SI2 PARTNERS: HELPING CLIENTS LEVERAGE SERVICES TO WIN IN INDUSTRIAL MARKETS

Jul 05, 2016 • Management • News • COnsultants • management • Si2 partners

Si2 Partners consultancy is launched to help industrial companies leverage services and take advantage of the Industrial Internet of Things (IIoT) or Industry 4.0 to beat the competition and win in their markets. Founding Partner Nick Frank tells us more

Si2 On-Demand is a new way for managers and their teams to get advice and the support they need to get things done – as they need it, when they need it and as much as they need! Managers engage with Si2 to solve problems, get new ideas or validate their thinking. If they have capacity constraints, they use Si2 specialists as an extended workbench to complete their tasks -virtually, rapidly and cost effectively, wherever they are in the world. An innovative smart platform enables access to expert practitioners and consultants as well as a growing Insights Library,

Leading industrial manufacturers have long seen the installed base as a business opportunity and as a way to moderate economic cycles. Faced with intensifying competition and limits to growth from product sales in developed markets, after-sales services provides ways to drive new revenue streams, improve margins and ward off competitors.

Today, services are an anchor business for many companies and have evolved from pure product support to encompass sophisticated offerings to help customers better manage or outsource industrial processes, including asset management, maintenance or parts of production and logistics. Nevertheless, even more companies have either not taken part in this evolution or failed to realise its benefits due to a flawed strategic approach or implementation. The well documented “service paradox” phenomenon, where profits decline even as volumes increase, is something that managements must learn to overcome.

Forward-looking companies have gone on to drive competitive advantage by bundling products and services into integrated solutions, delivering outcomes to customers demanding functionality and performance.

When outcome displaces the product from the centre of focus, transactional relationships with customers become more co-operative and longer term, as both sides work together to co-create value and share risks.

With customers locked-in and competitors locked-out, price pressures are moderated through value- based pricing. Currently, outcome-based services or performance contracting are viewed as a way to bend cost curves to improve performance in many industries, including healthcare, infrastructure, technical services, aerospace, defence as well as large machinery. Nevertheless, while customers have benefited from these business models, the same cannot always be said for suppliers.

Companies contemplating outcome-based services must overcome a number of hurdles, including assessing and managing risks as well as understanding how to measure value

Companies contemplating outcome-based services must overcome a number of hurdles, including assessing and managing risks as well as understanding how to measure value. Their challenge is to blend their value chain into customer operations, integrating ecosystems of suppliers and partners into value networks. They must invest to scale their business, but ensure that demand is sufficient and customers are open enough to try new approaches.

With technologies such as the Industrial Internet of Things enabling more productive service operations, there is now increasing evidence that digitization, is also sparking a ‘revolution’ in thinking, driving servitization and new business models. By enabling companies to collect and analyse data on an unprecedented scale and granularity, new services are being designed to improve products, process performance and customer experience.

Data is becoming a key new asset class, perhaps even more valuable than the underlying physical assets and processes. It is crucial for competitive advantage, and necessary for OEMs to avoid commoditisation of their products. Those with real vision are investing in new digital service platforms (“Anything-as-a-Service”), to drive disruptive growth and new customer demand while dramatically reducing costs.

Si2 Partners reflects this new age of disruption. With the ambition to help industrial companies leverage services in increasingly digital environments, Si2 Partners offers On-Demand Advisory and Support, delivered through collaboration technology by people who know how to make things happen, Si2 helps companies not only shape their servitization transition, but focus on all the critical issues affecting their service businesses, including strategy, business models, organisational development, sales, marketing and operations as well as technology.

Operating across many industries and all geographies, Si2 Partners is uniquely placed to deliver solutions to problems or work successfully on major business transformational issues, such as business building, operational improvement, change programs or new go-to-market initiatives. Si2 combines a deep understanding of service business, a unique blend of top management and consulting expertise and strong industry experience.

Each business and the context within which it operates are unique, requiring a bespoke approach. Si2 works with management teams to understand their views, requirements and objectives, while bringing industry insights, proven methodologies and services thought leadership to the table.