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Streamline Operations Across The Entire Service Chain Webinar


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Please see the slides from our recent webinar "Streamline Operations across your entire service chain". From this webinar, you can learn how to deliver differentiated customer experience by connecting employees, processes, and systems on one platform. The broadcast also featured servitization expert and author Dr.Howard Lightfoot,of Cranfield University, to further illustrate the industry landscape and what companies can do to transform.

If you would like to see the broadcast from the webinar, please go to:

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Streamline Operations Across The Entire Service Chain Webinar

  1. 1. Streamline operations across the entire service chain Dr Howard Lightfoot – Cranfield University Lo Hintzen - Salesforce
  2. 2. Forward-Looking Statements Statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available., inc. assumes no obligation and does not intend to update these forward- looking statements.
  3. 3. Servitization and Technology Enabled Service Delivery DrHowardLightfoot 21st March2017
  4. 4. Operations Excellence Institute A Changing Manufacturing Landscape
  5. 5. Operations Excellence Institute In Depth Case Studies 4 yrs Knowledge from previous studies Understand leading practices and technologies Surveyof400UK companies Knowledge from previous studies
  6. 6. Operations Excellence Institute Servitization Explained
  7. 7. Operations Excellence Institute Competitive Strategy Customer Intimacy:. Combining detailed customer knowledge with operational flexibility. You are creating the best total solution for the customer Product Leadership: you sell the best product on the market Operational Excellence: you have your processes so under control that you deliver best total cost to your customers Adapted from Treacy & Wiersema, 1997 Threshold performance – Industry Standard
  8. 8. Operations Excellence Institute Traditional Product Purchase Cash Technology Service Use Monitor Cash Consumables Selection & disposal
  9. 9. Operations Excellence Institute Purchase of Capability / Outcome Use Cash Disposal Cash Technology Service Monitor Consumables
  10. 10. Operations Excellence Institute emerging picture of the Servitized World Contract Product Monitoring Servicing Disposal Touch points Partners The ProductProductinUse OEM Spares Services To OEM To spares & services Spares Services Manufacturer Suppliers
  11. 11. Operations Excellence Institute Service Types Advanced services Pay Per Use Fleet Management Availability contract Integrated solution Intermediate services Repair Training Condition monitoring Help Desk Field service Overhaul Equipment Spares Base services Increasing ~ Responsibility and risk adoption ~ Customer revenue and lock-in ~ Servitization of OEM ~ Sophistication of PCS
  12. 12. Operations Excellence Institute Enabling Technology Transducers Data storage Fault code generation Fault code recording Continuously sense critical systems and subsystems of asset Base data Fault code data Satellite, cell phone, GPRS, radio, Internet Hard and soft storage system State and trend analysis Get more data Make contingencies Repair/ replace Inform customer Modify design Periodically communicate with home Compile historical records Diagnose and predict behaviour Determine appropriate interventions Technology systems focused on informing and advancing actions on maintenance, repair and use Monitor Transmit Store Analyse Respond
  13. 13. Operations Excellence Institute Now let’s look at some Industrial Case Studies
  14. 14. Operations Excellence Institute Business Examples • Rolls-Royce TotalCare® • ‘Power by the Hour’......... • Airline operators pay per flown hour • Long term contracts with pre-defined patterns of operation • “piece of mind” Rolls-Royce (Civil Aerospace)
  15. 15. Operations Excellence Institute Business Examples Alstom Transport West Coast Main Line • 47 of 52 Pendolino Class 390 EMU trains available everyday’ • 1000 miles per day per train with narrow daily window for maintenance / repair • Fundamental KPI - Lost Passenger Hours Northern Line (London Underground) • 91 underground trains with 3 Spare trains available everyday’ • Mean distance between failure 14000Km / train • Fundamental KPI - Lost Passenger Hours
  16. 16. Operations Excellence Institute Business Examples Xerox (Document Outsourcing) • Document services optimising client print infrastructure • Life cycle management – people, technology, service operations • Reducing the total cost of ownership XEROX
  17. 17. Operations Excellence Institute Not just high value capital equipment !
  18. 18. Operations Excellence Institute Industry Boundaries
  19. 19. Operations Excellence Institute The Internet of Things - IoT  The Internet of Things is still in early stages of adoption  IoT enables real time data collection from assets in the field  More objects are becoming embedded with sensors and gaining the ability to communicate  The resulting information networks promise to create new business models  It is no longer the industrially manufactured product that is the focus, but rather the service that users access through that device
  20. 20. Operations Excellence Institute SMART CONNECTED PRODUCTSSmart Connected Products
  21. 21. Operations Excellence Institute What are they? A ’Smart’ product comprises:  Physical components: the product is composed of mechanical, electrical, and other material components.  Smart components: comprising microprocessors, sensors , software, controls and data storage with an embedded operating system and user interfaces.  Connectivity : via ports, antennae, and protocols enabling wired / wireless connections allowing data to be exchanged with the product. The connectivity may be point to point, hub and spoke or as part of a network of products What Are They
  22. 22. Operations Excellence Institute What can they do? The connectivity and intelligence of smart connected products enable new functions and capabilities, which are generally grouped into the following four categories:  Monitoring of a product’s operating characteristics, condition and history and its external environment  Remote Control using remote commands or algorithms that can be embedded in the product or in the ‘product cloud’  Monitoring product data combined with the ability to remotely control the product and provide Optimization capability in terms of output, utilisation and efficiency  The previous functions can be combine to provide the product with hereto unattainable levels of Autonomy What can they do
  23. 23. Operations Excellence Institute  Tesla Motors Automobiles – a smart product with an intelligent maintenance system that periodically monitors itself.  Philips Lightning Hue Light Bulbs and Bridge – provides users with a connected device for home automation..  Joy Global’s Longwall Mining System – able to operate autonomously far underground, overseen by a mine control centre on the surface.  Medtronic’s Continuous Glucose Monitoring (CGM) – a smart device with wearable technology  Babolat’s Play Pure Drive Racquet System – a smart product that looks like a regular racket Some Other Examples other examples
  24. 24. Operations Excellence Institute New Technology Infrastructure Infrastructure PRODUCT EXTERNAL INFORMATION SYSTEMS BUSINESS SYSTEMS INTEGRATIOM CONNECTIVITY IDENTITY SECURITY PRODUCT CLOUD Applications Rules / Analytics Applications Platform Product Data Base
  25. 25. Operations Excellence Institute Industry Boundaries + + + Product Smart Product Smart Connected Product Product System Industry Boundaries
  26. 26. Streamline Operations Across the Entire Service Chain Salesforce for Service Lo Hintzen Head of Service Cloud
  27. 27. Together, We’re Building a Path Forward 2009 • 2010 • 2011 2012 • 2013 • 2014 2015 • 2016 • 2017 September 2016 2011 • 2012 • 2013 2014 • 2015 • 2016 The world’s most innovative companies in GDP impact by 2020 $389B $8.39B FY17 revenue 25K employees “Innovator of the Decade” IDC White Paper, sponsored by Salesforce, "The Salesforce Economy," August 2016 2M jobs created by 2020
  28. 28. IoT AI Social Mobile Cloud LAN/WAN Client Server SNA Mainframe Terminal The Age of the Customer Everything and everyone is connected MillionsThousands Billions connected things of customer interactions Trillions
  29. 29. Todays Customer Profile  Social  Mobile  Connected  High expectations – service experience: EFFORTLESS
  30. 30. IoT and Servitization Customer Behavior and Demand, drives use of new Channels and Business Models : 1. Include new channels 2. Move from product to service
  31. 31. IoT – A new channel for your service business Service delivery : • No longer only performed by people • Inclusion of Bots - pre scripted questions – gain basic understanding before passing to human • Machine2Machine – collecting data that triggers actions in the service organisation: case creation – technician tickets
  32. 32. Proactive serviceResponsive PersonalizedDigital Smart- enabled Customer- CentricProduct-Centric Focused on driving internal operational efficiency Gap Between Companies and their Customers’ Expectations Expect high levels of personalized service Servitization can close the gap….
  33. 33. Salesforce Customer Success Platform Sales ServiceMarketing AnalyticsCommunity Apps Commerce IoT Quip Heroku Component Exchange Data Management Platform CRM Data IoT & Social Data Platform AppExchange high-performing IT teams are more focused on innovation 2.3X • Secure, multi-tenant cloud platform with AI built right in • 99.98% FY18 availability • 9 global data centers • 3 major, automatic & seamless updates per year
  34. 34. Salesforce for Service The world’s #1 intelligent customer service platform Personalized Personalize every service conversation Make agents, managers & mobile workers more productive Use Intelligence & AI to make agents smarter & customers happier Productive Predictive Connected Connect on one intelligent platform
  35. 35. An agile layer of engagement Delivering rapid time to value and strong ROI Extend the capability of existing Systems of Record Intelligent processing filter incoming data with rules and then develop insights that drive better decisions Overcome Silos that get in the way of delivering the desired Customer Experience Faster Path to help you achieve targeted improvements & keep up with pace of change in customer & industry expectation Systems of Record Optimized for Transaction Processing System of Engagement / Agility Layer Integrated Console Mobility IoT Connected Applications Omnichannel Customer Experience Core Operations Workflow Acceleration Faster Time to Value SAPMicrosoft Dealer ApplicationsLegacy HRIBM IFS Legacy CRM Oracle Not only does Salesforce seamlessly integrate 3rd party systems systems…it also creates an all-encompassing social layer of agility and engagement to power your applications Customer Examples Transactionsperday 4.3B+ TransactionsviaAPI 50% FasterDeployment 47%
  36. 36. Transform connected products into engaging experiences Engage through customer journeys Automatic Reorders Alert Service reps of immediate issues Integrate External Data Sources Connect to custom processes CRM Added Services Enable partners with communities Build Connected Apps Embed Intelligence to identify patterns Create business value by wrapping connected devices with engagement services
  37. 37. Our Customer Trailblazers are Redefining Customer Success +35% Customer Satisfaction +28% Agent Productivity +31% Faster Case Resolution22% Cost Savings Source: Salesforce Customer Relationship Survey conducted 2014-2016 among 10,500+ customers randomly selected. Response sizes per question vary.
  38. 38. Thank Y u