Management Insights

The challenges of solutions strategies

A successful solutions business is hard to implement. Whether or not it is the right competitive approach depends on a company’s strength in the market, how well it knows its customers (domain knowledge) and to what extent it is willing to invest in the necessary capabilities (possibly meaning a permanent […]

Value Based Services: A Choice for Long Term Strategic Advantage not Short Term profitability. Examples from the Healthcare Industry

Within the general servitization buzz the talk is a lot about transitions to outcome or performance based services, where a supplier contracts with a customer for outcomes -not activities- and gets paid accordingly. OEMs often bundle products and services into solutions (product-service systems) to produce the outcome, Rolls Royce’s “power-by-the-hour” […]

Collaborate to Compete: Potential for Independent Service Companies

Part 1 Collaboration and new ecosystems made possible by technology are in vogue today, but they usually involve either some form of tighter integration along a value chain (supplier to customer), better project oriented cooperation within companies or the coalescing of industry participants around a central platform provider to access […]

Raising the design game to succeed in Outcome Based Services

The Historical context 50 years ago most companies that made stuff had a product focus sometimes known by academics as Goods Dominant logic, in which tangible products were sold. Now more and more business are moving to delivering outcomes under a Service Dominant logic approach. The change is profound! This […]

Service Transformation: More an Art than Process

The mistake many leaders in industry make, is to believe that defining a clear vision and strategy with ruthless follow up is the only recipe for success. This may indeed initiate change, but rarely do the results last. Often 3-4 years later, the business will be addressing the very same […]

Six attributes to look for in a top performing service business

Companies frequently review their approach and discuss how to become more explicit and attentive to their customers’ needs. Almost always this leads to a discussion about services. Service organisations represent the customer and the customer operations better than most other parts of the company due to their closeness and local […]

Managing international service operations: One size fits all doesn’t cut it

Most discussions regarding geographic or international expansion for industrial companies has traditionally been centered on products. Usually a company starts by positioning a sales force in a territory, either directly or through channel partners, such as dealers, distributors or agents, and, as orders come in, exports from its engineering and […]

23 Important Lessons Learned the Hard Way in Asset management

Great Asset Management is not just about physics models and analytics. It is a way of thinking involving all parts of the organisation and businesses. Here is a brief summary of some of the key lessons I have learned in my career with leading companies in Asset Management such as Rolls-Royce […]

Are ‚Solutions‘ the right way to compete

The concept of competing through “solutions” has been around for at least 30 years. Numerous „tier 1“ manufacturers / OEMs (power, plant and process machinery, aircraft and engines, earth moving equipment) created solutions businesses to better target vertical markets, particular customer segments and/or large strategic accounts. For example industrial automation […]

Mobile Apps: A bridge to monetising a world of connected things

The key to monetising the Internet of Things (IoT) and Big Data is not to focus on the technology itself, but the impact on customers’ business processes and business model. However, many companies do not find it easy to imagine how their business model might change. Many are lost in […]

CEO story-lines to communicate service transformation more effectively

1. Why Story telling and pictures are Critical to Success Developing Advanced Services within a Product Centric environment takes many years of organisational and technical development. Having a clear overview of the key elements required to successfully deliver service transformation over an extended time period is vitally important to a […]

Strategic Clarity in Services for Manufacturers

Despite the fact that the majority of product companies offer services as part of their offering, and for many it makes up more than 30% of their revenues, many experience declining profits,weakening market positions and increasing susceptibility to risks. A shift from product to customer-focused services denotes a shift in […]

Ecosystem Thinking to develop Advanced Services

Delivering advanced service propositions can be daunting as they stretch beyond core capabilities 1. Ecosystem Thinking to deliver complex new service offerings In todays connected world, we think less about products and more about solutions and outcomes. Relationship, network and ecosystems are increasingly replacing traditional transaction and supplier thinking. Companies […]

Outcome & Performance based services and contracting

Outcome based services and performance contracting are increasingly gaining traction, though the practice in some industries goes back a really long time. The concept can have significant benefits for customers, even an entire industry or the economy by aligning incentives and creating “win / wins”, however things are less clear […]

Five Innovation Patterns to discovering new data driven services

As businesses begin to embrace the opportunities offered by the IoT, digitilisation and analytics, many are unsure what they are going to do with all that information.   Within product related service businesses, most of the thinking is centred on driving out cost through remote diagnostics and services. But this […]