Service now! Time to wake up the sleeping giant - Bain & Company

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itious – but not overly ambitious – targets will release employee creativity and overcome organizational hurdles. The organization must be absolutely convinced of the seriousness, permanence and management support of the service initiative. Without those conditions, the initiative is unlikely to succeed. Complete your service portfolio An OEM’s primary field of competencies will always derive from its equipment, and that is where the service portfolio should start. All economically serviceable equipment must benefit from a full range of meaningful life-cycle services. Customer-oriented pricing should make the service offerings more attractive to the customer and include alternatives that offer payments aligned with value – for example, maintenance fees based on machine uptime or productivity, or even all-in-one leasing or rental schemes. Additional advanced services may stem from the OEM’s expertise in customer processes, from customer proximity or from capabilities that the customer lacks. Industrialize delivery In order to separate service successes from local specifics and abilities, service should be a standardized and repeatable process. Creating clearly structured service offerings is one side of industrialization; defining and monitoring service quality and processes is the other. Industrialization is not only a precondition for the successful international rollout of service offers; it is also a necessary step for homogenous service standards and service efficiency improvements. Establish a companywide service culture Giving service more autonomy compared with the equipment business may be the right solution at the beginning of the journey. However, companies should be sure that, from the customer’s point of view, the company acts in a unified way, consistently communicating the customer benefits and seamless support throughout the life-cycle of the equipment. For this to become a reality, industrial goods manufacturers must become more customer-focused, striving as much for continuous improvement in their service organization as in their product business. Bain’s experience shows that the transformation from equipment provider to service champion, though not easy, can be achieved. Manufacturers learn to design maintenance and serviceability into their products from the start. Planning product and service sales together becomes standard practice. Rather than just developing new equipment and selling upgrades, service organizations develop solutions that take worries off the customers’ shoulders, creating more loyal customers. Service is the biggest growth opportunity for the industrial goods industry over the next decade. The race has already started. Can you afford to delay? 34 Service now! Time to wake up the sleeping giant
about the authorS Oliver Strähle is a partner at Bain & Company Switzerland, with responsibility for Bain’s Industrial Service Competence Center in Europe. He has supported service development for industrial clients in a broad set of sectors, ranging from operational improvement to full service transformations and organization design. oliver.straehle@bain.com Michael Füllemann is a partner at Bain & Company Switzerland, with responsibility for Bain’s Industrial Service Competence Center in Europe. He has extensive consulting and line management experience in the service sector and supports his customers more broadly on strategic and operational topics. He is also an expert in growth strategies for emerging markets. michael.fuellemann@bain.com Oliver Bendig is a principal at Bain & Company Germany and a member of the European Industrial Goods and Services practice group. He has extensive experience in working with leading machinery and equipment companies. In his more than 15 years working on industrial services related topics he has worked in multiple regions, incl. Europe, Americas, China and India. oliver.bendig@bain.com 35
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Page 3 and 4: Service now! Time to wake up the sl
Page 5 and 6: Figure 1: Service the untapped pote
Page 7 and 8: Figure 2: there must be more, at be
Page 9 and 10: 2. Setting the right ambitious obje
Page 11 and 12: 3. Strategy development: Where to p
Page 13 and 14: Step 4 Taking risks and worries off
Page 15 and 16: Figure 5: product life-cycle servic
Page 17 and 18: Example: Making the most of technic
Page 19 and 20: 4. Sales and operational improvemen
Page 21 and 22: Figure 7: Stringent performance man
Page 23 and 24: Figure 8: build contracts strategic
Page 25 and 26: Figure 9: Service models must refle
Page 27 and 28: Spotlight: human resources - Invest
Page 29 and 30: Figure 12: Success factors for serv
Page 31 and 32: Spotlight: drawing up a systematic
Page 33: Conclusion achieving your service a

Service now! Time to wake up the sleeping giant - Bain & Company

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