IMPLEMENTING PROFITABLE DATA DRIVEN KPIS. Capt. Jan Wilhelmsson Director, Commercial Shipping

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1 IMPLEMENTING PROFITABLE DATA DRIVEN KPIS Capt. Jan Wilhelmsson Director, Commercial Shipping

2 THIS IS ENIRAM We help our customers maximize the fuel efficiency M B / day 10% IN 2014: 200,000t CO 2 SAVINGS OFFICES PARTNERS 40,000 / 17,000

3 Eniram #9 (October 2014) Lloyds List Intelligence Big Data Award (October 2, 2015) #1 in the Greentech category (May 2011) Energy Efficiency Solution of the Year (October 2014) (October 2014) European Cleantech Company of the Decade (May 2014)

4 SNAPSHOT OF CUSTOMERS

5 TODAY S DISCUSSION Yes, we will actually discuss what the title reflects. 1 Implementing Main barriers to successful implementation 2 Profitable What makes it actually profitable? 3 Data driven KPI s How do we assure we capture and process relevant data at sufficient reliability? CONFIDENTIAL

6 TODAY S DISCUSSION Yes, we will actually discuss what the title reflects. 1 Implementing Main barriers to successful implementation 2 Profitable What makes it actually profitable? 3 Data driven KPI s How do we assure we capture and process relevant data at sufficient reliability? CONFIDENTIAL

7 After de-averaging, who has the full picture today? From a profitability perspective, who can drive the evolution? Classic Owner Operator 80 % Owner/ Tonnage Provider (Pays for CAPEX) Commercial Operator (Pays the Fuel) Ship Management (Has primary internal vessel focus) Different organizations needs different data. Typically: Technical management > High Volume but not time sensitive Commercial Operators > Less Detailed but needed in real-time CONFIDENTIAL 7

8 In our industry we like to do things the way we always have. 8

9 When meeting with carriers today, the variation in their perception of what new of technology represents or can do for them is striking (also within same segment). Speed optimization? You can t change RPM during the voyage! Our business is too complex to automate. There are too many factors, so it s not worth it. We are shaping new departments and own in-house software. We have been at it for 3 years and are now implementing globally We don't care about 3% in fuel 9

10 Based on customer feedback Main barriers hampering successful implementation of modern data driven system and processes Organisation silos lacking links between spending budgets and benefits. In most case, the real barriers are We rely on experience and traditions. For various reasons it is not relevant for us.

11 TODAY S DISCUSSION Yes, we will actually discuss what the title reflects. 1 Implementing Main barriers to successful implementation 2 Profitable What makes it actually profitable? 3 Data driven KPI s How do we assure we capture and process relevant data at sufficient reliability? CONFIDENTIAL

12 Efficiency that translates to better earnings 1. Efficiency through visibility can Reduce Waste. I. Data provides visibility. II. Visibility provides a Commercial Operator the opportunity to act, and action may reduce waste. (Savings are often unexpectedly large.) III. Visibility creates a common understanding, also between organisations or departments. This creates internal efficiencies. IV. Classic Plan-Do-Check-Act. Two are data driven. Data Plan Act Do Check Data 2. Efficiency through Optimisation. I. Data is the basis for optimisation. II. By feeding it back to new commercial decisions, value can be created. III. Better data will make for better optimisation. IV. Better optimisation means higher yield. 12

13 Profitable for who? For the entity carrying cargo, a bit simplified fuel curve is key Labour cost vs. Fuel cost Vessel cost vs. Fuel cost Freight revenue vs. Fuel Cost If any of these are seen as linear or static, there is money on the table.

14 Data can translate to direct profits (but not if it is just sitting in a database ) In two areas can data improve profits Data can produce Visibility that can reduce Waste. Data can improve Optimisation leading to increased profit margins.

15 TODAY S DISCUSSION Yes, we will actually discuss what the title reflects. 1 Implementing Main barriers to successful implementation 2 Profitable What makes it actually profitable? 3 Data driven KPI s How do we assure we capture and process relevant data at sufficient reliability? CONFIDENTIAL

16 We have lots of data, but we re not sure what to do with it It can be helpful to ask a few questions: Why do we want to collect data? What do we expect to use the data for? Who will be using the data? Who will do the work? Start where the money is: The scope should be limited and start where the bottom line effect is the greatest. Simply put, the act of collecting and storing a lot of data will do absolutely nothing for anyone. It s when it is processed, analysed and acted upon, that the value is added. By insight and action. CONFIDENTIAL 16

17 Why 3% or even 1% matters Toyota Prius: introduced in 1997 as the first mass produced hybrid vehicle. It had unprecedented fuel economy, in city traffic as well as on the highway. As such, it was not the hybrid technology itself that produced the great numbers when coasting along, it was a result of large number of engineering initiatives, some with very marginal effect, but all adding up to performance that makes a difference. CONFIDENTIAL 17

18 KPIs that make a difference Start small and know why We can manage what we can measure Start by asking: Who Why What Limit the scope Start where it can matter most..($$)..but don t stop there. Manny small savings add up to large ones.

19 Capt. Jan Wilhelmsson Director, Commercial Shipping Come talk to us.