Service Economics. Hilbrand Rustema, Managing Director Las Vegas, 25 th October 2012

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1 Service Economics Hilbrand Rustema, Managing Director Las Vegas, 25 th October

2 About Noventum Our vision is that the Service Business leads the way to abundant AND sustainable growth and prosperity. Our mission is to unlock the unlimited potential of Service Business in organisations. We do this by offering a proven Service Business Model, a Transformation Roadmap and Best Practices. 2

3 What we do We re-ignite the company s capacity to create value. We do this by leveraging the company s strengths to design and deploy new service propositions and sales and delivery models which in turn enhance customer brand experience. We offer: 3

4 We offer Pragmatic expertise Innovation Our network 75 service specialists Proven methodologies Industry standards Best practices Thought-leadership through research Co-creation with our clients Client community Academic community World wide coverage 4

5 A global track record 200 successful projects, several industries, 9 Fortune 500 companies 5

6 Service Business 6

7 The most successful service strategies are Brand and People Driven 40% 30% Brand Driven Compelling value proposition Solving complex service challenges Globally-consistent services Unique knowledge Promoting experience Superior Customer Experience Sales Growth 20% People Driven Limited ability to differentiate on value proposition Long-term personal relationships Understanding and addressing specific customer needs Co-create solutions Continually build and maintain strong relationships 10% Price Driven Commodity like proposition Cost leadership and economies of scale is key to survival 0% -10% -0% 10% 20% 30% 40% 50% Driven by All rights reserved Noventum Service Management Ltd. Gross Margin Pr ice Feat ur e People Br and 7 Feature Driven Slightly better perceived benefits SLA based, high performance Constant pressure to add extras Source: Noventum

8 Relational brand values are the differentiators Thought leader Relationship Values Understands my business Demonstrates Flexibility Service Values Responsiveness Reliability Competence Price Time Conflict Customer Sacrifices Product Values Quality Customization Alternatives Source: La Piere

9 How is value created with services? Source of Differentiation Brand People Features Price Product + Availability + Knowledge + Transformations Type of services 9

10 The Service Business model The Customer Journey Corporate Value Management Customer Value Perception Brand BU Service Business Plan Service Propositions Sales Model Delivery Model People Management Customer Experience by touch point Service Factory 10

11 Outside-In The Customer Journey 11

12 Company Value Management Corporate value management describes how the company will add value and measure its progress Services Portfolio Performance Service Sales Performance Customer Experience Service Delivery Performance Learning & Innovation Financial Performance People Performance Expected outcome: Strategic Objectives Company Vision & Mission Service Strategy Financial Objectives Process Quality Learning & Growth Customers & Employees Company Value Management 12

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15 CUSTOMER VALUE PERCEPTION NEURONS 100 BILLION 15

16 Organise around customers and markets 16

17 Example: Service portfolio clearly showing customer value and buying objective in process automation Portfolio Segments Value Proposition Asset excellence services Production excellence services DCS availability services Instruments and actor services Safety excellence services Compliance to regulations services Assist and enable our customers to achieve Asset excellence Assist and enable our customers to achieve Production excellence Assist and enable our customers to achieve Safety excellence Assist to ensure the highest availability of state of the art technology Assist to ensure the highest availability of state of the art technology Assist our customers to secure compliance cost effectively 17

18 The Service Factory: Industrialization of services Sales and delivery models Customers adhoc low freq Value Quality Strategic partners Knowledge Availability Product support Service Propositions ebusiness Do it yourself Services 18

19 Build or reconfigure your own service factory with Lego! 19

20 People Management 20

21 People Management Implement all management practices for inspiring and engaging people Concern for the customer Grid for Service Excellence Relationship builder p builder Machine Fixer Problem Solver Concern for fixing the machine Trusted Advisor Technical specialist Powerful emotional connection to brand Evaluate and recognise Deliver training and coaching Define competency framework Recruitin g Career plannin g Exiting Organise people development Assess & analyse competencies Define development plans Competencies & Attitude Rule #6 Expected outcome: Competency profiles People Engagement People Development Leadership Development Time Resource Management 21

22 People Development is required at all levels Executive Operational management Service Leadership Service Productivity Management Service Sales Management Field Service Management Field Service Supervisor Service Design Support Center Management Support Center Supervisor Customer Experience Management Professional Services Management Professional Services Supervisor Public courses In-company courses Coaching & Workshops Specialist Trusted Advisor Service Sales Specialist Account Management Problem Solving 22

23 Customer Experience Management Remember: In services, the added value is in the experience, not only in the result 23

24 Conclusions There is no limit to growth with services! Follow a brand driven service strategy Develop a service business model Plan and manage the service transformation Start the journey now! 24

25 Service Economics Hilbrand Rustema, Managing Director Las Vegas, 25 th October All rights 25