Our latest community event was contained within a stream at the Servitization 2016 conference held at Aston Villa Football Club. Together with ‘The Manufacturer’ and the Advanced Service Group, The Service Community attracted over 120 people to the event.
Nick Frank from the Service Community chaired the stream looking at practical examples of how companies have overcome specific challenges within their Servitization journey. Before lunch we had three presentations which focused on different ways companies create value from a service led approach.
Rob Burgess explanation of how UK Gaming equipment leader TCS John Huxley created a brand new revenue stream by gaining a deep insight into how casino’s make money, adding sensors to their chipping machines, so creating an innovative platform for managing casino cash throughput.
Graeme Coyne from Siemens Industrial told us how the key to successfully selling services in a product organisation is based around:
- Leadership from the top setting the tone and culture of the organisation
- Ensuring sales people understand ‘what is in it for them’
- Training in the skills and capabilities to sell solutions
- That whether to have a dedicated service sales team versus selling through product sales, is contextual on the business segment. Large organisations need a flexible hybrid approach!
Peter Coleman from Simon-Kucher then examined the importance of pricing & revenue models to being profitable. That different approaches can be used across segments, but running two different revenue models in the same segment is fraught with danger. He also demonstrated how the importance of defining value needs great emphasis in developing service pricing due to the intangible nature of the offer.
After lunch the emphasis change to achieving change;
James Rickard and Richard Fernandes from Atos explained that the key to developing IoT and remote capability is not the technology, but knowing the business problem to solve.
Jean-Marc Rommes from Business Paradigms in a very lively discussion demonstrated how profitable service transformation comes from first developing the right mind-set and culture. That most companies do not concentrate enough on this ‘Art of Change’ enough and as a result are more likely to fail. Download his handout here: servitization-2016-jmr-slides-161017
And finally Steven Barr from Henik Edge related his experiences of how collaboration is becoming an increasingly important expertise in developing service based business models
Presentation will be made available shortly.
The next service community event will be held in Q1 2017.