Case Study

Evolving The Business To Increase Service Revenue Through Co-Value Creations

April 26 - 28, 2010

Don Bernard

Vice President Service & Operations

Agenda

• Dustcontrol Inc. – The business

• Co-Value Creation Strategy

• Four Value add Partner examples

• Results

• Key takeaways

The Challenges

• Increase Profitable Revenues

• Augment Resource Utilization

• Cost ROI

• Fluid Customer Demands

• Respected Competitors

Dustcontrol engineered products and services help eliminate health and safetyrisks in the workplace, improve productivity and reduce downtime onexpensive, production equipment. It is technology for a Clean Production!

April 26 - 28, 2010

Pharmaceutical Printing Transit Processing

Construction Aviation services Aircraft manufacturing Electronics

Where we play……

April 26 - 28, 2010

Today’s economic climate demandsbusinesses embrace Transformation, byexpanding Efficiencies and Capabilitiesthrough Collaborations.

Co-Value Creation

Don BernardVice President Service & Operations

Collaboration

Co - labor - relations

Spare

Parts

Depot

Repair

Field

Repairs

DustcontrolCare

Replacement &

Spare Parts

(Tech. Support)

Depot

Repair

Services

48 hr

Field Repair

Services

2 – 4 hr.

Total Care

Service Levels

Spare

Parts

Spare

Parts

Depot

Repair

Spare

Parts

Depot

Repair

Exten. Warr

Sys. Optimization

Think Strategic Service

Partner,

Not Outsourcer

Boston, MA.

In early 2009, Dustcontrol Inc. made a strategic decision to

initiate a program to expand it’s service offerings utilizing

inorganic resources. We began to source, qualify and sign up

other installation and service maintenance companies to

augments our organic talent pool.

What does a Service Provider Partner look like?

The following are 4 examples……

April 26 - 28, 2010Service Locations: First half 2008.

2 Locations !Service Locations: Second half 2008.

34 Locations

April 26 - 28, 2010Two Operating Companies, Non-competitors,

similar Markets, similar Opportunities.

Co-Value Partner Selection - Criteria

Alignment

Footprint

Capability

• Leadership & Management

• Strategic in Thought

• Financial

• Culture & Core Values

• Geography

• Markets

• Contracted Services

• Human Resources

• Technology Resources

• Complimentary Solutions

April 26 - 28, 2010Support Partner Program

Approach

Source

• Research (Hunt, Network, Draw other resources)

• Identify (Like markets, opportunities, MINDS)

• Qualify ( Against specific criteria)

Enable

• Contract (Written Agreement)

• Certify (Bring in to your business model)

• Train (Within the scope of the agreement)

Nurture

• Strategize (Think Tank)

• Collaborate (Co-Labor)

• Share (Solution potentials)

Measure

• Metrics (KPI’s)

• Accountabilities

• Report Card (Keeping Score – Qualify Long Term Players)

April 26 - 28, 2010Support Partner Program

Approach

Measure

• Metrics (KPI’s)

• Accountabilities

• Report Card (Keeping Score – Qualify Long Term Players)

• Resource Management

• Workmanship

• Communications

• Administration

• Scheduling

• Delivery of Services – MTTR, etc.

• Customer Satisfaction

• Cost

RESULTS

• Since March of 2009:

42.6% incremental increase to service revenue.

Average GM%: 68%

• The way of doing business continues to change, as are expectations.

• The current economic climate requires us to do more, with the same, or less.

• All have finite resources and expertise.

• Progressive organizations consider alternatives to a traditional business way.

• There are other business leaders who are just as passionate as you are

about growing their business through collaborative strategies and measures.

Key Takeaways…

I challenge you to …

• Be a leader in your markets by offering new and innovative service products.

• Consider value add partnerships versus from-the-ground-up start up strategies.

• Co-Value Creations can provide incremental service & product revenue streams.

Raising the bar on

your competition !

Co-Value

Partnerships