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Toolbox: Key organizational issues for services Keynote for Roland Berger’s Service 3.0 workshop, 12 December 2013
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Toolbox: Key organizational issues for services Keynote for Roland Berger’s Service 3.0 workshop, 12 December 2013
Dr Shaun West Lecturer for Service Innovation Blog: dokumenton.com
Manufacturing+and+services+are+different+and+our+customer’s+value+these+differences+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
Both'examples'from'GE'–'the'OEM'values'the'equipment,'the'service'business'values'experience+
Service+is+humanis<c+and+manufacturing+is+technocra<c+and+this+difference+creates+misunderstandings+in+product=based+businesses+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
Manufacturing+ Service+
Mathieu++ Technocra<c;'Suppor1ng'product;'Efficiency'based'innova1on''
Humanis<c;'Suppor1ng'the'customer;'ClientRbased'innova1on''
Herrmann++ Factual' Emo<onal''
Kotler++ Tangible'goods'with'minor'services''
Service'with'minor'goods''
Bretani++ Separate'produc1on'and'delivery''
Combined'produc1on'and'delivery''
CoppeE++ Service'is'a'cost++ Service'creates'value++
Normman++ Complex'structures'' Simple'structures''
As'‘good'engineers’'our'ins1nct'is'to'the'technical'rather'than'the'human,'how'do'we'challenge'this?'
If'you'are'tac<cal'you'will'follow'–'if'your'culture'is'‘service’'you'lead.''Where'is'your+business+on'the'matrix?'
Benchmarking+of+your+business+and+your+compe<tors+posi<ons+on+Mathieu’s+matrix+is+important+for+service+excellence+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
Tac$c% Strategic% Cultural%
Customer%services%
A"Toll&free"numbers"
Dell"on&line"
Toyota/Lexus"
Product%services%
Basic"extended"warran;es"
GE"Medical"systems"
Caterpillar"
Service%as%a%product%
Non&OEM"repairs" Fiat"in"IT" IBM"Global"
Services"
Organiza;onal"intensity""
Service"specificity""
Mathieu
Value+chains+for+manufacturing+are+not+the+same+as+for+services+–+the+service+value+chain+fosters+open+coopera<on+
The'differences'create'conflict'and'require'different'organiza1onal'structures'
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
Chesbrough'
Porter'
≠'
Can'you'iden1fy'the'pain+points+and'find'strategies'to'limit'their'impact?'
Services+Manufacturing+
The+installed+base+is+key+to+securing+service+–+it+is+paramount+that+you+have+names+and+addresses+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
Do'you'know'who'buys'the'equipment?'Do'you'know'the'opera<ons/maintenance'team'at'every'loca<on?'
Maps.google.com'data'for'“power'sta1ons,'Germany”''
The+opera<onal+outcomes+define+the+markets+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
Do'you'know'how'the'equipment'is'used'to'generate+value+for+your+customers?'
GE'published'data'for'Frame'9FA/FB'gas'turbines'
The+life=cycle+of+the+equipment+helps+you+to+iden<fy+poten<al+service+revenues+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
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Percen
t'
M'USD
'
Years'(note:'1'is'the'start'of'opera7on)'
CAPEX" OPEX"fixed"costs" OPEX""inspec>ons" Reliability" Usage"
Installa'on/commissioning.
Ini'al.spares.and.rou'ne.mtc.
Rou'ne.mtc.
Inspec'on/revision.
Upgrade.
Decommissioning.
Original.design.life.
Unplanned.outage..12M.USD.
Do'you'understand'your+customer's+cost+base?''How'much'of'the'life=<me+revenues+do'you'capture?'
What+is+the+impact+on+the+organiza<on+of+shiQing+to+services?+–+some+key+ques<ons+to+ask+<me+and+again…+
R What'impact'will'the'cultural+changes+create?'R What'changes'will'be'required'to'align'to'the'service+value+chain?'
R What'has'to'be'done'to'track'the'loca<on+of+equipment?'R How'can'the'employees'be'empowered'to'provide'reliable'outcome=based+informa<on?'
R What'will'be'needed'to'fully'understand'the'equipment+life=cycle?'
R What'tools'and'resources'are'needed'to'create'and'sustain'a'service+network?'
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
How'oQen'do'you'check'how'journey'into'services'is'progressing?''
Change'
Processes'
People'Culture'
Service+excellence+in+prac<ce+–+Caterpillar’s+service+model+
What+is+the+Caterpillar+model?+
R Seed'R ValueRbased'products'and'services'
R Design'and'development'R Grow'
R Large'installed'base'R Many'channels'
R Harvest'R Pursue'parts'and'services'R Unmatched'dealer'support'
What+can+be+learnt?+
R Culture'R Customer'first'R Value'products'and'services'equally'
R Value'chain'R Mul1Rchannel,'dealers'as'equals'
R Installed'base/use'R Know'where'it'is,'support'outcomes'
R LifeRcycle'R Driving'to'lowest'lifeRcycle'costs'
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
How'does'your'service'business'model'compare?'
Any+ques<ons?+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
Caterpillar+in+prac<ce+–+they+are+able+to+deliver+what+their+customers+really+want+in+terms+of+outcomes+
What'is'tradi1onally'delivered…'+++++++sell'equipment,'parts'and'technical+services'hours+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
What(our(customers(really(want…(What(we(tradi@onally(do(for(customers…( What'customers'really'want…'
'''''''is'to'achieve'the'outcomes'and'improve'the'boEom+line'results'
Outcomes'R Beier'efficiency'R Improved'revenues'R Reduced'costs'R Mi1ga1on'of'risk'R Improved'safety'R …'
Source:'Cameron'Ferguson,'Caterpillar'
They'are'able'to'deliver+services+what'their'customers'really'want'in'a'form'in'which'they'are'willing'to'consume+
Produk<nnova<on+|+Management+Competency+Centre+at+the+Lucerne+University+of+Applied+Sciences+and+Arts+
Toolbox:'Key'organiza1onal'issues'for'services''|''Dr'Shaun'West''|''12.12.2013''|''©'HSLU,'Luzern,'Switzerland'
Dr'Sabine'Sulzer' Peter'RadcliffeRLunn*'Markus'Raschke' Dr'Christoph'Imboden' Fabio'Mercandel*'Dr'Shaun'West'
Innova1on'research'and'its'impact'on'business'models'and'people'R Direct'mandates'and'KTI/SNF'sponsored'research'R Student'projects'–'PhD,'Master,'bachelor'or'industrial'projects'
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