ARCHIVE FOR THE ‘rolls-royce’ CATEGORY

The field service sector is one that has always bred innovation and ingenuity and in today’s business landscape, where boundaries are being continually pushed forward by radical new approaches to service delivery, empowered by a wave of exciting technologies, there has never been a greater opportunity for companies to drive their businesses forwards through service.

As a celebration of excellence in our sector, Field Service News is pleased to announce the 2018 edition of the #fsn20 - a list of service professionals who are leading lights within our sector...

Andy Harrison, Engineering Associate Fellow, Life Cycle Engineering, Rolls Royce

Rolls Royce has long been the poster boy for the servitization and advanced service movement we are now seeing begin to really gain momentum within the manufacturing sector and beyond.

As such, it makes sense that they are heavily involved within helping to establish a framework for advanced services as part of a multi-organisational committee dedicated to identifying the some of the fundamental steps towards such an approach.

Harrison is the man that is leading that committee and some of the work he and his colleagues within the group are undertaking will be pivotal to the future of field service.

Ashley Weller, UK Sales Director, Mars Drinks

Having joined the organisation in 2011 Weller has held roles across a number of disciplines within the business including field service management, marketing and as Customer Service Director.

It is in this role that Weller established the creation and delivery of a highly successful customer service strategy and customer engagement across both direct & indirect business streams.

In 2015 Weller took the visionary decision to challenge his people to elevate their role, transforming themselves into Brand Ambassadors and adding even more value to great customer relationships. As a result of the team’s work over several years, the new processes are now a living, breathing animal and are running smoothly under the control of the regional managers. The new brand ambassadors are a true USP for the company and are loved by their customers. The engineers are proud that they’ve achieved all this – it’s what their customers wanted.

Having recently taken on the role of UK Sales Director, it is anticipated that Weller will be able to build on this success and to further drive revenue through their now well-established 'Brand Ambassadors'.

Seva Gavrilov, Market Unit Director, Russia, Volvo Penta

Seva Gavrilov joined Volvo Penta 22 years ago and took over leadership of the Russian business in 2007.

He has always had a passion for nautical engineering, having graduated from the Marine Technology University in St Petersberg as a Naval engineer but also as a visionary with a head for business. Now, he is leading Volvo Penta through a programme of initiatives that are giving their dealerships a competitive edge, more momentum and increasing the company’s market share.

The group HQ in Gothenburg, Sweden has been watching Gavrilov’s programme carefully and has already implemented some similar ideas internationally. Since the company is in a transition period from being largely product and dealer focussed to Customer focused, Russia’s key message is to enforce the shift to end-user benefits.

Improvements in change processes, complaint handling and collaboration between groups such as sales and service can make huge improvements.

Ulrika Lindberg, Executive Vice President, Service, Marel

A member of the Harvard Business School alumni Lindberg holds an impressive CV having held many senior service and management roles in Europe, Africa and the Middle East Lindberg has a deep knowledge of customer satisfaction, aftermarket, spare parts and of course field service - in fact, she is something of a specialist when it comes to establishing and developing service portfolios.

Having built a new unit within Swedish-industrial giant Alfa Laval, with an overall objective to increase sales of services and a focus on developing and maintaining a portfolio of well defined service offerings for the organisation, Lindberg took on the role of Vice President for Global Service where she was responsible for Global Service operations with focus on Growth of Service, Competence Development within Service and Service Operations before recently moving to her current role as Executive VP with Marel.

Kevin Starr, Program Director, Advanced Digital Services, ABB Oil and Gas Division

Given Starr’s wide-ranging background which encompasses installing industrial automation, working with pneumatics, then electrics, DCS and now digital and across roles that include R&D managers, software developer, data scientist and cloud specialist - he is perhaps the very personification and embodiment of how the field service sector is in constant flux on a journey of continuous evolution.

When it comes to digitalisation of automation of service within the industrial sector, Starr is to be regarded a leading subject matter expert – a fact that is attested to the fact he is a highly sought-after speaker at industry conferences as well being the host of a successful YouTube series and author on the topic and he has played a sustained role in establishing ABB as a pioneer of data-led service delivery.

Jonas Granath, COO and Deputy CEO, Polygon

Deputy CEO and COO of Polygon a company with over 3,500 field service engineers, Granath has worked in service businesses across the globe, throughout his career.

One key attribute that really marks Granath out as leading figure within the industry has been how he has continuously demonstrated across his career an ability to find different ways to lead and get his message across no matter the background of the people he is interacting with and it is this ability to communicate that has made him such a successful change leader and senior service professional.

Across the last four years, he has helped Polygon evolve their approach to service delivery and is driving their present shift towards a more comprehensive post-folio of advanced services that have come from that evolution.

Tim Jones, Professional Services Director EMEAI, Waters

Having spent over thirty years with Waters Jones has worked across their Sales, Product and Service divisions and has become an integral part of the organisation who deliver practical and sustainable scientific innovation to enable significant advancement in healthcare delivery, environmental management, food safety, and water quality.

In his role as Professional Services Director for EMEAI he has played a critical role for ensuring Waters continue to meet the high level of service standards that they have become known for and has shown in the way he has structured his teams that he has a firm grasp of the importance of the engineer/customer relationship and of empowering his service engineers to take ownership of their performance.

Dan Sewell, COO, Espresso Service

Sewell has been a driving force behind not only driving his organisation's field service efficiencies but also in Espresso Service’s wide embrace of the Internet of Things.

It is this willingness to adopt leading-edge technologies that have seen the organisation increase profits through the intelligent use of data that has enabled their customers to get greater guarantees of uptime and improved visibility into how t ey can also build their revenue streams.

In addition to this, the company has been able to rapidly expand into new territories as well as establish key patents and partnerships that will firmly establish them as one of the leading service providers within their space and Sewell’s deep industry knowledge and expertise have been a fundamental element of that success.

Larry Wash, Executive Vice President, Kone Americas

Wash has a long and distinguished career that has included senior executive positions in service operations for a host of highly respected organisations including Xerox, Trane and Ingersoll Rand before joining Kone where he is at the vanguard of their drive to lead service innovation in a highly dynamic and rapidly evolving sector.

Alongside his role as Executive Vice President, Wash serves as a member of KONE’s Executive Board. and leads a $2 billion business that includes teams across the United States, Canada and Latin America.

Wash also serves as Board President for the National Elevator Industry, Inc., a pre-eminent trade association for the building transportation industry as is highly regarded as a thought leader within the executive service community.

James Mylett, Vice President, Schneider Electric

Mylett is another member of the #fsn20 that has established his credentials as a highly respected service leader across a number of executive level service centred roles with a host of organisations who each have a reputation for excellence in terms of service delivery with a CV that lists positions with Comfort Systems, Johnson Controls and now Schneider Electric, whom he has been working for since 2017.

Schneider has shown ambitious plans in terms of establishing a highly progressive and forward-looking approach to their service operations on a global scale and as Vice President Mylett will be instrumental in seeing them meet their goals.

Wilhelm Nehring, CEO, OSRAM

In his role as UK CEO of the elevator division of thyssenkrupp Nehring showed a balanced understanding for the importance of technology in driving a service business forwards alongside the fundamental role that his field service technicians played in ensuring his organisation continued to stay at the forefront of what is both a highly competitive and exceptionally innovative sector.

Speaking at an exclusive fieldservicenews.com Think Tank session last year he commented ‘for us all this digitalisation that we’re talking about is not something to replace engineers, or even to have less engineers – it is for us to enable our engineers to do the job better than they could before.’

Having recently taken on the CEO position of globally leading lighting manufacturer OSRAM it is clear that he intends to carry that belief with him into his new role stating ‘my aim for OSRAM is to become a key player in the digitalization of our buildings and cities. On that journey our employees are our most important assets; they make the impossible possible.”

Nehring is a perfect example of the new breed of business leaders who understand the huge impact service personnel will have on the future of enterprise and we predict OSRAM will flourish under his leadership.

Chris Dexter, Senior Director, Technical Services EMEAR, Cisco Systems

With over 25 years of industry experience, Dexter is currently Senior Director, Technical Services EMEAR.

Based in the UK, leading a team of 200+ diverse and talented engineers across the region, Dexter is responsible for providing support for Cisco’s most complex technologies and emergent service offerings, as well as acquisition integration within the services function.

Innovation lead for EMEAR - funding, incubating and developing disruptive new concepts relating to customer experience and support quality and has given a number of exceptionally well-received talks at leading industry conferences such as TSIA Europe and Field Service Europe highlighting his and Cisco’s experience is achieving service excellence.

Christian Nolte, Vice President, Global Service, WMF Group

Nolte has been a popular and well-respected speaker within the European Field Service community for many years now and in his previous role with cash management and retail financial firm Diebold Nixdorf was at the vanguard of introducing the concepts of IoT and connected assets into field service as well as offering a number of insightful and innovative strategies to help improve service efficiency to his peers at a number of key field service focused conferences within Europe.

Now in his new role with WMF he is set to translate those ideas himself into the coffee retail sector, where again his extensive experience and insight into utilising the Internet of Things to drive service improvements will prove invaluable.

David Douglas, Vice President, Scientific Games

Douglas possesses over 25 years of global technology leadership experience.

His focus has been in the Lottery and Gaming sectors and broad experience includes executive leadership of North American organizations responsible for Service Management, customer deployments of large-scale systems and infrastructure, professional services, technical service, field service, operational support and call centres.

His current scope at Scientific Games includes the oversight of Scientific Games’ Service Management functions is currently leading a team comprised of 900+ employees. Douglas has a long history of achieving enormous operating efficiencies through the consolidation and creation of technology centres, process and quality improvements through the implementation of ITIL as well as hands-on experience with mergers, acquisitions and company integration activities.

In addition to having a mindful eye towards creating a strong, effective team and delivery practices, he is widely respected in the field service sector for his focus on creating value for the customer through the implementation of new, innovative service-related technologies.

Neil Johnson, Vice President & General Manager, Fujifilm North America Technical Services

Johnson is a highly seasoned service leader and is regarded as s one of the top executives in the US Service Industry.

He has demonstrated exceptional management expertise as he took a lead role in the transformation of Fujifilm’s Service Group from a cost centre to profit centre whilst developing strategies within the organisation for staffing, systems and CSA’s as the company established a well-deserved reputation for delivering flawless installations during the peak of the digital prepress evolution and his latest role with the group he looks set to further build upon his past successes and a bright and profitable future for the company’s service operations.

Rajat Kakar, Vice President, Head of Product Related Services Business, Fujitsu

Kakar is a frequent speaker and well respected at industry events whilst within Fujitsu, he is known for driving growth and sustained profitability, successfully penetrating new markets and building highly functional teams.

In his industry, he is recognized as first to market with new products. As prior leader of Product divisions within Fujitsu, he was first to market with UMTS integrated lightest laptops, Green IT with Zero-Watt PCs and Zero-Watt Monitors. His pragmatic and inclusive management practice for sales as well as operations, coupled with an as needed hands-on leadership style, has earned him a reputation of the desired leader and has enabled him to turn around dated or loss-generating organizations, both indirect and matrix structures.

Steve Smith, Founder and CTO, Astro Communications

Smith is a shining example of how excellent leadership, out of the box thinking and a genuine dedication to developing talent within the service side of the business can be implemented to establish a service organisation that is able to punch significantly above its weight in terms of establishing an excellent reputation for meeting the highest service standards.

Through innovative schemes such as taking his team sailing across the English Channel Smith has been able to engender an excellent sense of brand pride within his field engineers and is also a major proponent of apprenticeship schemes - through which he is developing a series of excellent, highly professional and well-rounded service engineers who can only enhance Astro’s reputation even further.

Ton van den Ham, Manager Engineering & Service, Yokogawa Europe Solutions

Yokogawa's industrial automation business provides vital products, services, and solutions to a diverse range of process industries including oil, chemicals, natural gas, power, iron and steel, and pulp and paper additionally with the life innovation business the company aims to radically improve productivity across the pharmaceutical and food industry value chains.

In recent year’s their European operations have established a strong reputation for providing service levels that exceed customer expectations and Van den Ham has shown within the year he has been with the organisation that he is an impressive service leader with innovative ideas who could have a major impact on the service sector.

Ged Cranny, Head of Direct Services, Konica Minolta

Cranny has played a fundamental role in spearheading Konica Minolta’s efforts to bring transparency to their data which has empowered the print/copy specialists to massively improve efficiencies within their service operations whilst simultaneously being able to dramatically reduce their employee churn, boost customer engagement and increase service related profits.

Having adopted a very hands on approach when implementing key systems that have enabled these achievements, Cranny is also prepared to speak openly about the approaches he and Konica Minolta adopted with his peers and help guide others on a similar path by sharing the insight of his experience.

John Cullen, Vice President, Digital Marketing, Metso

Whilst Cullen would invariably suggest that this accolade should perhaps be handed to one of his highly capable colleagues focussing specifically on the service operations side of the business at Metso, as former Vice President of Service Portfolio Management & Marketing, Automation Services for the organisation he has been a key role in the mining and aggregates giant’s shift from product centric to customer-oriented solutions on a global sale before building upon that as Vice President of Minerals Services where he was responsible for the development of service value propositions for the €1.4Bn business.

Given his pivotal role in establishing a service-orientated approach within Metso, we anticipate that Cullen will continue to drive the benefits of advanced services that Metso have developed in his latest role also.

the #fsn20 panel

Many thanks to this year’s advisory panel:

Aly Pinder, IDC, Sara Mueller, WBR, Bill Pollock, Strategies for GrowthSM, Kris Oldland, Field Service News, Jan Van Veen, MoreMomentum, Prudence Kolong, Copperberg, Michael Blumberg, Blumberg Advisory Group and Nick Frank, Si2 Partners.

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Rolls Royce’s Andy Harrison has been playing a pivotal role in the Through Life Engineering Services Centre’s work in putting together a blueprint for how organisations can establish advanced services capabilities - a topic he recently discussed at this year’s Spring Servitization Conference. Kris Oldland sat down with him to find out more...

When the topic of servitization comes up it is usually only a matter of time before Rolls Royce and Power by the Hour is mentioned. Indeed, Rolls Royce alongside a select number of other organisations such as Caterpillar and Alstom have essentially become the de-facto poster boys for all things advanced services.

Who better then, to lead a multi-organisation committee created to help distil the complexities of servitization into a meaningful framework than one of one of their key service executives, Andy Harrison, Engineering Associate Fellow - life cycle engineering?

But what exactly is the Through Life Engineering Services Centre, which Harrison heads up?

“For a number of years here in the UK we have had a group of companies get together around through life engineering services. In essence, a sort of working club made up of people working in the services space and in particular services around complex long-life engineered products,” he explains.

“For a number of years, we had struggled to get a framework diagram around what we meant by that this particular space. Then in mid-2016 the EPSRC Centre for Innovative Manufacturing Through Life Engineering Services, which was run out of Cranfield and Durham Universities, issued a strategy paper which called for the creation of a national council - something we have subsequently created.”

So what is the key function of this council?

One of the challenges we have taken on has been to develop a relatively simple explanation of what exactly through life engineering services are“One of the challenges we have taken on has been to develop a relatively simple explanation of what exactly through life engineering services are,” Harrison explains.

“In addition to this, we have also moved onto tackling the question of what a national educational program within this area would look like. If we wanted our engineering graduates to arrive at the doors of organisations already understanding the value of through life support, which we think is 16% + of GDP, then what would that involve?”

It’s an ambitious project, but one that is absolutely critical as we see economies both in the UK and beyond become increasingly more service-centric and Harrison has played an integral role in fulfilling the council’s vision, which is now coming together at pace.

“I’ve led the working group that has put that framework diagram and the education program that goes around it. That is in the process of being embodied into a publicly available specification by the British Standards Institute and it is due for publication sometime very soon,” he comments.

“Essentially what we’ve got is a framework diagram that outlines the topics that make up this thing called Though Life Service, then dividing those topics into further subheadings with information and direction as to what a company would need to know to understand each of those sub-headings.”

In fact, one of the highlights of The Spring Servitization Conference, held this year in Copenhagen, was when Harrison very eloquently and concisely walked the attendees through this framework.

“Basically, the framework diagram is essentially setting the scene when we talk about this space,” Harrison explains.

It’s a way of thinking about the big picture and breaking it out into commonly described terms so that when the industry practitioners review the academic material they have a frame of reference“It’s a way of thinking about the big picture and breaking it out into commonly described terms so that when the industry practitioners review the academic material they have a frame of reference - they can look at it and say ‘OK so this is addressing this part of the equation.’”

This is a huge part of the discussion that needs to come to the fore if the worlds of academia and industry are to fully align around the concept and strategies of servitization - a common language is essential. This is also why the bringing together of a number of different companies from disparate sectors to work on this project alongside Harrison and his team at Rolls Royce is also imperative.

“The fundamentally important part of this is that if you let any one organisation try to write this they would do it in their own language in their own context. It might work for them but it is unlikely to work for a broad range of companies,” Harrison explains.

We have deliberately forced ourselves to argue how to get this down to a small number of items“We have deliberately forced ourselves to argue how to get this down to a small number of items,” he adds.

Within the framework itself, the group has essentially identified three core areas of activity.

“Firstly, there is the business context where the sub-elements are all centred around if and how you understand your customers. Can you identify with them the value opportunities are - and this can be either getting more work out of a machine or spending less money obtaining that work,” Harrison begins.

“Do you have the organisational set up to deliver these benefits and do your customers have the right set up to receive those benefits? Do you have all of the underpinning capabilities that are required such as the consumable elements you need to deliver this level of service - for example, can you model x and predict y? Can you gather the data required? Do those things exist and do you have them within your organisation? We then have to consider what are the service value streams that you have to offer? We divide that up into four streams which are avoid, contain, recover and convert.”

The road to servitization is challenging and the journey for every company of course slightly different reflecting the unique needs, processes and goals an organisation may face“Avoid is can you change the reality of how much damage the product is accumulating and the likely consequences of that? Contain is about an organisation's ability to step in and make the decisions around when and what to do as intervention activities -  so there is no physical activity in this step, it is all around decision making. Recover is your ability to re-inject life back into the asset, through overhaul, repair and inspection. Finally Convert is about your ability to take the experience that you gain in the other three and to generate additional value out of those.”

“The final dimension is the basic life-cycle of the product and the service which talks about the need for planning throughout the life-cycle, the creation process of your products and service, standing up ready for operation, the operational activity of making the products and delivering the support service and eventually the retirement phase of the downturn of the supply chain, the de-commissioning of assets and the eventual retirement of the entire of service offering around them.”

The road to servitization is challenging and the journey for every company of course slightly different reflecting the unique needs, processes and goals an organisation may face.

However, the framework Harrison and his peers have put in place does an excellent job of signposting the way, to help companies navigate the path successfully.

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Servitization is becoming a huge topic in the field service sector as we see more and more organisations step on a path towards advanced services we must realise that they cannot do it alone, their customers must be prepared to come along on the ride as well...

Ross Townshend, EMEA Business Manager - Advanced Services & Data for Ishida Europe talks to Kris Oldland and outlines some of the challenges he has faced in building advanced services within his organisation...

The topic of servitization is of course highly complex and for those just starting to explore the area, it can be a daunting prospect to get one's head around. However, Ross Townsend,  Advanced Services Business Manager, Ishida has had been able to get a bit of a head start by not only arriving into an organisation that has already embraced the idea, but that is also working with the Advanced Services Group, headed by Professor Tim Baines, Aston University, one of the leading proponents and thinkers within the servitization movement.

Kris Oldland, Editor-in-Chief, Field Service News caught up with Townshend to find out how he is adapting to a world of servitization some six months into the job…

“Before I joined servitization was something I knew nothing about,” states Townshend as we begin our conversation.

This was one of the key reasons I was so keen to speak with Townshend in the first place.

Pleasant and approachable, Townshend is one of those people that you find it instantly easy to talk to. A very subtle hint of slight West Country burr to his accent adds an earnestness and integrity that could be perhaps lost in the international world of servitization, but for us here in the UK, it is noticeable and adds a natural ease to Townshend’s manner.

Certainly, what comes across even within just a few moments of speaking with him is that he has that key ingredient that all great service people have, he is able to communicate effectively and eloquently within a comfortable use of language that feels all the time natural, relaxed and honest. In my experience people with such a manner, often speak with authority in areas they know well and integrity and humility in areas in which they are slightly less surefooted.

As part of the Advanced Services Group, Ishida and Townshend will be working alongside the like of Prof. Tim Baines and Dr. Ali Bigdeli.In the context of this conversation then it would be interesting to not only hear his thoughts and gain his insights on how Ishida are approaching servitization, but also to understand first hand how daunting it was to leap into this baptism of servitization fire that few elsewhere have had the opportunity to do.

In Ishida, Townshend has arrived in an organisation that has fully embraced servitization, his former colleague Jason Smith is the only man I’ve personally met who has been involved within two separate companies moving to a servitized business model and as part of the Advanced Services Group, Ishida and Townsend will be working alongside the like of Prof. Tim Baines and Dr. Ali Bigdeli.

So whilst he may have to endure a baptism of fire to get him up to speed, he has some heavyweight support to help him get through it.

“When I look at the transformational roadmap that the Advanced Services Group have created, we have this cycle that we are going through exploring it and trying to work through it,” Townshend explains.

However, it has not been plain sailing for Townshend and the team at Ishida to introduce advanced services to their market - and the reluctance of the market itself is something Townshend thinks could be a factor, having arrived from an entirely different vertical that was further along the road in terms of acceptance of servitization and digitalisation.

Whilst that is a separate issue to the conversation around servitization in a way it does add some context to the arena we are working in“I’m not from the food industry most of my work was in automotive having worked with Bosch Rexroth for a number of years with a background in design engineering, product management,” Townshend explains.

“In terms of the digitisation side of things generally, I find the food industry is massively behind and that’s not just in terms of technology but also in terms of mindset to work with technology. Whilst that is a separate issue to the conversation around servitization in a way it does add some context to the arena we are working in. It can be a frustration even just to get the software adopted let alone the advanced services longer term,” he continues.

“In terms of why the business is diversifying into advanced services is another interesting point. I view this as a journey for a manufacturer and then also as a journey for a manufacturer within the food sector. The suggestion would be that we are a long way down the journey but I think we are still packing the car up at the moment – we haven’t even actually started on the actual journey yet.”

“A part of that is the fact that we are in the food sector, where the adoption of technology is somewhat lagging behind where it is in other sectors.”

“Also the food sector is the largest, it's highly profitable and its growing. We are growing double digit year on year so why would we diversify?”

Of course, the food sector is one which by the very nature of the products it generates will always remain transactional. There isn’t a service contract that can be sold on a packet of oven chips. You buy them, you eat them, then you buy some more.

I wonder if the fact that Ishida’s customers themselves will always have that transactional relationship with their customers is in part responsible for creating a mindset that is hard to overcome in terms of raising conversations around outcome-based contracts?

“I think it is,” Townshend concurs.

At the moment as part of our work with the team at Aston are trying to find pilot customers to establish a proof of concept and even that is proving to be a significant challenge“At the moment as part of our work with the team at Aston are trying to find pilot customers to establish a proof of concept and even that is proving to be a significant challenge. We have had conversations with a couple of parties where we thought OK, we’ve got a reasonable amount of equipment in there, you could argue that we’ve got a fair amount of ownership of the process which is quite critical when you're looking to establish this type of working agreement."

"They have five or six pieces of machinery in a line so we can really add some value there and take ownership of that process and work towards what we would ultimately be our vision of a servitized contract which internally we are terming pay-per-pack, which is the holy grail for us in terms of advanced services to achieve this pay per pack model. Securing a pilot has been very difficult.”

“We had a large manufacturer of salad that we were speaking to and they showed interest. We had a meeting with them and their senior directors and they could certainly see the mileage but as it is in the case of lots of businesses they are too busy to be able to really think about it and they don’t really need it at the moment.”

This is an interesting point here.

In the case of Rolls Royce’s power by the hour there was a strong customer pull from American Airlines. In the case of MAN UK there was a huge backdrop of hauliers and logistics firms struggling to make a profit.

Perhaps the burning platform factor is a necessary element in the equation for creating an environment in which an approach to business that steps as far away from the traditional path as servitization does. It is perhaps far less easy to be a driving innovative force in an industry that is profitable and ticking along nicely.

As the old adage goes if it ain't broke…

I do think that the sector you are operating in is one factor in the ability to drive something innovative like servitization forwards“Whilst I absolutely won’t take anything away from the achievement that companies like Rolls Royce or MAN Trucks have managed, I do think that the sector you are operating in is one factor in the ability to drive something innovative like servitization forwards. Another area to consider within there success also is that they have complete control of the process,” Townshend says expanding on the discussion.

“In our industry and with our customers, at best there may be one significant chunk of a production line which is our equipment. If they are a major manufacturer they will certainly have other lines that are our competitors' machines or they will have a line with six different manufacturers equipment in them so certainly whatever we do needs to be scalable, unless we go in and basically say 'we will provide you with all the equipment for your factory'. Unless your in the lucky position to be on a greenfield site where you're in the right place at the right time that is very difficult to achieve.”

Signs of an emerging appetite for such advanced services are beginning to appear as Townsend recalls one such example.However, signs of an emerging appetitie for such advanced services are begining to appear as Townsend recalls one such example.

“A big dairy producer approached us within the last six months and they were looking for a supplier that could take on all of their quality control equipment, on every site across Europe. They were looking for one supplier to look after everybody's equipment service maintenance in the full acceptance that that is a very difficult job and while you're going through that period of changing out equipment it is going to be a difficult thing to manage.”

“But it is interesting that they were asking that and the reason they were doing so was that they didn’t want the hassle. Clearly they of course also wanted a good price but they accepted that this removal of the hassle came at a premium. Also financially to them, it would be more visible on their books versus the huge maintenance and hidden costs that they would have to deal with on a daily basis.”

“And they were going to several suppliers and there was a huge team of people set up to go and find the right supplier for this so they took this very seriously - it wasn’t just one person’s crusade.”

So clearly there is at least the seeds of some companies looking for servitization from providers within the sector“They’ve gone through the analysis at their end and decided that outsourcing this area of their business was the direction they wanted to go. So clearly there is at least the seeds of some companies looking for servitization from providers within the sector."

“This organisation is clearly looking to remove the headache of maintenance for them and the next logical step along that path would be some form of advanced services contract where maybe you go in there and say, yes, we can take on the entirety of your maintenance contracts and we can take all of our competitors machines out and put ours in but it will be on a cost per usage basis. It’s a big leap forward but it certainly follows that path."

However, until that one customer makes the leap that pulls the entire industry forward it is perhaps a wiser move to bring customers with you on the journey in a more incremental manner.

This is certainly how Townshend is approaching the task…

“The direction I am taking with the business is to start to bundle in certain value added functions and features to start to drive some customer pull and start at a lower level than pay-per-pack just to get the appetite there. I used the term holy grail and the problem is it is just that it is just too far away for our customers to grab. They get it and they go wow that’s good but they have no idea about how to move forwards to implement it.”

The move to advanced services needs to be a symbiotic relationship, it needs to be something that you go to your clients with and they come with you on the journey. Whoever leads that journey whether it be a customer pull or a client push you both need to be going on that journey at the same time.

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Insights from a recent study by the Advanced Services Group at Aston Business School can help you understand if you’re on the right path to advanced services. Professor Tim Baines explains...

Is Servitization a burning topic for your organisation - join Professor Baines and the Advanced Services Group for the Spring Servitization Conference, Copenhagen, Denmark, 14 - 16 May 2018 more info @ https://www.advancedservicesgroup.co.uk/ssc2018

Researchers and pioneering manufacturers have been singing the praises of servitization and its benefits to business – and it seems industry is starting to listen.

Increasing numbers of manufacturing and technology companies are trying to implement services-led strategies. How to go about doing this in practice, however, still presents a challenge to many. The leaders of today’s industry see the success of Rolls-Royce and Xerox in this area, yet they often struggle to work out how to achieve the same for their own businesses.

Within the Advanced Services Group at Aston Business School we’ve been working with manufacturers around the world using the latest research to support them in finding their path to compete through advanced services.

Advanced services’ go a step beyond the product condition and focus on the outcomes that the product enables.While most manufacturers already offer ‘base services’ focusing on product provision such as warranty and spare parts, others take a further step by providing ‘intermediate services’ focused on the product condition such as maintenance, repair, overhaul and remanufacturing,. ‘Advanced services’ go a step beyond the product condition and focus on the outcomes that the product enables.

Real-life examples include Rolls-Royce’s Total-Care offer on gas turbines for their airline customers based on a ‘fixed dollar per flying hour’; Xerox delivering ‘pay-per-click’ scanning, copying and printing of documents; and Alstom Train-Life Services supporting Virgin by assuring the availability, reliability and performance of their Pendolino trains on the UK West Coast Mainline. Advanced services such as these are a core concept in servitization.

With their potential to radically disrupt and alter the face of manufacturing, understanding the process of introducing them is vital to businesses and the economy.

At the Advanced Services Group, this is the focus of our work.

In a recent study, we examined two key questions about the path to servitization:

1. What stages do manufacturing companies go through to achieve competitive advantage through advanced services?
2. What factors and forces affect their progression through those stages?

We conducted interviews with 14 multinational manufacturing companies, all on a trajectory to compete through advanced services, representing a range of industries – from aerospace, defence and road transport through to air filtration and precision motion control systems.

The four stages of transformation

We found that manufacturing companies go through four stages in their transformation to compete through advanced services: exploration, engagement, expansion and exploitation. As manufacturers become conscious of the concept of servitization and suspect that advanced services may be relevant to their organisation, they will start out in a stage of Exploration, where they are doing their research to find out more about the concept and how it could benefit their business.

If the Exploration stage yields a viable opportunity for growth, the initiative will move to Engagement. Here, companies experiment and run pilots with customers and relevant technology, to evaluate and demonstrate the potential value of advanced services.

If the Exploration stage yields a viable opportunity for growth, the initiative will move to Engagement. Here, companies experiment and run pilots with customers and relevant technology, to evaluate and demonstrate the potential value of advanced services.Once a constructive outcome is achieved, the attention moves to Expansion, where advanced services are innovated and implemented with increased scale and speed. When the value of these is demonstrated, attention will switch from individual projects, to initiatives focused on the reliable and efficient delivery of a portfolio of services across the organisation. In doing this, manufacturers are focusing on Exploitation of advanced services.

In each of these stages you can expect multiple iterations and interactions until there is sufficient evidence and consent to move to the following stage.

Progression through the four stages – or in some cases falling back – is influenced by five forces.

Five forces affecting transformation

1. Customer Pull

Customers’ appetite for services has a significant influence on progression.

Several companies described their decision to offer more advanced services, together with usage-based revenue models (i.e. pay-for-flight-hours or pay-for-passengers-moved) as a direct reaction to customer demand.

2. Technology Push

Other manufacturers start servitization having become aware of the technology that could record how their products are being used and transmit this data back. The data makes it possible to develop advanced services contracts based around payment for outputs achieved rather than asset ownership.

The majority of the companies we studied said they had been influenced by this ‘technology push’; IoT and industry 4.0, which are hot topics in industry at the moment, were often mentioned. Fewer companies mentioned the ‘customer pull’ factor, and yet customers’ growing appetite for ‘experiences’ over ownership is arguably just as significant.

In the UK for example, the appetite for services has grown 2.4% per year for the past 20 years according to the Office for National Statistics, significantly outstripping that for selling products – a trend that is being replicated in every developed economy across the world.

3. Value network position

The position of the organisation within the wider value network can affect business transformation.

As an example, working through distributors can restrict access to customers and inhibit the changes needed to deliver services. In several cases, manufacturers chose to acquire their distributors.

One manufacturer was stalled by the access to remote sensing technologies, wrestling for some time over acquiring a technology vendor, to give them access and control over information. Positioning in the value network that delivers dependable access to both customers and suppliers has a significant influence.

4. Readiness to change

Internal organisational factors influence readiness to change and can affect progression. Having reliable and well-performing products, for example, is a prerequisite to compete through services. It also leads to an interest in advanced services in cases where, increasingly, product reliability and performance are no longer differentiators.

Organisational commitment is also important. In some cases, where the support of the management board was in place from the outset, companies progressed quickly through the exploration and engagement stages. Without this, progress can be much slower.

5. Competitor threat

The actions of competitors significantly affect organisational commitment. In one case, organisational commitment to advanced services came about when a principal competitor acquired a network of service providers.

This caused anxiety amongst the leadership of the company and led to significant investment in its own advanced services programme.

Are you on the right path?

The findings of our study suggest that transformation towards servitization is neither a clear-cut, linear processnor an easy one. In each of the four stages, key milestones have to be achieved before a company can move to the next stage.

The five influencing forces work internally and externally, affecting progress in each stage. These five forces may be so strong that the manufacturer moves rapidly through all four stages. In other instances, they may be so weak that the manufacturer fails to progress entirely.

Next month we will be running the seventh annual Spring Servitization Conference, this time in partnership with Copenhagen Business School, where we will examine research into the detail of these stages and influencing forces.

The Conference is the go-to place for researchers from around the world to present and discuss their latest work, and topics this year will include: changing the mindset of the organisation in order to compete through services; pricing advanced services; how to use data as an enabler for servitization; how SMEs, in particular, can create value through servitization; internal and external enablers and inhibitors.

To book your place, visit https://www.advancedservicesgroup.co.uk/ssc2018. 

Field Service News will be reporting from the conference and interviewing some of the industrial speakers; look out for updates in future issues.

Can’t join us at the conference?

You can still develop the skills, knowledge and action plans to implement servitization and advanced services at our Skills for Servitization workshop on 22 May 2018. Find out more at https://www.advancedservicesgroup.co.uk/skills-for-servitization In the meantime if you want to assess where your company stands today in terms of adopting a services strategy and where you’re aiming to get to- and compare your thoughts with colleagues to test your alignment- our quick survey Unlock Your Insight will give you a personalised set of feedback in under five minutes. Visit https://www.unlockyourinsight.co.uk/

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The UK not-for-profit group The Service Community, run by service professionals with the simple aim of sharing knowledge within the community,  continues to go from strength to strength. Their latest conference held at Aston Business School, discussed Big Data.  Community member Chris Farnarth of Allocate Software reports on the day's presentations.

The Service Community’s Aston University Special Event focused on “Big Data” attracted over thirty guests to participate in a lively forum of discussion with a range of academic and practitioner based perspectives. The host for this Big Data themed event was Aston University, enerously made available to us by Community favourite Professor Tim Baines and Jill Forrest.

The Community continues to thrive with over 140 registered members and each event drives more involvement and new participation. Four key note presentations were delivered offering insight into the ubiquitous subject matter of Big Data.

Aston Business School’s Dr Andreas Schroeder opened with a truly engaging and interactive keynote presentation that reviewed the role that data plays in developing basic, intermediate and advanced services, in particular the technical, organisational and strategic considerations a company should consider.

In the second keynote presentation, Andrew Harrison explained that big data is a cost to Rolls Royce and is only turned to value through knowledge by contributing to three areas of their business:[ordered_list style="decimal"]

1. Creating value potential in the design of a product
2. Maximising value in the use of product
3. Refreshing value a product’s life and recovering value its end of life

Andy Reid energised us further with another perspective of Big Data and how Pitney Bowes has used it with great effect.

Andy set the scene explaining the “4 V’s” of Big Data; Volume, Velocity, Variety and Veracity and went on to demonstrate how Pitney Bowes is developing infrastructure to make its own operations more efficient through its use of data, as well as offering location services that can help the company monetize their big data.

Our final key note was presented by Mark Noble of Inca Digital who told his story of how using the data already generated by their high tech digital printers, they were able to dramatically improve the productivity of their Service organisation.

The key lesson being it’s not the quantity of data that is important, but knowing what to do with it!

For example he showed how by combining 3 key indicators of machine performance, his team were able to prioritise service actions on the worst performing machines.

Thus saving money and improving customer satisfaction.

Once again, The Service Community delivered on its objectives. The content of the meetings is the life-blood of The Community, followed closely by the generosity of participants to offer facilities and key skills such as PR, marketing promotion or other services that will keep The Service Community alive.

To this point, the next event is proposed for March 2016 – date and location to be confirmed.

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Rolls Royce once reinvented service in the aerospace industry with ‘power by the hour’ they are about to do it again with ‘disruption based availability’ writes Field Service News Editor, Kris Oldland...

When it comes to creating real value through service and integrating your service offering and product into one holistic package that generates far greater value for your customers and far greater long-term revenue for yourselves, there is one company whose name is come across in almost every conversation.

One company who are the ultimate example of what getting it right looks like.

One company who revolutionised not only the way service operates in their industry but indeed how an entire industry operated.

That company is Rolls Royce Aerospace.

So when we were asked if we would head down to Bristol to record an interview with Dave Gordon, Program Director for Rolls Royce’s Defence Aviation division for a series of interviews for the International Society of Service Innovation Professionals (ISSIP) we leapt at the chance. And we were not disappointed.

Accompanied by Service Management Specialist Nick Frank we arrived at the Bristol Base, after submitting an array of additional paper work to allow us to film in what on the surface seemed a fairly regular corporate building, although the strict restrictions on where we could and couldn’t be and the detailed examination of our equipment relayed that this was still for all intense purposes an integral component in the Royal Air Force’s operations and therefore access was neither granted or to be taken lightly.

And as we met with Gordon he too carried this air of being somewhere between corporate and government official. As we got set up he spoke with a relaxed and comfortable manner of the experienced corporation man. Getting our coffees personally, making light-hearted small talk about a recent decision to have laser-eye surgery etc.

Yet still one gets the impression that Gordon would remain the same calm and amiable figure fixing the coffees before the meeting begins, if he was a meeting with a group of RAF Air Marshalls, US Marine Core Generals or as in this instance a member of the trade press.

The other early observation is that he is clearly very proud and passionate about the work he and his team are doing for Rolls Royce.

“Rolls Royce within defence has been on a journey over the last ten to fifteen years, we were a fairly traditional provider of the service we sold a product, we sold a very time and material based service solution, it was very driven by the customer and their management of our product” Gordon begins

“However, it became clear to us that that wasn’t the best fit for our customers” he continues. And it is this attitude, this belief that they can stand in the face of a customer driven process and say ‘hold on, we think we should be doing all this a bit differently’ that has separated Rolls Royce from the rest of the pack in the sectors they operate in.

Although their famous power-by-the-hour service system that is at the heart of their success as a serviced provider required a leap of faith from another global player in the industry.

“There was a very strong pull from American Airlines, who approached Rolls Royce and said we would be far more interested in you providing a solution that kept your engine on wing and we incentivised you for doing that” Gordon explains

“So we worked very closely with that customer and developed a total care solution that very much focuses on that end-to-end need and during that process Rolls ourselves have gradually taken on more of the risks, more of the responsibilities for managing those assets”

And Gordon’s own department in defence have followed this path now themselves taking a strikingly similar journey forward with the those he refers to as ‘The UK Customer’

“Within defence we’ve taken some of those core tools and processes and embedded them into our own value offering to our customer and we particularly use the UK Customer as a testing house to work with them.” Gordon continues

“They themselves were going through a major transformation looking to downsize the scale of their operation and drive efficiency. We were very much up for that journey as well. Very much a collaboration we went about introducing a far more availability based solution, which has been very successful”

However yesterday’s revolution is today’s best practice. And the only true revolutionaries are those who continue to innovate, continue to push boundaries and continue to look for ways they can further improve tomorrow.

Both Gordon and Rolls Royce fit into this camp.

“As we look to the future, we’re starting to work with the customer to go beyond just an availability solution and say what’s really disrupting that customers operation? What is really stopping them doing their job?” Gordon comments before taking a moment to pause.

[quote float="right"]We want to get to a point where they are no longer thinking about my propulsion system they’re just focussed on prosecuting their operation. To do that we need to know a little bit about the nature of the disruption and what we can do to help

“Disruption based availability is something that we been very focussed on”

“Disruption based availability, or sometimes we refer to it as project zero, as in zero disruption to the customer, is something that both us in Defence and our colleagues in Civil have been very focussed on.” Begins Gordon.

“Understanding that it’s not just about guaranteeing the engine time on wing but actually understanding when the engine does have an incident that causes some disruption to the customer, even something as minor as a delayed take off, still that clearly has a cost. What we have been trying to do is work with our customers to understand very clearly what that cost is.” He adds.

It is a bold vision of where the Aerospace giants next steps will be, yet at the same time it feels like a natural evolution from where they are today. It’s also an approach that will yield a number benefits both hard and soft according to Gordon.

“The benefits are both the tangible where we can build an offering around saying ‘We understand the impact around cost and therefore if we are able to reduce that we can develop that into a value proposition...  but also there is an intangible piece to this as well as it helps me to motivate my teams to understand the exact impact an event will have on a customer. To help them see the fact that there are repercussions way beyond a flight not being able to take off. It will feedback into the impact such an event has on the wider operation, the planning that went into it, the need for contingency planning, and so on…” Gordon explains with enthusiasm

“Understanding the whole eco-system that sits around not just my product, but the system it’s working in and how the customer is using it, and then understanding how we can reduce the impact, you can clearly demonstrate the value to the customer, and we’re working with them to do that….”

He takes the briefest of pauses, giving his next thought some consideration before committing to it.  But when he does it sums up exactly what both Gordon and Rolls Royce are all about

“It’s a real motivator for me as the team really starts to understand what customer service actually means.” He adds in an almost solemn tone.

And this for me is it, there is a point in any interview where you grasp the heart of the story, and you see your subject in their truest light. Dave Gordon and Rolls Royce are a perfect fit. Look at the DNA of both the man and the corporation and you’ll find service deeply entwined.

In the heart of each you’ll find a desire to innovate, to keep pushing the boundaries, and to keep on being revolutionary.

Which is why I expect both to succeed.

Part Five of an exclusive Field Service News interview with Dave Gordon, Rolls Royce.

Here Dave speaks about the challenges of sharing data between supplier and customer, however if these challenges can be overcome the relationships can become much more holistic and the service can become as close to seamless as is possible...

Missed part one of this excellent series? Find it here

Missed part two of this excellent series? Find it here

Missed part three of this excellent series? Find it here

Missed part four of this excellent series? Find it here
 
Want to see more? Subscribe to Field Service News by clicking this link and get access to download the full video in full.  

Part Four of an exclusive Field Service News interview with Dave Gordon, Rolls Royce.

Here Dave speaks about the importance of being customer driven when it comes to developing excellence and innovating to achieve this, how they evolved their processes through collaboration with their clients, and finally why one size does not fit all when it comes to service delivery.....

Missed part one of this excellent series? Find it here

Missed part two of this excellent series? Find it here

Missed part three of this excellent series? Find it here

Want to see more? Subscribe to Field Service News by clicking this link and get access to download the full video in full.