Il Servizio Il nuovo driver della competitività

Transcript

1 Il Servizio Il nuovo driver della competitività Giorgio Merli IBM Boardroom Consulting leader Presidente di Area Confindustria SIT (Servizi Innovativi e Tecnologici)

2 Il nuovo driver di scenario: l innovazione La Globalizzazione, l internazionalizzazione del business e l aumento di competitività dei paesi del far east e degli altri paesi emergenti costringono le economie mature a ricercare nuove leve competitive. La maggior parte di esse viene ricercata nell Innovazione 2

3 Le leve per la competitività Innovazione di Prodotto Innovazione di Servizio Innovazione del modello di Business Innovazione nei processi di Business Innovazione nei processi di management e nella cultura aziendale Innovazione nell infrastruttura IT Innovazione nell ecosistema operativo 3

4 Innovation and Services modern economies are both service economies and economies of innovation. Paradoxically, they are not regarded as economies of innovation in services... It is as if service and innovation were two parallel universes that coexist in blissful ignorance of each other. 4

5 5

6 I nuovi drivers del mercato La polarizzazione delle richieste L importanza del servizio 6

7 I nuovi drivers del mercato La polarizzazione delle richieste L importanza del servizio Nel contesto tempo (time to market, to order, to reaction, to threat, to opportunity, to innovation, ecc...) 7

8 La polarizzazione del mercato Polarizzazione del mercato consumer Bell Curves Crescita e valore percepito Well Curves Mass Competitive Spectrum Targeted I consumatori cercano di massimizzare il proprio potere d acquisto per beni generici a basso impatto emotivo I grandi player di mercato stanno velocemente conquistando una posizione dominante, fornendo prodotti accettabili a prezzi molto bassi Gli specialisti di settore devono possedere value proposition specifiche e ben mirate per crescere in un mondo di estremi I consumatori cercano di massimizzare il personal value nell acquisto di beni ad alto valore emotivo Gli specialisti d industria creano nicchie di mercato ad alto sviluppo ed alto reddito, fornendo valore specifico a gruppi target di consumatori 8

9 Lo spectrum competitivo (le 3 aree di riferimento) Commodity Product Product-Service mix Value Product Spectrum Competitivo Economy of scale Strategy I nuovi leader di mercato stanno velocemente conquistando una posizione dominante, fornendo prodotti accettabili a prezzi molto bassi. Innovare significa progettare prodotti e/o modalità meno costose, comprese differenti locations (design to cost) 9 Business volumes Strategy Il business dei prodotti medi (ad alto volume) sta richiedendo value proposition di mix prodotto-servizio, in cui il servizio conta sempre di più. Innovare significa saper predisporre nuovi package di prodotto-servizio progettando prodotti service-oriented (full life cycle cost) Margins Strategy I nuovi leader di mercato stanno sviluppando (e/o): - prodotti sempre più innovativi - nicchie sempre più profonde (articolazione dei target) - maggiori capacità di customization - luxury brands Innovare significa progettare prodotti e/o modalità a maggior valore percepito (design to value)

10 Innovazione nel Prodotto o Servizio o Innovazione nel Mix Prodotto-Servizio o addirittura Conversione del Prodotto in Servizio 10

11 Vendere il prodotto attraverso il servizio Alcuni esempi già esistenti: Proporre e vendere auto come flotte gestite (fleet management) Proporre Hardware/Computer come flotte gestite o a consumo (pay per use) Proporre Software/applicativi a consumo ( on demand ) Proporre il prodotto polizza di assicurazione a consumo (pay as you drive) Proporre il prodotto per il supermercato (CPG) come scaffale gestito dal fornitore (eventualmente anche con etichetta personalizzata=private labeling) Proporre un aereo civile (ma anche militare!) attraverso costo per ora di volo (pay as you fly) Proporre una macchina movimento terra (o macchina utensile?) a ore di utilizzo (pay as you work) Proporre il servizio di manufacturing invece della fornitura di impianti/macchine produttive (pay as you need) Proporre una centrale elettrica come KWH erogati (in funzione dell utilizzo reale nel tempo) anziché una centrale più un contratto di manutenzione Proporre il servizio di potersi creare il prodotto personalizzato (pro-sumership).vendere il prodotto come esperienza (fashion, luxury ) 11

12 L importanza del Servizio Oltre a rappresentare la maggior parte del PIL nelle economie evolute... Il Servizio costituisce il fattore differenziante/competitivo per il business nell area commodities Il Servizio è la dimensione/leva fondamentale del business nell area prodotto-servizio Il Servizio è connaturato con la value proposition e può essere il fattore differenziante nell area dei value products (+ il valore dell esperienza ) 12

13 Leaders are selecting their new business models with more service offered to the market Product-centric is typically first type of service offered Service Business Models Product- Centric Professional Services Outsourcing/ Alliances Information Services Financial Services Service Value Proposition After sales support Warranty services Maintenance Offerings Problem solving expertise Functional or technology specializations Lower salary and/or infrastructure cost Increased flexibility Reduced headcount Information based services for: Maintenance Inventory Mgmt Supply Chain Trading Financing for product purchases May include other financial services such as insurance, checking, loans, etc. Operating Model Integrated product/ services delivery No separate services organization Traditional leveraged engagement model Separate services organization New channels Headcount transfer of client Technology transfer or updating Separate organization New channels Remote monitoring devices Networked products Separate financial services organization May pursue customers beyond product segment Data integration needed Financials & Metrics Bundled with products Yearly fixed price or variable contracts Fixed fee contracts Time and materials contracts Multi-year, fixed contracts Tiered, value-based pricing License fees Recurring, fee and asset-based revenue Tied to interest rates Source: Operationalizing Your Services Strategy, IBM Institute for Business Value, Spring

14 Il tandem della competitività: Innovation & Servitisation 14

15 L importanza del servizio (Key Trends) All national economies are shifting to services - Major industrialized nations are >70% services, developing nations are close behind - Globalization and off-shoring are changing the services market ICT plays a major role in services innovation New education and research programs are emerging to address the needs of services business (SSME) - Methods and tools to study, manage, and engineer service systems - Bringing together business, organization, and technology skills Governments and industry are increasing investments in services research 15

16 The Rise of the Service Economy 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% United States 0% % 90% 80% 70% 60% 50% 40% 30% 20% 10% Japan 0% % 90% 80% 70% 60% 50% 40% 30% 20% 10% Germany 0% % 90% 80% 70% 60% 50% 40% 30% 20% 10% China 0% % 90% 80% 70% 60% 50% 40% 30% 20% 10% India 0% % 90% 80% 70% 60% 50% 40% 30% 20% Russia 10% 0%

17 Percent employment in service jobs USA Canada Japan France Italy China (United Nations, 1999) 17

18 Context and motivations Services becoming the new hub of most modern economies Services dominating current economic activities 18

19 The Rise of the Service Economy Service jobs are increasingly the high skill knowledge worker jobs especially in business and information services Professional and business services industry has high growth rate for labor force and IT demand Information Material Products 11% 9% US Gross National Product Services 30% 50% - from Uday Karmarkar, UCLA 19

20 Servitisation Servitisation Good Service Productisation Sink Computer IT IT Services Home Security Light Live Music Servitisation moving on the continuum from good to service Shift of companies from Pure Product towards delivering Services with Product as platform or Pure Services ' 20

21 What is SSME? (Service Science and Engineering) A multidisciplinary application of science, management, and engineering disciplines to services - Science is a way to create knowledge through tools and methods studying Services - Engineering is a way to apply knowledge produced by science outputs and create new value - improves the process of creating and capturing value SSME encompasses the study of the evolution and design of service systems, the measurement and understanding of service productivity, quality, compliance, and sustainability, and service innovation SSME is an academic curriculum and research area focused on service systems including the relationships between customers and suppliers in which they exchange value 21

22 22

23 Innovazione nel Modello di Business Innovazione della posizione/ruolo all interno della Catena del Valore Innovazione della catena del valore Innovazione nelle attività per nuove value propositions (Servitisation.) Innovazione nella struttura di business dell azienda/capacità di continua riconfigurazione organizzativa 23

24 There are three distinct paths for business model innovation Business Model Innovation What business I want to be in? making fundamental choices Industry model (IM) Innovation Innovating the industry value chain by: moving into new industries redefining existing ones or creating entirely new value chains Revenue Model (RM) Innovation Innovating how revenue is generated through: new value propositions pricing models Enterprise model (EM) Innovation Innovating value chain roles by: changing the extended enterprise to be more integrated or specialized transforming networks with employees, suppliers, customers, and others 24

25 Within each path, organizations adopt a set of levers to innovate their business model Business Model Innovation What business am I in? making fundamental choices Industry model Innovation Revenue model Innovation Enterprise model Innovation INDUSTRY TRANSFORMATION Apple transformed the music industry through a new way of connecting hardware with software to download music with ipods/itunes product & service combination Dell redefined the PC value chain and industry model by using a direct to customer sales model HORIZONTAL MOVES Moving from one value chain to another, leveraging its brand across industries including airline, media and telecoms PRICING / REVENUE MODEL Gillette innovated the pricing model by giving away razors and making money on the blades Netflix shifted the revenue model from product / rental based to a subscription based annuity model VALUE PROPOSITION Cirque du Soleil reconfigured offering and value elements to transform the circus experience INTEGRATION Zara s Fast Fashion model is supported by a highly integrated business model along its value chain SPECIALIZATION Bharti created a highly specialized Telco business model by focusing only on its key differentiators marketing, sales and distribution and partnering for everything else EXTERNAL COLLABORATION P&G s innovative R&D collaboration model connect & develop, sourcing over 50% of ideas externally 25 For one page descriptions of these best practice examples, see appendix

26 La configurazione del business model: il Component Business Modeling (CBM) Il CBM può essere utilizzato per identificare comprendere aree quali il legame ad componenti alto tra costo le componenti sono o immobilizzo strategiche al fine di per capitale. di il creare business I costi un portafoglio e possono quali di essere possono iniziative attribuiti facilitare di trasformazione alle le singole relazioni prioritizzate attività tra i partner (Activity Based Costing), i ricavi possono essere solo stimati. Transformational Strategic Financial View View Strategic High Immediate Capital differentiation Area Priority Competitive High Cost Area parity Medium Priority High Cost & Basic No Action Capital Area Illustrative CPG Client Strategy Tactics Execution Consumer Relationship Category/Brand Strategy Category/Brand Planning Brand P&L Matching Matching Supply Supply and Demand Demand Marketing Development & Effectiveness Effectiveness Product Product Ideation Ideation Concept/Product Testing Product Development Product Marketing Execution Consumer Service Product Directory Customer Relationship Customer Customer Relationship Relationship Strategy Strategy Customer Customer Relationship Relationship Planning Planning Assessing Customer Satisfaction Customer Insights Account Value-Added Services Customer Account Customer Customer Account Account Servicing Servicing Servicing Retail Marketing Execution In-store Inventory Mgmt Customer Directory Manufacturing Manufacturing Strategy Supplier Supplier Relationship Relationship Production Production and Materials and Materials Planning Planning Manufacturing Manufacturing Oversight Oversight Supplier Control Make Products Assemble/Pkg. Products Plant Inventory Plant Inventory Plant Inventory Manufacturing Procurement Supply Chain & Distribution Supply Chain Strategy Supply Chain Planning Distribution Oversight In-bound In-bound Logistics Logistics Out-bound Out-bound Logistics Distribution Center Distribution Distribution Center Center Operations Operations Operations Transportation Resources En route Inventory En route Inventory Business Administration Corporate Strategy Corporate Planning Alliance Line of Business Planning Business Performance External External Market Market Analysis Analysis Organization and Process Design Legal and Regulatory Compliance Treasury and Risk Treasury and Risk Accounting and GL Indirect Procurement Facilities and Equipment HR Administration IT IT Systems and Operations 26

27 Possibili azioni sui componenti di Business selezionati Matrice Decisionale Alta Differenziazione Strategica Bassa Ottimizzazione Gestione interna per rispondere alle esigenze di business INTERNALIZZAZIONE Differenziazione ESTERNALIZZAZIONE Uso Outsourcing Utilizzo di fornitori che svolgano attività standardizzate a prezzo variabile/on demand Enfasi e gestione interna per guadagnare vantaggi competitivi Utilizzo di partners leader per attività tipiche di industry, ma non differenzianti Bassa Specificità di industry Alta 27

28 Le domande dei CEO sul loro modello di Business: Quali sono le nostre competenze distintive? Quali processi ddobbiamo gestire direttamente? 100% Valore % sul fatturato 0% 23-27% Product or service building blocks Azienda Tipo Competenze Differenzianti=> Efficacia Focalizzazione del sulle attività core, differenzianti verso i competitors Allineamento di risorse e working capital alle priorità strategiche 32-47% Critical Yet Non- Differentiated Business Processes and Components 13-28% Differentiated Business Processes and Components 5-10% EBITDA Competenze non differenzianti=> Efficienza Outsourcing di alcune attività a partners best-ofbreed che garantiscano maggiore efficienza e eccellenza operativa Le attività vengono gestite dai partners; l azienda si concentra su definizione di obiettivi e SLAs Spese IT legate ai volumi di business con costi unitari decrescenti al crescere dei volumi Source: IBM Institute for Business Value based on McKinsey analysis 28

29 Redesigning the business model for a flexible operational management (example) Consumer Relationship Customer Relationship Manufacturing Inventory and Distribution Business Administration Direct Category/Brand Strategy Category/Brand Planning Brand P&L Customer Relationship Strategy Customer Relationship Planning Assessing Customer Satisfaction Manufacturing Strategy Supplier Relationship Production/Materials Development & Planning Supply Chain Strategy Inventory Planning Network & Asset Configuration Distribution Oversight Corporate Strategy Corporate Planning Alliance Corporate Governance Business Performance Control Execute Matching Supply and Demand Marketing Development and Effectiveness Product Ideation Concept/Product Testing Product Development Product Marketing Execution Consumer Service Product Directory Customer Insights Account Value-Added Services Customer Account Servicing Retail Marketing Execution In-store Inventory Mgmt Customer Directory Manufacturing Oversight Supplier Control Product/Component Manufacturing Assemble/Pkg. Products Plant Inventory Manufacturing Procurement Inbound Transportation Outbound Transportation Distribution Center Operations Transportation Resources En route Inventory External Market Analysis Organization and Process Design Legal, Tax and Regulatory Compliance Treasury & Risk Mgmt Financial Accounting & Reporting Indirect Procurement Facilities & Equip Mgmt Resource Development HR Administration IT Systems & Operations Strategic Invest in and expand to gain advantage Support Manage to meet the needs of strategic components Partner Develop alliances to meet critical business req ments Utility Use specialists to reduce costs and free up resources 29

30 Le aziende di maggior successo saranno Imprese Specializzate focalizzate su pochi componenti critici Componentized Enterprise Specialized Enterprise Enterprise Optimized Specializzazione interna Business Unit Optimized Silo 1 Silo 2 Business Components Traditional Enterprise Silo 1 Silo 2 Business Components Networked Enterprise External Partner Silo 3 Business Functions Silo 3 Business Functions Internally Integrated Specializzazione esterna Industry Networked 30

31 Diverse industrie stanno entrando nella fase del networking I comparti di industria hanno raggiunto un diverso livello di specializzazione esterna Financial Services Banking Banking * Insurance Insurance Financial Markets Financial Markets Telecom Telecom Communications Media & Entertainment Media & Entertainment Energy & Utilities Energy & Utilities Legenda Distribution Consumer Products Retail Life & Pharma Consumer Products Retail Life & Pharma Livello di specializz. esterna Livello di specializz. esterna * Profiled Industry Travel & Transp Travel & Transp Industrial Automotive Automotive * Aerospace & Defense Aerospace & Defense Chemical & Petrol Chemical & Petroleum Electronics Electronics * Forest & Paper Forest & Paper Industrial Products Industrial Products Public Sector Healthcare Healthcare Internally Integrated Strategically Partnered Industry Networked 31

32 Le aziende valutano ogni componente di business per determinare dove e come debba essere gestito Matrice di decisione dei Componenti di Business Support Component Manage to meet the needs of strategic components Example: Risk Strategic Component Invest and expand to gain component advantages Example: Product Ideation Specializzazione interna Utility Component Use multiple specialists that have a low cost of entry and service Example: Payroll Partner Component Ensure that partners meet critical business requirements Example: Call Center Specializzazione esterna Non differenziante Differenziante 32

33 Le aziende si stanno focalizzando internamente su componenti strategici facendo leva su più componenti esterni L evoluzione delle configurazioni aziendali Internal Specialization Internal Specialization Support Strategic Support Strategic Utility Partner External Specialization Utility Partner External Specialization Non-Differentiating Differentiating Non-Differentiating Differentiating Situazione iniziale Impresa Specializzata 33

34 Enterprise Model Innovation integration / specialization Innovating along the integration / specialization continuum Integration and Specialization Integrators play in and execute their business component map completely Specialized players concentrate on a limited number of differentiating business components and partner on selected non-differentiating business components Examples: Zara (Integration) and Bharti (Specialization) Zara is owning/driving/executing and therefore integrating all components out of the Fashion component map Telco players like Bharti are specializing on differentiating components (like marketing, sales, distribution) Marketing & Customers CRM strategy Product Brand / Business Practice Strategy Stores & Channels Channel strategy Production / Manufacturing Delocalization Logistics & Distribution Supply Chain strategy Business Administration Corporate Strategy and planning Develop New Markets and Products Marketing New Product Development Acquire and Manage Customers Sales Customer and Care Billing and Collections Develop and Provide Network Services Provisioning & Fulfillment Service Assurance Network Resource Development Manage Enterprise Business Direct Control Execute Marketing strategy Assortment planning Customers behavior definition Merchandise planning Market & competitors analysis Collection Segmentation Price and promotion optimization Matching Supply and Demand New in-season products Marketing campaign Sourcing Loyalty Seasonal forecast Customer Service In-Store mktg execution Samples management Communication and Adv execution Stock and sales analysis on size / color After Sales Technical product data management Cust. Infos managment Zara Focus Store architecture & layout Channel design Profitability analysis on channel / store Store Operations management Sales analysis OTB execution Agents management Replenishmet Services Delivery Price changing Time & Attendance OOS by size / colour management POS / Cash management Multi-channel Call Center SRM with Façonners WIP & raw materials Corporate Governance and third parties planning Network & Asset Production planning Alliance optimization Façonners / supplier Business Performance Supplier scoring sourcing and anal. Inbound Logistics External Market Analysis Façonners / supplier sourcing Organization and Process Intra-company & Design Outbound Logistics Legal, Tax and Regulatory Sourcing Transportation / Fleet Compliance Treasury & Risk Mgmt Production traceability Warehouse Financial Accounting & Reporting Distribution Center Operations Indirect Procurement Samples / collection manufacturing Stock transfer amoong Facilities & Equip Mgmt DOS Plant Inventory Returns & Reclamation Resource Development Product Track & Trace HR Administration Manufacturing procurement Transportation / Fleet / IT Systems & Operations Yard Operations Fashion component map Executing Controlling Directing Market Product & Offer Sales Channel Customer and Brand Portfolio Planning Strategy 2.1 Strategy 2.1 and Market Strategy Care Strategy & Policy 3.1 Alliance Strategy Brand Billing & Collections Sales, Channel, and Alliance Product CRM Development Support and and Retirement Readiness (Control) Marketing Communications, Account Planning Advertising and Promotion 1.1-9, 3.2 Loyalty and Retention Marketing Customer Interface Research and Analysis Customer Contact Operations Service Sales Problem B&C Development Customer and Analytics Retirement prod match Rating & Customer Billing Problem Handling and Sales Execute Resolution Campaigns and Supplier/ Partner market fulfillment Settlement and Billing 4.7 Bharti Focus Technology Service Strategy and Resource Fulfillment and and Readiness Strategy resource Planning and Capacity Planning , Planning , Service Network Support and Resource Readiness Performance Device and 2.3-3, Supplier Order Customer SLA / QoS Supplier/ Partner Performance Finan cial and Asset Resource Mana Order provisioning geme Handling 1-5 Supplier/Partner (Eng & Const) nt 3.5 Problem Rep & Mgt Service Service Testing Configuration, and performance Activation, management Disconnects Service Problem Resource Inventory Provisioning l Strategic Enterprise Planning Supply Chain/Value Net Strategy Stakeholder and External Relations 3.6 Technology (IT, R&D, Disaster Recovery) 3.4,3.8, 3..3 Procurement 1.4-3, HR 3.7 Telco component map 34

35 Business Transformation for Strategic Re-positioning (CPG example) References Framework Measurement Importance in their lives Perceived difference Price premium Market share Loyalty Importance to Consumers High Low Brand Brilliance Low-Cost Role Player Play Big Service Leader Source: IBM Business Consulting Services Low High Degree of Leverage with Retailers Measurement Resistance to price decline Retailer profit Resistance to store promotion Manufacturer profit 35

36 Each position demands a distinct set of priority capabilities and different margin/growth drivers Consumer insight to innovation Brand influence Multi-channel marketing Effective marketing spend Consumer insight to innovation Collaborative consumer mgmt. Effective marketing spend Collaboration and integration Strategic partnership mgmt. Margin: Growth: Premium positioning Product leadership Brand Brilliance Play Big Margin: Growth: Premium positioning Product and service leadership Aggressive cost management Consistently reliable manufacturing Responsive customer mgmt. Operational excellence Low-Cost Role Player Service Leader Key account management Operational excellence Collaboration and integration Trade fund management Collaborative category mgmt. Margin: Cost control Growth: Followership Source: IBM Business Consulting Services Margin: Growth: Supply chain integration Service leadership 36

37 New positioning implies a new Business Component Model (new competencies to be considered): the to be CBM Brand Brilliance Play Big Direct Business Administration Corporate Strategy Line of Business Planning Financial Planning Business Partner Mgmt Business Partnering Strategy Partner Development To-be CBM Product Customer Yard Maintenance & Sales & Service Service Engineering LOB Product Customer Maintenance Manpower Planning Development Relationship Plng Strategy Corridor Forecasting Above Ground & Capacity Planning Distribution Strategy Slot Allocation Maint Scheduling Long-term Network Below Ground Account Strategy Delivery Planning Maint Scheduling Field Operation Crew Planning Locomotive Planning Car & Container Planning Value Added Services Value Strategy Service / Product Development Network Modeling Business Performance Mgmt Partner Value Tracking Capacity Scheduling Sales Forecasting Transload Station Material Forecasting & Planning Crew Administration Revenue Program Mgmt & Tracking Supplier Partnering & Pricing & Revenue Mgmt Channel Tracking Yard Maintenance Planning & Scheduling Schedule Monitoring & Refinement Network & Scheduling Legal & Govmt Relations Market Tracking Sales Tracking Maintenance Manpower Planning Manifest Blocking Transportation Control Human Resources Market Research Waybill Reliability Tracking Unit Blocking SC Engineering Infrastructure Material Supply / Demand Planning Business Intelligence Low-Cost Role Player Service Leader Execute Tax, Treasury & Risk Systems External Relations Indirect Procurement Revenue Accounting Interline Car Accounting Schedule Impl & Refinement Performance Tracking & Report Order Track & Trace Outbound Sales Execution Web Direct Reservations Sales Execution Locomotive Distribution Track Configuration Ground Support Equipment mgmt Engineering Design Material Logistics Above Ground Maintenance Below Ground Maintenance Materials Performance Reporting Training Delivery Extended Freight Sales Logistics Operations Billing & Collections Customer Service Corporate Accounting Corporate Communications Fulfillment / Reporting Customer Relations Equipment Repair & Overhaul Warehousing Human Resources Administration As is CBM Business Administration Business Partner Mgmt Product Customer Sales & Service Yard Service Maintenance & Engineering Field Operations Corporate Strategy Business Partnering Strategy Line of Business Product Development Customer Relationship Planning Manpower Planning Maintenance Strategy Crew Planning Direct Line of Business Planning Partner Development Corridor Forecasting & Capacity Planning Distribution Strategy Slot Allocation Above Ground Maintenance Scheduling Locomotive Planning Financial Planning Long-term Network Planning Account Strategy Below Ground Maintenance Scheduling Car & Container Planning Business Performance Mgmt Partner Value Tracking Capacity Scheduling Sales Forecasting Delivery Material Forecasting & Planning Crew Administration Program & Tracking Supplier Partnering & Pricing & Revenue Mgmt Channel Tracking Transload Station Maintenance Planning & Scheduling Schedule Monitoring & Refinement Legal & Governmental Relations Market Tracking Sales Tracking Yard Maintenance Manpower Planning Manifest Blocking Control Execute Human Resources Human Resources Infrastructure Tax, Treasury & Risk Systems External Relations Indirect Procurement Revenue Accounting Corporate Accounting Corporate Communications Human Resources Administration Interline Car Accounting Market Research Schedule Implementation & Refinement Performance Tracking & Reporting Waybill Order Track & Trace Outbound Sales Execution Web Direct Reservations Sales Execution Fulfillment / Reporting Customer Relations Locomotive Distribution Track Configuration Reliability Tracking Material Supply / Demand Planning Ground Support Equipment Engineering Design Material Logistics Above Ground Maintenance Below Ground Maintenance Equipment Repair & Overhaul Unit Blocking Materials Performance Reporting Training Delivery Providing more value and services requires new competencies and business components 37

38 Planning and Analysis Monitoring and Controls Execution Consumer Relationship Category/Brand Strategy Category/Brand Planning Brand P&L Matching Supply and Demand Marketing Effectiveness Product Ideation and Development Marketing Analysis Marketing Execution Product Directory Customer Relationship Customer Relationship Strategy Customer Relationship Planning Assessing Customer Satisfaction Customer Insights Account Value-Added Services Customer Account Servicing Retail Marketing Execution In-store Inventory Mgmt Customer Directory Manufacturing Manufacturing Strategy Supplier Relationship Production and Materials Planning Manufacturing Oversight Supplier Control Make Products Assemble/Pkg. Products Plant Inventory Manufacturing Procurement Supply Chain and Distribution Supply Chain Strategy Supply Chain Planning Distribution Oversight In-bound Logistics Out-bound Logistics Distribution Center Operations Transportation Resources Track and Trace Business Administration Corporate Strategy Corporate Planning Alliance Line of Business Planning Consumer Business Performance Relationship External Market Analysis Category/Brand Strategy Organization Planning and Process and Design Analysis Legal and Regulatory Category/Brand Planning Compliance Treasury and Risk Brand P&L Accounting and GL Monitoring Matching Supply and Indirect and Procurement Demand Controls Facilities and Equipment Marketing Effectiveness HR Administration IT Systems Execution Product Ideation and Development Marketing Analysis Marketing Execution Product Directory Planning and Analysis Monitoring and Controls Execution Customer Relationship Customer Relationship Strategy Customer Relationship Planning Assessing Customer Satisfaction Customer Insights Account Value-Added Services Customer Account Servicing Retail Marketing Execution In-store Inventory Mgmt Customer Directory Consumer Relationship Category/Brand Strategy Category/Brand Planning Brand P&L Matching Supply and Demand Marketing Development and Effectiveness Product Ideation Concept/Product Testing Product Development Product Marketing Execution Consumer Service Product Directory Manufacturing Manufacturing Strategy Supplier Relationship Production and Materials Planning Manufacturing Oversight Supplier Control Make Products Assemble/Pkg. Products Plant Inventory Manufacturing Procurement Customer Relationship Customer Relationship Strategy Customer Relationship Planning Assessing Customer Satisfaction Customer Insights Account Value-Added Services Customer Account Servicing Retail Marketing Execution In-store Inventory Mgmt Customer Directory Supply Chain and Distribution Supply Chain Strategy Supply Chain Planning Distribution Oversight In-bound Logistics Out-bound Logistics Distribution Center Operations Transportation Resources Track and Trace Manufacturing Manufacturing Strategy Supplier Relationship Production and Materials Planning Manufacturing Oversight Supplier Control Make Products Assemble/Pkg. Products Plant Inventory Manufacturing Procurement Business Administration Corporate Strategy Corporate Planning Alliance Line of Business Planning Business Performance External Market Analysis Organization and Process Design Legal and Regulatory Compliance Treasury and Risk Accounting and GL Indirect Procurement Facilities and Equipment HR Administration IT Systems Supply Chain and Distribution Supply Chain Strategy Supply Chain Planning Distribution Oversight In-bound Logistics Out-bound Logistics Distribution Center Operations Transportation Resources En route Inventory Business Administration Corporate Strategy Corporate Planning Alliance Line of Business Planning Business Performance External Market Analysis Organization and Process Design Legal and Regulatory Compliance Treasury and Risk Accounting and GL Indirect Procurement Facilities and Equipment HR Administration IT Systems and Operations Consumer Relationship Consumer Relationship Customer Relationship Customer Relationship Manufacturing Manufacturing Supply Chain & Distribution Supply Chain & Distribution Business Administration Business Administration Marketing Dev and 4 L Account 4 L Effectiveness Assessing Customer Customer Relationship Supplier Relationship Brand P&L Category/Brand 1 R Planning 2 R 3 Manufacturing Oversight 2 R 1 R Distribution Oversight 2 R Supply 1 R Chain Planning 2 R Satisfaction Consumer Planning Customer Supply Chain & Business Manufacturing Relationship Relationship Production and Materials Supplier Control 1 R In-Bound Logistics 2 R Distribution 3 External Market Analysis Alliance 1 R 2Administration R Planning Out-Bound Logistics 3 Customer Relationship Category/Brand Strategy 2 C 2 C Manufacturing Strategy Legal and 2 Regulatory C Supply Chain Strategy 2 C Corporate Strategy 2 C Strategy 1 R Marketing Execution 1 L Compliance Matching Supply & Distribution Center Corporate Planning 2 C Concept/Product Testing 3 4 R Customer Make Insights Products 2 R Demand 3 3 Operations Customer Account Assemble/Package Transportation Accounting and GL 3 Servicing Products Resources Line of Business Retail Marketing Plant Inventory En route Inventory 2 C Product Product 1 R Ideation 2 R Indirect Procurement 3 Planning Execution Business Performance In-Store Inventory Manufacturing Facilities and Equipment 1 C Value-Added 3 Services 4 R 3 3 Procurement Consumer Service Product 3 Customer Development Directory4 R 3 HR Administration 3 Product Directory 3 Consumer Relationship Customer Relationship Manufacturing Supply Chain & Distribution IT Systems and Operations 3 Business Administration Organization and Process Design Treasury and Risk 1 C 1 C The CBM Transformation approach High Low Analyze Strategic Positioning and related Business Issue Current Positioning applying a structured Framework Differentiated Service Leader Low Commodity Provider Play Big Focused Specialty Operator Define future Positioning High Identify Business Issue Define the CBM Models ( as is and to be ) Customize CBM map and define specific Value Driver/add missing components for new business activities Define Business Component applying Value Driver and Competency analysis Planning and Analysis Monitoring and Controls Execution Develop an Operational Model focused on Hot Components Develop different analysis according to strategic, financial and innovation priorities Planning and Analysis Monitoring and Controls Execution Operational Geographic Planning and Analysis Monitoring and Controls Execution Operational Geographic Operational Geographic Planning and Analysis Monitoring and Controls Execution Operational Geographic Operational Geographic Operational Geographic Operational Geographic Operational Geographic Operational Geographic Organizational impacts assessment Operational Geographic Operational Geographic Operational Geographic Operational Geographic Operational Geographic Operational Geographic Operational Geographic Operational Geographic Assets Governance Operational Geographic Operational Geographic Operational Geographic Processes IT-Infrastructure Alliances People Develop and ondemand transformation program and related Business Case 38

39 39

40 Attraverso la re-ingegnerizzazione dei processi chiave o Attraverso l empowerment tecnologico dei processi 40

41 Processes Re-engineering Gestione del cambiamento HR 41

42 Gestione dei talenti e della conoscenza Mobilità e Flessibilita (mobile working) SSC BPO/BTO delle attività HR Innovazione Continua e sviluppo/gestione della creatività 42

43 43

44 Il modello di Business flessibile richiede un IT flessibile Business flessibile Processi flessibili Customer Bank Shared Service Bank 2 Supplier IT flessibile Outsourced Application Service Application Service Application Service Application Service Enterprise Service Bus Application Service Application Service Application Service Application Service 44

45 L IT come Service Flexible Business Transformation Business Process Outsourcing Mergers, Acquisitions & Divestitures Requires Composable Processes (CBM) Component Business Modeling Flexible IT On Demand Operating Environment Service Oriented Architecture (SOA) Development Infrastructure Composable Services (SOA) Software Development Integration Infrastructure 45

46 SSME & IBM

47 Why is SSME Important? Governments need to make service innovation a priority - GDP growth of nations increasingly depends on it Businesses need to make service innovation a priority - Revenue and profit growth increasingly depend on it Academics need to make service innovation a priority - Job placement for existing students - University competitiveness for prospective students - Continued attractiveness to business for shared research 47

48 Service Research and Education is Interdisciplinary Science and Engineering Industrial and Systems Engineering Computer Science & Info. Systems Math and Operations Research Economics and Social Sciences Business Anthropology Organizational Change & Learning Business and Need more T-shaped people both deep and broad 48

49 Open SSME Website ibm.com/university/ssme 49

50 IBM s SSME Open Courseware 50

51 Some SSME Research Topics Measuring work, service intensity, and service complexity - What are the limits to self-service? How much work can we shift to end-users? Global communication tools - What are the barriers to highly productive human-human coordination? - Distance, trust, communication, common ground, culture, technology? Service workforce management - Application of supply chain methods to service supply chains, which are people-centered - What factors do we need to take this into account in composing and optimizing teams? Effective service automation - Tradeoffs in human vs computer effort in creating customized business services Services Commoditization - How can we detect, resist, drive, or otherwise manage commoditization of services? Customer Satisfaction - How do measure and manage customer satisfaction, delight? 51

52 The challenge need shared vocabulary and understanding of what a service system is a type of complex adaptive system Operations Research and Industrial Engineering - More realistic models of people Computer Science and Electrical Engineering, Information Systems - Software and systems that adaptively/autonomously change with business strategy Economics and Business Strategy, Service & Operations - Better models of scaling and innovation to improve economic efficiency Law and Political Economy - Better models of social innovation in what way is passing a law innovation Complex Systems and Systems Engineering - Better model of robustness and fragility of service systems (sustainability) Service systems are value co-creation configurations of people, technology, internal and external service systems connected by value propositions, and shared information (language, laws, measures, models, etc.) 52

53 IBNM-SSME Initiatives and Programs Around the World

54 Growing interest and engagement in SSME worldwide Over 50 universities worldwide are offering SSME curricula and courses 54

55 UC Berkeley SSME Certificate Program 55

56 Example Curriculum: SSME at North Carolina State University MBA Concentration in SSME Required Services Consulting Business Relationship Choose one of the following Market Analytics Marketing Research Marketing Strategy Project Supplier Relations MS Concentration in SSME Required Services of Technology Managing People in the High-Tech Environment Process Analysis and Design Requirements and Electives in Electrical Engineering or Computer Science Masters Programs Elective options Market Analytics Marketing Strategy Supplier Relations 56

57 SSME in Europe Many universities across Europe are embracing SSME - Multidisciplinary / cross-school or cross-faculty programs are still rare Industry is paying increasing attention to innovation in services and seeks collaboration with universities - Strong focus on servitization move from products to services Increasing awareness and support in government agencies - Approval of new curricula and research funding EU FP7 addresses Services as a research topic 57

58 Innovation in Services in Europe 58

59 Networked European Software and Services Initiative (NESSI) Consortium formed by Leading Corporations to address the growing services industry in Europe which accounts for over 70% of total EU economic value added, 2/3rds of EU employment A European Technology Platform (ETPs) initiative, sponsored by the European Commission to foster economic growth and research in Services Not a research project in itself, but an umbrella for research into services and software led by Industry and supported by the Commission (Framework Program FP7) Launched in September 2005 in the presence of DG INFSO Commissioner Reding 59