Thought for the Day
“For things to change you have got to change, otherwise nothing much will change.”
Jim Rigby
The Outcome Economy
My March Coaching Group for Professionals was on the topic of The Outcome Economy.
According to a recent DAVOS Paper over the next five to ten years the fourth industrial revolution will take place. We are increasingly interconnected using the Industrial Internet of Things (IIoT). Industries including manufacturing, agriculture, and transport, accounting for two thirds of the words Gross Domestic Product will be transformed by this revolution.
Here are two examples of the Outcome Economy:
RENFE operate the Spanish High-Speed Rail Network. Siemens built the trains and are contracted to do the maintenance. The guarantee that the passengers get is that if the train is more than fifteen minutes pate they get their money back!
They can do this because its new purpose-built track and of course new rolling stock and they are able to monitor track data and rollingstock data constantly looking for potential problems and stop them before they delay the trains. You may be interested to know that they achieve service availability of 99.94%.
ROLLS ROYCE AERO ENGINES Total Care Service maximises engine time on wing. Instead of the airline buying the engines and paying for a separate maintenance contract they pay availability. This is maximised by Rolls Royce constantly monitoring the engines performance and always looking to put thing right before they delay the aircraft. And analytical tools to measure performance
To survive and thrive in this new economy businesses will need to have better data to enable us to calculate costs, and manage the risks associated with guaranteeing outcomes.
Where will this data come from? Well some is already in your systems, some can be bought in from companies like Experian and some is still with your Customers. The best example I have seen is the supermarket loyalty card. Not only can they target you with special offers the card system helps them buy and stock better.
As the IIoT gains broader adoption, businesses will shift from Products to outcome based services, where businesses compete on their ability to deliver measurable results to their customers. Such outcomes may range from guaranteed machine uptimes to crop yields.
According to one Chief Information Officer “We will have to focus on what provides product value – what can we leverage in a way that the customer sees value in and is willing to pay for”
How are you going to meet this challenge?
Featured Video
How Tran Italia uses data to maximise service availability
Click the image below to play the short video
New Website
I have finally given in and upgraded my website so that it responds to the device that you are using to view it – it is still at the same web address www.mrwcs.com
In Resources, which are free to use, all you have to do is enter your contact details, to get a copy of the report generated by the diagnostic software. You will find an improved GPS Diagnostic and a completely new Diagnostic on Change Success.
My Video Blogs are now merged in with my Newsletters and the Resource section is easier to find.
Have a look and let me know what you think