The objective of this paper is to compare the level of servitization and cultural topologies with the observed business performance of 24 industrial firms based in the DACH region. The majority of the firms evolved from product businesses serving a range of industrial market segments. The results identified that the best performing business had a service content in the range of 25-50%; those with more standardised tools/processes tended to outperform those with a more ad-hoc approach. This is important to know as the successful transition to services depends upon context (Neely 2011); including history, leadership, culture and tools/process.
"The SMEs surveyed in November on the trend in their business activity in 2014 downgraded their expectations compared to May.
Yet, 2014 has proved better than 2013, particularly for innovative and exporting SMEs. The same applies to tourism, industry and transport. Construction was the only exception, with a slight further deterioration in its position."
"The SMEs surveyed in November on the trend in their business activity in 2014 downgraded their expectations compared to May.
Yet, 2014 has proved better than 2013, particularly for innovative and exporting SMEs. The same applies to tourism, industry and transport. Construction was the only exception, with a slight further deterioration in its position."
We are Scotlands premier manufacturer of Fire Fighting Foam. With our own laboratories we also provide Fire Fighting Foam Sampling services (Offshore/Airports/Refineries), If this is of interest to you, please contact myself for more information.
Nach umfassender Restaurierung, Sanierung
und Neugestaltung präsentiert sich
die Kaiser-Friedrich-Therme seit 1999
mit beeindruckendem Ambiente, das den
Badeluxus aus wilhelminischer Zeit wieder
auferstehen lässt und zugleich zeitgemäße
Anforderungen und somit die Wünsche des
modernen Gastes erfüllt.
The GCM Bible Study Series started last September 1, 2008 during the month of Ramadan. The Studies will reveal some important facts about the book of Revelation.
Recuperar dispositivos de sonido en Windows Vista y Windows 7Chema Alonso
Artículo de Windows Técnico que muestra cómo recuperar dispositivos de sonido en Windows Vista y Windows 7 cuando estos desaparecen. Más información en http://www.elladodelmal.com
Service Design for the private and public sectorJuha Tuulaniemi
SEE Policy Booklets about Service design
This SEE Policy Booklet seeks to answer some fundamental
questions public officials may have about service design: What is service design? What are the benefits of a service design approach? Why engage in service design now? How does service design compare to other innovation methods? What are service design methods and tools? Subsequently, the partners present case studies of service design in the private and public sectors to illustrate service
design processes in practice.
A STUDY ON THE EMERGING TRENDS AND CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY IN SELECTED COMPANIES OF HOSPITALITY INDUSTRY: INDIA,This ppt is regarding the paper presented in the subject of corporate governance
We are Scotlands premier manufacturer of Fire Fighting Foam. With our own laboratories we also provide Fire Fighting Foam Sampling services (Offshore/Airports/Refineries), If this is of interest to you, please contact myself for more information.
Nach umfassender Restaurierung, Sanierung
und Neugestaltung präsentiert sich
die Kaiser-Friedrich-Therme seit 1999
mit beeindruckendem Ambiente, das den
Badeluxus aus wilhelminischer Zeit wieder
auferstehen lässt und zugleich zeitgemäße
Anforderungen und somit die Wünsche des
modernen Gastes erfüllt.
The GCM Bible Study Series started last September 1, 2008 during the month of Ramadan. The Studies will reveal some important facts about the book of Revelation.
Recuperar dispositivos de sonido en Windows Vista y Windows 7Chema Alonso
Artículo de Windows Técnico que muestra cómo recuperar dispositivos de sonido en Windows Vista y Windows 7 cuando estos desaparecen. Más información en http://www.elladodelmal.com
Service Design for the private and public sectorJuha Tuulaniemi
SEE Policy Booklets about Service design
This SEE Policy Booklet seeks to answer some fundamental
questions public officials may have about service design: What is service design? What are the benefits of a service design approach? Why engage in service design now? How does service design compare to other innovation methods? What are service design methods and tools? Subsequently, the partners present case studies of service design in the private and public sectors to illustrate service
design processes in practice.
A STUDY ON THE EMERGING TRENDS AND CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY IN SELECTED COMPANIES OF HOSPITALITY INDUSTRY: INDIA,This ppt is regarding the paper presented in the subject of corporate governance
Poyry - Paper business in mature markets - is there hope? - Point of ViewPöyry
It is old news that the profitability of
European graphic paper producers has been
unsatisfactory in the 2000’s. In fact, the
industry never recovered from the recession of
2001-2002. Since then, paper production has
returned less than 2% on capital employed.
This is the fourth annual SSC Benchmark Survey of Hungary, carried out by the Hungarian Service and Outsourcing Association (HOA) to provide reliable, comparable industry data to its members and the investors considering entering the market
Oil and Gas Job Search presenteert samen met Hays de Oil & Gas Global Salary Guide, een toonaangevend rapport over salarissen, secundaire arbeidsvoorwaarden en het aannemen van nieuwe medewerkers. Met zo’n 24.000 deelnemers verdeeld over 53 landen in 24 verschillende takken binnen de olie- en gassector biedt de Hays Global Salary Guide u inzicht en advies en helpt u met uw recruitmentplannen voor 2014.
Lees hoe salarissen afgelopen jaar per regio, niveau en specialisme zijn veranderd.Experts geven hun visie op de onderzoeksresultaten en op hoe dit een positief effect op uw organisatie kan hebben. Lees hoe u uw arbeidsvoorwaarden kunt afstemmen op de behoeften van werknemers binnen de Oil & Gas sector
Scorpio Partnership Global Private Banking Benchmark report 2013Scorpio Partnership
The Scorpio Partnership Global Private Banking Benchmark 2013 is the leading assessment of the health and wealth of the world's wealth management sector worldwide. The report itself includes analysis of over 18,000 private banking key performance indicators from Scorpio Partnership’s unrivalled historical database. Among other findings, the 2013 Benchmark demonstrates that the wealth management industry reveals that net new money has reboudned across the industry, suggesting signs of a return of client confidence in global wealth managers.
Lees ons rapport over trends in recruiting en verloning, wereldwijd binnen de Oil & Gas branche.
http://www.hays.nl/published-articles/publicaties-506589
NCV 4 New Venture Creation Hands-On Support Slide Show - Module 5Future Managers
This slide show complements the learner guide NCV 4 New Venture Creation Hands-On Training by Bert Kirsten, published by Future Managers Pty Ltd. Visit our website at www.futuremanagers.net
Smart Service DesignThe design of smart services in the world of people, pro...Shaun West
You should read this if:
... you want to understand how digital can enable new value propositions for your business
... you want to gain inspiration from real industrial cases
... you want to create a family of smart twin to help your business.
The handbook‘s purpose is to formalize the lessons learnt from an Innosuisse- funded project where over twenty different Digital Twin-based use cases were developed in collaboration between ten partners. During the project, we learnt many things: the Digital Twins helped us create new innovative smart services, formalize tacit knowledge, and improve decision-making. Perhaps most important was that the design of the Digital Twin was best achieved based on (business) questions. The Digital Twin enables the development of Smart Services within complex systems. For this reason, we called the project Smart Twins – not because of the incredible technology but because of the services they supported. The handbook includes sections describing innovation processes for Smart Services, the prototyping phases, and Digital Twin based business models. The handbook also provides hands-on descriptions on how to use methods, tools, and approaches while working on a project focusing on the development of Smart Services. The handbook focuses on complex product-service systems (PSS) composed of people, processes, and things. Product-service systems are all around us, and they are used on a day-to-day basis, e.g., smartphones; they consist of tangible products and many services. Some of the services are more visible than others, remembering that there cannot be (smart) products without a service of some description. Product-service systems can be complex, and with digitalization, complexity increases distinctly. Depending on perspectives, the focus can be on efficiency or out- comes. Considering such product-service systems, it is evident that boundaries are cross-functional and cross-organizational.
Study case about the elements of crisis resilience in DACH manufacturing firm...Shaun West
To understand what has created resilient in DACH manufacturing firms during the COVID-19 pandemic
- Understand the elements that support resilience
- To assess the resilience elements based on processes, technologies and people
COVID-19 has triggered companies to adapt to a new normal state – some firms have been more successful at achieving this than others.
Successfully integrating new digital to your existing portfolio of products a...Shaun West
How to successfully integrate digital in the existing portfolio of products and services?
- Understanding the challenges that firms face with digitalization
- Create recommendations for companies to succeed
Digitalization is changing the way firms innovate, and many are struggling with the new forms of innovation and commercialization.
Value-Scope-Price: design and pricing of offerings based on customer value Shaun West
To understand why is price is important
An introduction to value
A pricing framework based on value
An example of pricing
A practical model to help you build up value-based pricing based on practice and theory.
Digital twin enabled services – digital twins and future trendsShaun West
We need to understand digital twins and how they can help us before we can consider future trends and applications.
- Digital twins and complex systems
- Digital twins help us to make decisions and act
- Digital twins must support different outlooks
- Digital twin design
Customer journey mapping a taster for SE-Training.
This is based on research at HSLU with a number of industrial partners. This shows some of the adaptations that we made to move journey mapping to the B2B environment. We have two publications behind this work.
To provide an insight into service innovation:
- Service innovation within product-service systems
- Key concepts for service innovation
- Some tools for service innovation
- Reflections
The insights are based on having developed and delivered services in an industrial environment and now leading research in product-service system innovation.
Foresighting the Future to Create Actionable InnovationShaun West
This presentation project is focused on foresight or longer-term radical innovation based on a planning model of three horizons, highly actionable. The presentation describes a model initially developed by the principal researchers at Stanford University for long-term innovation. The model has been proven to work with European firms (e.g., Airbus, Syngenta, Volvo); however, it requires further changes to adapt it to Switzerland. The dominant model addresses three innovation horizons, whereas we want to extend it to four horizons.
The presentation described some reflections on further refinements in the process, including adding Horizon 4, which we think should lead to a self-help “foresight cookbook”.
This will be achieved by describing the approaches through an action research approach that will allow for reflection from multiple workshops with both firms and mixed student groups (with up to 200 international students).
The work presented will describe three key results of the study: • an actionable foresight innovation process;
some of the radical innovations that have come out of the processes;
• clarify how this can help firms be more innovative in a changing environment.
The weakness within the firms of the approach has been associated with the “innovation readiness and capacity” of the firm. The researchers consider that this needs to be measured so that innovation can be more readily accepted. To do this they present an innovation readiness check (based on a survey methodology) to help measure this key success factor.
Value propositions enabled by digital twins in the context of servitization v002Shaun West
Purpose: The motivation of this paper is to investigate how digital twins can enable the design of new value propositions in digitally enabled servitization. This is important, as the application of this technology is an opportunity to deliver new value propositions for customers, and for the supplier to gain deeper understanding of the actual performance of the equipment (Kowalkowski and Ulaga, 2017). This builds upon the assessment of service value co-creation supported by digital twin technologies (Meierhofer & West, 2019).
Design/Methodology/Approach: Ten cases have been assessed in this paper using different dimensions, and a cross-case analysis to consider value co-creation, value measures, support to the value proposition, and the servitization context. All of the cases are from an Innosuisse-supported project in Switzerland and were selected for their diversity.
Findings: Classifying the digital twins by service proved useful to understand each one and its position within the business system. Knowing which business functions the twin supports helps to identify and confirm value co-creation opportunities as well as the possible areas impacted. It also provides different servitization perspectives that can support new and disruptive models, which is helpful for firms looking for new services to support their customers. The lifecycle perspective confirms the links between different phases and can provide new insight for the development of digital twins. The cross case analysis confirmed that a digital twin could support the development of new value positions within the context of servitization, as well as allow others (e.g., installers or asset owners) to develop and sell their own value solutions.
DARE2HACK: Crowdsourcing ideas through hackathonsShaun West
Organizations are continuously looking for ways to transform by adopting new practices and technologies in order to become more competitive. They target business growth by increasing their efficiencies, by improving their internal operations and/or delivering novel value-added products and services. This is not easy to accomplish, as it requires defining a new strategy, changing the way of working, training and engaging employees and interacting with the customers to address different global trends
Avatars and journey mapping for application in industrial product service sy...Shaun West
Motivation
With increasing complexity in the design of product service systems it is become more difficult to understand what is needed, when and why to keep it operational
Research question
“how can the traditional customer journey mapping process be modified to better support customer journeys in industrial environments where there are many individual interactions over the operational life cycle?”
Using the perspective of asset management to create value for Smart Operation...Shaun West
To understand the value of the asset management perspective for Smart Services
To provide some examples to show how the perspective of Asset Management can create more value for Smart Operations and Smart Maintenance
Smart Maintenance Conference, Zürich 12-13 February 2020
Understanding the barriers that are slowing the digital transformation?Shaun West
Firms have found that there are challenges to adopting new ways of working
... what are the barriers in a Swiss-centric
industrial context?
... how to support firms to overcome these challenges?
Industrie 2025, F&E Konferenz zur Industrie 4.0 5 February 2020
Digital twin based services for decision support over the product lifecycleShaun West
This presentation is based on an Innosuisse funded project with ten partners to demonstrate how the digital twin can support decision making over the product life cycle.
Industrie 2025, F&E Konferenz zur Industrie 4.0 5 February 2020
Hidden services in the lighting industry - from free to feeShaun West
The purpose of this paper is to identify hidden services that were given away for free with the product and create a new service offering for a manufacturer that sells luminaires (e.g., lamps and lighting systems) to electrical installers. To identify the services that are given for free with the product, a survey was developed, targeting Swiss electrical installers, to analyze the pre- and post-sales activities that the firm delivered. The identification of the intangibles was initially undertaken by creating a journey for the pre-sales, post-sales and execution phases of typical transactions, based on interviews with the employees and supported by the literature research. The survey (n=68) provided insights into the intangibles that the firm delivered based on the analysis of perceived importance and satisfaction. Further, insights were obtained from five interviews with customers. The analysis of the survey and the interviews identified services that customers valued; service definitions were created for each of the 'hidden services' that were identified from the analysis. Using a modular approach to service definitions, two extreme modular offers were developed: a minimalistic offering and an 'inclusive' offering for the pre- and post- sales; both had options built on standard modules.
Ecosystem Innovation for Pharma Supply ChainsShaun West
How can the ecosystem mapping process be improved to develop better understanding of market dynamics for better decision making by investigating two pharmaceutical supply chains?
Problem:
… existing models for supply chains over oversimplify the situation and failing to integrate people, processes and digital technologies
Purpose
… to show the current state of pharma supply chains
… to show how the ecosystem perspective provided new insights
GBX EventsSupply Chain Innovation Summit 2019,Barcelona, 21 November 2019
Shaun West & Michael Huonder
Digital twins as an enabler for servicesShaun West
WinLink Breakfast meeting Wintertur, 7 November 2019
Shaun West & Oliver Stoll (HSLU)
Jürg Meierhofer (ZHAW)
To described what a Digital Twin is and how it can be transformed to a Smart Service Twin that supports service delivery.
- Describe what a Digital Twin is and what it can do
- Demonstrate that Digital Twins are a service enabler
- Provide examples of Smart Twins develop in Switzerland
- Provide you with a pathway for Smart Twin development
Service Operations Management ChallengesShaun West
To present service challenges and discuss how we overcame the barriers. The presentation was made at ServiceMax's CSO
Summit 2019, Chicago, USA, 22 October 2019.
This work is based on three studies with collaboration of four universities (Paolo Gaiardelli <paolo.gaiardelli@unibg.it>, Tim Baines <t.baines@aston.ac.uk> and Nicola Saccani <nicola.saccani@unibs.it>).
Hybrid optimization of pumped hydro system and solar- Engr. Abdul-Azeez.pdffxintegritypublishin
Advancements in technology unveil a myriad of electrical and electronic breakthroughs geared towards efficiently harnessing limited resources to meet human energy demands. The optimization of hybrid solar PV panels and pumped hydro energy supply systems plays a pivotal role in utilizing natural resources effectively. This initiative not only benefits humanity but also fosters environmental sustainability. The study investigated the design optimization of these hybrid systems, focusing on understanding solar radiation patterns, identifying geographical influences on solar radiation, formulating a mathematical model for system optimization, and determining the optimal configuration of PV panels and pumped hydro storage. Through a comparative analysis approach and eight weeks of data collection, the study addressed key research questions related to solar radiation patterns and optimal system design. The findings highlighted regions with heightened solar radiation levels, showcasing substantial potential for power generation and emphasizing the system's efficiency. Optimizing system design significantly boosted power generation, promoted renewable energy utilization, and enhanced energy storage capacity. The study underscored the benefits of optimizing hybrid solar PV panels and pumped hydro energy supply systems for sustainable energy usage. Optimizing the design of solar PV panels and pumped hydro energy supply systems as examined across diverse climatic conditions in a developing country, not only enhances power generation but also improves the integration of renewable energy sources and boosts energy storage capacities, particularly beneficial for less economically prosperous regions. Additionally, the study provides valuable insights for advancing energy research in economically viable areas. Recommendations included conducting site-specific assessments, utilizing advanced modeling tools, implementing regular maintenance protocols, and enhancing communication among system components.
Immunizing Image Classifiers Against Localized Adversary Attacksgerogepatton
This paper addresses the vulnerability of deep learning models, particularly convolutional neural networks
(CNN)s, to adversarial attacks and presents a proactive training technique designed to counter them. We
introduce a novel volumization algorithm, which transforms 2D images into 3D volumetric representations.
When combined with 3D convolution and deep curriculum learning optimization (CLO), itsignificantly improves
the immunity of models against localized universal attacks by up to 40%. We evaluate our proposed approach
using contemporary CNN architectures and the modified Canadian Institute for Advanced Research (CIFAR-10
and CIFAR-100) and ImageNet Large Scale Visual Recognition Challenge (ILSVRC12) datasets, showcasing
accuracy improvements over previous techniques. The results indicate that the combination of the volumetric
input and curriculum learning holds significant promise for mitigating adversarial attacks without necessitating
adversary training.
Overview of the fundamental roles in Hydropower generation and the components involved in wider Electrical Engineering.
This paper presents the design and construction of hydroelectric dams from the hydrologist’s survey of the valley before construction, all aspects and involved disciplines, fluid dynamics, structural engineering, generation and mains frequency regulation to the very transmission of power through the network in the United Kingdom.
Author: Robbie Edward Sayers
Collaborators and co editors: Charlie Sims and Connor Healey.
(C) 2024 Robbie E. Sayers
Saudi Arabia stands as a titan in the global energy landscape, renowned for its abundant oil and gas resources. It's the largest exporter of petroleum and holds some of the world's most significant reserves. Let's delve into the top 10 oil and gas projects shaping Saudi Arabia's energy future in 2024.
Water scarcity is the lack of fresh water resources to meet the standard water demand. There are two type of water scarcity. One is physical. The other is economic water scarcity.
Welcome to WIPAC Monthly the magazine brought to you by the LinkedIn Group Water Industry Process Automation & Control.
In this month's edition, along with this month's industry news to celebrate the 13 years since the group was created we have articles including
A case study of the used of Advanced Process Control at the Wastewater Treatment works at Lleida in Spain
A look back on an article on smart wastewater networks in order to see how the industry has measured up in the interim around the adoption of Digital Transformation in the Water Industry.
AKS UNIVERSITY Satna Final Year Project By OM Hardaha.pdf
Euroma paper.pptx
1. A comparative assessment of the
service cultures of industrial businesses
in the DACH region and their impact on
business performance
21st EurOMA 2014, Palermo
Dr Shaun West
5. The)framing)of)this)study)came)out)of)Gebauer’s)findings)of)the)
impact)of)cultural)aspects)on)the)performance)of)service)delivery)
Gebauer’s'study'into'service'orientaon'used'the'criteria:''
H management'values'and'behaviours'
H employee'values'and'behaviours'
To'model'overall'performance.'
EUROMA'2014'|'Dr'Shaun'West'
Gebauer,'H.,'Edvardsson,'B.,'&'Bjurko,'M.'(2010).'The'impact'of'service'orientaon'in'corporate'culture'on'business'
performance'in'manufacturing'companies.'Journal$of$Service$Management.'doi:10.1108/09564231011039303.'
hypothesized effects of the relationship between elements of the service orientation of
corporate values and the service orientation of corporate behavior are supported.
H6 is stronger for the separated (s – separated) service organizations than for the
integrated (i – integrated) service organizations ( y1i ¼ 0.22, p , 0.05; y1s ¼ 0.51,
p , 0.01). In an integrated service organization, the service orientation of management
values has a low impact on the service orientation of management behavior. In terms of
a separated service organization, however, the service orientation of management
values has a significantly stronger impact on the service orientation of management
behavior. Similarly, it strongly enhances H8 (y2i ¼ 0.19, p , 0.05; y2s ¼ 0.33, p , 0.05)
and H7 is only significant as companies separate the service organization ( y3s ¼ 0.51,
p , 0.01). In the case of integrated service organization, the association is not
significant ( y3i ¼ 0.09, p . 0.1). According to the x 2
differences for hypotheses H6-H8,
2 2 2
Service
orientation of
management
values
Service
orientation of
management
behavior
Service
orientation
of employee
values
Service
orientation of
employee
behavior
Overall
performance
Service orientation of
management values 1
Service orientation of
management behavior 0.24 1
Service orientation of
employee values 0.58 0.46 1
Service orientation of
employee behavior 0.50 0.26 0.44 1
Overall performance 0.29 0.29 0.41 0.20 1
Note: All correlations are significant at the p , 0.001
Table III.
Correlations among latent
constructs
Figure 2.
Results of the path
analysis
Service orientation of
management values
Service orientation of
management behavior
Service orientation of
employee values
Service orientation of
employee behavior
Overall performance
H3: y3
= 0.47,
p < 0.01
H2: y2 = 0.30,
p < 0.01
H5: y5 = 0.29,
p < 0.01
H4: y4 = 0.10,
p < 0.01
H1: y1 = 0.48,
p < 0.01
Part 1: Hypothesized main effects among different cultural
elements in order to increase the service orientation of corporate
culture in manufacturing companies
Part 2: Hypothesized main effects of service
orientation in the corporate culture
on overall performance
Performance in
manufacturing
companies
251
“service$orienta5on$in$the$corporate$culture$is$posi5vely$associated$with$
overall$performance”,'Gebauer'(2010).''
8. Publicly'available'data'' Interviews'
Raonale'H''
To'obtain'data'and'assess'consistency'
of'messages'and'used'in'detailed'
analysis'
'
Raonale'H''
To'obtain'more'details'from'the'
leadership'
Data)collec@on)was)based)on)publicly)available)data)and)interviews)
for)the)benchmarking))
EUROMA'2014'|'Dr'Shaun'West'
Annual Report
2013
CMD 2013–Sulzer Pumps
Capital Market Day 2013 | Sulzer Pumps | slide 7
Sulzer Pumps
End market assessment
Continued growth of
crude oil consumption
Capital spending
remains on a high
level
Number of projects is
growing in ASP
Pipelines and FPSOs
are main growth
drivers
Oil and Gas
Pulp and Paper
investments still weak;
only demand for
rebuilds and services
is driving the market
Growth of pulp and
paper demand is
expected mainly in
South America and
ASP
General industry
business suffering
from lower activities in
mining and biofuels
General industry
Overall capacity has
increased
New planed and new
approved capacity
was added, driven by
Asia-Pacific
Coal fired and nuclear
plants are investment
drivers in Asia-Pacific
Power
Municipal Water and
Wastewater market
slow but showing
signs of recovery
Industrial Wastewater
stable
Dewatering slow due
to low mineral prices
and low construction
activity
Desalination and
water transportation
market low but stable
Water
45% 17% 23% 15%
Note: Sales share by end markets on 2012 figures
Divisional near-term outlook
Flowserve, Clyde/SPX,
Ruhrpumpen, ITT, KSB, Ebara
Addressable market size1 for centrifugal pumps by key markets
millions of CHF
Sulzer Pumps
Large opportunities in key markets
KSB, Flowserve, Ebara,
Clyde/SPX, ITT, Torishima
Xylem, Wilo, KSB, Ebara,
Grundfos, Pentair
Key competitors:
Ebara, KSB, Andritz
Strategic focus on selling our full product portfolio into all markets and regions
2'500
3'000
3'500
18'000Water
Oil and Gas
Power
General Industry
Theme) Ques@on)
Business'understanding' Market'intelligence'
Targets'and''
Full'market'demand'
Service'porgolio'' Service'lifeHcycle'
3rd'party'services'
Coverage'of'market'demand'
Organizaon'and'processes' Clearly'defined'organizaon'
StateHofHtheHart'lean'processes'
Effecve'incenve'systems'
Service'pricing' Package'offers'
Differenang'service'pricing'
Markups'
Unique'selling'proposion' R&D'
Propriety'design'and'supply'chain'
Selling'services'and'new'equipment'
Service'markeng' Customer'segmentaon'
Sales'channels'
Knowledge'of'installed'base'
14. Business)performance)based)on)organisa@onal)intensity)(Mathieu,)
2001))provided)some)interes@ng)results)
H There'was'significant'sca@er'with'the'‘strategic’'business'
H Separaon'seen'between'the'‘taccal’'and'the'‘cultural’'
Q'–'what'could'be'the'cause'of'this?'
EUROMA'2014'|'Dr'Shaun'West'
the business cycle a longer time frame would have to be used and for the service
paradox the impact of equipment densities/installed equipment bases.
It has to be noted that one business provided only services to owners and operators of
other manufacturers’ equipment; the business reported both services and products in
their sales figures. More investigation is required to confirm if these were ‘spare parts’
or ‘products’ and therefore reported on a similar basis as the other 23 businesses.
Figure 2 – Plot of service proportion versus ROS for all companies in the study
Analysis and discussion of the results
Using data from the interviews, an initial assessment was made of each organisation’s
position on the servitization continuum (Vandermerwe, 1988). Due to the narrow range
of companies studied all businesses fell within a narrow range on the servitization
continuum making it difficult to use the data only with this dimension. Additional
information was gathered from the organisations’ websites enabling each organisation
to be plotted on Mathieu’s matrix of service specificity versus intensity (Mathieu,
Analysis
15. What)contributed)to)the)scaQer)with)the)‘strategic’)businesses?)
H Service'paradox'issues'
(Gebauer,'2005)'
H Different'stages'of'service'
development'
H Different'customer'markets;'
business'type/business'models;'
and,'business'cycles'
EUROMA'2014'|'Dr'Shaun'West'
t segmentation, business cycle and any service paradox issues.
segmentation were considered in this study. In order to consider
ger time frame would have to be used and for the service
quipment densities/installed equipment bases.
one business provided only services to owners and operators of
uipment; the business reported both services and products in
e investigation is required to confirm if these were ‘spare parts’
ore reported on a similar basis as the other 23 businesses.
ervice proportion versus ROS for all companies in the study
n of the results
rviews, an initial assessment was made of each organisation’s
ion continuum (Vandermerwe, 1988). Due to the narrow range
businesses fell within a narrow range on the servitization
ficult to use the data only with this dimension. Additional
d from the organisations’ websites enabling each organisation
’s matrix of service specificity versus intensity (Mathieu,
Interviews'provided'some'evidence'that'the'beQer)performers)
approached'service'as'a'process'and'had'a'range'of'strategic'tools'
and'KPIs'(strategic'and'operaonal)'
Analysis
20. 3)recommenda@ons)for)further)work)
1. Undertake'a'wider'study'to'improve'data'
H Collect'financial'data'for'product/spares'
H Improve'segmentaon'to'isolate'secondary'factors'
2. Development'of'assessment'tools'for'benchmarking'service'cultures'
from'the'customers'perspecve'
H This'will'help'businesses'to'assess'their'status'
3. Idenfy'serviceHfocused'processes,'tools'and'KPIs'
H This'will'help'support'an'industrial'product'business'develop'a'service'
capability''
EUROMA'2014'|'Dr'Shaun'West'
To do
22. Acknowledgements)
The'authors'would'like'to'acknowledge'the'24'businesses'that'took'part'in'
the'study,'the'support'from'the'Roland'Berger'with'undertaking'the'survey'
and'the'financial'support'from'Lucerne'University'of'Applied'Sciences'and'
Arts.''
'
EUROMA'2014'|'Dr'Shaun'West'
Please approach us for further questions – We would be happy to
discuss your agenda
Engineered Products/
High Tech
Office Zurich
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Study authors
H. ROLAND BERGER AND CONTACTS
Partner
Philipp
Angehrn
Partner
Sven
Siepen
Consultant
Christian
Kern
Senior
Consultant
Dr. Philipp
Schmitt
Please approach us for further questions – We would be happy to
discuss your agenda
Engineered Products/
High Tech
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Engineered Products
High Tech &
Office Zurich
Engineered Products/
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High Tech &
Office Zurich
Study authors
H. ROLAND BERGER AND CONTACTS
Partner
Philipp
Angehrn
Partner
Sven
Siepen
Consulta
Christia
Kern
Senior
Consultant
Dr. Philipp
Schmitt
Dr)Shaun)West)
Lecturer'for'Industrial'
Service'Innovaon'
Lucerne'University'of'
Applied'Sciences'and'
Arts''
Sven)Siepen)
Partner'
Roland'Berger,'Zurich'
'
Dr)Philipp)SchmiQ)
Senior'Consultant'
Roland'Berger,'Zurich'
'
24. 1
A comparative assessment of the service cultures of
industrial businesses in the DACH1
region of Europe
and their impact on business performance
Dr Shaun West (shaun.west@hslu.ch)
Lecture for Service Innovation
Lucerne University of Applied Science and Art
Technology and Architecture, Technikumstrasse 21, 6048 Horw
Dr Philipp Schmitt
Consultant
Roland Berger, Holbeinstrasse 22, 8008 Zürich
Sven Siepen
Partner
Roland Berger, Holbeinstrasse 22, 8008 Zürich
Abstract
The objective of this paper is to compare the level of servitization and cultural
topologies with the observed business performance of 24 industrial firms based in the
DACH region. The majority of the firms evolved from product businesses serving a
range of industrial market segments. The results identified that the best performing
business had a service content in the range of 25-50%; those with more standardised
tools/processes tended to outperform those with a more ad-hoc approach. This is
important to know as the successful transition to services depends upon context (Neely
2011); including history, leadership, culture and tools/process.
Keywords: Cultures; servitization; engineered-products.
Introduction
This preliminary study is based on the primary data collected by Angehrn (2013) from a
servitization survey of 24-industrial/manufacturing businesses in the DACH (Germany,
Austria and Switzerland) region of Europe. The results of that study showed that the
businesses with around 25-50% of services tended to have better financial results when
measured using the Return on Sales (ROS=Earnings before interest and taxation
(EBIT)/Sales) basis. Angehrn’s (2013) results identified an underlying need to analyse
the data further to identify the underlying reasons for these differences in financial
performance with respect to the degree of servitization.
1
DACH region – Germany, Austria and Switzerland
25. 2
Angehrn’s (2013) study is in general agreement with that of Neely (2013), who
showed that servitization had taken hold within the German manufacturing sector.
Neely (2013) highlighted the importance that servitization plays in the business
strategies of the industrial businesses and that this was often seen in terms of: lock-in/
lock-out, increasing differentiation, customer demand. He also discussed some risks for
industrial businesses based around their engineering heritage which causes them to be
slow or reduces the uptake of servitization. However Neely (2013) did not provide
details on the sales values that come from the service and the manufacturing activities.
Brax (2005) and Angehrn (2013) both agreed that some industrial businesses are able to
create a service business of sufficient scale to overcome the operational costs.
Gebauer’s (2010) paper described the cultural aspects of performance and service
delivery in the DACH region. For the study a series of questionnaires were sent to the
businesses that allowed an service performance to be quantified, the criteria chosen
were the service orientation of:
• management values and behaviours;
• employee values and behaviours.
The results of the Gebauer (2010) study showed that in the businesses where service
and manufacturing operations were separated from each other there was a stronger
cultural affinity for services; it also highlighted that businesses with the highest cultural
affinity for services had the better overall performance. The key finding of the study
was that the “service orientation in the corporate culture is positively associated with
overall performance”, Gebauer (2010).
The present study was undertaken to assess the degree of servitization and cultural
intensity and identify their contribution to the businesses’ performance for 24
businesses in the DACH region. Business performance was based on the ROS with the
aim of identifying a relationship between the degree of servitization and cultural
intensity.
Review of the theories applied
The service theories used in this study to review the 24 businesses were:
• servitization model based on Vandermerwe (1988);
• service cultures typologies based on Mathieu (2001).!
The business benchmarking was based on Anderson (2009) for customer
segmentation analysis and Backhaus (2005) for the analysis of business types.
The servitization models
Vandermerwe’s (1988) servitization model was used with the following definitions:
• product;
• product + minor service;
• service + minor product;
• service;
• product-service system.
26. 3
These were used to provide greater granularity into the segmentation to allow a fuller
understanding of the business.
Service culture typologies
The framework provided by Mathieu (2001) provided a typology for measuring both
service specificity and organisational intensity (for services). The typology provided a
powerful framework for benchmarking the businesses based on their affinity towards
services. This approach has been used by others (Bikfalvi 2012; Brax, 2005; and
others) to help benchmark businesses in terms of service. Mathieu’s (2001) model
augments Vandermerwe’s model by analysing the data in 2 dimensions: one relating to
the organisation and the other relating to the service(s) provided.
To assist with quantification of servitization and cultures, Neely (2008) used an
automated approach to measure the classification of the business based on a process in
Excel, based on the formula “=IF(ISNUMBER(SEARCH("consult*",$D4)),1,0)”, in
addition to a manual search. Although using this approach is relatively simple it was
shown to provide some level of quantification in addition to manual oversight. In
Neely’s study the Excel-based approach was used with businesses that provided
services for engineered products and so was relevant as it focused on provision of
services for engineered products. A key conclusion of the study was that servitization
was shown to becomes a route to obtained access to customer value pockets down-
stream from the normal manufacturers’ business.
Schmidt (2003) described the importance of service culture. His study showed how
leaders can move their organisations from one where services are viewed as a
‘necessarily’ evil to one where the service becomes ingrained in a business to the point
where service is viewed as importantly as the product. This view of the importance of
organisation intensity and hence the ability to move from tactical to cultural levels of
organisational intensity have been confirmed by Turunen (2012) and Gebauer (2010).
Schmidt (2003) also reviewed the importance of processes/tools to drive service
improvements whilst ensuring that the rulebook does not become too cumbersome to
remain useful and when it should be used to augment the culture and behaviours
exhibited by the leadership.
Business benchmarking
Customer segmentation is a commonly used tool and is required to understand the
market expectations in terms of margins (Anderson, 2009). The approach Anderson
(2009) recommends is to use industrial groupings of firms with similar needs or
requirements rather than using simple geographic segmentation. Backhaus (2005)
provides a model that identifies 4 main business types (OEM, systems, project and
product businesses) based on market behaviours and expectations in an industrial
environment. Backhaus (2005) showed that different business types have different
margin expectations, as is also the case with conventional customer segmentation. The
business type classification was undertaken as it was considered to be an important
differentiator when considering margins. This is a proxy for the main business model
that is being followed by the company.
27. 4
Methodology
This study uses data collected by interviews with senior management during 2013
(Angehrn, 2013) from 24 industrial companies in the DACH region of Europe. All of
the businesses were engaged in the provision of either engineered-products or services
for engineered-products. The interviews provides information on the business models,
types of services as well as financial data. The businesses requested that their data
should be non-attributable.
Degree of servitization
The degree of servitization was another important factor that was used. The general
categorization was based on that developed by Vandermerwe (1988). This allowed the
position of each business to be identified. The assessment was based on the proportion
of services as total sales and customer-focused materials.
Service benchmarking
Mathieu’s service model based on the organisational intensity and the service specificity
was used to allow the business to be compared. The assessments were all based on
externally available materials published by the businesses. The materials used were
both customer-focused materials and investor-focused materials. This approach
allowed the identification of conflicting messages within the business that highlighted
ambiguities. The assessments for the organisational intensity and service specificity
were based on the following examples:
• organisational intensity – tactical “because the competition does it”;
• organisational intensity – strategic “because the management says so”;
• organisational intensity – cultural “because it is the way we do it”;
• service specificity – customer services “freephone number provided”;
• service specificity – product services “warranties, installation services for my
products only”;
• service specificity – service (as a product) “we service all (our products and
others)”.
To support and qualify the measure of the service culture a word count per page for
service (and other service related words) was undertaken. The word count used on
recently published materials was based the application of the formula:
“% service words” = count of “servic*” / (count of “servic*” + count of “produc*”).
Business benchmark
The businesses were benchmarked based on publicly available data and where possible
using the respective annual reports. For business that were either not publicly listed or
business where there was no publicly available data the data were gathered from
interviews with senior management, the following financial data were collected:
• total firm sales and EBIT;
• proportion of sales categorized as ‘services’;
• service growth.
The data were then plotted as ROS versus service content. The reporting period
2012-13 was chosen to limit variability of data in particular due to market changes.
28. 5
This however creates a very narrow snap-shot of the benchmark data and may not give a
full representation of the medium term benchmark.
The Backhaus’ (2005) business types classification and customer market
segmentation was undertaken using publicly available materials (eg, website, investor
relations materials and brochures).
Findings and results of the study
There were a total of 24 businesses in the study, all of which were from the industrial
product segment located in the DACH region. The breakdown of customer segments
served by the businesses is given in Figure 1. A number of the businesses reviewed
targeted very specific market segments, whereas others were less targeted. No
assessment was undertaken to identify if those who were more targeted had better
business performance that those who worked in many segments.
Figure 1 – Customer segmentation of the businesses
Table 1 provides an overview of the key results from the study. Based on the
analysis of the businesses all were based around ‘product + minor service’ or ‘service +
minor product’, the proportion of services sales identified agrees with the degree of
servitization. The margins also moved in the expected direction (increased) with higher
service contents (service + minor product). In all cases the businesses were providing
services to support some sort of industrial product and as such were part of a “Product
Service-System” as described by Baines (2007).
Service specificity has the majority of the businesses based on ‘product services’
with this group enjoying the highest margins (Lay, 2010). Organisational intensity has
a reduced spread of data between the three categories. The lowest levels of service
content and ROS are both in the tactical category with the highest in cultural. The
proportion of “service” words to “product” words was found to increase from 27%
(tactical) to 37% (cultural) in line with the increasing organisational intensity for
services. Table 2 provides a breakdown of the percentage of service sales and the
average margins using Mathieu’s service model. In the most bottom right quadrant
Medtech/
pharma,-18%-
Automo4ve,-15%-
Energy/
resources/O&G,-
15%-Manufacturing,-
12%-
Aero,-7%-
Food,-5%-
Chemical,-3%-
Packaging,-3%-
Transport,-3%-
Construc4on,-3%-
Others,-16%-
29. 6
(cultural/service as a product) there appears to be a drop in the margins, additional
investigation, including review of additional businesses are needed to better understand
this result. The most popular quadrant for the businesses in the study was the
strategic/product service box (13 of 24).
Table 1– Overview of the services segmented using different approaches
Count Proportion of services
(Service sales/Total sales)
ROS
(Total EBIT/ Total sales)
Business types based on Backhaus (2005)
OEM business 7 24.6% 7.8%
Product 6 32.8% 9.7%
Project 2 25.5% 8.3%
Systems 9 24.8% 10.3%
Degree of servitization based on Vandermerwe (1988)
Product + minor service 12 20.0% 7.4%
Service + minor product 12 33.6% 11.1%
Service specificity based on Mathieu (2001)
Customer services 3 28.7% 8.0%
Product services 17 27.4% 10.1%
Service (as a product) 4 23.0% 6.5%
Organisational intensity based on Mathieu (2001)
Tactic 4 19.5% 5.0%
Strategic 15 24.0% 9.7%
Cultural 5 41.0% 11.4%
Total study 24 26.8% 9.0%
The results of the Backhaus business type assessment are shown in Table 1. The
overall ROS for all businesses in the study was 9.0%, however the volume of data in the
study did not allow for useful segmentation using this dimension.
Table 2– Details results of business financial performance based on Mathieu (2001)
Tactic Strategic Cultural
Average of Service content
Customer services 18% 50%
Product services 21% 25% 48%
Service (as a product) 16% 30%
Average ROS
Customer services 5% 15%
Product services 6% 10% 13%
Service (as a product) 5% 8%
The benchmark data plot for ROS versus services content, shown in Figure 2, shows
a general increase as the service content increases. There is significant scatter in the
data with the R2
correlation being 0.30 for the data from all of the businesses studied.
This shows that there are other aspects that are not being taken into consideration and is
therefore in agreement with the findings of Brax (2005) who described the “service
paradox”. When the data is broken down and categorised by organisational intensity
(Mathiue, 2001) the businesses with a more tactical approach have the lowest ROS and
services content, whereas the businesses with a cultural intensity to service have
significantly higher ROS and services content. There is a greater scatter for businesses
with strategic intensity, data from the interviews provided some evidence that those
with the best performance here approached service as a process and use a number of
tools and key performance indicators (KPIs) to support and measure service
performance:
30. 7
• strategic tools, (eg, installed base database, customer relationship management
systems, competitor database, etc);
• strategic KPIs, (eg, installed base coverage, capture rate of own equipment,
percent of customer spend, etc);
• operational KPIs, (eg, net promoter score, delivery metrics, safety metrics, etc).
The additional factors that could also have an impact on business performance are
the business type, market segmentation, business cycle and any service paradox issues.
Only business type and segmentation were considered in this study. In order to consider
the business cycle a longer time frame would have to be used and for the service
paradox the impact of equipment densities/installed equipment bases.
It has to be noted that one business provided only services to owners and operators of
other manufacturers’ equipment; the business reported both services and products in
their sales figures. More investigation is required to confirm if these were ‘spare parts’
or ‘products’ and therefore reported on a similar basis as the other 23 businesses.
Figure 2 – Plot of service proportion versus ROS for all companies in the study
Analysis and discussion of the results
Using data from the interviews, an initial assessment was made of each organisation’s
position on the servitization continuum (Vandermerwe, 1988). Due to the narrow range
of companies studied all businesses fell within a narrow range on the servitization
continuum making it difficult to use the data only with this dimension. Additional
information was gathered from the organisations’ websites enabling each organisation
to be plotted on Mathieu’s matrix of service specificity versus intensity (Mathieu,
2001).
The study shows the possibility of using externally published data to assess an
organisation’s degree of servitization and is therefore in line with the findings of Neely
(2008). This can provide the organisation’s leadership with an understanding of
possible improvements in its service provision. Interview data confirmed that the level
of servitization allowed the organisation’s service typology to be compared using
31. 8
Mathieu’s (2001) service matrix. Use of more automated tools could be combined to
create an effective system for assessing the service organisational intensity and degree
of servitization within a business. It was considered important to use external facing
‘customer’ materials because this is the likely view of the customer, it also highlighted
some ambiguities and contradictions within the firms studied. It is possible that a more
comprehensive assessment tool could be built up that reviews the servitization and its
service typology: from the new customer view; from the existing customer view; and,
from the employees view.
Where the product/service mix of the business was in the range 25-50% it was found
that organisations with highest service specificity were amongst the best performers (on
a return of sales basis) allowing for major market segment differences. In the case of a
business without a link to a manufacturing part, the lack of any integration between
manufacturing and services appeared to agree with the hypothesis of Baines (2009) in
that it had a lower financial performance on a ROS basis. The business’ split of service
to ‘product’ type sales was due to the reporting of replacement parts required for the
service (services + minor product). The degree of scatter in the study data is the impact
of limited numbers in the study (24) and different market segments having different
margin expectations and different phases in the economic cycle (Anderson, 2009). It
would be valuable to extend the number of businesses studied to at least 200 to improve
the results and identify the detailed reasons for the scatter. Gebauer (2011) undertook a
successful study with over 300 manufacturing companies where the business
performance was measured within the context of servitization although here his study
was considering service differentiation.
Of the businesses reviewed, those with a more formal process-based tools tended to
outperform the businesses that took a more ad hoc approach. Schmidt (2003) highlights
the important role tools can have in supporting culture change and embedding processes
in the context of service leadership. The scatter seen in the business performance for
the businesses within the ‘strategic’ organisational intensity shows a relationship with
process-based tools (eg a database of installed base) supported by strategic (eg installed
base coverage) and operational (eg net promoter score) performance indicators.
Conclusions
This work is relevant to manufacturing companies transforming their business from a
traditional manufacturing-based business into operations-based with a greater emphasis
on providing services. The benchmarking against Mathieu’s service matrix can be a
useful tool for mapping an organisation’s ‘servitization journey’.
The degree of servitization and the cultural differences were compared for industrial
services business in the DACH region. The degree of servitization and cultural
topologies were then compared with operational performance (based on a ROS
measure). From the results, it was identified that organisations with higher service
specificity were amongst the best performers. The same organisations tended to have
more formal process-based tools to support service operations. A more comprehensive
survey to review theses topics over a longer-time frame would further improve the
quality of the data and hence the results.
32. 9
One business was only active in services; the business noted some ‘product’ sales,
mostly in the form of spare parts. The breakdown of the definition of ‘service’ content
is an important detail that needs to be better understood so that highly servitized
businesses can be correctly compared with others. Further investigation with business
models and service reporting (both financial and non-financial/KPI-based) should be
undertaken to better understand this issue to ensure accuracy of results.
It is postulated that the use of a number of tools can help to bridge the gap between
manufacturing and service provision whilst, helping the whole business to understand
the issues faced by increasing servitization. The use of a common assessment tool for
benchmarking the degree of servitization was helpful in this study. From this, it is also
postulated that the servitization journey could be plotted in more detail. This is
important as the servitization journey (Neely, 2011) for each organisation varies
depending upon the context (eg, history, leadership, culture, tools/process) and these
factors could be seen to have an impact within an organisation.
Recommendations for further work
From the study, it is recommend that a more in depth study into service culture and the
necessary tools require to support it is carried out, in particular:
• Undertake a wider study with more firms so that the segmentation, business
cycles and business type/business models issues can be isolated from the
servitization issues.
• Development of assessment tools for benchmarking servitization and service
cultures from a customer perspective.
• Identify the key tools/processes and KPIs required to support an industrial
product business successfully develop a service capability.
Acknowledgements
The authors would like to acknowledge the 24 businesses that took part in the study, the
support from the Roland Berger with undertaking the survey and the financial support
from Lucerne University of Applied Sciences and Arts.
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