. Basically introducing important elements to consider. Then I will present to you anoverview of all the offerings – through a offering map – illustrating the depth and breath of what we have observed. I will go through a set of these offerings, by detailing them through industry examples. Hereafter I will share with you some key measures we have done– in terms of specific offering across the companies. Giving the total picture of the industry I will also briefly connect this mornings best practice examples to what we have seen in the maritime industryI end the presentation by indicating future activities for the companies, and future possible collaboration areas to enter in the last part of the consortium.
So what we have heard about this morning, is that servitisation is all about - going from product to PS-businessIf we take a closer look at this navigation process...
Navigating needs a goal. This morning we got three best practice examples of ways of doing PS-oriented business. But before being able to move towards such an approach, it requires insight into your current position. Market, Capabilities, Competences, CultureVery important here is what offerings do your company holds. What service activities exist within your company already. InspirationKnowledge sharingHopefully to give some points of colla
We have now been collaborating with the PROTEUS companies in more than two years intensively through different activities:By student projects, bachelor & master. Case studies, surveys, onsite-visits, interview. Particularly a source for this has been the service-matrix which all the PROTEUS companies have been a part of in a large interview round. So basically what we did was we were looking for all the different offerings we could find, and together with industry and many iterations we have compiled at set of offerings I would like to share with you today.We have mapped them in many different ways, and I would like to share with you a offerings map we have created, which is the results of many months in depth field work.
So what you see here is a large set of small icons, showing more than 50 different offerings. I know that you are not able to read these, but you can see them in the book. They are representing all the offerings we identified in at least one company. I´m going to walk you through seven of these examples (which you see highlighted), as this is all we have time to. (unfortunately)I have chosen to highlight these examples as they are:Particular successful in the companyOr because all of the companies are offering themOr due to that they were given specific interest by the companies. And also because of their uniqueness due to PSS
The first example I would like to show you is – what we call a product package… A product package is a bundle of different products supporting a specific area. Here we see an example of this from Emerson who offers a package of Marine Tank Management. Managing the cargo in the tanks, ballast, fuel, oil and service tanks. With products supporting tank level gauging (radar intelligence systems), cargo monitoring, high level and overflow control (with VRC – valve remote control). Besides Emerson also Man Diesel & Turbo offers packages, as Propulsion packages with: engine, turbocharger, Genset, Propellor.Novenco FF offers fire fighting systems for example for the engine room through Low pressure water mist system (called X-flow system). Besides nozzels the package consist of sensors, valves, piping and more. They see them selves as system developer. These systems are also offered in packages where new systems are retrofitted to fit an existing ship....
This leads me to the next example of retrofit solutions. This example shown here is a scrubber unit cleaning the exhaust gas from the engine, being able to use both sea water and fresh water. This exampleis particularly interesting as it is created by a collaboration between two of our companies, Alfa Laval and PrimeServ. Another example here is the Project retrofit facilitated by Danish Maritime – where many of the members are collaborating on creating a package that retrofit the ship to meet future environmental regulations from IMO, and hereby stay in compliance.
Thisexample shows a greatexample of how a companyareovertakinggreater part of the maintenanceactivities. With PrimeServsEngine Management concept oCustomer support agreement
Service level agreement is an areawherewe have beenworkingcloselytogetherwithindustry. This is basically a contract made betweensupplier and customer of how and when to make service on the system. Todaywe have just heardtwoexamplesonthis, from TORM & Emerson, from eachtheir site of the table. We have had a master project and now a bachelor projectonthistopic, workingcloselywith Emerson.
Proactive contact, is an area of high focus among the participants. By proactive we understand – approaching the customer initiated by the supplier and not the customer. In PrimeServ Frederikshavn “service foresight” and customer segmentation for approaching the customer for preventive maintenance by using either count-based or condition based information to diagnose the need for maintenance. The suppliers move away from a reactive approach where the customer contact the supplier in (worst case) a emergency break-down, where corrective maintenance will be carried out.
Almost every company in the consortium are offering some kind of education of their customers. Where they offer different kinds of training courses. As you see here on the picture PrimeServ in Frederikshavn have manifested this through in their building. They are offering training classes for the crew, besides the training required by law also additional courses or courses in update package of monitoring equipment Hempel – Sell courses for both own and external coating advisors. Here the educating of the customer are turned into a business.
Service partnership is the last example we will bring today from the consortium. Many of the smaller companies go into a partnership with external service networks, to extend their presence globally. Many of the companies was in the beginning relying on sending a service technicians by plain/helicopter to the ship, which was an expensive cost for both the supplying company and the customer. Smaller companies as e.g. NoreqActa (supplying on-deck cranes) has entered a two-street partnership where they train a third-party service technician and they train NoreqActas service technicians so as to be certified technicians. PresVac have also expanded their service network remarkable in the last few years. They have joined a larger renowned service network and are now able to service their costumers on a global scale. (here a profit agreement has been made)
To round op the different examples, Im showing you a continuum here. With a focus going from product all the way to performance of the system. (as e.g. power by the hour as we have seen a few examples of today)We see many of the suppliers are still focusing on the product, but many are also offering on add-on services, and a few on a combined product/service offering. Where the least examples are focusing on the performance of the system.
To give a detailed picture of the industry, we created a in depth in the beginning of the project (in 2010) where we carried out a large field-study measuring key offerings in the companies. The measure points are covering 31 different offeringsThis measures we would like to share with you today.
What you see here is another way of understanding the continuum I showed you just before. Where the focus changes from the product to customer. This is a model we have created here at DTU consisting of five elements.ProductProduct use serviceProduct life service (which is before and after use services)Customer activity services (Services that are not focused on the product, but on the customer)Business supporting services (Finally core business offerings, or business model services)In all these categories we´ve mapped a set of key offerings. (from 0-10 companies) So what you can see appearing now is sub-categories in each category. Product: all of the companies offers customized solutions. And many are also offering software and monitoring equipment. Product use services: SO it continues, in use service where its a slightly different spread. - Here we see a lot of the companies offering inspections - and trouble shooting - spare part. Customer activity services: A relatively high spread in customer activity services, - All the companies have a call centre offering remote assistant. Relatively little focus from the companies is put on business supporting services. GENERAL Looking at the spread it´s visible how little focus is present in the right side of the ANIMATION - RED ARROWThese 8 areas you see now, are of greater focus within the companies, These are areas where the companies have strengthen their business since the project start – this is an industry in transition .
So best practice elements, if we go back to the morning examples.
MAN Truck & Bus is theiconswefound from beforeTaking part of the business elements of the PSS
G – K – N Aerospace, Has experienced something interesting, How they were giving very choice of chaning business towards a PSS supplierGave us an interesting case of how they were giving a very little choice of how to develop their businss
Could tell the story hereSo what we did was mapping all the offerings, we have observed, and worked a lot with the compaies and observed great alements of transitions elements witch are the red elements. We have the best practice elements. If we go back to the graph I showed before.. We see here the mapping of the offerings, with marked areas of where the comanies are focusing their business. PROTEUS companies, What we can see, The mapping of the three best practice companies. Interesting we can see, is that they are pretty much focused on the right side of the graph. Which is matching to a certain extend the current interest areas in the consortium.
So whataboutnextpractivewhatareweworkingonwith the companies.
Whatyoucanseeonthismap, is all the icons from before. And whatweareactuallyworkingon is how to mapdifferent kind of PSS. Thatcouldbeconceptualised in the companies. One configurationwearefocusingonnow is: This is anotheroneThe thirdoneThisshould give us a way for in whichwecouldconfigure and conceptualise the offerings in the companiesAll theseofferingscanbe a focus for our last activitieswithin the consortium. Whichwe plan to launch the results in……
...Our book series.....The last thing I would like to put focus on is the book-series we are creating in the project. Today we have launched the first to booksMaritime branch analysisPSS case bookThe next five books should come out in the next ten months, where we are finalising the project. PSS readinessPSS tool bookPSS organisaitonPSS partnershipPSS Business models
Thankyou for your attention!If you have anyquestions, I´llbehappy to tryanswering...
PSS offerings in the maritime business - Krestine Mougaard, Research Assistants for PROTEUS