TransingtoaServiceCentricBusinessTheIBMCaseStudyKam發(fā)言稿

1、 copyright ibm corporation 2006disclaimer(optional location for any required disclaimer copy. to set disclaimer, or delete, go to view | master | slide master)ibm global business servicestransforming to a service centric business:the ibm case studymichelle kamdirector, ibm institute for business val

2、ue8 december 2008ibm global business services copyright ibm corporation 2006 | 2table of contents why change: path to differentiation and sustainable growth where to change: a matter of understanding your customer and innovation the ibm story: from product to solution how to change: core capabilitie

3、s and critical success factorsibm global business services copyright ibm corporation 2006 | 3three factors drive chinese manufacturers to transform from product to service centric declining profitabilitycustomerheightened demand commodity product years of price war impacted chinese manufacturers pro

4、fitability rmb appreciation and rising of raw material price further eroded profit marginlack of product differentiation among manufacturers, resulting in low customer loyaltycustomers want better experience of using the product and solutions to their problem ibm global business services copyright i

5、bm corporation 2006 | 4manufacturers could enhance customer experience, improve profitability and lock in customers by transforming to service centric service centric product centric selling products basically selling services on top of the product, or selling a solution “must have”/ ”me too” servic

6、e innovative services instead of “me too” one off transaction and revenue long term, continuous revenue stream competition on price, product features and brand image competition on service innovation/ quality on top of traditional dimensions a partial view to meet customers needs & requirements

7、have a holistic view to meet customers needs & requirements limited interaction with customers once the product is sold continuous interaction with customers throughout the entire product lifecycleibm global business services copyright ibm corporation 2006 | 5what is service centric transformati

8、on about? creativity: new service associated with a product, not traditional “me too ” servicescustomer experience: enhance/transform customer experience of the productcustomer interaction: customers able to “visualise” the service, which involve human interaction with customerschanged value percept

9、ion: customers willing to pay extra or separately for the service component, or having higher preference for the product because of the service componentcustomer base expansion: services originally provided to inhouse customers now sold to external customers; or ancillary services originally designe

10、d to help sell the product now sold separately for profit (without selling the product) 5c framework entering into totally new, unfamiliar service industries ancillary services that have long been provided together with the product without any change in nature and value proposition to the existing c

11、ustomers services that are transparent to customers, though enhancing products value proposition (r&d for product innovationnot aboutibm global business services copyright ibm corporation 2006 | 6customer experience can be enhanced through value added services or transformed through service led

12、solutions become full solution provider by meeting unique business needs of customers substantial change to industry, revenue and enterprise model requiredservices-led solutions provide commoditized “services” centered around product usage and product failure product-focused introduce differentiated

13、 fee-based offerings for consumers and businesses to enhance full product ownership experience basically same industry, revenue still primarily from products and possible to be delivered by existing organisation/ecosystem structurevalue-added serviceshighlowdegree of change to business modelpotentia

14、l value to customershighibm global business services copyright ibm corporation 2006 | 7service opportunities could be through enhancing existing services to introducing entirely new services, or from existing customers to new customers focus nature of service nature of customerstotal solutions outso

15、urcing, total solutionsenhancing existing servicesintroducing brand new servicesnew customer focusexisting customer focusvalue added services to enhance customer experienceoutsourcing, standalone servicesancillary services offered as part of the product package, for customers buying the productsibm

16、global business services copyright ibm corporation 2006 | 8there are service opportunities for b2c as well as b2b customersconsumers (b2c)enterprise customer (b2b)value to customerenhance/transform the experience of owning and using productenhance efficiency/ effectiveness of business operationsabil

17、ity to focus on core businessopportunity areasconsumer need along the sale cycleclient requirement along the value chaincritical success factorssetting up service delivery channels to serve the geographically dispersed consumers adapting to the different requirements when transitioning from an “inho

18、use support function” to a “for profit business”addressing customers needsmaintaining consistent service levels and qualitypre-salesale post-salebusiness support servicer&dsupply chainsales & post-salesibm global business services copyright ibm corporation 2006 | 9post-salesaleservice innova

19、tion begins with thinking from the customers perspectivenot sure what/which product to buy not enough cash to buywants personal styles and tasteswant different models of a product at different timesdont know how to match nor want to spend time to shop for accessoriespre-saleconcern about product qua

20、lity, origin, etcproduct lagging behind in fashion/ technology worried about potential product failure want environmental friendly disposalsense of prestige as car owners, share experience with other car owners consumer needs/concernspotential services/ solutionsb2c services for car buyerscustomer e

21、xperience centerfinancing services allow consumers to participate in personalizing the product pay for one model, which allows access to other products product “combo”+ design service provide traceability information upgrade/ old for new remote diagnose and “road rescue service” collection of old ca

22、rs/parts, help sell the second hand stores user communityibm global business services copyright ibm corporation 2006 | 10business customers also have various pain points at various stages of their value chain realresearch & developmentsupply chainsales and post-salesbusinesssupportingserviceserv

23、ice opportunitycustomer needs/ concerns (manufacturer) no expertise in r&d nor in product design failure of new design validation (distributor/retailer) low product availability but high inventory cost (manufacturer/distributor) inefficiency in inhouse logistics (retailer) creating more demand (

24、service company) lack of capital to invest in new equipment high cost in maintaining inhouse repair/maintenance teamapplied researchcreative designtrial product testing dont have inhouse expertise in setting up/maintaining it infrastructure/applications/data inefficient and costly in transitional op

25、erations handling obsolete equipment in an environmental friendly way lack of skills & bargaining power in non-strategic procurementinventory management real-time replenishment logistics servicecategory management & in store promotion for retailerse-sale servicefinancing & leasingwarrant

26、y managementit infrastructure/application outsourcing, data hosting & managementbusiness process outsourcingend of life asset managementprocurement outsourcingclients value chain b2b services ibm global business services copyright ibm corporation 2006 | 11ibm has a long history of renewing itsel

27、f in response to shifts markets, technology, customers and competitorsaccounting machinesthe first mainframepersonal computerson-demand solutions & deliveryibms revolutionary historythe services transformationibm global business services copyright ibm corporation 2006 | 12market trends indicated

28、 that the future of the computer industry needed to move beyond hardware and softwaremarket trends indicated the need for computer industry to move beyond hardware and software erosion of margins in core markets hardware and related services became commodity with strong competition trend to large an

29、d complex business solutions customer demand for integrators tired of unique, stand-alone technologiesibm also faced internal management issues 3 years of consecutive financial losses unpredictable revenue and unacceptable margins from service contracts service portfolio did not reflect the needs of

30、 the marketplace limited and often inaccurate knowledge of the customeribm global business services copyright ibm corporation 2006 | 13ibm now offers a full range of services, positioned as the transformation partner of companiesinfrastructure and technical servicesapplication management servicesman

31、aged business servicebusiness value business consulting & system integrationibm global business services copyright ibm corporation 2006 | 14ibms services transformation roadmap was multi-dimensional and took over a decade to executekey milestones in services evolutiondevelop offerings & capa

32、bilitiesensure leadership commitmentstrategic alliances/ acquisitionlaunch services organizationlaunch services brandclose large deals 1990199319961999 2002services revenue, % of ibm: $5b $10b/14% $30b/37% $36b, 40%ibm spins off its systems services division (ssd), into a wholly owned subsidiary iss

33、cd welsh is named president of isscfirst american national bank, signs first outsourcing agreementissc brand is launched10-year agreement with hook-superx (hsi), the retail drugstore chaininks two dozen outsourcing contracts worth more than $2 billion (incl. eastman kodak co., zale corp., and contin

34、ental)loss to eds of the coveted multibillion-dollar xerox corp. dealamex signs $4bb outsourcing dealvisteon signs a $2 billion outsourcing deal with igs under the 10-year agreementunited health group chose igs and synergy to handle hr administrative support for its 29,000 employeesvendor neutral ma

35、intenance contractsapplication development outsourcingibm consulting group offers it planning servicesibm consulting group brand is launchedibm consulting group is started as a unit within sales & distribution grouplaunches remote monitoring & diagnostics services for network monitoring- to

36、offer 24x7 support and counter threats from low cost indian it firms launches on-demand offering: outsourcing of entire business processeslotus acquisitions creates channel confusion with resellers in smb spaceacquires chemsystems, boutique chemical & petroleum strategy firmacquires mainspring,

37、a boutique strategy firmacquires pwcc to brings expertise in areas like business-process outsourcing and as well as industry-specific solutionsfolds ibm consulting group into igs business unitslaunches igs brandlaunches bis brandmorphs bis brand into bcsindustry sales groups created by adding consul

38、ting group to the salesforceissc folded into ibm. new unit is called igsigs is organized into 3 bus: so, its and learning services. consulting is organized by national practicesseparates app development from so and launches ams; all igs bu are aligned by industrycreates bis to consolidate all consul

39、ting services, as a fourth unit under igsmorphs bis into bcs with pwccibm consulting group offers process transformation related servicesigs forms strategic alliances with sap, jde, peoplesoft and siebel. ibm announces it is pulling out of business application development marketd welsh is named grou

40、p vp of igsgerstner acknowledges os/2 is a lost battle, diverts investmentss palmisano is named group vp of igss palmisano is named ibm ceoibm tata, a jv is launched to position igs to leverage indian resourcesibm india is launched, ibm dissolves tata jvigs hires 15k new employees for past 2 years i

41、n a rowgerstner commitment for open standards, services benefits the most1product agnosticism2separate services orgservices svp becomes ceo4large scale acquisition35sales channel transformationibm global business services copyright ibm corporation 2006 | 15summary of gerstners lessons learned“i have

42、 worked in services companies and product companies. i will state unequivocally that services businesses are much more difficult to manage the skills required in managing services processes are very different the business model is different. the economics are entirely different. this is the kind of

43、capability you simply cant acquire. the bet youre really making is on your own commitment to invest both the years and capital, then build the experience and discipline it takes to succeed”-louis v. gerstner, “who says elephants cant dance”ibm global business services copyright ibm corporation 2006

44、| 16chinese manufacturers need to transform at three levels to become a service centric businessbusiness modeloperation modelpeople!strategy leveltacit levelexecution levelstrategic intent, services portfolio, revenue model, partnership model and channel management strategyservice aligned organizati

45、on, processes, measurement and management systemtalents and skills, culture transformationibm global business services copyright ibm corporation 2006 | 17defining an optimum business model is key to successful services transformation delivery model revenue modelvalue proposition1. business model del

46、ivered by inhouse resource versus outsource leverage existing channels versus set up new channels charge separately versus together with other products/ services one-off versus long term revenue fixed versus variable charge align service strategy with growth model and objectives identify service opp

47、ortunities and the way of integration with existing products/ services define clear value proposition to customersibm global business services copyright ibm corporation 2006 | 18changes to various dimensions of the operation model are necessaryservices as percentage of revenue recurring revenues fro

48、m services contracts customer satisfaction measurement flexible processes that incorporate customer insights and encourage collaboration across company transformed sales process to be better deliver full impact to clients integrated systems to present consistent and comprehensive of customers information systems to capture and share client knowledg