The document discusses designing an effective customer value proposition for remote services. It recommends (1) understanding where one sits in the customer's ecosystem and who brings what value, (2) empathizing with the customer's gains and pains, (3) understanding what outcomes the customer wants to influence and what levers can be pulled, and (4) clearly describing where and how value accrues for the customer from top-line, bottom-line, and risk management perspectives. The key is looking at remote services through the customer's eyes rather than as a manufacturer to design a value proposition that meets the customer's needs.

1. Service
Innovation
|
Dr
Shaun
West
Remote:
4.0!
Und
Service?
It
all
starts
with
the
right
value
proposition
Swissmem,
F&E-­‐Konferenz
zur
Industrie
4.0
19
January 2016
Dr Shaun
West

2. Service
Innovation
|
Dr
Shaun
West
REMOTE
SERVICES
– WHAT
IS
THE
PROBLEM?

3. Service
Innovation
|
Dr
Shaun
West
Remote
services
– what
is
the
problem?
”Big
data”
can
create
big
problems
How
many
people
have
the
skills
to
analyze
the
data?
-­‐ Few people have
the
skills
-­‐ Most
traditional
firms
cannot
get
past
Excel
The
equipment
owner
owns the
data
-­‐ There
is
limited
value
in
the
data
-­‐ Data
must be
shared
within
the
supply
chain
-­‐ Data
must
be
transparent
Equipment
owners
consider
the
data
commercial
-­‐ The
value
is
in
the
data
analysis
-­‐ Benchmarking creates
value
in
the
ecosystem

4. Service
Innovation
|
Dr
Shaun
West
Remote
services
– what
is
the
problem?
Easy
to
confuse
data
with
information
Data
overload
-­‐ There
is
limited
value
in
data
-­‐ Real
value
come
from
effective
action
-­‐ To
make
action
requires
information
(and
more)
Creating
effective
action
needs
-­‐ A
mix
of
commercial
and
technical
dashboards
-­‐ Automated
reports
sent
to
appropriate
people
-­‐ Reports
for
the
customers
pains/gains
and
goals
-­‐ Language
appropriate
to
the
customer

5. Service
Innovation
|
Dr
Shaun
West
DESIGNING
THE
CUSTOMER
VALUE
PROPOSITION

6. Service
Innovation
|
Dr
Shaun
West
Find
your
customer
Do
know
who
your
customer
is?
Where
are
we
in
the
ecosystem?
-­‐ Imagine
we
are
a
train
component
OEM
company…
Production
Bogies
Suspenion
Owner
Operator
Maintainer
Lighting
Regulator
Insurers
Investors
System
operator
Spares
”…
we
thought
we
understood
our
value
chain,
on
reflection
we
did
not..."
Development
System
integrator

7. Service
Innovation
|
Dr
Shaun
West
Empathize
Do
you
understand
your
customers
gains
and
pains?
Empathy
mapping
can
help
understanding
-­‐ Key customers
and
stakeholders
-­‐ Often
more than
one
map
per
customer
group
Check
list
-­‐ Where
are
your
customer’s
inconstancies?
-­‐ Have
you
identified their
main
pains
and
gains?
-­‐ Can
you
quantify their
pains
and
gains?
(Hard)
”…
our
customer’s
revenue
was
based
on
number
of
passengers
and
they
were
hard
to
count…"

8. Service
Innovation
|
Dr
Shaun
West
Understand
outcomes
Do
you
know
what
levers
can
you
pull?
Direct
levers
-­‐ Condition/risk
based
maintenance
-­‐ Proactive
maintenance
notifications
Indirect
levers
-­‐ Identify
training
for
O&M
staff
-­‐ Changes
to
equipment
configuration
-­‐ Additional
spares
Related
levers
-­‐ Root
cause
is
elsewhere
in
the
ecosystem
”…
analysis
showed
that
our
customer’s
breaking
problem
was
due
to
leaves…”

9. Service
Innovation
|
Dr
Shaun
West
Identify
the
jobs-­‐to-­‐be-­‐done
Do
you
know
the
customer
side
of
the
customer
value
proposition?
A
check
list
for
customer
jobs
-­‐ What
jobs
are
you
being
asked
to
perform?
-­‐ How
do
you
fit
into
their
processes?
-­‐ Do
you
know
why
you
are
being
asked
to
do
these
jobs?
-­‐ Are
there
jobs
that
you
could
do
better
than
the
customer?
-­‐ Are
there
jobs
others
in
your
ecosystem
could
better
perform?
-­‐ Are
there
jobs
the
customer
could
better
perform?
”…our
customer
was
better
at
performing
some
tasks
than
we
were,
so
we
learnt
to
worked
with
them..."

10. Service
Innovation
|
Dr
Shaun
West
Communicate
Do
you
know
how
to
describe
the
value
that
accrues?
We
must
understand
where
outcomes
accrue
-­‐ Top
line
– means
more
sales
for
our
customer
-­‐ Bottom-­‐line
– means
cost
savings
-­‐ Compliance
and
risk
management
– increases
sustainability
Each
customer
and
market
is
different
so
flexibility
is
required
-­‐ Companies
change
strategy
-­‐ Market
conditions
change
-­‐ New
technologies
make
new
things
possible
More
potential
revenues
(improved
availability,
asset
utilization…)
Improved
safety,
reduced
emissions…
Cost
savings
(improved
fuel
efficiency,
reduce
time…)
”…we
assumed
everyone
with
the
same
equipment
had
the
same
needs.
This
is
not
the
case!"

11. Service
Innovation
|
Dr
Shaun
West
CLOSING

12. Service
Innovation
|
Dr
Shaun
West
Closing
Prototype
process
to
combine
Industry
4.0
with
remote
services
Find
where
you
sit
in
the
ecosystem
and
who
brings
what
value
Understand
your
customer's
gains
and
pains?
Understand
the
customer's
outcomes
and
their
influencers?
Create
the
customer
value
proposition
Describe
clearly
where
the
customer’s
value
accrues?
The
technology
exists
today
(or
tomorrow…)
Much
of
the
customer
value
comes
from
intangibles!
Remember:
look
with
the
eyes
of
the
“customer”
rather
than
as
a
manufacturer

13. Service
Innovation
|
Dr
Shaun
West
Thanks
for
your
time!