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Paul.Gromball@tmg-muenchen.de1Aug 2016
Creating the
learning Enterprise
The TMG Approach
DIP
Digital Improvement Program
for becoming a lead provider of Smart Services
Smart Service
Management
2
Content
1. DIP Approach and Outcome
2. Tuning-in: Smart Service Strategy
3. Phase I: Business Model
4. Phase II: Digital Capabilities
5. Phase III: Entrepreneurship
DIP
Digital Improvement Program
3
For Companies who want to become Lead Provider
of Smart Services, TMG provides a Digital
Improvement Program which enables dynamic
value creation through the integrative Management
cloud-based Network Design and Community
Coaching
4
Smart Products Smart ServicesCustomer
Initiatives
Revenue
Impact
Profit
Impact
Smart Product Initiatives Smart Service Initiatives
86 % 14 %
62 % 38 %
39 % 61 %
The Profit and growth consequences of Smart Services
The Emergence of the Smart Service Market
DIP focuses on the fast growing global Smart Service Market
Source:Kim, Chan et al: Blue Ocean Strategy, Harvard Business School, 2015
Base: 150 global companies in 30 industries
• Smart Service Lead Market
• Smart Service Lead Provider
Smart Service Leadership
The linear Business Model
The German Approach to Smart Service :
The Product World Mindset
5
Value Chain Operation
Value Chain Design
Production
Engineering
Marketing & Sales
Integrated Supply
Product Strategy
Product Design
Research
IT
HR
Shared
Services
FI
Inbound-
Logistic
Production
(Digital Twin)
Outbound
-Logistic
Supplier
Smart
Service
Product support-based Smart Services
are not very profitable at present:
Customer expect high up-time for
“Made-in-Germany” Products
Representative
Smart Service Solution
Communication and
Analytics Hardware
Temperature Sensors
Source: ABB
• Product Connection
• Remote Services
• Condition Monitoring
• Predictive Maintenance
• Pay per Use
The Product World Mindset leads to a lack of preparedness for digital Disruption
Key Driver:
• Efficiency
• Automation
6
The US Approach to Smart Service
The Digital World Mindset
The Platform Business Model
The Value Eco-System
Compensates
Creates Connects
Consumes
VALUE-UNIT:
Smart Services
Producer Team
2
Customer Team
Supply Demand
Art of the Possible (Non)Customer Pain
Platform
Sales
Physical
World Mindset
Digital
World Mindset
Physical
Key
Digital
Key
Representative
Smart Service Solution
Key App
• Customer Experience
• Customer Connection
Think different
The Digital World Mindset focuses on Customer Connection & Experience which reshapes Industries
Key Driver:
• Network Effects
• Fast Learning
DIP addresses the Key Performance Gaps of German Firms
Germany as an international player has key engineering strengths –
Pressure to move to digital Improvements continues to grow
7
Relative German Strength vs. USA & China
highlow
FutureBusinessImportance
high
low
International Digital Benchmark Result
Key Strengths
• Engineering
Capability
• Importance of
Production
• Sustainability
No focus field No focus field
Source: Industrie 4.0 Internationaler Benchmark, Zukunftsoptionen und Handlungsempfehlungen für die Produktionsforschung; acatech, Nixdorf Institut
?
Growing Pressure
• Business Models
• Digital Capabilities
• Entrepreneurship
German Firms have to improve in
three key action fields in order to
become a lead provider:
• Business Models
• Digital Capabilities
• Entrepreneurship
Implication
DIP is an integrative Approach to Smart Service Management
DIP Phases in the evolution of smart services
8
Implementation
Phases
Smart Service
Strategy
PHASE I
Business Model
PHASE II
Digital Capabilities
PHASE III
Entrepreneurship
DIP Workshop I
• Segmentation
• Scenarios
• Evaluation
DIP Workshop II
• Initiative Scope
• Talent Pool
• Network
• Blueprint
DIP Workshop III
• Platform
Prototyping
• Plan Activation
Sessions
Design the Hybrid
Business Model
Shaping superior
Value-Ecosystems
Fostering Empowered
Execution
• Aligning Strategy with
Business System
• Smart Service
Scenario
• Design Work-Graph
• Focus on Key Goals
• Apply Digital Leadership
Framework
• Architecture of
Participation
• Set-up Digital Design
Platform
• Design Digital Network
• Governance System of
Community
• Activating Competence
Network
• Joint Consciousness
• Achieving goal by
driving Lead measures
External Smart Service
 1
 2
 3
Internal Smart Service
 1
 2
 3
9
DIP provides an cloud-based Design Platform
PERIPHERY
Competence Teams
MARKET
• Customers
• Stakeholder
Customer Teams
Supply Demand
VALUE-UNIT:
Smart Services
CENTER
Digital Design Platform
(Network Prototyping)
Digital Design Platform Architecture
10
Digital -Management
Smart Service Steering Committee
 Frame the Smart Service Vision/Strategy
 Crafing the Business Model
 Foster Cross-Unit Engagement
 Strengthen IT-Business Relationship
 Set Smart Service Priorities
 Set Objectives & Focus Investments
 Review of Smart Service Case results
 Establishing Roll-out direction
 Ensuring IT perspective
 Faster access to expertise / data
 Functional driver
 Set-up Digital Platform (“as-a-Service or
“Ownership Model”)
…
Team
Coaching
Digital Platform
Community Integrator
 Set-up the Digital Team Community
 Provide Cross-Unit Governance System
 Integrate across Center & Regions & Customers
 Drive Results by aligning Goals, Resources and
Constraints
 Support Communities / virtual reviews
 Set-up Digital Execution
 On-Boarding
 Launching Team
 Execution with Coaching
 Result Presentation
Communities
• Center
• Periphery
• Customer
A
B
C
D
Roles
Smart Service Governance Model
DIP coaches four roles for moving the company forward
Four Leadership Roles for achieving the joint Goals
11
Digitally
Engage Customers
Value Creation: Periphery Value Creation: CustomerValue Creation: Center
Enabling the
Periphery Teams
Phase I: Connect Employees Phase II: Connect Customers
Digital Team Platform
Enabling the
Center Team
2
Customer TeamCompany TeamCompany Team
VALUE-UNIT:
Smart Services
VALUE-UNIT:
Smart Services
The DIP Outcome: Collective-Intelligence@Scale
The Digital Team Platform for creating Smart Services
12
The Collective-Intelligence@Scale Advantage
Freeing Resources for value-creating Activities and Growth
Resources
(costs,emailtime..)
Cooperation
Linear Business Model
Platform Business Model
The Effect on Business Performance
Digital
Transformation
Time-Reduction
30 -50%
Speed
Fast Responses
Reduction of
non-value added expenses
25 -30%
Efficiency
Work Productivity
Additional Value-Creation
by Cooperation between Teams
30 -35%
Growth
Collective Creativity
Limits of Growth: Knowledge Resources
Growth Effect
Source: Morieux, Yves: Six Simple Rules
13
Content
1. DIP Approach and Outcome
2. Tuning-in: Smart Service Strategy
3. Phase I: Business Model
4. Phase II: Digital Capabilities
5. Phase III: Entrepreneurship
Tuning-in: Smart Service Strategy
DIP Phases in the evolution of smart services
14
Implementation
Phases
Smart Service
Strategy
PHASE I
Business Model
PHASE II
Digital Capabilities
PHASE III
Entrepreneurship
Design the Hybrid
Business Model
Shaping superior
Value-Ecosystems
Fostering Empowered
ExecutionExternal Smart Service
 1
 2
 3
Internal Smart Service
 1
 2
 3
15
The German Engineering Example
How to escape the sandwich position ?
?
?
Strategic Challenge:
Basis: Thomas Sattelberger
16
Two Strategic Directions to escape the sandwich position
Aligning Strategic Priorities with Business Model
1 2
3
(Re)Shape
the product portfolio
• sustaining Leadership
• building competitive Position
• exploring strategic Options
Differentiate with
Smart Services
Orchestrating the value-
eco-system
Build an hybrid business model
The Value Ecosystem
Outside Value Creation by
Information & Knowledge
The Platform Model
16
The Value Chain
Inside Value Creation by
Material & Energy
The linear Business Model
+
Adaptability & InnovationEfficiency & Excellence
Context of Smart Services
Smart Services Portfolio
ActivityLevelofSmartServices(Countries)
XY
Revenue Potential
The external Smart Service Strategy
Understanding the external Smart Services Opportunities
Opportunities
17
2
Differentiate with
Smart Services
Orchestrating the value-
eco-system
Strategic Priority
• Resource orchestration
• External interaction
• Focus on ecosystem value
Versus
• Resource control
• Internal optimization
• Focus on customer value
18
External Smart Service: Innovative Application Development
Leverage German Engineering Capability for Smart Services:
Support Customer Engineers to solve though challenges
segmented in developed and emerging Markets
Source: Schaeffler
Smart Products
Smart
Services
Electric-engine
Machine-Tool
Gear-Box
Impact: Online Sharing of best practice applications with connected Customer Engineers
Portal
German
Engineering
19
The Economics of Smart Services
Smart Service Driver
• Demand-Side Economics of Scale
• Customer Experience/Learning
• Network Effects/Feedback
More
Demand
More
Innovative
Applications
Network Effects of Smart Services lead to more Demand of
Smart Products
More innovative
Platform Content
More interested
Customer
Engineers
Lower problem
solving time
Lower Costs,
higher Speed
Project
Management
Innovation
Management
Business
Process
Management
Topic –specific
Networks Expert
Networks
Information
Management
Stakeholder
Management
Real-time
Strategy
Councils,
Boards,
Committees
20
2
Differentiate with
Smart Services
Orchestrating the value-
eco-system
Strategic Priority
• Resource orchestration
• Cross-boundary interaction
• Focus on ecosystem value
The internal Smart Service Strategy: Cross-boundary Synergies
Internal Smart Service Portfolio:
Understanding the internal Smart Services Opportunities
Continuous
active Strategy
21
The internal Smart Service Strategy: Cross-boundary Synergies
1. Country Success
Planning
2. Develop Market
Strategy
3. Translate
Market
Strategy
4. Plan Market
Execution
7. Test and Adapt
Strategy
6. Monitor and
Learn
5. Execute Market
Initiatives
Fulfillment
Country ManagementCorporate HQ
Regional Sales
BU
BU Strategy
Innovation
Controlling
Operations
Regional
Strategy
Regional Sales
BU
SCM
BU Operation
Country Industry Manager
Market Mgr.
Sales Mgr.
Business Interface Process
New Process
New Process
Focus Field
Established Process
Corporate
Strategy
Internal Smart Service: Continuous active Strategy
Impact: Quick Cycle of Business Strategy to master Complexity
German
Engineering
22
Content
1. DIP Approach and Outcome
2. Tuning-in: Smart Service Strategy
3. Phase I: Business Model
4. Phase II: Digital Capabilities
5. Phase III: Entrepreneurship
Phase I: Business Model
DIP Phases in the evolution of smart services
23
Implementation
Phases
Smart Service
Strategy
PHASE I
Business Model
PHASE II
Digital Capabilities
PHASE III
Entrepreneurship
Design the Hybrid
Business Model
• Aligning Strategy with
Business System
• Smart Service
Scenario
• Design Work-Graph
• Focus on Key Goals
DIP Workshop I
• Segmentation
• Scenarios
• Evaluation
External Smart Service
 1
 2
 3
Internal Smart Service
 1
 2
 3
Hybrid Business Model: German Engineering
The Digital Value Creation augments and differentiates existing Smart Products
24
The Hybrid Business Model
Bearings
Linear
Business
Model
Platform
Business
Model
Physical World: Value Creation with Material & Energy
Digital World: Value Creation with Information & Knowledge
Smart Products
Smart Services
VALUE-UNIT:
Smart Services
Supply 2
Engineering App
Value Chain
Value Eco-System
Demand
Platform
Think different:
Digital
Complement
Inbound-
Logistic
Production
Outbound-
Logistic
Supplier Customer
Customer Connection
Zero marginal costs
Micro-Segments
Modular Contracts/Rules
Durable Revenue
Higher Margins
German
Engineering
25
Smart Service Scenario
Platform Business Model : Innovative Application Development
Value Proposition: Co-Creation of superior applications with connected Customer Engineers
CENTER
PM
Platform Provider
PERIPHERY
Competence Teams
MARKET
• Customers
• Stakeholder
Customer Teams
Supply Demand
VALUE-UNIT:
Smart Services
German
Engineering
Work Graph for achieving the Goal
Competence Area 1
C
• Workstream a
• Workstream b
• Workstream c
o Task 1
o Task 2
Job-to-be done : Smart Service C
OBJECTIVE OF THE INITIATIVE:
Increasing Sales by 30% through Cross-Selling of merged
Company
Design the “Job-to-be-done” Work Graph
Competence Area 2 Competence Area 3 Competence Area 4
• Workstream a
• Workstream b
• Workstream c
o Task 1
o Task 2
• Workstream a
• Workstream b
• Workstream c
o Task 1
o Task 2
• Workstream a
• Workstream b
• Workstream c
o Task 1
o Task 2
Define Lead measures to get the “Job done”
Setting Directions to achieve the goal
Collective Goal:
Capture Cross-Selling
Potential of 30% Sales
Increase
r
Predictive
Predictive and Influenceable Lead Measures
Lead Measures
Predictive: Measures something that
leads to the goal
Influenceable: Something we can
influence
A)No. of internal Interactions
B) No of smart service ideas
28
Content
1. DIP Approach and Outcome
2. Tuning-in: Smart Service Strategy
3. Phase I: Business Model
4. Phase II: Digital Capabilities
5. Phase III: Entrepreneurship
Phase II: Digital Capabilities
DIP Phases in the evolution of smart services
29
Implementation
Phases
Smart Service
Strategy
PHASE I
Business Model
PHASE II
Digital Capabilities
PHASE III
Entrepreneurship
Design the Hybrid
Business Model
Shaping superior
Value-Ecosystems
• Apply Digital Leadership
Framework
• Architecture of
Participation
• Set-up Digital Design
Platform
• Design Digital Network
• Aligning Strategy with
Business System
• Smart Service
Scenario
• Design Work-Graph
• Focus on Key Goals
DIP Workshop I
• Segmentation
• Scenarios
• Evaluation
DIP Workshop II
• Initiative Scope
• Talent Pool
• Network
• Blueprint
External Smart Service
 1
 2
 3
Internal Smart Service
 1
 2
 3
30
Digital Leadership Framework for Disrupting InsideOut
The Dual Work Organization of the Hybrid Business Model
Orchestrating the hybrid Business Model of Smart Products and Smart Services
Leadership-driven
network
Smart Services
Mastering the
Slide Control
Digital Leadership
as…
Adaptability & Innovation
Non-Routine & un-predictable
The Value Ecosystem
Management-
driven hierarchy
Smart Products
Efficiency & Excellence
Repeatable & Predictable
The Value Chain
TMG
Focus
31
Enable the Competence Network
enable
motivate
Architecture of
Participation Governance
of Execution
The Value Ecosystem: Collective-Intelligence@Scale
Leadership-
driven network
32
The Digital Team Building Blocks
The three Building Blocks for the Digital Team
Matchmaking
Roles
Digital Team
Job-to-be-done Global Talent Pool
Scope of Initiative1
2 3
Work Graph
Talent
Customer
Periphery
Center
33
The Digital Leadership Platform
Digital Design Platform as a Service
CENTER
Digital Design Platform
(Network Prototyping)
Competence Teams
MARKET
• Customers
• Stakeholder
Customer Teams
Supply Demand
VALUE-UNIT:
Smart Services
German
Engineering
PERIPHERY
Task 1: Design the Work Graph
34
The Work Graph with 4 Network Levels
Level I: Job
Level II: Competence Area
Level III: Work Stream
Level IV: Activity
Task 2: Assign Responsibilities from the Global Talent Pool
Competence Area Level
Save
35
8
0
%
Task 3: Set Start and End of Task Timeline
36
Save
Task Timeline
Traffic Light
Traffic Light turns yellow 7 Days before Deadline
Connected Traffic Light Timing
37
Level I: Job
Level II: Competence
Level III: Work Stream
Level IV: Task
-5 -4 -3 -2 -1 0 1 2 3 4 5 6 7
Day to Deadline (example)
Tasks trigger the progress of the Initiative
Automated Escalation Mechanism for all to see
38
Country ShareRoom Screenshot
Task 4: Keeping the Scoreboard for all to see
39
Aggregation of the Scoreboards
Level I: Job
Level II: Competence
Level III: Work Stream
Scoring
40
Digital Design Platform: User Functionality Overview
Work Navigation
Job-to-be-done Name
Job Owner
Job Arena
Comments/Info/Chat
View Job Scoreboard View Job Task/Activity Status
Job-to-be-done
Click to Navigate
Click on +
Click to Minimize
Click to Minimize
Digital Design Platform
Enabler of the Value Eco-System
Work Status
41
Content
1. DIP Approach and Outcome
2. Tuning-in: Smart Service Strategy
3. Phase I: Business Model
4. Phase II: Digital Capabilities
5. Phase III: Entrepreneurship
Phase III: Entrepreneurship
DIP Phases in the evolution of smart services
42
Implementation
Phases
Smart Service
Strategy
PHASE I
Business Model
PHASE II
Digital Capabilities
PHASE III
Entrepreneurship
Design the Hybrid
Business Model
Shaping superior
Value-Ecosystems
Fostering Empowered
Execution
• Governance System of
Community
• Activating Competence
Network
• Joint Consciousness
• Achieving goal by
driving Lead measures
• Aligning Strategy with
Business System
• Smart Service
Scenario
• Design Work-Graph
• Focus on Key Goals
• Apply Digital Leadership
Framework
• Architecture of
Participation
• Set-up Digital Design
Platform
• Design Digital Network
DIP Workshop I
• Segmentation
• Scenarios
• Evaluation
DIP Workshop II
• Initiative Scope
• Talent Pool
• Network
• Blueprint
DIP Workshop III
• Platform
Prototyping
• Plan Activation
Sessions
External Smart Service
 1
 2
 3
Internal Smart Service
 1
 2
 3
43
Entrepreneurship: Evolve the Eco-Systems
Interplay of Architecture and Governance
enable
motivate
Architecture of
Participation Governance
of Execution
LaunchOn-Boarding Adoption Optimization
• Match global talent
with sub-jobs,
workstreams and
tasks
• Explain the key goal
• Agree on Lead-
Measures
• Train the Team to
use the ShareRoom
• Launch the Team
into Action
• Create Scoreboard
• Align Roles and
Expectations
• Schedule Activation
Sessions for Shared
Consciousness
• Focus on
empowered
Execution
• Track results on
the scoreboard
• Additional
training and
mentoring
• Clearing the path
by sharing
• Optimizing Team
Performance
• Encourage creative
ideas to move the
lead measures
• Celebrate wins and
accomplishments
• Enable agile work
The Ramp-up Process
Support Activities
Implement the four stages of Digital Team performance
Activating the Competence Network for
dynamic value creation
45
The Team-of-Teams Sphere of Activity
MARKET
• Customers
• Stakeholder
PERIPHERY
CENTER
Competence Team I Competence Team II Competence Team n
Smart Service App
Machine Tool Smart Service
• Customer Competence
• Workstreams/Tasks of the Periphery
• Competence Development
• Work Graph of the Center
• Job-to-be-done Competence
• Co-Creation of Smart Service
PM
German
Engineering
Basis: Winfried Felser, Niels Pfläging
The Tasks of the Community Integrator
46
• He/she matches Tasks with Experts for enabling top-line
growth
• He/she takes part directly in the planning/coordination of
the Journey to achieve Business Goals by creating Job content
• He/she allows each one in the Community to benefit form
the cooperation of others by creating the context of
cooperation.
• He/she is at the same time a Resource and a Constraint for
Community Member.
• He/she is supported by the Governance System/Scoreboards
for achieving the Community Goals
• It is not a dedicated job. It is a role in the organization system
that an individual plays as part of his usual job.
• He/she plays the role of a „new Human Resource Manager”
Community Integrator is critical to Digital Team Success
Community Integration : Empowered by the Cloud
47
DIGITAL DESIGN PLATFORM
Online-Learning and Prototyping
Community Integrator : Leading the Digital Team of Teams
German
Engineering
Playbook 1
Repository of repeatable best practices and re-usable components
PHASE I
Business Model
PHASE II
Digital Capabilities
PHASE III
Entrepreneurship
Playbook 2 Playbook 3
48
Enable Platform-based Competence Network Interactions
Driving Competence Network Interactions for dynamic value creation
Compensates
Creates Connects
Consumes
VALUE-UNIT:
Smart Services
Competence Teams
2
Job-to-be-done Team
Supply
Demand
Art of the Possible (Non)Customer Pain
Sales
Key Driver:
• Network Effects
• Fast Learning
PERIPHERY
CENTER
MARKET
• Customers
• Stakeholder
German
Engineering
Platform
TMG: Coaching The Digital Team Implementation
49
TMG helps Clients to build Digital Management Skills by providing
• Online Leadership Workshops for the Community Integrators of the Digital Teams
• Coaching of the Digital Team Implementation and
• Digital Design Platform as a Service
The following TMG services helps the Management to build Digital Leadership Skills for
Community Integrators :
• Selecting the “Digital Team Opportunities”: Providing Methods for framing the Digital opportunity/challenge
• Strengthening the Digital Leadership Skills: Co-Creation of the Design of the Project Work Graph and
supporting Community Integrator in designing primary activities and managing the support activities.
• Executing the Digital Team Project: Coaching of the Execution Process
• Preparation of Online Work and Training of the Core Digital Team
• Providing “on-the- job”-Training of the Methods/Disciplines and solving open questions when they arise
• Preparation and coaching of the online team sessions together with the Community Integrator
• Integration of the Business-IT Work for tailoring the Digital Platform
• Participation in Management Reviews
• Governing the Execution: Providing the cloud-based Digital Design Service for mobilizing the scalable Learning
of the Digital Teams in the Value “Eco-System”
Engagement: Weekly Operating Rhythm with Online Activation Sessions
50
Review
2
1
Report
Report on the tasks of
the last week
3
Plan
Committments for
the next tasks
1
Report
Report on the tasks of
the last week
3
Plan
Committments for
the next tasks
2 2
1
Report
Report on the tasks of
the last week
3
Plan
Committments for
the next tasks
Week 1 Week 2 Week 3…
Sprint Sprint Sprint
Management Task Level
2
1
Report
Report on the tasks of
the last week
3
Plan
Committments for
the next tasks
Week 4…
Sprint
Operative Task Level
Review Review Review
Empowered Execution : German Engineering Example
German
Engineering
Coaching/Guidance of the weekly Review Events
51
TMG Online Coaching
• Pre-Session Coaching: updating scoreboard of
every team member and preparing the session
agenda with Community Integrator
• Session-Coaching: It ensures that members
limit their status report to few minutes. For
each goal members will focuses on objectives,
status, issues and recommendations to ensure
joint-problem solving instead of pure reporting.
Guiding members to make commitments which
have the highest possible impact.
• Post-Session-Coaching: Documenting the
commitment as basis for next week and de-
briefing/ counseling of the Community
Integrator along a systematic method
• Between-Session Coaching: Answering
questions of Community member when they
arise and removing unexpected roadblocks.
• Preparation of senior-management
Presentation: Ensure format, timeliness and
quality of result presentation
De-Briefing Checklist
1) Meeting as scheduled ?
2) Was the session brief, brisk, energetic?
3) How die the Integrator played his role?
4)How was the review of the scoreboard?
5)Did we analyze who is winning, loosing?
6)Did we celebrate success?
7)Did the team hold each other accountable
for commitments?
8)Did everybody make commitments for next
week?
9) Did we clear the path for each other?
10)Did we keep out low value issues?
10 Questions
Weekly „Review-Events“ as a Process
Achieving the Goal in a continues process
Review of the
Scoreboards
Learning from success and failure
2
1
Report
Report on the tasks of the last week
3
Plan
Committments for the next tasks
Session Agenda
Lync Invitation: When, Who
Goal:
Individual
Reports:
Scoreboard
Update:
Team Member: Commitment:
Status:
52
To build up the Digital Team Organization we cooperate with the Client
Management in the following way:
• Supporting Management in building the right procedural and behavioral internal
conditions
• Providing Digital Leadership education and tools
• Ensuring actual functioning of a job-specific Team-of-Teams as Deliverable
• Providing thoughts and insights
• Sharing expertise for creating and implementing of Digital Work
• Supporting IT in transferring the Design Prototype to Company Standard Platform
• Creating the conditions for continuous adaptation to the complex business
environment – doing the right thing at the right time, constantly.
53
Transfer Competence Network Prototype into the Company
Standard Application
Transfer Optimized Application to Company IT
Optimized Design Specification
(Network Prototype)
Digital Standard Platform of the Company
Prototype Functionality Transfer
DIGITAL DESIGN
PLATFORM
Online-Learning and
Prototyping
German
Engineering
54
The Smart Service Network: The Platform of Collective-Intelligence@ Scale
• High adaptability/agility for Customer Signals
• Joint Consciousness of customers need
• Mastering Complexity of dynamic value creation
• Network Effects are key growth driver
• Controlled Platform Access for Firm & Customer
• Knowledge/Benchmark Exchange is enabled
• Unity-of-Effort across boundaries
• Global synergies for local but common themes
Digitally
Engage Customers
Value Creation: Periphery Value Creation: CustomerValue Creation: Center
Enabling the
Periphery Teams
Phase I: Connect Employees Phase II: Connect Customers
Digital Team Platform
Enabling the
Center Team
2
Customer TeamCompany TeamCompany Team
VALUE-UNIT:
Smart Services
VALUE-UNIT:
Smart Services
Outcome: Collective-Intelligence@Scale
The Digital Team Platform
German
Engineering
55
Top-Line Growth Driver
Digital Teams Building Blocks of Top-Line Growth
Driving Top-Line Growth
Top-Line Growth
Co-Creation
Network Effects
Employee
Engagement
Cross-Country
Synergies
Leadership-driven networks
Co-Creation Platform
Out-of-Office Work
Global Talent Pool
Digital Teams Building Blocks
Top-Line Growth Case
Result: Increasing Sales by
35% through Cross-Selling
of merged Company
German
Engineering
57
Automotive Engineering
Other Industries
Technology Management Group Profile
Competences
- Internet Driven Strategic Changes
- Business Development
- Accelerating Innovation Process
- Mobilizing People in Networks
Facts
Office: München
founded 1987
TMG helps companies create, build and launch new digital initiatives from within their organization

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Digital Improvement Program-DIP

  • 1. Paul.Gromball@tmg-muenchen.de1Aug 2016 Creating the learning Enterprise The TMG Approach DIP Digital Improvement Program for becoming a lead provider of Smart Services Smart Service Management
  • 2. 2 Content 1. DIP Approach and Outcome 2. Tuning-in: Smart Service Strategy 3. Phase I: Business Model 4. Phase II: Digital Capabilities 5. Phase III: Entrepreneurship
  • 3. DIP Digital Improvement Program 3 For Companies who want to become Lead Provider of Smart Services, TMG provides a Digital Improvement Program which enables dynamic value creation through the integrative Management cloud-based Network Design and Community Coaching
  • 4. 4 Smart Products Smart ServicesCustomer Initiatives Revenue Impact Profit Impact Smart Product Initiatives Smart Service Initiatives 86 % 14 % 62 % 38 % 39 % 61 % The Profit and growth consequences of Smart Services The Emergence of the Smart Service Market DIP focuses on the fast growing global Smart Service Market Source:Kim, Chan et al: Blue Ocean Strategy, Harvard Business School, 2015 Base: 150 global companies in 30 industries • Smart Service Lead Market • Smart Service Lead Provider Smart Service Leadership
  • 5. The linear Business Model The German Approach to Smart Service : The Product World Mindset 5 Value Chain Operation Value Chain Design Production Engineering Marketing & Sales Integrated Supply Product Strategy Product Design Research IT HR Shared Services FI Inbound- Logistic Production (Digital Twin) Outbound -Logistic Supplier Smart Service Product support-based Smart Services are not very profitable at present: Customer expect high up-time for “Made-in-Germany” Products Representative Smart Service Solution Communication and Analytics Hardware Temperature Sensors Source: ABB • Product Connection • Remote Services • Condition Monitoring • Predictive Maintenance • Pay per Use The Product World Mindset leads to a lack of preparedness for digital Disruption Key Driver: • Efficiency • Automation
  • 6. 6 The US Approach to Smart Service The Digital World Mindset The Platform Business Model The Value Eco-System Compensates Creates Connects Consumes VALUE-UNIT: Smart Services Producer Team 2 Customer Team Supply Demand Art of the Possible (Non)Customer Pain Platform Sales Physical World Mindset Digital World Mindset Physical Key Digital Key Representative Smart Service Solution Key App • Customer Experience • Customer Connection Think different The Digital World Mindset focuses on Customer Connection & Experience which reshapes Industries Key Driver: • Network Effects • Fast Learning
  • 7. DIP addresses the Key Performance Gaps of German Firms Germany as an international player has key engineering strengths – Pressure to move to digital Improvements continues to grow 7 Relative German Strength vs. USA & China highlow FutureBusinessImportance high low International Digital Benchmark Result Key Strengths • Engineering Capability • Importance of Production • Sustainability No focus field No focus field Source: Industrie 4.0 Internationaler Benchmark, Zukunftsoptionen und Handlungsempfehlungen für die Produktionsforschung; acatech, Nixdorf Institut ? Growing Pressure • Business Models • Digital Capabilities • Entrepreneurship German Firms have to improve in three key action fields in order to become a lead provider: • Business Models • Digital Capabilities • Entrepreneurship Implication
  • 8. DIP is an integrative Approach to Smart Service Management DIP Phases in the evolution of smart services 8 Implementation Phases Smart Service Strategy PHASE I Business Model PHASE II Digital Capabilities PHASE III Entrepreneurship DIP Workshop I • Segmentation • Scenarios • Evaluation DIP Workshop II • Initiative Scope • Talent Pool • Network • Blueprint DIP Workshop III • Platform Prototyping • Plan Activation Sessions Design the Hybrid Business Model Shaping superior Value-Ecosystems Fostering Empowered Execution • Aligning Strategy with Business System • Smart Service Scenario • Design Work-Graph • Focus on Key Goals • Apply Digital Leadership Framework • Architecture of Participation • Set-up Digital Design Platform • Design Digital Network • Governance System of Community • Activating Competence Network • Joint Consciousness • Achieving goal by driving Lead measures External Smart Service  1  2  3 Internal Smart Service  1  2  3
  • 9. 9 DIP provides an cloud-based Design Platform PERIPHERY Competence Teams MARKET • Customers • Stakeholder Customer Teams Supply Demand VALUE-UNIT: Smart Services CENTER Digital Design Platform (Network Prototyping) Digital Design Platform Architecture
  • 10. 10 Digital -Management Smart Service Steering Committee  Frame the Smart Service Vision/Strategy  Crafing the Business Model  Foster Cross-Unit Engagement  Strengthen IT-Business Relationship  Set Smart Service Priorities  Set Objectives & Focus Investments  Review of Smart Service Case results  Establishing Roll-out direction  Ensuring IT perspective  Faster access to expertise / data  Functional driver  Set-up Digital Platform (“as-a-Service or “Ownership Model”) … Team Coaching Digital Platform Community Integrator  Set-up the Digital Team Community  Provide Cross-Unit Governance System  Integrate across Center & Regions & Customers  Drive Results by aligning Goals, Resources and Constraints  Support Communities / virtual reviews  Set-up Digital Execution  On-Boarding  Launching Team  Execution with Coaching  Result Presentation Communities • Center • Periphery • Customer A B C D Roles Smart Service Governance Model DIP coaches four roles for moving the company forward Four Leadership Roles for achieving the joint Goals
  • 11. 11 Digitally Engage Customers Value Creation: Periphery Value Creation: CustomerValue Creation: Center Enabling the Periphery Teams Phase I: Connect Employees Phase II: Connect Customers Digital Team Platform Enabling the Center Team 2 Customer TeamCompany TeamCompany Team VALUE-UNIT: Smart Services VALUE-UNIT: Smart Services The DIP Outcome: Collective-Intelligence@Scale The Digital Team Platform for creating Smart Services
  • 12. 12 The Collective-Intelligence@Scale Advantage Freeing Resources for value-creating Activities and Growth Resources (costs,emailtime..) Cooperation Linear Business Model Platform Business Model The Effect on Business Performance Digital Transformation Time-Reduction 30 -50% Speed Fast Responses Reduction of non-value added expenses 25 -30% Efficiency Work Productivity Additional Value-Creation by Cooperation between Teams 30 -35% Growth Collective Creativity Limits of Growth: Knowledge Resources Growth Effect Source: Morieux, Yves: Six Simple Rules
  • 13. 13 Content 1. DIP Approach and Outcome 2. Tuning-in: Smart Service Strategy 3. Phase I: Business Model 4. Phase II: Digital Capabilities 5. Phase III: Entrepreneurship
  • 14. Tuning-in: Smart Service Strategy DIP Phases in the evolution of smart services 14 Implementation Phases Smart Service Strategy PHASE I Business Model PHASE II Digital Capabilities PHASE III Entrepreneurship Design the Hybrid Business Model Shaping superior Value-Ecosystems Fostering Empowered ExecutionExternal Smart Service  1  2  3 Internal Smart Service  1  2  3
  • 15. 15 The German Engineering Example How to escape the sandwich position ? ? ? Strategic Challenge: Basis: Thomas Sattelberger
  • 16. 16 Two Strategic Directions to escape the sandwich position Aligning Strategic Priorities with Business Model 1 2 3 (Re)Shape the product portfolio • sustaining Leadership • building competitive Position • exploring strategic Options Differentiate with Smart Services Orchestrating the value- eco-system Build an hybrid business model The Value Ecosystem Outside Value Creation by Information & Knowledge The Platform Model 16 The Value Chain Inside Value Creation by Material & Energy The linear Business Model + Adaptability & InnovationEfficiency & Excellence
  • 17. Context of Smart Services Smart Services Portfolio ActivityLevelofSmartServices(Countries) XY Revenue Potential The external Smart Service Strategy Understanding the external Smart Services Opportunities Opportunities 17 2 Differentiate with Smart Services Orchestrating the value- eco-system Strategic Priority • Resource orchestration • External interaction • Focus on ecosystem value Versus • Resource control • Internal optimization • Focus on customer value
  • 18. 18 External Smart Service: Innovative Application Development Leverage German Engineering Capability for Smart Services: Support Customer Engineers to solve though challenges segmented in developed and emerging Markets Source: Schaeffler Smart Products Smart Services Electric-engine Machine-Tool Gear-Box Impact: Online Sharing of best practice applications with connected Customer Engineers Portal German Engineering
  • 19. 19 The Economics of Smart Services Smart Service Driver • Demand-Side Economics of Scale • Customer Experience/Learning • Network Effects/Feedback More Demand More Innovative Applications Network Effects of Smart Services lead to more Demand of Smart Products More innovative Platform Content More interested Customer Engineers Lower problem solving time Lower Costs, higher Speed
  • 20. Project Management Innovation Management Business Process Management Topic –specific Networks Expert Networks Information Management Stakeholder Management Real-time Strategy Councils, Boards, Committees 20 2 Differentiate with Smart Services Orchestrating the value- eco-system Strategic Priority • Resource orchestration • Cross-boundary interaction • Focus on ecosystem value The internal Smart Service Strategy: Cross-boundary Synergies Internal Smart Service Portfolio: Understanding the internal Smart Services Opportunities Continuous active Strategy
  • 21. 21 The internal Smart Service Strategy: Cross-boundary Synergies 1. Country Success Planning 2. Develop Market Strategy 3. Translate Market Strategy 4. Plan Market Execution 7. Test and Adapt Strategy 6. Monitor and Learn 5. Execute Market Initiatives Fulfillment Country ManagementCorporate HQ Regional Sales BU BU Strategy Innovation Controlling Operations Regional Strategy Regional Sales BU SCM BU Operation Country Industry Manager Market Mgr. Sales Mgr. Business Interface Process New Process New Process Focus Field Established Process Corporate Strategy Internal Smart Service: Continuous active Strategy Impact: Quick Cycle of Business Strategy to master Complexity German Engineering
  • 22. 22 Content 1. DIP Approach and Outcome 2. Tuning-in: Smart Service Strategy 3. Phase I: Business Model 4. Phase II: Digital Capabilities 5. Phase III: Entrepreneurship
  • 23. Phase I: Business Model DIP Phases in the evolution of smart services 23 Implementation Phases Smart Service Strategy PHASE I Business Model PHASE II Digital Capabilities PHASE III Entrepreneurship Design the Hybrid Business Model • Aligning Strategy with Business System • Smart Service Scenario • Design Work-Graph • Focus on Key Goals DIP Workshop I • Segmentation • Scenarios • Evaluation External Smart Service  1  2  3 Internal Smart Service  1  2  3
  • 24. Hybrid Business Model: German Engineering The Digital Value Creation augments and differentiates existing Smart Products 24 The Hybrid Business Model Bearings Linear Business Model Platform Business Model Physical World: Value Creation with Material & Energy Digital World: Value Creation with Information & Knowledge Smart Products Smart Services VALUE-UNIT: Smart Services Supply 2 Engineering App Value Chain Value Eco-System Demand Platform Think different: Digital Complement Inbound- Logistic Production Outbound- Logistic Supplier Customer Customer Connection Zero marginal costs Micro-Segments Modular Contracts/Rules Durable Revenue Higher Margins German Engineering
  • 25. 25 Smart Service Scenario Platform Business Model : Innovative Application Development Value Proposition: Co-Creation of superior applications with connected Customer Engineers CENTER PM Platform Provider PERIPHERY Competence Teams MARKET • Customers • Stakeholder Customer Teams Supply Demand VALUE-UNIT: Smart Services German Engineering
  • 26. Work Graph for achieving the Goal Competence Area 1 C • Workstream a • Workstream b • Workstream c o Task 1 o Task 2 Job-to-be done : Smart Service C OBJECTIVE OF THE INITIATIVE: Increasing Sales by 30% through Cross-Selling of merged Company Design the “Job-to-be-done” Work Graph Competence Area 2 Competence Area 3 Competence Area 4 • Workstream a • Workstream b • Workstream c o Task 1 o Task 2 • Workstream a • Workstream b • Workstream c o Task 1 o Task 2 • Workstream a • Workstream b • Workstream c o Task 1 o Task 2
  • 27. Define Lead measures to get the “Job done” Setting Directions to achieve the goal Collective Goal: Capture Cross-Selling Potential of 30% Sales Increase r Predictive Predictive and Influenceable Lead Measures Lead Measures Predictive: Measures something that leads to the goal Influenceable: Something we can influence A)No. of internal Interactions B) No of smart service ideas
  • 28. 28 Content 1. DIP Approach and Outcome 2. Tuning-in: Smart Service Strategy 3. Phase I: Business Model 4. Phase II: Digital Capabilities 5. Phase III: Entrepreneurship
  • 29. Phase II: Digital Capabilities DIP Phases in the evolution of smart services 29 Implementation Phases Smart Service Strategy PHASE I Business Model PHASE II Digital Capabilities PHASE III Entrepreneurship Design the Hybrid Business Model Shaping superior Value-Ecosystems • Apply Digital Leadership Framework • Architecture of Participation • Set-up Digital Design Platform • Design Digital Network • Aligning Strategy with Business System • Smart Service Scenario • Design Work-Graph • Focus on Key Goals DIP Workshop I • Segmentation • Scenarios • Evaluation DIP Workshop II • Initiative Scope • Talent Pool • Network • Blueprint External Smart Service  1  2  3 Internal Smart Service  1  2  3
  • 30. 30 Digital Leadership Framework for Disrupting InsideOut The Dual Work Organization of the Hybrid Business Model Orchestrating the hybrid Business Model of Smart Products and Smart Services Leadership-driven network Smart Services Mastering the Slide Control Digital Leadership as… Adaptability & Innovation Non-Routine & un-predictable The Value Ecosystem Management- driven hierarchy Smart Products Efficiency & Excellence Repeatable & Predictable The Value Chain TMG Focus
  • 31. 31 Enable the Competence Network enable motivate Architecture of Participation Governance of Execution The Value Ecosystem: Collective-Intelligence@Scale Leadership- driven network
  • 32. 32 The Digital Team Building Blocks The three Building Blocks for the Digital Team Matchmaking Roles Digital Team Job-to-be-done Global Talent Pool Scope of Initiative1 2 3 Work Graph Talent Customer Periphery Center
  • 33. 33 The Digital Leadership Platform Digital Design Platform as a Service CENTER Digital Design Platform (Network Prototyping) Competence Teams MARKET • Customers • Stakeholder Customer Teams Supply Demand VALUE-UNIT: Smart Services German Engineering PERIPHERY
  • 34. Task 1: Design the Work Graph 34 The Work Graph with 4 Network Levels Level I: Job Level II: Competence Area Level III: Work Stream Level IV: Activity
  • 35. Task 2: Assign Responsibilities from the Global Talent Pool Competence Area Level Save 35 8 0 %
  • 36. Task 3: Set Start and End of Task Timeline 36 Save Task Timeline Traffic Light Traffic Light turns yellow 7 Days before Deadline
  • 37. Connected Traffic Light Timing 37 Level I: Job Level II: Competence Level III: Work Stream Level IV: Task -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 Day to Deadline (example) Tasks trigger the progress of the Initiative
  • 38. Automated Escalation Mechanism for all to see 38 Country ShareRoom Screenshot
  • 39. Task 4: Keeping the Scoreboard for all to see 39 Aggregation of the Scoreboards Level I: Job Level II: Competence Level III: Work Stream Scoring
  • 40. 40 Digital Design Platform: User Functionality Overview Work Navigation Job-to-be-done Name Job Owner Job Arena Comments/Info/Chat View Job Scoreboard View Job Task/Activity Status Job-to-be-done Click to Navigate Click on + Click to Minimize Click to Minimize Digital Design Platform Enabler of the Value Eco-System Work Status
  • 41. 41 Content 1. DIP Approach and Outcome 2. Tuning-in: Smart Service Strategy 3. Phase I: Business Model 4. Phase II: Digital Capabilities 5. Phase III: Entrepreneurship
  • 42. Phase III: Entrepreneurship DIP Phases in the evolution of smart services 42 Implementation Phases Smart Service Strategy PHASE I Business Model PHASE II Digital Capabilities PHASE III Entrepreneurship Design the Hybrid Business Model Shaping superior Value-Ecosystems Fostering Empowered Execution • Governance System of Community • Activating Competence Network • Joint Consciousness • Achieving goal by driving Lead measures • Aligning Strategy with Business System • Smart Service Scenario • Design Work-Graph • Focus on Key Goals • Apply Digital Leadership Framework • Architecture of Participation • Set-up Digital Design Platform • Design Digital Network DIP Workshop I • Segmentation • Scenarios • Evaluation DIP Workshop II • Initiative Scope • Talent Pool • Network • Blueprint DIP Workshop III • Platform Prototyping • Plan Activation Sessions External Smart Service  1  2  3 Internal Smart Service  1  2  3
  • 43. 43 Entrepreneurship: Evolve the Eco-Systems Interplay of Architecture and Governance enable motivate Architecture of Participation Governance of Execution
  • 44. LaunchOn-Boarding Adoption Optimization • Match global talent with sub-jobs, workstreams and tasks • Explain the key goal • Agree on Lead- Measures • Train the Team to use the ShareRoom • Launch the Team into Action • Create Scoreboard • Align Roles and Expectations • Schedule Activation Sessions for Shared Consciousness • Focus on empowered Execution • Track results on the scoreboard • Additional training and mentoring • Clearing the path by sharing • Optimizing Team Performance • Encourage creative ideas to move the lead measures • Celebrate wins and accomplishments • Enable agile work The Ramp-up Process Support Activities Implement the four stages of Digital Team performance
  • 45. Activating the Competence Network for dynamic value creation 45 The Team-of-Teams Sphere of Activity MARKET • Customers • Stakeholder PERIPHERY CENTER Competence Team I Competence Team II Competence Team n Smart Service App Machine Tool Smart Service • Customer Competence • Workstreams/Tasks of the Periphery • Competence Development • Work Graph of the Center • Job-to-be-done Competence • Co-Creation of Smart Service PM German Engineering Basis: Winfried Felser, Niels Pfläging
  • 46. The Tasks of the Community Integrator 46 • He/she matches Tasks with Experts for enabling top-line growth • He/she takes part directly in the planning/coordination of the Journey to achieve Business Goals by creating Job content • He/she allows each one in the Community to benefit form the cooperation of others by creating the context of cooperation. • He/she is at the same time a Resource and a Constraint for Community Member. • He/she is supported by the Governance System/Scoreboards for achieving the Community Goals • It is not a dedicated job. It is a role in the organization system that an individual plays as part of his usual job. • He/she plays the role of a „new Human Resource Manager” Community Integrator is critical to Digital Team Success
  • 47. Community Integration : Empowered by the Cloud 47 DIGITAL DESIGN PLATFORM Online-Learning and Prototyping Community Integrator : Leading the Digital Team of Teams German Engineering Playbook 1 Repository of repeatable best practices and re-usable components PHASE I Business Model PHASE II Digital Capabilities PHASE III Entrepreneurship Playbook 2 Playbook 3
  • 48. 48 Enable Platform-based Competence Network Interactions Driving Competence Network Interactions for dynamic value creation Compensates Creates Connects Consumes VALUE-UNIT: Smart Services Competence Teams 2 Job-to-be-done Team Supply Demand Art of the Possible (Non)Customer Pain Sales Key Driver: • Network Effects • Fast Learning PERIPHERY CENTER MARKET • Customers • Stakeholder German Engineering Platform
  • 49. TMG: Coaching The Digital Team Implementation 49 TMG helps Clients to build Digital Management Skills by providing • Online Leadership Workshops for the Community Integrators of the Digital Teams • Coaching of the Digital Team Implementation and • Digital Design Platform as a Service The following TMG services helps the Management to build Digital Leadership Skills for Community Integrators : • Selecting the “Digital Team Opportunities”: Providing Methods for framing the Digital opportunity/challenge • Strengthening the Digital Leadership Skills: Co-Creation of the Design of the Project Work Graph and supporting Community Integrator in designing primary activities and managing the support activities. • Executing the Digital Team Project: Coaching of the Execution Process • Preparation of Online Work and Training of the Core Digital Team • Providing “on-the- job”-Training of the Methods/Disciplines and solving open questions when they arise • Preparation and coaching of the online team sessions together with the Community Integrator • Integration of the Business-IT Work for tailoring the Digital Platform • Participation in Management Reviews • Governing the Execution: Providing the cloud-based Digital Design Service for mobilizing the scalable Learning of the Digital Teams in the Value “Eco-System”
  • 50. Engagement: Weekly Operating Rhythm with Online Activation Sessions 50 Review 2 1 Report Report on the tasks of the last week 3 Plan Committments for the next tasks 1 Report Report on the tasks of the last week 3 Plan Committments for the next tasks 2 2 1 Report Report on the tasks of the last week 3 Plan Committments for the next tasks Week 1 Week 2 Week 3… Sprint Sprint Sprint Management Task Level 2 1 Report Report on the tasks of the last week 3 Plan Committments for the next tasks Week 4… Sprint Operative Task Level Review Review Review Empowered Execution : German Engineering Example German Engineering
  • 51. Coaching/Guidance of the weekly Review Events 51 TMG Online Coaching • Pre-Session Coaching: updating scoreboard of every team member and preparing the session agenda with Community Integrator • Session-Coaching: It ensures that members limit their status report to few minutes. For each goal members will focuses on objectives, status, issues and recommendations to ensure joint-problem solving instead of pure reporting. Guiding members to make commitments which have the highest possible impact. • Post-Session-Coaching: Documenting the commitment as basis for next week and de- briefing/ counseling of the Community Integrator along a systematic method • Between-Session Coaching: Answering questions of Community member when they arise and removing unexpected roadblocks. • Preparation of senior-management Presentation: Ensure format, timeliness and quality of result presentation De-Briefing Checklist 1) Meeting as scheduled ? 2) Was the session brief, brisk, energetic? 3) How die the Integrator played his role? 4)How was the review of the scoreboard? 5)Did we analyze who is winning, loosing? 6)Did we celebrate success? 7)Did the team hold each other accountable for commitments? 8)Did everybody make commitments for next week? 9) Did we clear the path for each other? 10)Did we keep out low value issues? 10 Questions Weekly „Review-Events“ as a Process Achieving the Goal in a continues process Review of the Scoreboards Learning from success and failure 2 1 Report Report on the tasks of the last week 3 Plan Committments for the next tasks Session Agenda Lync Invitation: When, Who Goal: Individual Reports: Scoreboard Update: Team Member: Commitment: Status:
  • 52. 52 To build up the Digital Team Organization we cooperate with the Client Management in the following way: • Supporting Management in building the right procedural and behavioral internal conditions • Providing Digital Leadership education and tools • Ensuring actual functioning of a job-specific Team-of-Teams as Deliverable • Providing thoughts and insights • Sharing expertise for creating and implementing of Digital Work • Supporting IT in transferring the Design Prototype to Company Standard Platform • Creating the conditions for continuous adaptation to the complex business environment – doing the right thing at the right time, constantly.
  • 53. 53 Transfer Competence Network Prototype into the Company Standard Application Transfer Optimized Application to Company IT Optimized Design Specification (Network Prototype) Digital Standard Platform of the Company Prototype Functionality Transfer DIGITAL DESIGN PLATFORM Online-Learning and Prototyping German Engineering
  • 54. 54 The Smart Service Network: The Platform of Collective-Intelligence@ Scale • High adaptability/agility for Customer Signals • Joint Consciousness of customers need • Mastering Complexity of dynamic value creation • Network Effects are key growth driver • Controlled Platform Access for Firm & Customer • Knowledge/Benchmark Exchange is enabled • Unity-of-Effort across boundaries • Global synergies for local but common themes Digitally Engage Customers Value Creation: Periphery Value Creation: CustomerValue Creation: Center Enabling the Periphery Teams Phase I: Connect Employees Phase II: Connect Customers Digital Team Platform Enabling the Center Team 2 Customer TeamCompany TeamCompany Team VALUE-UNIT: Smart Services VALUE-UNIT: Smart Services Outcome: Collective-Intelligence@Scale The Digital Team Platform German Engineering
  • 55. 55 Top-Line Growth Driver Digital Teams Building Blocks of Top-Line Growth Driving Top-Line Growth Top-Line Growth Co-Creation Network Effects Employee Engagement Cross-Country Synergies Leadership-driven networks Co-Creation Platform Out-of-Office Work Global Talent Pool Digital Teams Building Blocks Top-Line Growth Case Result: Increasing Sales by 35% through Cross-Selling of merged Company German Engineering
  • 56.
  • 57. 57 Automotive Engineering Other Industries Technology Management Group Profile Competences - Internet Driven Strategic Changes - Business Development - Accelerating Innovation Process - Mobilizing People in Networks Facts Office: München founded 1987 TMG helps companies create, build and launch new digital initiatives from within their organization