Aftermarket Business Platform 2013 post event report

YOUR ESSENTIAL EXECUTIVE TOOLKIT Bojesen at Axelborg, Copenhagen, Denmark, October 23rd - 25th 2013

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POST EVENT

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2013

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Editor’s RetrospectiveThe 7th Aftermarket Business Platform took place October 23rd - 25th at the beautiful Bojesen in Copenhagen and welcomed close to 200 after-sales experts from across Europe and beyond to discuss, share, learn, and network around several themes such as pricing, spare parts, BRIC market strategies, sales growth initiatives, servitization and service design.

“Service will make the difference”Looking at the evaluation forms and key takeaways of participants, it is clear that servitization is the big trend of the moment. Manufacturers understand the growing importance of servitization to achieve sustainable growth and excellent customer service. Creating service as a prod-uct, or a bundling of services as key differentiator, is a challenging task and requires manufacturers to undergo an extensive Service Transfor-mation. The maturity level of the transformation varies among manufacturers, depending on their industry vertical (read more on that in our Servitization Market Study).

Another key topic of importance among participants revolved around Pricing, which is critical to determine the profitability of a manufacturer’s margins in the aftersales division. Following in the trend of servitization, which is about bundling services and products to produce value for the customer, there is a need for manufacturers to follow up in the commercial department with Value Based Pricing and Value Selling. Unfor-tunately, too many manufacturers are still using the simple algorithms of cost plus pricing, because they face uphill challenges in implementing value based pricing. The top 3 challenges faced by our participants are: Data inconsistency (45.3%); lack competitive data (42.7%); and lack of resources (38.7%).

Overall, the event showed that most manufacturers are facing the same challenges, and this type of event is the perfect platform for them to learn from each other, brainstorm on, and get inspired into new and innovative service concepts.

Content DirectorCopperberg

http://www.linkedin.com/in/thomasigou

https://twitter.com/tomigou

Aftermarket Business Platform 2013 - Post Event Report2

Aftermarket - Editor

93% of the attendees rated the content of the conference between 4-6 of 6

4 - 61 - 3

“It was my second visit to the outstanding conference and it was even better than the first time. A very good blend of Keynotes, smaller Workshops, Round-Tables and a Fair - so Learning, Discussion and intense Networking was guaranteed. If you haven’t at least found 10 new fruitful Business Contacts and one dozen new Ideas how to approach your business challenges, you have not been to the same conference ;-)”- Michael Kübel, Vaillant Group “The quality of information presented was exceptional. Individual who attended possess extensive knowledge related to aftermarket support”- Patricia Miller, Thermo Fisher Scientific “Very good conference. Well organized, networking was really very good. Enjoyed the discussions and different industries that were represented.”- John Lynly, KONE Corporation “The well architected program delivers valuable information from suppliers and consumers point of view. It provides all participants many opportunities to learn from other participants’ experience.”- Bernd Stibi, Voith Paper “Unique and inspirational set-up. Great to learn from peers in a collaborative environment.”- Jo Pauwels, ABB “The content of the conference was extremely relative to the conditions we are experiencing at our company. The opportunity to listen and network with individuals whom have already implemented strategies to address these conditions is invaluable. I felt that I left the conference with a refreshed perspective and the encouragement to execute change.”- Kelly Diedrich, JBT FoodTech “The networking was my personal highlight due to a lot of very interesting people from more or less heterogenic branches. I would be glad to see you next time and to get the invitation soon. Greetings!”- Jen Schiring, Siemens Switzerland Ltd.

“Well organised event!”- Ana Rita Dias, GE Power & Water

Aftermarket - Testimonials

“Thanks for the invite and I would like to state that it’s the first After Market forum I am attending and I sincerely appreciate the efforts put in by the Copperberg Team. THE reception was wonderful and the team was well coordinated”- Sivaramakrishna Challa, Volvo India Pvt Ltd. “Great congress, learned a lot and got new inspiration for growing my service and aftermarket business”- Geert Hendriks, Eaton Industries B.V. “Time well spent, thought provoking presentations, well-structured breakouts and networking opportunities”- Ian Dowdle Pall Europe “Excellent opportunity to stay abreast of latest developments in the aftermarket space and to connect with peers in the industry.”- Eric Zahrai, Eaton Corporation – Vehicle Group “Professionally organized, good content with high net-working focus. Good conference.”- Steffen Saur, Vaillant “This was my first attendance and was really impressed. Networking is so valuable, exchanging experiences, ideas, creating opportunities”- Olivier Legrand, BouMatic “All aspects are very good. Contents as well as organization.”- Haijo Leeuwis, Goss Contiweb “The right level of people to exchange ideas and gaining ideas to develop the future.”- Thomas Radau, Deutz AG “Great meeting with many interesting people and experience to share. Going to participate again.”- Ketil Græe, TTS Marine AS “High level of speakers and attendees make this a worth-while experience”- Rutger Jansen, Godd Contiweb

Aftermarket Business Platform 2013 - Post Event Report 3

Sami Pitkänen, VP Service EMEA, Metso Automation

Lars Jansson, Former Chief Project Manager, The PriMa Project at Volvo Global Truck Sales & Marketing

Chairman: Jason Smith, Head of Projects, AssetRight Ltd.

Session: Aftermarket Megatrends

Dr. Jörg Rissiek, Vice President Services Strategy and Enterprise Initiatives, EADS/Airbus Group

Session: Future Services Designs in Aerospace and Defence

Gunther Kraft, Product Manager and Team Leader at Product & Price Management MAN Genuine Parts®

Session: How to make money with spare parts - from the drawing board to market success

Rutger Jansen, Director Sales & Service, Goss Contiweb B.V.

Session: Remote Service Management - Getting closer to your customers through remote service tools

Dr. Guido Hild, Vice President Business Unit Farm Services, GEA Farm Technologies

Session: Creating a difference: Service Branding at GEA Farm Technologies

Session: From Product to Service - Change Management as a supporting tool for your Business Transformation

Jo Pauwels, Group Senior Vice President, Head of Customer Services, ABB Discrete automation and motion

Session: Service Excellence: from customer satisfaction to customer delight

Vsevolod Gavrilov, Director Russia, Volvo Penta

Session: Remote B2B customer management in Russia

John R. Lynly, Head of Segmentation and Value Creation, KONE Corporation

Session: Linking Customer Value Creation to Pricing Excellence

André J. Brogli, Vice President Customer Support Services, Sulzer Pumps Ltd.

Session: Sales growth initiatives using a proactive approach on spare parts sales

Session: Increasing Sales Effectiveness in Global Aftermarkets

Padmakumar (EPK), Global Director – Vertical Solutions Manufacturing, HCL

Session: Transforming the Aftermarket process by leveraging data and connectivity

Andreas Westling, CEO, Navetti

Session: Sustainable profit through operational pricing

Marcio Santos Cardoso, Vice President of Sales and Aftermarket - South America - JLG Industries Inc.

Session: Insights into aftersales operations in Brazil

Tony Abouzolof, Co-Founder & Global Sales, Syncron

Session 1: Aftermarket optimization can take you beyond today’s business level

Session 2: Aftermarket optimization can take you beyond today’s business level


Aftermarket 2013 - Speakers

Sivaramakrishna, Head of Customer Solutions, Volvo CE

Session: Customer support in competitive India

Wim Heyvaert, Director Aftermarket & Service, Tomra Sorting Solutions

Session: Change Management for sustainable competitive advantage - a moving target is hard to hit

Lars Hansson, Senior Manager, E2E Network Management, Sony Mobile

Session: Service Parts Management: From Excess to Success

Sean Duclaux, Service Parts Industry Marketing Manager, PROS

Session: Increasing Sales Effectiveness in Global Aftermarkets

Michael Kübel - Director Group Service Operations, Vaillant Group

Session: Best Practice – Standard-izing service business models across markets

Peter Cornelius, Product Director R&D, IFS

Session: How to make the customer happier and the business more profitable through optimized reverse logistics

Fredrik Persson, Senior Advisor Service & Asset Management, IFS

Session: Aftermarket optimization can take you beyond today’s business level

Stephan März, Head of BU Services, Member of the Group Executive Committee, Bobst Group

Session: Generating profitable & sustainable growth again with the implementation of a brand-driven service strategy

Peter Møllebjerg Andersen, Senior Director, Vestas Wind Systems A/S

Session: Case Study: Market Leading Lost Production Factor

Werner Holzgethan, Manager Supply Chain Management RailServices, Knorr Bremse Systeme für Schienenfahrzeuge GmbH

Session: Lifecycle based pricing for Spares and Services

Fabio Cicalini, Pricing Expert, former Vestas

Session: Transformation of a Service Sales Department

Pascal Born, Vice President Supply Chain Solutions, Neovia Logistics

Session: The new Aftermarket Frontier: Servitization and Service Differentiation

Emma Karlsson, Solution Consultant, Infor

Session: Equipment Companies: Never Can Say Goodbye


Aftermarket 2013 - Speakers

87% of the attendees would attend again next year

87% 13%

“How to achieve profitable and sustainable growth through Service Transformation?”Noventum’s managing director Hilbrand Rustema facilitated the session and as a special guest at the table we had Stephan Maerz, Head of the BU Services, and member of the board of Bobst Group.

Two roundtables of 40 minutes with different groups of approximately 25 persons each discussed the big question. All the executives around the table agreed that the western economies have permanently changed. Before the global financial we lived in a products and services economy were products and technological innovations were important for growth. Services provided by manufacturers were mainly product related, sup-ply spare parts, and providing maintenance and repair services.

In the new reality companies have become suddenly a lot more cus-tomer centric as many businesses were forced to re-think their reason of existence and had to ask themselves how they add value for their customers, employees and partners. Companies have come to realize that often their customers do not only want technological innovations but also want to better make use of the technology knowledge and experience of their equipment vendors. Therefore many companies are no focusing on selling more services that are knowledge inten-sive, highly complex to sell and deliver but also represent enormous growth and profit potential. Examples of advanced services that were mentioned are up-time agreements with customers that guarantee a machine’s performance, or advisory services helping customer to improve their business processes.

The key question during the roundtables were: How do companies do this. The case of the Bobst Group was mentioned a number of times, as an example were in less than a year an enterprise wide Service Transformation initiative has succeeded to achieve double digit growth. (for more on this case http://www.noventum.eu/cases/bobst)

Most companies seem to go through similar phases of transformation of their service business. Companies around the table were either in the start-up phase, intermediate phase or advanced phase which each have their key requirements before a company can pass to the next phase:


Aftermarket 2013 - Roundtable Highlight


Aftermarket 2013 - Roundtable Highlight

Start-up:• HaveC-suitesupport.Withoutsupportfromthehighestinrankitwill be almost impossible to make the changes that are typically needed for a successful Service Transformation

• Identifytheserviceopportunities,everybodyintheorganisation should understand what the potential reward for a strategic focus on the service business is. Customers get what they really want, Profitable and sustainable growth for shareholders and development opportunities and a better place to work for employees.

• Haveavisionandstrategyforprofitableandsustainableservice growth, just like any business, once the strategic objectives are defined, as shared vision of the future should also be accompanied by a well-articulated strategy that explains to all involved how, who, when and where things will have to happen.

Intermediate• Standardisedservicesportfolio,standardisedpersonalisationisneededtoenablescalability,consistencyincustomerexperienceand eventually predictability of profit margins. Companies have to make sure that what is sold also can be delivered profitably and consistently.

• Implementastandardisedserviceorganisation,investmentsdoneatcorporatelevelintoprocesses,systemsandpeoplewillbeleveragedso that a good return on investment will be achieved, although countries, regions or divisions may implement at different speeds

• Selectandimplementtherightsystems,cloudbasedarchitecturesareeliminatingtraditionalconstraintsinprocessinnovation.Agile development methods are taking over from the big bang approach, reducing risk and improving the time to market of new service innovations.

Advanced• Sellingadvancedservicescanonlybecomesuccessfulwhencompaniesmovefrompushingproductstohelpingcustomersunderstandwhat they really want using consultative sales methods. That should be done by service sales people that follow proven sales methods, possess the contextual knowledge and can articulate to customers how value is created with the services being offered.

• Deliverthebranddrivencustomerexperience.Customerexpectationsareoftengeneratedbythecompany’sbrand.However,itoftenisthe service organisation that has to make the promise happen. Successful companies deeply understand what makes them different. Not only do they manage to consistently deliver the results, they also make the customer feel as they would like to feel when dealing with that brand. Customer experience can be designed, managed and measured fulfil the brand promise.

• Influencepeoplebehaviour.Brandvalueswillalsodriveyourpeople’sbehaviourwhointurnaffectthecustomer’sexperience.Engagingand developing talented people is quickly becoming the competitive edge in the service industry. Leaders of successful service business invest considerable time and money in this.

Hilbrand Rustema, Managing Director, Noventum

Company Title ABB Manager Global Function Drives and MotorsABB Diplomated Engineer, Process AutomationABB Service Product Marketing Manager – BU- Medium VoltagABB Discrete automation and Motion Group SVP Head of ServiceABB Switzerland Head of Service Power Electronic SystemsAIRBUS Head of Transformation and Change Transformation and Change – Customer ServicesAlgol Technics Oy MDAllweiler AS Sales Engineer AftermarketAndritz Feed & Biofuel A/S Head of Automation and Site ServicesAssetRight Head of ProjectsAvure Technologies AB Technical ManagerAvure Technologies AB Product Owner ServicesAvure Technologies AB Sales ManagerBobst Group SA Head of BU Services, Member of Board of DirectorsBombardier Transportation France Sales & Marketing DirectorBouMatic Gascoigne Melotte Sprl Product Manager Dairy Hygiene EUCargotec Project Manager, Hiab Services MarketsCargotec Finland Oy Vice President, Service OperationsClickSoftware Account ExecutiveClickSoftware Account ManagerCNH Industrial Pricing Manager EMEAConsilium Marine & Saftey AB After Sales ManagerDassault Systèmes SA Solution Experience DirectorDassault Systèmes SA Industry Business ConsultantDeLaval International Service CoachDEUTZ AG Head of Service SalesDMG MORI SEIKI Service Manager EuropeEADS, ice President Services Strategy and Enterprise InitiativesEaton Corporation Manager ServiceEaton Corporation Commerical Director Clutch & AftermarketEricsson AB Global Category Lead, After Market & Reversed logisticsFesto Cte Manager After SalesFlowserve VP & GM EMA Aftermarket OperationsFLSmidth Head of Department Master of International BusinessFLSmidth Business DeveloperFLSmidth Head of Department, Local Service Units, GlobalFLSmidth Product DeveloperFLSmidth Head of Department Customer Service OperationsFLSmidth Global Product ManagerFormer Vestas Pricing ExpertFormer Volvo Trucks, Former Chief Project Manager PriMa ProjectGE Power & Water EMEA After Market LeaderGEA Erge Spirale et Soramat Services Department ManagerGEA Farm Tech Vice President Business Unit Farm ServicesGEA Mechanical Equipment Italia S.p.A. CFOGEA Mechanical Equipment Italia S.p.A. International Aftermarket ManagerGeislinger GmbH Manager ServicesGoss Contiweb B.V. Director Sales & ServiceGoss Contiweb B.V. Manager Technical Resources & Spare Parts

Company TitleHardi International After Market Product ManagerHCL Senior Sales DirectorHCL Country Manager - DenmarkHCL Senior Business Development ManagerHCL Manufacturing - AfterMarket Solution HeadHCL Head of Manufacturing MarketingHCL Mobility CoEHowden General Manager Aftermarket EMEAHowden Denmark A/S General Manager AftermarketHowden Group LTD General Manager Howden DenmarkHowden Thomassen Compressors BV Manager Howden Thomassen ServiceHyundai Motor Europe Teamleader AftermarketIFS Marketing ManagerIFS Global Industry Director ManufacturingIFS Senior Advisor Service ManagementIFS Sales ManagerIFS Key Account ManagerInfor Marketing ManagerInfor Account ExecutiveInfor Solution ConsultantInfor Global Account ManagerJBT FoodTech Aftermarket AnalystJBT FoodTech Manager, Marketing & Administration - AftermarketJCB Service Aftermarket Product ManagerJCB Service General Manager – Sales & MarketingJCB Service Regional Aftermarket Sales ManagerJLG Latino Americana Ltda VP of Sales & Aftermarket, South AmericaJohn Bean Technologies AB Aftermarket DirectorJohn Bean Technologies NV Aftermarket ManagerJohnson Controls Marine & Navy Director, Global Marine Services Marine & NavyJohnson Controls Marine & Navy Branch Manager, Global Marine ServicesKatoen Natie Business Development Manager - Aftermarket LogisticsKHS Service DirectorKnorr-Bremse Systeme GmbH Manager Supply Chain Management AftermarketKONE Corporation Head of Segmentation & Value CreationKongskilde Industries A/S After Sales ManagerKongskilde Industries A/S Internal Sales ManagerKrøll Cranes A/S Managing DirectorLely Senior product managerMan Diesel & Turbo Project Manager Logistics After SalesMAN Diesel & Turbo SE | PrimeServ Senior Business Support & Development ManagerMAN Truck & Bus AG Product Manager & Team LeaderMAN Truck & Bus AG Product & Price Management MAN Genuine PartsMarel Global Service DirectorMarel Service Manager


Aftermarket 2013 - Attendees

Company TitleMarel A/S Spare Parts ManagerMarioff Corporation Manager, After Sales & Service OperationsMarioff Corporation Manager, After SalesMeritor Aftermarket Switzerland AG, Managing Director, Aftermarket EuropeMetso Automation VP Services EMEAMetso Automation Oy Solution ManagerMetso Power AB Product Owner, Performance ServicesNavetti CEONavetti VP Marketing & Human ResourcesNeovia Logistics Services Global Business Development DirectorNeovia Logistics Services Vice President Supply Chain SolutionsNoventum Service Management Consultants Ltd. Managing DirectorNoventum Service Management Consultants Ltd. PartnerOutotec, Vice President Head of Services EMEAOutotec, Director Service ArchitectureOutotec Oyj VP ServicesOvivo Title Market Director – Parts & ServicePalfinger AG Head of ServicePalfinger Dreggen AS Head of Spare PartsPall Service Product MarketingPall AG Operations DirectorPall Service Manager Southern EuropePenske Logistics Strategic Account ExecutivePenske Logistics Supply Chain ManagerPerten Instruments Head of Global AftermarketPitney Bowes Service System Business ManagerPlanmed Oy After Sales ManagerPon Equipment and Pon Power Vice President Service ManagementPottinger Head of Service DepartmentPragma Acuity MDPROS Marketing Director EMEAPROS Product Marketing Manager Spare PartsPROS Account Director NordicsPROS Account Development RepPROS Strategic ConsultantPTC EMEA Marketing ManagerPTC Principal Technical Sales Specialist and Team LeadPTC Sales Director Aftermarket Solutions, NordicsPTC Global Product Marketing & Market DevelopmentRoxar Flow Measurement AS Director Global ServicesSaab AB Business Development DirectorSAP Director EMEA Business DevelopmentSAP Regional Sales ManagerSeaonics AS Service and Aftersale ManagerServiceMax Sales DirectorServiceMax Senior Sales ConsultantSiemens Industrial Turbomachinery AB Strategic Research & Process Development, Business & Product Development Service

Company TitleSiemens Industrial Turbomachinery AB Manager Product Development Gas Turbine Engineering & R&D ServiceSiemens AG Sales Representative Customer ServicesSiemens Wind Power Business DeveloperSiemens Wind Power A/S Product Management ManagerSKAKO A/S Head of Aftersales & ServiceSKF Polska SA Distributor Programs ManagerSony Mobile Senior Manager, E2E Network ManagementSony Mobile Communication Senior Project ManagerSony Mobile Communication Senior E2E PlannerStoneridge Electronics AB Business Unit ManagerSulzer Pumps Ltd Head of Global Customer Support ServicesSyncron Head of MarketingSyncron Co-Founder & Global SalesSyncron Director Sales DACHSyncron Sales Executive NordicsTelliQ AB Business ManagerTerex Aerial Work Platforms Parts Manager EMERTerex Aerial Work Platforms Technical Services Manager – Scandinavia, Baltic States & RussiaThermo Fisher Scientific Marketing Communications ManagerThermo Fisher Scientific – EPM Product Line Manager – Service and SupportTOA Technologies Business Development Executive, EMEATOA Technologies Director- SalesTomra Sorting Solutions Aftermarket & Service DirectorTTS Marine Vice President Services WinchesTTS Marine Project Manager ServiceTTS Marine Project Manager ServiceTTS Marine ASA Vice President Sales & MarketingVacon Service Marketing and Business Development ManagerVacon Service npi EngineerVacon Manager, Network Support & Spare Part mngtVaillant Group Director Group Serivce OperationsVaillant Group Head of After Sales & Service GermanyVestas Senior DirectorVestas Wind Systems A/S Senior IT Architect, Service & Service Engineering Wipro Technologies Vice PresidentWipro Technologies PrincipalVoith Paper GmbH & Co. KG President Products and ServiceVoith Paper GmbH & Co. KG Vice President Products & Services EuropeVolvo Construction Equipment AB Director Global LogisticsVolvo Construction Equipment AB Director Global Financial ServicesVolvo India PVT LTD Head of Customer SolutionsVolvo Penta Director of Volvo Penta DivisionVolvo Penta Global Price ManagerVolvo Penta Dir Parts & Serv Eng. Training and InformationVolvo Penta AB Director After Market Sales & Customer SupportWärtsilä Director, Global Parts ManagementWärtsilä GM, Parts Managment


Aftermarket 2013 - Attendees

Aftermarket 2013 - BreakdownsDelegate Profile

46%

15%

8%

6%

5%5%

4%3%

3% 3% 2%

Industry breakdown at Aftermarket Business Platform 2013

Machinery/Industrial Equipment

Marine

Energy

Automotive

Oil & Gas

Food

Aerospace/Defence

Process Automation

Healthcare

Consumer Goods

Consumer Electronics

20%

13%

13%

11%8%

5%

5%

5%

4%3%

3%3%

2% 2%

1%

1%

1%

1%

1%1%

1%

1%

Countries represented at Aftermarket Business Platform 2013

Sweden

Denmark

Germany

UK

Finland

India

France

Switzerland

Belgium

Netherlands

Italy

Norway

USA

Austria

Industry breakdown at Aftermarket Platform 2013

Delegate Profile

46%

15%

8%

6%

5%5%

4%3%

3% 3% 2%



Marine

Energy

Automotive

Oil & Gas

Food

Aerospace/Defence

Process Automation

Healthcare

Consumer Goods


20%

13%

13%

11%8%

5%

5%

5%

4%3%

3%3%

2% 2%

1%

1%

1%

1%

1%1%

1%

1%


Sweden

Denmark

Germany

UK

Finland

India

France

Switzerland

Belgium

Netherlands

Italy

Norway

USA

Austria

Countries represented at Aftermarket Platform 2013

Delegate Profile

46%

15%

8%

6%

5%5%

4%3%

3% 3% 2%



Marine

Energy

Automotive

Oil & Gas

Food

Aerospace/Defence

Process Automation

Healthcare

Consumer Goods


20%

13%

13%

11%8%

5%

5%

5%

4%3%

3%3%

2% 2%

1%

1%

1%

1%

1%1%

1%

1%


Sweden

Denmark

Germany

UK

Finland

India

France

Switzerland

Belgium

Netherlands

Italy

Norway

USA

Austria

Delegate Profile

46%

15%

8%

6%

5%5%

4%3%

3% 3% 2%



Marine

Energy

Automotive

Oil & Gas

Food

Aerospace/Defence

Process Automation

Healthcare

Consumer Goods


20%

13%

13%

11%8%

5%

5%

5%

4%3%

3%3%

2% 2%

1%

1%

1%

1%

1%1%

1%

1%


Sweden

Denmark

Germany

UK

Finland

India

France

Switzerland

Belgium

Netherlands

Italy

Norway

USA

Austria

91%

4 - 61 - 3

of the attendees rated the networking of the conference between

4-6 of 6

Stoby MåleriHercules

Thanks to our Partners 2013


Join us in 2014We are proud to announce that next year’s edition, the 8th Aftermarket Business Platform, will take place in Amsterdam on October 22nd - 24th, 2014. Follow us regularly for more information on agenda, venue and speaker list after the New Year.

Call for speakers 2014 edition

Would you like to be involved in the 8th Aftermarket Business Platform? There are many ways:

•Chairman: Open the conference and moderate the 3-day event

•Keynote presentation (45 minutes)

•Focused sessions (30 minutes): Case studies or best practices on actual implementations with concrete results to share to the audience

•Firestarters (15 minute): lightning talks about a specific topic, straight to the point

If interested, please contact:

Thomas Igou, Content Director Phone: +46 8 502 552 339 Email: [email protected]

Aftermarket 2014 - Amsterdam Oct 22nd - 24th

This conference is the leading platform for aftersales and service professionals in Europe, and has stood the test of time. Now in its 8th edition, we are proud to see the event constantly growing, and we expect 2014 to be our biggest event yet. This is an opportunity you simply cannot miss out on.

Why should you become a partner?

1Associate your brand with #1 Manufacturing Aftermarket Business Platform

2 Limited Partner Opportuni-ties; We are inviting a limited number of partners, all well evaluated for the best matchmaking effect

3Benefit from the Global Marketing coverage

4Generate new business opportunities with leading manufacturing organizations

5Be a part of business critical conversations that take this

industry forward

6 Show your solutions to an audience that really counts

We tailor make your individual business

suit to fit your specific business

objectivesÅsa Karphammar

Senior Business AdvisorPhone: +46 8 120 505 53

E-mail: [email protected]

7 By invitation only; All attend-ees are carefully screened for business critical issues



Market Survey Report – Servitization

Servitization is a trendy word these days among manufacturers. However, what does it mean and how can organizations get there? For the purpose of a common understanding, here is the definition we use:

“Servitization is the innovation of an organization’s capabilities and processes to shift from selling products to selling integrated products and services that deliver value in use.” (Malcol Youll)

The purpose of this study was to understand why are manufacturers turning to servitization, what are their most pressing challenges in service transformation, and where do they currently stand on a maturity scale in their goal to servitize?

What industry do you represent?

How much does the aftersales contribute to your company´s annual turnover?


Market Survey Report – Servitization

Pressing challenges in organizations’ journey to servitize

Servitization is one of those hot trends right now in manufacturing, like Big Data for example, that everyone hears about and for which everyone understands the general sense or concept, but yet for which there is still no common definition. This fact leads to the first challenge faced by manufacturers in their quest to servitize: change the mindset/culture of the organization. It is hard to transform into something if the organization or the change agents themselves don’t fully grasp what the “something” is. Additionally, while manufacturers themselves are facing hurdles in their service transformation, so must they face at the same time changing customer requirements. So it is essential not only to learn how to change internally, but also understand your customers and their evolution.

One interesting finding from the market study is the main reason for servitization: challenge competitors on value rather than cost of products (price). Many markets and products are becoming commoditized, and additionally, Western manufacturers face increasing competition from cheaply manufactured products flooded from Asia, so being able to sell on the value of their products and subsequent services has become their main tool to gain competitive advantage. However, there is a long way to go before manufacturers fully embrace servitization. A large majority (43.1%) have only recently started change management initiatives.

Thomas Igou, Content Director Copperberg

On a scale of 1-5 (1 being the least mature, 5 being the most mature) how would you rate the maturity level of your organization in its goal to move from product manufacturer to service provider?

What is the main reason your organization is looking at servitization?

Malcolm is an experienced international executive who has successfully operated within leading manufacturing and engineering companies to deliver increased revenues and profits across a variety of industries. Pragmatic in approach, he delivers results ahead of targets; using best in class methodologies, processes and systems to deliver unrivalled financial returns and customer service.

Malcolm earned his MSc in Manufacturing, Management & Technology from The Open University and attended the Lausanne Leader-ship Program at IMD (International Institute for Management Development) - Business Programs and MIT Driving Strategic Innovation.

By Malcolm Youll AssetRight © [email protected]

www.assetright.com

The following paper is intended to raise more questions than provide solutions to you, however if it stimulates you to think “Is my company doing enough towards my customer” then it has achieved its intended purpose. The global aftermarket business is changing rapidly yet many companies are still focus-ing on short-term problems rather than thinking about the implications to the business over a longer period of time, believing that their margins are safe.

Time for change

Business silos exist today where many companies are developing strategies and organisations to deliver only one part of the total solution to their customer, often missing out on a cohesive offer-ing to doing business, which will leave many renowned names in danger of allowing new entrants into the marketplace.

However there is a real opportu-nity to allow developed compa-nies to change their business model and offering and make a significant impact on their business, servitization may be a savour for many western developed companies and a concept which needs further exploring to see what opportunities are available through this concept.

When I think about my previous positions within established and market leading companies, the only real issue that concerned me on an ongoing basis was the threat from the Asian market. My

14

The implications of Servitization on manufacturing companies over the next five years

career has been built around Aftermarket and Service, which traditionally has been the area which created the profit for the companies who I worked for; however, this is now changing. Many people will recognize that parts generate significant margins, but this is changing and companies must start to realize that margins of 50%+ over the next five years will start to spiral downwards out of control due to increased competition and a disconnection with the customer over what value truly is. For many, the

high margins previously achieved will move more towards the mid 30%, and there will be no plan to recover this: sales people will discount to win business based on revenue targets, suppliers will seek a direct route model to mar-ket to maintain their margins, and the customer will have more choice than ever over where they purchase parts.

But the real issue is that com-panies will move even further away from connecting with their customers, who they say are

their most important focus.

Defining Servitization

So why does it go wrong? Customers do not buy products, they buy solutions to their problems. So, what is “Servitization”? There are many people offering their view of what it is; however, I offer my view, which hopefully is easier to understand.

Throughout my career within Engineering/Manufacturing companies I have never seen a complete offering towards the customer, and when I consider this, I sense excellent companies are missing a significant opportunity to connect with their customer and offer true value which translates into improved customer satisfaction and retention. Figure 1 is typical of many companies who operate within a Manufacturing/Engineering business

Figure 1

Aftermarket Business Platform 2013 - Post Event Report

The future leaders of aftermarket profitability need to be thinking differently about their current business model. Customers will in the future expect the product “machine” and service “parts” to be a complete offering, which has a fee to deliver an outcome. How this translates will see extended warranties and maintenance contracts disappear and all that will be left is a monthly fee to provide machinery and optimum operating performance set by customer de-

15

mands. When this happens, the OEM will no lon-ger have a dominant position and will become a supplier with little control over the customer experience. New entrants will be able to enter the market probably from the financial market-place, where they buy products from suppliers OEM’s, and then provide the customer the true requirement of product to fulfill the job required. The financial company will manage not only the customer relationship but will dictate terms and

The market is changing and the future is still to be discovered. In our upcoming Aftermarket Business Platform, let’s discuss and debate the future and hopefully learn what needs to be changed within our businesses

conditions on the OEM over specification, cost, features and future development requirements.

So what will be left for the OEM? Very little, unless they act now. Manufacturing must change to a service business and recognize that product differentiation against competitor is less and less, investment in service truly opens the door to allow OEM’s to survive the coming years and beyond.

•Marginswilldropacrossmachineryandservice

•Greaterconsolidationandcompetitorcollaborationincoreareas

•Newentrantsenteringaftermarketfromnewmarkets

•Greaterneedfordata,andintegratedtechnologies

•Solutionswillbethefocus,andthecompaniesthatsucceedwillbetotallyintegratedtothecustomerandprovideasinglesolution

•Paceofchangewillberapidandexistingcomplexorganisationswillnotbeabletocopewiththepressureofcustomerneedsandcompetition

A couple of predictions over the future of OEM’s and Aftermarket:

Malcolm Youll

“Servitization is the innovation of an organisation’s capabilities and processes to shift from selling products to selling integrated products and services that deliver value in use.”

Most businesses today are driven by monthly revenue targets and their businesses are con-sidered as performing as long as they achieve financial based targets, so day to day invoicing is critical and gains significant focus. How-ever, for me, supplying parts has not achieved anywhere near what the customer really wants. If companies anticipated, for example, machine failure and then had the parts and technician on the customer site before the machine failed, then this would have provided a solution where parts are consumed and where the customer considers his supplier to add real value towards his business. It adds value and reduces risk, and therefore Servitization has been achieved. (Figure 2)

“I sense excellent companies are missing a significant opportunity to connect with their customer and offer true value which translates into improved customer satisfaction and retention.

“

Figure 2

“

“Aftermarket Business Platform 2013 - Post Event Report

After spending almost 30 years in the elevator industry, most of it focused on the service business, I find the greatest challenge that our sales people face is not leading a customer discussion with KONE. Our people have been trained on our products and services and that is what they are comfortable talking about.

Linking Pricing Excellence to Customer Value

Unfortunately, these discussions rarely bring any significant value to the customer. Having a background in strategic accounts, I have always realized we need to put the customer’s business processes, activities and challenges out front. Our focus should be on learning and intimately un-derstanding the customer’s business. On a global level, this is surprisingly more difficult than I ever imagined.

The key is providing tools and techniques to help sales people ask the right kind of questions and document the findings. They can then take the learning and apply this to future sales opportunities and actions. This is the first of four steps in truly understanding the needs of our customers. I will review and discuss all four steps at the upcoming conference.

All global organizations face challenges with per-sonnel and competency development. Becom-ing a truly customer facing organization is really a change in culture and thus becomes an exercise in change management. Two things stand out as critical to this process. First and foremost is executive sponsorship. From the top down the organization must be committed to making the change and it must be part of the discussion each and every day and at all levels. Second, you need strong advocates at the frontline level who take ownership and “champion” the change process.

These “Champions” require inspiration, support and tools to be successful in their roles. Rarely will companies have dedicated resources that spend 100% of their time on a change management initiative. They will have other responsibilities and always be pulled in many directions. I will provide some insight and considerations for supporting the success of these important resources to produce a win-win for everyone.

Value creation is only as good as the quantified value you are able to demonstrate to your customers. Quantifying the value of your solutions

is clearly the most difficult step in the process. Sales people will naturally gravitate to the soft values which are the most intangible and typically carry the least monetary value to the customer. Challenging your teams to dig deeper and “peel back the onion” will allow for more meaningful quantifications and create real impact to the customer.

Once sales people are armed with the real value your solutions bring, they are now in a position to confidently move the conversation from price to value. Naturally this directly links to pricing excellence. Customers appreciate quanti-

fied value because they see what your solution does to help their bottom line and make them more successful. Sales people appreciate quantified value because it supports differentiation and allows them to avoid discounts and even sell at premium price levels. One thing is for sure, if you want to sell value, it is clear that your organization needs to be good at providing meaningful life cycle solutions.

So, if you have great products and ser-vices, but find your sales teams need higher discounts to close deals,

I can honestly say there is a better way and I will be happy to share what we have learned and put into practice at KONE.

See you in Copenhagen!

John R. Lynly

Can we increase

customer’srevenue?

Can wedecrease

customer’stotal cost of ownership?

Can weminimize

customer’scapital

requirements?

Can wereduce

customer’srisks?

4 Steps to Quantify Customer Value

4 Steps to Quantify Customer Value


Manufacturing Business Platforms 2014Calendar of EventsCopperberg is the specialist events organiser for the Global Manufacturing industry. Dedicated for senior executives from global organisations - our events are giving you the tools to improve short term results whilst simultaneously designing robust future strategies.

2nd Annual Spare Parts Business Platform 2014February 5th - 6th, Stockholm, SwedenSpare Parts Business Platform will return in February 2014 for its second edition. Following an extremely successful launch event, the conference will once again gather senior spare parts executives for a two day event on how to optimize the spare parts process. The event will delve into topics such as parts pricing, logistics and forecast, piracy, obsolescence, centralization vs. decentralization of warehouses, inventory management. Participants last year came from all corners of Europe and offered plenty of networking opportunities to enhance sharing of experiences between peers.

4th Annual Defence Collaboration and Logistics 2014April 9th - 11th, Amsterdam, The NetherlandsThe Defence Collaboration and Logistics conference is coming back for the 4th time and this time in Amsterdam. This unique annual 3 day conference is the only one in Europe and beyond gathering all the relevant stakeholders from the Defence sector and focusing on the current challenges that the Armed Forces are facing regarding multinational logistics and collaboration, SmartDefence, policies, PPP, outsourcing, supply chain and logistic, trends in technology and much more.

2nd Annual Manufacturing Pricing Excellence Platform 2014May 21st - 23rd, Amsterdam, The NetherlandsThe Manufacturing Pricing Excellence is designed to meet the needs of pricing decision makers from the Manufacturing industry from Europe and beyond. Packed with practical case studies from leading organizations across like BMW, LEGO, Eaton, Whirlpool, Assa Abloy, Monsanto, Novozymes, the conference brings up-to.date topics that any pricing professional can rely on. Effective Pricing Strategies, Change Management, Value Based Pricing, Pricing Confidence and Price Optimization are only few of the topics that are going to be discussed at the conference.

1st Annual Sales Effectiveness 2014May 21st - 23rd, Amsterdam, The NetherlandsThe Sales Effectiveness is designed to meet the challenges and needs of Senior Sales Executives from Europe and beyond. Packed with practical case studies from leading organizations in process and manufacturing industry, this two day conference will bring up-to date topics that any Sales professional can relay to – Trends in Changing Sales, Enterprise Sales Alignment, Sales Strategies, Field and Inside Sales Models, Value Capturing and Value Based Selling, Channel Management, Account Management, Sales Optimization, Sales Execution, Tools and Technology, CRM and much more.

1st Annual Field Service Business PlatformJune 2014, Amsterdam, NetherlandsThe Field Service Business Platform is designed to meet the challenges and needs of service and aftersales professionals from Europe and beyond. Packed with practical case studies from leading organizations within the manufacturing industry, this two day conference will focus on how to optimize the service division to turn it into a sustainable profit center. Topics discussed will revolve around mobility, workforce scheduling, predictive maintenance, and knowledge management to support field technicians and increase customer loyalty.

8th Annual Aftermarket Business Platform 2014October 22nd - 24th, Amsterdam, The NetherlandsThe Aftermarket Business Platform is the leading European event for senior aftermarket executives, attracting 150+ participants from global organizations. Now in its 7th edition, it focuses on current market challenges on how manufacturing companies can increase growth revenues from their service divisions through success stories on the following topics: remote service management , spare parts, value based pricing/selling, value proposition and total cost of ownership, data in the aftermarket, BRIC market strategies. Over the course of three days and plenty of networking opportunities, participants will be confronted with tools and solutions to current challenges as well megatrends of the future.

2nd Enterprise Asset Management 2014November 11th - 12th, Copenhagen, DenmarkThe Enterprise Asset Management is designed to meet the challenges and needs of Asset Management experts and maintenance design managers from Europe and beyond. Packed with practical case studies from leading organizations in process and manufacturing industry, this two day conference will bring up-to date topics that any asset professional can relay to. Emerging ISO standards, Asset management holistic approach, Change Management, EAM KPI’s, Asset Lifecycle Management, Predictive Maintenance, M2M, Mobile EAM are only few of the topics that are going to be discussed at the conference.

4th Annual NPD World Tour 2014November, Stockholm, SwedenThe NPD World Tour, now in its 4th edition, is recognized as the leading event for product development, innovation, and R&D senior professionals interested in tools to optimize their new product development process and shortening time to market. In a cross-industry perspective gathering both B2B and B2C organizations, the event is the perfect opportunity to learn, share, and network with peers both within and outside your industry, and thus ensure relevant and outside the box thinking. This year, the event will have special tracks looking at front end of innovation, the valley of death, and crowdsourcing product development.

www.sparepartseurope.com

www.defencesupplychain.org

www.pricingeurope.com

www.aftermarketeurope.com

www.eameurope.com

www.npdworldtour.com

17Aftermarket Business Platform 2013 - Post Event Report

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Aftermarket Business Platform 2013 post event report