tim mcaloone, dtu

Tim C. McAloone

Professor of Product/Service-Systems

The globalized maritime service market under revolution: Future product/service-systems and business models

April 2016 Tim C. McAloone 2 DTU Mechanical Engineering, Technical University of Denmark

Disposition

• Why service in a product-oriented world? And how to

incorporate it?

• Maritime product/service-systems: a recent project in

Denmark

• From frameworks and business models to

environmental and economical business cases

• Your readiness to innovate..?

• Questions


Disposition

• Why service in a product-oriented world? And

how to incorporate it?


Denmark




• Questions

DTU Mekanisk Teknologi, Danmarks Tekniske Universitet 11/11/2015

Add Presentation Title in Footer via Insert; Header & Footer

A fundamental shift in the market demographics of modern society

11% 30%

9% 50%

Mat

eria

l In

form

atio

n/

org

anis

atio

n

Products Services

[Karmarkar, 2007]

Introduction

So what about the maritime industry?

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g.com


Challenges and opportunities in the Danish maritime industry

• The maritime business is the most globalised in the world

– …now also for ship-design, -building, and -operations

• The marketplace is less loyal

– …but this gives opportunity for more and other business

• Products are commoditised

– …embedding services may be the answer … but how to do it?

• Sustainability permeates everything

– …international regulation provides an opportunity.

Product/Service-Systems (PSS)

• Product/Service-Systems (PSS) is an innovation strategy.

• At its core, is the notion of supporting the customer’ activities with products and services instead of just selling a product.

• PSS provides a number of tools for aligning the supplier’s solutions with the needs of the customer.

Viking Life Saving equipment:

From selling life rafts to selling safety and compliance.

8

Disposition


incorporate it?

• Maritime product/service-systems: a recent

project in Denmark




• Questions


What we’ve been doing to address future trends? (past tense)

•PROTEUS PROduct/service-system Tools for Ensuring User-oriented Service Methods and implementation in the maritime branch Innovation Consortium Feb 2010 – December 2013


Click to edit Master title style

Presentation title PROTEUS Innovation Consortium

The PROTEUS

consortium companies

Plus research partners:

• DTU

• CBS

• IPU


The extended PROTEUS workforce Core staff Steering group Project students 2010-2013

Former staff

Rassvet.dk


Charting what services were on

offer

• Popularity and adaptation of different offerings

• 48 offerings charted

[Mougaard K. (2016) “A framework for conceptualisation PSS

solutions: On network-based development models”, PhD Thesis,

Technical University of Denmark]


Introduction Studying best practice

Pictu

re: ww

w.m

arinelo

g.com





Product/service affinity mapping…





Research evaluation

DS2

15

Co-facilitator + live coding

Service project manager

Manager of after-sales

Service analyst

VALUE NETWORK

OFFER PORTFOLIO

OFFER PORTFOLIO

Understanding and supporting partnerships in reality




Some final results from the consortium 1. Maritime branch

analysis

DK has a leading branch, with respect

to quality and efficiency

5. How to organise company for PSS?

Understanding of the change situation of the company, for the adoption of PSS

2. What do other industries do?

It’s difficult to servitise, but the

benefits are considerable

4. How to design a PSS?

Comprehensive development of own

tools, plus design methodology

3. If/when to servitise?

Each company we studied is different

and therefore needs careful guidance

6. What can PSS partnerships give?

Many cost and energy savings, new

business, greater global presence

7. How to make business out of this?

Creation of business model concepts and trialling of these in

the branch

Plus: • 25 academic publications

• and more in pipeline • 3 PhD projects • 6 bachelor projects • 10 master projects • 2 open industry conferences • PSS Configurator...

[www.proteus.dtu.dk]


Disposition


incorporate it?


Denmark




• Questions

28/04/2016 MBO - MARCOD 18 DTU Mechanical Engineering, Technical University of Denmark

PSS types Production and distribution

Use End of life

Product-based

Product-related services

Advice and consultancy

Use-based

Leasing

Renting/sharing

Pooling

Result-based

Activity management/ Outsourcing

Pay per unit use (e.g. pay per wash)

Functional result (e.g. move object from A to B)

Product/Service Systems in the maritime industry


Product/Service Systems in the maritime industry – The network perspective

Sales

Business development

R&D

The network perspective of the business is influencing the way the suppliers collaborate

Supply chain stakeholder

Supplier

Vessels


Product/Service Systems in the maritime industry – The operational perspective

Performance

department Local service provider

Technical management

Sales


Dry docking yard

Vessels

R&D

The shipowner is the connecting link between the network of supplier, the vessel and other stakeholders in the maritime world. So it is important to consider this perspective as well.

Classification society

Supplier

Shipowner


What we’re currently doing to address help proaction (present tense)

• Decisions to be made based on Total Cost of Ownership (TCO).

From PSS design to PSS procurement

[Lars B. Jørgensen, Christian H.P. Johannessen (2013) An Exploration Of The Customer’s

Perspective of Product/Service-Systems - The Case Of TORM, Masters Thesis]

Project outputs: • Data specifications • Company specific cases • Equipment specs. • Benchmarking LCC • Management tool • Performance specs. • TCO guidelines • Ecology = Economy • Integrate data from other

shipowners • Compare & collaborate

with TORM’s existing project on LCC/LCE

Universities: • LC Model • Data testing • Publications

Life Cycle Cost

Models Practices Scenaria

Data

Life Cycle Environment

LCA C2C / Circular Economy

Scenaria Data

Research Project

Industry

Existing research

Shipowner input

Suppliers’ input

Data from other

stakeholders

COMMON LIFE CYCLE

MODEL

PSS Procurement Project co-funded by TORM Foundation

[Louise L. Kjær: PhD Project (2014-16) “Product/Service-System Design from a Life Cycle Environmental Perspective”

Aris Pagoropoulos: PhD Project (2014-16) “Product/Service-System Design from a Life Cycle Costing Perspective”]

29-04-2016 23 29-04-2016 23

Ship Life Cycle Model

Industry




Product/Service Systems in the maritime industry

Should someone sell Product/Service-Systems in the maritime industry?

Should someone buy Product/Service-Systems in the shipping industry?




Product/Service Systems in the maritime industry: methodology

• Goal: Evaluate the potential of performance agreements, where the supplier guarantees the performance of the product system

• Building the business case: Use Life Cycle Costing to extrapolate performance from current service delivery into the performance agreement

• Assess its impacts on service strategy: series of interviews & workshops to assess supplier & customer perspectives




Some first results: PSS evaluation in the maritime industry




Some first results: PSS evaluation in the maritime industry

0,00%

20,00%

40,00%

60,00%

80,00%

100,00%

120,00%

140,00%

Baseline With PSS No1 With PSS No2

Life cycle cost

Environmentalimpact



PSS is not necessarily the most optimal…


Next level of depth: The operational perspective

Performance



Sales


Dry docking yard

Vessels

R&D


Supplier

Shipowner

Should someone sell Product/Service-Systems in the maritime industry? Should someone buy

Product/Service-Systems in the maritime industry?

Supplier

Shipowner

Evaluation of the economic potential of Product/Service-Systems based on actual data from the operation of the vessels

[Aris Pagoropoulos: PhD Project (2014-16) “Product/Service-System Design from a Life Cycle Costing Perspective”]


Product/Service Systems in the maritime industry – Key findings

Performance



Sales


Dry docking yard

Vessels

R&D


Supplier

Shipowner

Should someone sell Product/Service-Systems in the shipping industry?

Implementation depends on company strategy

Should someone buy Product/Service-Systems in the shipping industry?

Depends on their ability to implement and gain from the offering

Supplier

Shipowner

Great economic potential

Current lack of fundamental demand

Results


Product/Service Systems in the maritime industry – Promising results

Supplier Supplier

Shipowner Alfa Laval

Aalborg Service

Collaboration on optimising the steam system shows immediate savings of up to 25%

[Aris Pagoropoulos: PhD Project (2014-16) “Product/Service-System Design from a Life Cycle Costing Perspective”]

28/04/2016 MBO - MARCOD 31 DTU Mechanical Engineering, Technical University of Denmark 31

LCA/LCC on hull cleanings

Purpose: Test LCC and LCA method on maritime case

Scope: PSS comparison (comparing business as usual with performance agreement)

Type of PSS and improvement strategy: Product-oriented and optimised operational performance (use-stage)

Avoided costs and impacts: Reduced fuel consumption

Induced impacts: Extra hull cleaning service

Costs: Direct: Costs of the service. Indirect: potential off-hire

Environmental impacts: Direct: Potential sea water pollution. Indirect: Impacts from the service (materials and energy used).




Disposition


incorporate it?


Denmark




• Questions


Our continuing work

Our ideas for future work:

• Create the groundwork for designing, implementing and evaluating Product/Service-Systems

• Create synergies and improve shipowner-supplier integration

• Design & implement new business cases

Strong optimisation potential within HVAC:

“It is a well-known fact that A/C is a heavy consumer of power and fuel. Most of our vessels are only insulated with 50mm of insulation – even the ‘Super Ice’ class”

Chief Engineer


Your readiness to innovate..?

• Do you understand how to integrate service into your current offerings?

• Do you know how to calculate the business case?

• How to convince – or even better, work together with – the customer?


Chance to collaborate…

• Would you like to join us in a consortium? We’re currently building a project proposal to the Danish Innovation Fund, called CIRCit: Information technology solutions to enable circular economy in Danish industry. Let me know if you’re interested. - Deadline Monday 2nd May!! • Through-life

maintenance of long-life

equipment

• Responsible upgrade to

new technologies

• Service-partnerships

between supplier and

shipowner

• Life cycle data collection

for decision-making

Maritime industry:

Susta

inabili

ty

and P

SS

© Technical University of Denmark, Department of Mechanical Engineering, Section of Engineering Design and Product Development

Thank you for listening!

http://www.dtu.dk/

© Technical University of Denmark, Department of Mechanical Engineering, Section of Engineering Design and Product Development

Tim McAloone, Professor, PhD

Technical University of Denmark (DTU),

Department of Mechanical Engineering

Section for Engineering Design and Product Development

Building 426, Produktionstorvet, 2800 Lyngby,

Denmark

Telephone (+45) 4525 6270 Homepage www.kp.mek.dtu.dk

Email [email protected] www.proteus.dtu.dk

www.ecodesign.dtu.dk

http://www.dtu.dk/

http://www.kp.mek.dtu.dk/

mailto:[email protected]

http://www.proteus.dtu.dk/

http://www.ecodesign.dtu.dk/

tim mcaloone, dtu

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