Industrial Services Barbro Lagerholm IVF Industrial Research and Development Corporation Bild

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1 Industrial Services Barbro Lagerholm IVF Industrial Research and Development Corporation Bild

2 IVF Industrial Research and Development Corporation IVF is the Swedish engineering industry's research institute. We strengthen our customers' competitiveness by carrying out applied research and development in close conjunction with industry. Owner: SWEREA Number of employees (August 2005): 105 Turnover (2004): SEK 100 million Headquarters: Mölndal (Branch: Stockholm) IVF Members' Association, 50 companies Industrial Networks, 1000 active companies Bild

3 Our business concept "To initiate, carry out and apply research and development for growth in the engineering industry". Bild

4 Our working areas IVF possesses expertise in all the key processes used in manufacturing companies: Environment and the work environment Product development Electronic development Production development Manufacturing processes Ceramic institute Bild

5 IVF Industrial Research and Development Corporation MEFOS Metallurgical Research Institute AB KIMAB Korrosions- och Metallforskningsinstitutet AB Svenska Gjuteriföreningen Service AB IFP Research AB SICOMP AB MD: Tomas Thorvaldsson Turnover: 400 MSEK Number of employees: 420 Industrial Support: 570 companies in member associations Bild

6 Industrial Services Session How can Services be integrated - value creating parts of deliveries from traditional industry? Bild

7 Related projects Value Creation Thru Services KREAST, Co-operation Designers-Engineers P3, Strategic Planning of Future Customer Offerings F3, Functional Sales UI/AI, Innovation in collaboration Experience Industries-Manufacturing Industries ICT for Functional Sales Coaching in Industrial Business and Product development Bild

8 Value Creation Thru Services Creating competitive edge through service development in manufacturing industries. A project funded by The Swedish Agency for Innovation Systems, VINNOVA. The knowledge platform Efficient product development. Bild

9 Participants IVF Industrial Research and Development Corporation, University of Karlstad, CTF, Service Research Center Kvaerner Pulping AB, SCA Hygiene Products AB, och TA, Tour Andersson AB/IMI Indoor Climate Control AB Volvo Aero Corporation Whirlpool Sweden AB Bild

10 Main questions of the project Five Swedish manufacturing companies seek together with researchers their answers to: How to manage the change from selling products to selling services? How to develop services in combination with industrial products? Bild

11 Product -> Service To Create Value Hardware Service IT Service IT Hardware Bild

12 Why Business opportunity Competition But how to manage the transition? Companies, which have traditionally developed, produced and marketed core products in different contexts, find it important to adopt a service perspective and reorientate their enterprise towards service offering to develop a competing advantage. (Solely core products do not give a competing advantage today.) New values have to be added. Bild

13 What we should do The aim of the project is to contribute to the shift of focus from core products to the creation of value through services in Swedish industry. The objective is to contribute to the introduction of new knowledge intensive customer offerings combined of both products and services, at the participating companies. This is done by active participation in the development of new customer offerings. To create good examples And to develop knowledge about the transition process and the service development process This knowledge will be packed and spread as a course which will contribute to Bild

14 What we have done and how Map and analyis of the value creation system in which the new customer offerings should exist. Interviews Focus groups Film Inspiration Different branches Cases Peer Assist Dialog seminars with lectures and workshops Different purposes, triggers and developments A study of 17 organisations Bild

15 Different strategies IVF Industrial Research IVF Industriforskning and Development och utveckling Corporation AB Step 0: Focus on Products Step 1: Consolidating Productrelated services Step 2: Entering the installed base market Step 3: Expanding to relationsbased and processcentered services Step 4: Taking over the end-user operation Increase slowly Increase fast Satisfied Reduce Bild

16 Different phases need different tactics? Step 0: Focus on products Step 1: Consolidating Productrelated services Step 2: Entering the installed base market Step 3: Expanding to relationsbased and processcentered services Step 4: Taking over the end-user operation Method Combination Customer chain Relations Bild

17 Identify and generate ideas Method Interviews Focus groups Customer involvement Critical path, incidents Combination Customers Developers Joker Customer chain Technician Sales Dealer Installer End user Relation Weak relations Strong relations Profitable customers Small customers Bild

18 Idea generation A B C D Method Combination Chain Relation Bild

19 A bank of ideas Consolidating Productrelated services Entering the installed base market Expanding to relationsbased and processcentered services Taking over the end-user operation Bild

20 Product -> service Phase 0: Focus on products Phase 1: Consolidating of Product related services Phase 2: Services to installed base Phase 3 & 4: Relationsbased services and responsibility take over Number of companies [st] Profit margin [%] Bild

21 What next? The project is running until One company will launch a totally new concept All companies are developing new customer offerings combined of both products and services We will try to find a way to work together even after the project is finished. Bild

22 Summary Possibilities Business opportunities Revenue win/win Sustainability Challenges To understand what the customer REALLY wants to get done Barriers Mind-set Engineering Cultures Time Money Bild

23 Contact: Barbro Lagerholm The project Bild

24 Questions?? Bild

25 Thank you Bild