Remote 4.0! und service? it all starts with the right value proposition
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How you can start to build a value proposition for remote services in an industrial context.
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Remote 4.0! und service? it all starts with the right value proposition
- 4. Service Innovation | Dr Shaun West Customer value proposition This is the model I use to identify and value the customer value proposition Adapted from Anderson Adapted from Osterwalder Value
- 6. Service Innovation | Dr Shaun West Building customer trust Do know who our customer is? Where are we in the ecosystem? - Imagine we are a train component OEM company… Production Bogies Suspenion Owner Operator Maintainer Lighting Regulator Insurers Investors System operator Spares ”… we thought we understood our value chain, on reflection we did not..." Development System integrator
- 7. Service Innovation | Dr Shaun West Building customer trust At what level are the smart remote services building trust (or otherwise)? Trust building - Supporting operations - Supporting maintenance planning - Supporting training - Spares finding - Joint problem solving Trust breaking - Warranty protection - Spy in the cab - Inadvertent sharing of data and analysis ”… monitoring to protect our warranty position poisoned our relationship…"
- 8. Service Innovation | Dr Shaun West Building customer trust Data ownership, confidentiality and litigation The equipment owner owns the data - There is limited value in the data - Data must be shared within the supply chain - Data must be transparent Equipment owners consider the data commercial - The value is in the data analysis - Benchmarking creates value in the ecosystem Risk of litigation with ‘big data’ - Over 20 years of data at 20ms will show a violation ”…the value is in analysis at the system level and this needs the ecosystem to analsyise it..."
- 9. Service Innovation | Dr Shaun West Building customer trust People build trust… The machine… - Is to support not replace people - Provides a single point of data - Supports joint problem solving The team in the ecosystem must learn… - To share and work together - One person may the cause of another’s problem - One person's idea may be an other's opportunity ”… by working together better solutions can be found more quickly..." Chesbrough, " Open innovation "
- 11. Service Innovation | Dr Shaun West Learning to understand what drives your customers What are your customers looking for in terms of outcomes? We must understand where outcomes accrue - Top line – means more sales for our customer - Bottom-line – means cost savings - Compliance and risk management – increases sustainability Each customer and market is different so flexibility is required - Companies change strategy - Market conditions change - New technologies make new things possible More potential revenues (improved availability, asset utilization…) Improved safety, reduced emissions… Cost savings (improved fuel efficiency, reduce time…) ”…we assumed everyone with the same equipment had the same needs. This is not the case!"
- 12. Service Innovation | Dr Shaun West Learning to understand what drives your customers Do you understand your customers gains and pains? Empathy mapping can help understanding - Key customers and stakeholders - Often more than one map per customer group Check list - Where are your customer’s inconstancies? - Have you identified their main pains and gains? - Can you quantify their pains and gains? (Hard) ”… our customer’s revenue was based on number of passengers and they were hard to count…"
- 13. Service Innovation | Dr Shaun West Learning to understand what drives your customers You know the pains and gains; time to check the customer’s jobs? A check list for customer jobs - What jobs are you being asked to perform? - How do you fit into their processes? - Do you know why you are being asked to do these jobs? - Are there jobs that you could do better than the customer? - Are there jobs others in your ecosystem could better perform? - Are there jobs the customer could better perform? ”…our customer was better at performing some tasks than we were, so we learnt to worked with them..."
- 15. Service Innovation | Dr Shaun West Helping customers to achieve their goals What levers can you pull in the customers process? Direct levers - Condition/risk based maintenance - Proactive maintenance notifications Indirect levers - Identify training for O&M staff - Changes to equipment configuration - Additional spares Related levers - Root cause is elsewhere in the ecosystem ”… analysis showed that our customer’s breaking problem was due to leaves…”
- 16. Service Innovation | Dr Shaun West Value Helping customers to achieve their goals Can you described clearly where the customer’s benefits accrue? A check list to improve clarity - Use the customer language - Be proactive and feedback your value creation - Provide benchmarks to help them identify improvements - Understand your customers jobs and processes - Customer pains – show how you relieved them - Customer gains – show how you created them ”… our fleet manangement solution created large fuel savings for our customer…”
- 17. Service Innovation | Dr Shaun West Value Helping customers to achieve their goals How well are you able to help your customers achieve their goals? Check list - Do the gains/gain creators match? - Do the pains/pain relievers match? - Do the customer jobs/products and service match? This is not a one time process! “… we want one system integrated, we don’t want different systems from each OEM…"
- 19. Service Innovation | Dr Shaun West Communicating not reporting Do we know how to communicate with our customers? Owners use different vocabularies - Overall equipment effectiveness - Waiting time - Safety - Equipment efficiency - Fuel efficiency - Availability - Reliability “… CAT presents information from their systems in the language (business and technical) of their customer…" http://www.cat.com/en_GB/support/operations/cat-connect-solutions/cat- emsolutions/improve-operations.html
- 20. Service Innovation | Dr Shaun West Communicating not reporting Do you overload your customers with data? Data overload - There is limited value in data - Real value come from effective action - To make action requires information (and more) Creating effective action needs - A mix of commercial and technical dashboards - Automated reports sent to appropriate people - Reports for the customers pains/gains and goals - Language appropriate to the customer "…we want to have commercial reports that help us run our business more effectively…"
- 21. Service Innovation | Dr Shaun West Communicating not reporting Can you learn to support joint problem solving at a systems level? http://cdn.osisoft.com/corp/en/media/presentations/2015/UsersConference2015/PD F/UsersConference2015_Verso_CardJohnHume_ReducingEnergyandWaterUsageatVer sosAndroscogginMill.pdf At an individual level - Creates lasting/trusting relationships - Leads to a deeper understanding of system issues For the OEM - Cheaper solutions (more brains) - Better understanding of the customer’s processes - Ideas for product development - Solutions for upgrades For the customer - Quicker and better solutions (more brains) “…problem solving: Equipment know how + process know how = quicker, better, cheaper solutions…"
- 23. Service Innovation | Dr Shaun West Closing What does a good customer value proposition look like? Adapted from Anderson Adapted from Osterwalder Wert “…there is no single solution for all situations…"
- 24. Service Innovation | Dr Shaun West Closing Two super examples the right value proposition! A case book soltions is needed coupled with conceptual scenarios will help us learn Bobst https://youtu.be/G8Z7nvGdQFk Cat https://www.youtube.com/watch?v=N7tb5R1PGNw&