Digitalisation is impacting all industries, but each sector has its own rules and characteristics – and the machinery and plant engineering sector is no exception. Therefore, to be well prepared, it is worth seeking advice from experts.
For many companies in mechanical and plant engineering, service had not been a top priority for a long time. Although they offered such services to their customers, they rarely developed them strategically. However, this is gradually changing, and there is a good reason for this. Today, service often holds more potential for revenue and profit than the sale of machinery and equipment itself, primarily because companies are currently investing less in new equipment. This trend was recently confirmed in a study by Bain & Company consultants. It is expected to intensify as a result of the coronavirus crisis, as there is simply no capital available for major new investments.
At the same time, excellent service is a crucial success factor for strong customer relationships. Machinery and plant manufacturers that manage to deliver above-average performance in this area not only stand out from their competitors but also secure long-term customer loyalty. This, in turn, opens up numerous cross-selling and up-selling opportunities. However, meeting customer expectations consistently in a digital world is not easy. Buyers of machinery are becoming increasingly demanding. They expect, for example, to be able to communicate with the manufacturer at any time across all analogue and digital channels.
Machinery and plant manufacturers should respond by digitalising established service processes. This not only ensures efficient communication with customers but also speeds up the flow of information. With the help of new technologies, they can also create and market new Smart Services. Yet only a few companies are tapping into this potential, even though, for example, the use of paper forms is no longer appropriate.
Smart Services – meaning digital and data-based services – have multiple positive effects: They increase customer satisfaction and loyalty. They accelerate processes and reduce costs by enabling information to be transmitted and processed without media disruption. And they open up additional revenue streams by creating added value that customers are willing to pay for.
Revolutionising the Industry
First, however, it is important to understand how digitalisation is revolutionising the industry. Striking effects such as the blurring of market and industry boundaries can be observed in other sectors as well. But there are also developments that specifically affect machinery and plant manufacturers, including:
Improvements in production such as 3D printing, sensor technology, or advanced robotics
- The Internet of Things (IoT), which places high demands on data volumes, computing power, and connectivity
- New human–machine interaction interfaces such as augmented reality and voice or gesture control
- The growing importance of business intelligence and data analytics
“Not all, but many of these impacts of digitalisation fall within the area of services,” explains Stefan Pletsch, Managing Director and Partner at i-tec consulting GmbH. The Munich-based consulting firm has many years of experience with such transformation processes and offers suitable solutions. Pletsch recommends building a web-based service portal as the technological foundation, one that integrates seamlessly into the existing system landscape. “All data is provided and processed here, and all processes are organised through it.” The possibilities this enables are enormous. The spectrum ranges from digital machine management to automated maintenance, digital warranty processing, optimisation of existing machines, and predictive maintenance – all of which can be offered as Smart Services.
Using an example, Pletsch illustrates how this might look in practice: In the production hall, the machinery and equipment inventory must be documented and managed. This is necessary, for instance, to create effective maintenance plans or to record ISO certifications.
“With smaller machinery inventories, this might still be possible with an Excel spreadsheet,” Pletsch explains. “But beyond a certain size, specialised IT solutions are the only sensible way forward.”
The challenge, he notes, is that these solutions are often isolated. Integration with the central ERP system rarely works smoothly, and data often needs to be maintained twice.
In addition, the functionality of such solutions is often very limited. “Machine and equipment data can be recorded, but maintenance plans cannot be created. Another piece of software is then required. This quickly leads to a tangle of applications that do not fit together properly and all need to be maintained and operated.”
Smart Services: Web-based Solutions
Web-based solutions that integrate seamlessly into the existing system landscape are far more efficient. First, they ensure a unified data base. Second, information about the machinery and equipment inventory can be accessed from any location. Such a solution for digital machine management enables customers to maintain oversight and centrally organise all service activities with ease. “This significantly increases customer satisfaction,” says Pletsch. “The manufacturer thus provides the starting point for a series of additional digital Smart Services – and therefore for additional revenue.”
Technically, this is implemented using a service portal based on an e-business solution (such as SAP Commerce Cloud). Here, the manufacturer can record all of a customer’s machines and associate them with specific information. In addition to the machine name, this includes, for example, the serial number, reference number, machine type, and technical specifications. Customers can add further information that is useful for organising and carrying out service tasks – for example, building, production line, or stage in the manufacturing process. Documents relevant to a machine, such as manuals and technical drawings, can also be added. Using this information, a variety of Smart Services can be developed. These applications range from QR code access, virtual reality support, integration of e-learning, maintenance calendars and scheduling, monitoring, wear and fault simulation, through to integrated upgrade ordering.
To implement all this, Pletsch and his team offer various consulting services, ranging from one-to-one web sessions and on-site presentations to consulting workshops. “We want our customers to move from being driven by change to driving their own value-added services,” says Pletsch. “The quality and efficiency of service delivery have become a critical success factor. This is no longer a mere formality but an integral part of strategic and profitable business development.”
Employees often fear that their roles will become obsolete when processes are digitalised or even managed using artificial intelligence (AI). The opposite is true, Pletsch argues: “To develop new ideas, we draw on the most valuable asset a company possesses – its employees. The decisive factor is understanding the innovation environment – and no one knows it better than the team.” Approaches to digital innovation can take various forms: playful or analytical, as part of a multi-day project or a short creativity sprint. “Together, we develop the path to a successful innovation project that matches the customer’s DNA.”
