good service is excellent business · 30.06.2016, roermond. servitization “the process by which a...
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Good Service is Excellent Business
30.06.2016, ROERMOND
SERVITIZATION
“The process by which a manufacturer changes
its business model to provide a holistic solution
to the customer, helping the customer to improve
its competitiveness, rather than just engaging in
a single transaction through the sale of a
physical product.”
Aston Centre for Servitization Research and Practice
LIMBURG
Specific
Generic
Goods-based Service-based
Innovation vouchers
Startersfonds
Limburg Ventures I
Hoogstarters TechStart
Business Services School
Top Technology Clusters
SILVER
Participatiefonds
Limburg Ventures II
Service Business
Acceleration program
Ecosystem facilitating Service Innovation
Service Innovation
incentive program
SERVITIZATION OPENS A NEW WINDOW
WHY
Why invest in Servitization
?
BUSINESS MODEL ORIENTATION
SERVITIZATION CREATES HIGER MARGINS
EXAMPLE: ANIMAL HEALTH
Commoditization
of products
through customer
demand and
market forces
Assimilation of
products through
government
regulations
+
IoT IN ANIMAL HEALTH
CLOUD-BASED INVENTORY AND CRM
THE STRUGGLE FOR DIFFERENTIATION
THE PAST MARKET
Price
Bene
fits
THE PRESENT MARKET
Price
Bene
fits
DIFFERENTIATION AGAINST COMMODITIZATION
0,01 Euro
Diffe
ren
tiation
Price per cup of coffee
0,25 Euro
0,50 Euro
3,25 Euro
PRODUCTS ARE EASY TO IMMITATE
EXAMPLE: NOKIA
EXAMPLE: NOKIA
EXAMPLE: NOKIA
INTEGRATION OF SERVICES
BYING A NOTEBOOK
PREMIUM EXPERIENCE AS A DIFFERENTIATION STRATEGY
APPLE’S INCREDIBLE MARGINS
BUYING COFFEE
NESPRESSO DIFFERENTIATION STRATEGY
PRICE PER KILO OF COFFEE
0
10
20
30
40
50
60
70
A B C D
How to avoid the commodity and easy to imitate traps
?in a b2b context…
DIFFERENTIATION FROM COMPETITORS
Time
Diffe
rentiation f
rom
com
petition
Product Service
28
29
30
31
32
HOW WELL CAN WE PREDICT THE FUTURE?
In 1980, McKinsey & Company was commissioned by AT&T (whose Bell
Labs had invented cellular telephony) to forecast cell phone penetration in
the U.S. by 2000. The consultant’s prediction, 900,000 subscribers, was less
than 1% of the actual figure, 109 Million. Based on this legendary mistake,
AT&T decided there was not much future to these toys. A decade later, to
rejoin the cellular market, AT&T had to acquire McCaw Cellular for $12.6
Billion.
OUR MISTAKE: WE DO NOT THINK EXPONENTIAL
Motorola Dyna-TAC 8000X (1983)Cellular Brick
LBH: 330,2 * 44,45 * 88,9 mm + 200 mm antenna794 grams
Nokia 7820 (2004)Lipstick phone
LBH: 114,3 * 33 * 17,8 mm 85 grams
Apple iPhone 5 (2012)
LBH: 123,8 * 58 * 7,6 mm 112 grams
20 Jaar 8 Jaar
LINEAR VS. EXPONENTIAL
FOR HOW LONG HAVE WE SPOKEN ABOUT IoT LIKE THIS?
WHAT IoT REALLY IS
2016
APPLICATIONS OF IoT IN EVERY INDUSTRY
FINDING YOUR HIGHER VALUE PROPOSITION
WHAT IS YOUR HIGHER VALUE PROPOSITION?
?PRODUCT
Our productWhy do our customers
buy it?Why do they…?
What is the “cozy living
room” for our customer?
HIGHER VALUE PROPOSITION
CUSTOMER CHALLENGES CORE COMPETENCIES
KEY TAKE-AWAYS
• Fully understand your customers’ business challenges
• Fully understand and further develop your core competencies
• Expand your value proposition to a higher value proposition
that offers a solution that will improve the competitiveness of
your customer
• Find a match between your customers’ challenges and your
core competencies
• Find strategic partners and build an ecosystem based on
knowledge and data intensive services
SERVICE SCIENCE FACTORY
SERVICE INNOVATION DASHBOARD
SERVICE INNOVATION DASHBOARD
SERVICE INNOVATION DASHBOARD
LIMBURG BEST PRACTICES BOOK
“Wij bieden veel meer dan technologie, wij
bieden echt inzicht en kennis”
“Wij zijn volledig overgestapt op de
verkoop van complete pakketten”
“Wij zien onszelf ook niet als een bedrijf
dat producten levert maar als een externe
‘afdeling’ van de klant”
“We zien meer en meer dat we
meerwaarde voor de klant kunnen leveren
op basis van de data die wij uit de
systemen kunnen halen”
THANK YOU
www.servicesciencefactory.com
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