Teemu Kaattari, Head of Products at Variantum
Marine industry has very specific characteristics comparing to any other industry. Even it resembles Project based building industry, it still must fulfil customer required features (e.g. cargo, volume, weight), operational efficiency (e.g. cruising speed, consumption, pollution), and continuous planned and unplanned instant maintainability thru operational lifetime, sometimes during operation.
Marine industry cluster, companies that are involved design, build and delivering very large variety of different equipment’s and components, is very large – typically thousands of companies. Cluster must support large variety of products to be used from tiny projects to huge cargo- and cruise boats as well as rigs.
These projects have a very high demand of collaboration during design, building and maintenance in a variety of changing components and configurable equipment’s where every individual equipment or component must be able to track, serviced or replaced.
As a marine cluster company, they need to be able to manage own product portfolio for different products and customer requirements in sales, design, manufacturing and service, company also needs a system where products can be mass customized. Mass customization means: “producing goods and services to meet individual customer's needs with near mass production efficiency”.
After delivery product maintenance should be handled somehow. Even “servitization” concept (from product-centric to an integrated product-service business) has been adopting the world of business, marine industry is more and more following the trend.
Adopting to servitization concept is not easy, it requires exact information of customer individual product as well as online information of product performance. In a world of 24-timezones, marine industry faces a challenge how to maintain equipment’s around the world. Only reasonable choice is to use 3rd party service partners who get alarm of online systems connected to product individual to find right spare parts from service partner depots and information how to do service action when vessel is in port and make repairs at sea to minimize downtime.
To be able to work as mass customization company and to support servitization, product information needs to be shared with open interfaces for collaboration. To change business model to Product-as-a-Service with configurable products, company needs Offering Management.
Offering management supports marine industry, where complex products must be offered faster and accurate, produced near mass production efficiency, and manage effectively delivered individual product service information with an option to share and collaborate with service partners.
Offering Management also offers companies’ an ability to change business model to end-to-end Offering Management as a Service (OaaS) hence all product information is owned by the company. Data management perspective this changes product pricing in sales and in maintenance: one time invest changes to continuous cash flow (recurring revenue) and service parts are not separately purchased – they include to e.g. monthly payment. Some product may offer also new features during operation to adjust some product behaviour or parameters, e.g. power adjustment, with additional price tag.
Offering Management’s end-to-end approach will lead to competitive differentiation, better and deeper relationship with customer, enhanced customer satisfaction and loyalty. This is not a trend in future business, it is already here. Are you ready?
Written by Teemu Kaattari, Head of Products, 03/09/2020 Variantum