21st Century will be focused on customer experience and associated with a service-based model. This major trend is a real challenge for machines manufacturers who must redesign their thinking, design and organization structure to support this new approach. The capability of communication of new product and the integrated management of product life cycle management will be the key in this new environment focused on customer applications.

1. 1
From Machines
selling to service
based business
model
By
Dr. Sabri MOURAD

2. Summary
- Majors technical trends impacting our future
- Transformation towards services and solutions business model
- Innovation process and major digital tools needed to achieve this transformation
- New organizational structure to success the transformation
- Questions
2

3. Summary
- Major technical trends impacting our future
- Transformation towards services and solutions business model
- Innovation process and major digital tools needed to achieve this transformation
- New organizational structure to success the transformation
- Questions
3

4. Major technical trends impacting our future
4
From F2F experience to F2S or F2D2 experience
Source Hp megatrends 2018 report

5. Mega trends shaping our futures
5
3,6 billion users connected to internet in 2017. Doubled in 8 years
6 hours spent per day spent in front of a connected screen. Doubled in 10 years
35 minutes spent to watch videos per day. Doubled each 2 years
60% of Global payments are made through digital systems Source Hp megatrends 2018 report

6. Accelerated innovation
GRAVOTECH
GROUP
6
20 million of researchers in
the world
2,9 million patents
delivered/year in 2016
10 million active patents
20 000 scientific article/day
R&D expenses > 2000
billion $ / year
X2 in 10 years

7. 3D Printing and Digital manufacturing
7
Source Hp megatrends 2018 report

8. Cognitive and conversational interfaces
8
Source Hp megatrends 2018 report

9. The butterfly effect of self-driving cars
9
Source Hp megatrends 2018 report

10. Acceleration of service and experience economy
Source Hp megatrends 2018 report
10

11. Mega trends will reshape every aspect of our live
11

12. Summary
- Majors technical trends impacting our future
- Transformation towards services and solutions business model
- Innovation process and major digital tools needed to achieve this transformation
- New organizational structure to success the transformation
- Questions
12

13. Leaving the “Product Comfort Zone”
Made
To
Serve
From one single transaction based on hardware selling to multiple transactions based on
recurring, continuous value delivering transactions.
13

14. Excelling in service based business model
Push performance in three key areas:
1.Customer Intimacy. Combining detailed customer knowledge with operational
flexibility, to create the best total solution for the customer.
2.Operational Excellence. Controlling processes to effectively deliver best total
cost to the customer.
3. Solution Leadership. Selling the best solution on the market.
Customer: Help me perform
like a professional
Make me efficient at my
work
Make me confident that
I can get the job done
Convey my professional
status
Functional Emotional Social
14

15. From product-ownership to service economy
Product
Ownership
Economy
Functional or
service
Economy
Buying Chemicals
Buying copiers
Buying cars
Buying Chemical management
Service. Ex: PPG Industries
Buying document reproduction
services. Ex: Xerox
Buying « mobility » services.
Ex: Car2Go
1 service offer could includes up to 100 separated offers proposed previously → New
skills and wider offer to manage → Decrease administrative costs for the customer
15

16. Different types of Product Service System (P2S)
Product Service System
Product
oriented
Use
oriented
Result
oriented
Pure
Services
Pure
Products
Service Content
Product Content
1. Base Services: Product Provision
2. Intermediate Services: Product Repair, Condition Monitoring, Field Service and
Customer Help Desk
3. Advanced Services: Pay Per Use, Fleet Management, Availability Contract and
Integrated Solution
Product providers take on more responsibility and risk.
16

17. New products capabilities to success P2S
- Physical components (such as mechanical and electrical parts).
- Smart components (sensors, microprocessors, data storage, controls, software,
an embedded operating system, and a digital user interface)
- Connectivity components (ports, antennae, protocols, and networks that
enable communication between the product and the product cloud, which runs
on remote servers and contains the product’s external operating system).
GatewayService as Business/ Applications
Devices
CLOUD
1
23
4
17

18. Technology – at the heart of Product Service System (P2S)
Use connected technology is the heart of P2S. This technology enabled a higher
level of service delivery, tailored to the customer’s individual product needs.
- Monitor. Transducers, data storage and fault code generation are used to
continuously sense critical product systems and subsystems.
- Transmit. Base and fault code data is periodically transmitted by the product
either via satellite, GRPS, radio, internet or cell phone.
- Store. The data is stored by the organization on either hard or soft storage
systems.
- Analyze. The data is diagnosed and analyzed to predict future product behavior
and usage trends.
- Respond. The company determines appropriate interventions such as offering a
repair/replacement, contacting the customer, modifying product design or drafting a
contingency plan.
18

19. Summary
- Majors technical trends impacting our future
- Transformation towards services and solutions business model
- Innovation process and major digital tools needed to achieve this transformation
- New organizational structure to success the transformation
- Questions
19

20. Innovation is the synthesis of the best knowledge and
available technologies to create new solutions (products and
services) that answer efficiently customer applications and
bring his satisfaction to levels previously unknown (before
the introduction of the innovation).
Innovation in Product Service System (P2S) business model
Innovation = ‫׬‬𝑡1
𝑡 𝑛
‫׬‬𝑂1
𝑂 𝑛
‫׬‬𝑇1
𝑇𝑛
𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑨𝒑𝒑𝒍𝒊𝒄𝒂𝒕𝒊𝒐𝒏
Time Organisation Technologies
Customer application = σ
𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙𝑠 𝑜𝑟/𝑎𝑛𝑑
𝐷𝑎𝑡𝑎 𝑡𝑟𝑎𝑛𝑠𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛𝑠
20

21. Innovation in Product Service System (P2S) business model
Ideas management
Voice of customer
Application survey
Practice Follow up
Customer satisfaction
Intellectual property
Data managementTech suppliers survey
Emerging technologies survey
Integration of new technologies
Training of the team
Open innovation
Define roles
Reduce TTM
Risk sharing
Talents acquisition
Industrialization
Customized solutions
21

22. Major marketing tools to collect information and trends
22 22

23. Some digital tools to support service sellings
23

24. Main IOT tools
24

25. Main IOT tools
25 25

26. Summary
- Majors technical trends impacting our future
- Transformation towards services and solutions business model
- Innovation process and major digital tools needed to achieve this transformation
- New organizational structure to success the transformation
- Questions
26

27. Data is the center of Product Service system (P2S)
Smart, connected products
Location, conditions, use …
External
Prices, supplier, inventory …
Entreprise
Warranty status, history …
DATA SOURCES
DATA LAKE
Aggregated raw data
in multiple formats
Descriptive
Capture products
condition, environment
& operation
ANALYTICS
Diagnostic
Examine the causes of
product performance
or failure
Predictive
Detect patterns
that signal
impeding events
Prescriptive
Identify measures to
improve outcomes
or correct problems
BUSINESS CUSTOMER PARTNER
Raw Data
Raw Data
Basic insights
Such as use
pattern
Control &
Optimization
Software upgrade to
improve performance
Deeper Insights
27

28. New organizational structure to accelerate (P2S)
28

29. Questions
29