Data-to-Action – cutting costs, reducing cash and improving customer experience

Data-to-Action – cutting costs, reducing
cash and improving customer experience
Pharma MES, Berlin 23-25 September
Alessio Ristuccia (Ricoh Italy)
Dr Shaun West (HSLU)

Pharma MES | Berlin | September 2018| Alessio Ristuccia (Ricoh Italy) and Dr Shaun West (HSLU)
Introduction
Industry 4.0 means we have to understand the customer’s businesses better
Ricoh project aim
Context of digitalization: you all know that… but...!
How the Data-to-Action Model faces the challenges?
Data-to-Action Model work based on the Ricoh case
To create smart-services that
deliver:
- the right information
- at the right time
- in the right form
- to the right person
- to take the right action

Who we are…
Developers of the Data-to-Action Model
For more information please visit slideshare.net/ShaunWest
Oliver Stoll
Master Student at HSLU
Dr. Shaun West
Lecturer Product-Service
Systems at HSLU
Mario Rapaccini
President and founder of
SmartOperations - a
Florence University spin-off
company
Petra Mueller
Prof. für
Markenkommunikation und
Design
shaun.west@hslu.choliver.brendel@stud.hslu.ch mario.rapaccini@unifi.it petra.mueller-
csernetzky@hslu.ch
2
Alessio Ristuccia
Head of Planning
Ricoh Italia
alessio.ristuccia@ricoh-
europe.com

Ricoh are providing printing as a service (price per page….)
What Ricoh does?
Ricoh Core Business: Managed Document Service
Pages
Meter Reading
Spare Parts
Supplies or
Consumables
Machines are connected
$
$
$
$
$
$$ $
Resources
$

What is the aim?
To improve experience and increase cash using by applying Ind4.0 concepts
Problem/business understanding is a must to achieve this – it is not a technology project
Reduce maintenance cost
Improve experience
Less machines
‘out of service’
Optimize resources
Increase Cash
Understand customer Improve value offer How:
(re)design the
Decision Support
System related to
field operations
Move from…..
To achieve….
With the aim to….
+

What is the aim?
Where and how can be optimized in this service supply chain?
Aim:
(re)design the
Decision Support
System related to
field operations
Problem/business understanding is a must
$$$
$$ $

Service Design Thinking
A new approach to deliver:
... the right information,
Service Design Thinking
A new approach to deliver:
... the right information,
... at the right time,
... to the right person,
... in the right form,
so that the right action is taken.
Ricoh is running a
Connected
Business in a
complex
ecosystem

Understand the problem
Data in the system was a problem and did not support service delivery
The data was messy… Ugh…
- No Master Data management
- Data was inconsistent
- Data was overwritten frequently
- The data did not support solution building

How was this achieved?
Through understanding the problem to ensure the right actions are taken
Right information
Right time
Right form
Right person
Right action
Value is based on:
• The customer
• The specific
case
• The time
Only when action is taken value is created
Right data
C
M
Y
CM
MY
CY
CMY
K
C
M
Y
CM
MY
CY
CMY
K
C
M
Y
CM
MY
CY
CMY
K

How was this achieved?
The model uses the Service Design Thinking approach
How can we
do it more
effectively?
Understand the actors and avatars around the business

Map out the problem in a visual form
Service is about people and helping them to do their jobs – think customer outcomes
Who are the
actors and
avatar?

Worst case scenario
Every thing that can go wrong goes wrong…

Simplify the service supply chain better understand the problem
Deep understanding of the problem leads to better ideas for new solutions
Do we have
to
understand
the key actors
better?
Ricoh EU Delivery
truck
Ricoh IT
Warehouse
Customer goods
receipt point
Printer
The plan
One toner is dispatched for one printer
Reality
The toners get often lost between the customers good receipt point and the
designated printer. Why?
Ricoh EU Delivery
truck
Ricoh IT
Warehouse
Customer goods
receipt point
Printer
!
!
Is the right
amount been
ordered?
!
How can the
inventory costs be
reduced?
Different scenarios
depending on the
customers and the
life-cycle of the
service.
Do we need the big
centralised
warehouses?

User story show that poor information leads to early toner replacement
Use cases are essential for understanding of the problem
How can we
visualize use
cases?
!
Say when to replace the toner,
rather than a passive warning
!
Resupply not triggered
because threshold +10%
Ricoh

Ideate solutions
Case actor matrix to make the data actionable
This process helped to translate business problems into technical descriptions for coding
Do business
cases remain
the same
over
time/context?
Draft
Case Actor Matrix
26
What is it all about?
n the Customer Value Proposition turned out
that Pains and Gains are related to use
scenarios or cases. Therefore, different pains
and gains are related to different cases. This
tool helps to align different actor and
different cases, showing what kind of
dashboards (information) is needed by whom
n which case
Desired outcome
Overview of potential solutionss
How to use it?
• Fill in the actors (personas)
• Define cases
• Develop value adding dashboards for the
actor in specific case.
Service Operator
Callcentre
OPS Manager
User
Case
Actor

Prototype, test and refine new solutions
Make it practical for the techies
Reuse data in different dashboards, each dashboard supports a problem
Do business
cases remain
the same
over
time/context?
CustomerLocation
Ordervalidationtime
DeliveryNumber
ReplacingDate
Coverage
EDP
GPC
OrderID
Auto-reordertreshold
Tonerremaining
PrinterLocation
Replacedtonercounter
Tresholdoftonerwasted
Tonerunitprice
VarPrice
Contracttype
ContractID
PrinterID
TonerLocation
CustomerID
OrderQ.ty
SOC-Scenario1.1and1.2
SOC-Scenario2.1
SOC-Scenario2.2
1
1
1
1
1
1
1
1
1
Fix + Var Revenue 1
1
1
1
1
1
1
1
1
1
COTS 1
1
1
1
1
1
1
1
1
1
Margin 1
1
1
1
1
1
1
1
1
1
Target Margin 1
1
1
1
1
1
1
1
1
Max Margin 1
1 Replaced toner counter 1
1 Treshold of toner wasted 1
1 Toner remaining 1
1 Order ID 1
1 1 1 1 1 1 1 1 1 1 1 1 RPiT 1 FIRST, calculate print per day target data
1 1 1 1 1 1 1 1 1 1 1 1 DPiT 1 FIRST, calculate delivery time target data
1 1 1 1 1 1 1 1 1 1 1 1 Order Number 1
1 GPC 1
1 Order Q.ty 1
1 Customer ID 1
1 Customer location 1
1 1 1 1 1 1 1 1 1 1 1 1 Print per day 1
1 1 1 1 1 1 1 1 1 1 1 1 Delivery time 1
DASHBOARD
TARGET DATA
SOURCE DATA
DATA ANALYSIS' TECHNIQUES TO APPLY

Proof of concept… reduced inventory (cash saving) and improved experience (less ‘out of service’)
Change the service definition
Do business
cases remain
the same
over
time/context?
Low on toner
Printer confirms change out of toner
Flag based on forecast consumption

Build prototype solutions and test them
Knowledge is a combination of information
Too early
replacements
of toner

Proof of concept… reduced waste (cost saving)

Closing
Lessons learnt
Data alone has no value!
…it must be analyzed and
placed within a business
context.
We have a discussion table
after this session!
Digitalization provides opportunities (cost out and improved CVP)
Test prototypes as soon as possible
It is not about big data. It is the right data, presented as information
Build detailed business and problem understanding

Test the model for yourself!
We will test part of the data-to-action model after coffee
We will test the data-to-action mode for ‘coffee-to-go’
- Visual problem mapping
- Avatar development

Who do we work with?
Our partners are key to success

Data-to-Action – cutting costs, reducing cash and improving customer experience

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