Big data innovation conferance, Frankfurt 2016 The digitalisation of businesses and the expectations associated with it grow every year, however for smaller manufacturing firms this is creating problems. Based on direct observations from working with manufacturers, this presentation will show how the application of big data is complex for these firms and it risks creating major problems. Short case studies will be used to highlight these problems, based around the following three themes. - analysis and exploitation of existing data; - interconnectivity of equipment within the customer’s environment; - data collection and management. These problems are preventing the uptake of new business models by these manufacturing firms that could provide better outcomes for their customers.

1. Service Innovation | Dr Shaun West
Big data – small firms – big problems!
Big data – innovation conference, Frankfurt, Germany
16-17 November 2016
Dr Shaun West
shaun.west@hslu.ch
+41 79 770 5986
goo.gl/kx1G81

2. Service Innovation | Dr Shaun West
Introduction
I will describe some of the problems in smaller firms with big data
To provide some lessons from collaborating with smaller firms
Digitalization of business
promises us many
advantages – and requires
new approaches to become
successful
To describe three challanges faced by smaller firms
Purpose of this presentation
How do we innovate in ’big data’ in small firms?
Problem

3. Service Innovation | Dr Shaun West
I hope this does not happen!
goo.gl/vBThso

4. Service Innovation | Dr Shaun West
MY WORLD:
INDUSTRIAL FIRMS (SMEs AND LARGER) WITH OLD INFRASTRUCTURE
goo.gl/RRjQns

5. Service Innovation | Dr Shaun West
Traditional product thinking manufacturers
goo.gl/Gv32vC

6. Service Innovation | Dr Shaun West
Traditional manufacturers
Mixed machine park, different ages and many OEMS
goo.gl/izqzLG

7. Service Innovation | Dr Shaun West
Traditional manufacturers
Mixed machine park, different ages and many OEMS
Many data sets, often outside of the ERP systems
goo.gl/eMmAsB

8. Service Innovation | Dr Shaun West
Traditional manufacturers
Mixed machine park, different ages and many OEMS
Many data sets, often outside of the ERP systems
Aging – non-digital – workforce
goo.gl/hMHE2T

9. Service Innovation | Dr Shaun West
CHALLENGE 1:
ANALYSIS AND EXPLOITATION OF EXISTING DATA
goo.gl/NwycUW

10. Service Innovation | Dr Shaun West
Analysis and exploitation of existing data
Data in the systems today can be use
- Does the CRM data make us proactive?
- Do you get your fair share from the installed base?
- Is the ERP data used for internal benchmarking?
- Do you know who ’owns’ the data?
goo.gl/VQqMlu
Start using the data you have and learn how to use it internally and externally

11. Service Innovation | Dr Shaun West
Analysis and exploitation of existing data
Data analysis
- Do you have the skills and tools?
- Do you know who wants what information?
- What form is the data needed in?
goo.gl/HYgmJT
How many people in your firm can build a dashboard

12. Service Innovation | Dr Shaun West
Analysis and exploitation of existing data
Exploiting the data
- Can you make your customer more effective?
- Do you understand your customer’s situation?
- Do you use the data to improve relationships?
goo.gl/g8PPqy
Work to make peoples lives easier not more complex

13. Service Innovation | Dr Shaun West
Analysis and exploitation of existing data
Lessons
- Identify the customers
- Find how it could them do their job
- Experiment with the data with your customers
Learn to use the data you already have and work with your customers (not against them!)

14. Service Innovation | Dr Shaun West
CHALLENGE 2:
INTERCONNECTIVITY OF EQUIPMENT WITHIN THE CUSTOMER’S ENVIRONMENT
goo.gl/8nuZ89

15. Service Innovation | Dr Shaun West
Interconnectivity of equipment within the customer’s environment
Understanding your customer’s ecosystem
- Are you able to describe your customer’s
ecosystem?
- Do you know what equipment is connected?
- Who are the ’users’ of the equipment?
Core Company
Community
Customer
Supplier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-
Supplier B
Supplier B
Competitors
Regulators
Customer-
Partner C
Customer-
Partner B
Customer-
Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Services
Monetary
Information
Goods
goo.gl/bzBrEi
Draw your customer’s ecosystems and understand the actors and the equipment

16. Service Innovation | Dr Shaun West
Interconnectivity of equipment within the customer’s environment
Understanding your customer’s equipment
- How does the equipment supports their core processes?
- What systems does the equipment communicate with?
- Who are the ’users’ of the equipment
goo.gl/2n4IqV
Use simple schematics to better understand your customers equipment

17. Service Innovation | Dr Shaun West
Interconnectivity of equipment within the customer’s environment
Understanding your customers (business model)
- Do you know how your customer make money?
- How does your customer deal with risk?
- What are your customer’s business objectives?
goo.gl/4mVqM4
Model your customers business model(s)

18. Service Innovation | Dr Shaun West
Interconnectivity of equipment within the customer’s environment
Lessons
- Understand the processes of your customer
- Understand how the different process fit together
- Remember you have more than one customer!
Understand how you customers make their money and help them to make more

19. Service Innovation | Dr Shaun West
CHALLENGE 3:
DATA COLLECTION AND MANAGEMENT OF DATA-DRIVEN VALUE CREATION
goo.gl/xIozx8

20. Service Innovation | Dr Shaun West
Data collection and management of data-driven value creation
Find a way to collect the data
- Do you know how to collect the data?
- What data is needed in what situation?
- How do you collect data cheaply?
goo.gl/QrDIij
There is always more than one way to get the data you need

21. Service Innovation | Dr Shaun West
Data collection and management of data-driven value creation
Find a way to manage the data
- Do you know what form the data is in?
- Do you understand the ’legal’ issues?
- How can you move the data cost effectively?
goo.gl/jG5op6
Consider partner trust as key to managing the data effectively

22. Service Innovation | Dr Shaun West
Data collection and management of data-driven value creation
Help your customers to more from less inputs – real valuation creation
- Can you model your impact on the value creation?
- How well do you understand customer KPIs?
- Do you understand what leavers you have?
goo.gl/48gMAk
They don’t know what is possible – we don’t know what they want: so focus on their jobs-to-be-done

23. Service Innovation | Dr Shaun West
Data collection and management of data-driven value creation
Lessons
- Focus on your customers value creation process
- Modular flexible solutions
- Support individual ’users’ and their situations
Standardise where possible – design solutions around the individual ’users’ and business value creation

24. Service Innovation | Dr Shaun West
SO WHAT?
goo.gl/f3GgRo

25. Service Innovation | Dr Shaun West
Everything is possible…
… what firms with focus and resources can achieve
But…
- SMEs don’t have Cat’s resources
- Many firms are unsure of what is possible
- Many suppliers unsure of what would help their
customers
https://youtu.be/-Tos5PHPzdYo.gl/VQqMlu
What can you take and use from this use case in your own businesses?

26. Service Innovation | Dr Shaun West
What to do next
Big data – small firms – big problems!
Learn to use the data you already have
Understand your customers, their equipment and their problems
Collect data that supports your customers business models
Big data can create big
problems in small firms.
Learning to use it is like
starting to walk…
Co-develop and co-create with your customers

27. Service Innovation | Dr Shaun West
Question time…
… slides on www.slideshare.net/ShaunWest