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Servitization: an innovative model of client supplier relationship Sergio DULIO ATOMLab November 16th, 2013


AGENDA OF THE PRESENTATION

PART I. The new social and information capitalism PART II. The implications on the manufacturing processes: experience economy and servitization PART III. The impact on the footwear sector and the ATOMLab challenge

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THE PRAISE OF UNCERTAINTY

In times of uncertainty, smart entrepreneurs and innovative companies “draw” the chances to change theirs and our future. Sergio DULIO ATOMLab November 16th, 2013

PART I

“Crisis” enhance self consciousness, they shake old thinking and consolidated positions; like in Monopoly Chances and Community Chests can disrupt plans and strategies; this is the most amazing part of the game


THE « NEW » CAPITALISM

PART I

A man of many unrealised predictions, but he said: Workers ( and consumers) of the world unite .. It is happening in the Cloud and Facebook Means of production ( of information) must belong to the masse .. We all have one in our pockets

Sergio DULIO ATOMLab November 16th, 2013


THE EXPERIENCE ECONOMY Pine and Gillmore theorized that “work is a theatre and every business a stage�.

PART I

It is the advent of the experience economy , where the consumer is more than a king: he stages the experience, he owns the information and he will (soon) own the means to produce the goods he wants

Sergio DULIO ATOMLab November 16th, 2013


THE AGE OF ASYMMETRY

2000-2012 Internet of pages; impact on information asymmetries New intermediation and de-intermediation schemes No changes in the offer-demand market structure 2013-2020 Internet of people; impact on organizational asymmetries New forms of offer-demand collaboration and competition Change in market structure and termination of the company monopoly on the value added chain Sergio DULIO ATOMLab November 16th, 2013

PART I

But the one we live in is also the Age of Information and Organizational Asymmetries:


AN UNCHAINED SUPPLY CHAIN Classical value chains are replaced by relational networks through which partners communicate and collaborate

Welcome in the CDPLM era (Customer- Driven Product Lifecycle Management) where consumers are at the heart of participative product development, from design to recycling. Sergio DULIO ATOMLab November 16th, 2013

PART I

Personal 3D printers are a metaphor of the redefinition of the demand-offer relationships for products and services.


THE FUTURE OF THE FACTORY Greek tragedies had to comply with “canons” such as time and place unity. Old factories were a bit like that ..

THE FUTURE OF THE FACTORY IS DISTRIBUTED Sergio DULIO ATOMLab November 16th, 2013

PART II

Today industries no longer have to respect time and place unity: they are distributed, diachronic , shared and social


DISTRIBUTED MANUFACTURING

PART II

“Plug & Produce” manufacturing systems and lean production Post-documental manufacturing: evolution towards full 3D modelling and augmented reality, the hybridization with 3D printing technologies Hybrid robots and new schemes of Human Robot Interactions Widespread adoption of RFID tagging Internet of Things and Internet of Machines

Sergio DULIO ATOMLab November 16th, 2013


SERVITIZATION: A DEFINITION

PART II

Servitization is often viewed as the way in which firms provide an integrated bundle of both goods and services or add extra service components to their core offering. A differing notion, however, suggests that servitization is any strategy that changes the way product functionality is delivered. A broader definition is that servitization is the innovation of an organizations capabilities and processes to better create mutual value through a shift from selling products to selling product service systems

Sergio DULIO ATOMLab November 16th, 2013


EXAMPLES OF SERVITIZATION AEROSPACE INDUSTRY: ROLLS ROYCE « POWER BY THE HOUR » The manufacturer no longer sells the engine to aircraft producers, but rather a “bundle” of operating hours, performance monitoring and maintenance

PART II

Shifting of the competitive challenge from pure price to long lasting relationships, quality and performance

Sergio DULIO ATOMLab November 16th, 2013


EXAMPLES OF SERVITIZATION AUTOMOTIVE INDUSTRY: MERCEDES BENZ CAR2GO

Replacing the “burden” of property with a wealth of services that relief the driver from the complications of ownership and that focus on the through function of cars: mobility Sergio DULIO ATOMLab November 16th, 2013

PART II

The automotive company instead of only selling cars it rather offers a “mobility service” bundled in a full package of attractive offers to its clients; available in major European cities (like Milan) and supported by an APP to locate the nearest “mobility device”


SERVITIZATION AND MANUFACTURING The transition of the traditional manufacturing culture to servitization poses enormous challenges at the managerial, cultural and operational levels. From the classical transactional logic , companies must move to a new relational approach that aims at a stable relationship with the customer

PART II

Software is not only and no longer just a technology but it becomes the syntax of the new conversation between offer and demand.

Sergio DULIO ATOMLab November 16th, 2013


SERVITIZATION, FOOTWER AND ATOMLab FROM SELLER TO LISTENER

SLA (Service Level Agreements) replace the “obligation on means” with an obligation on results Sergio DULIO ATOMLab November 16th, 2013

PART III

Machine producers were used to sell their products (machines) talking to their customers about all the relevant features of their devices and about their wonderful performance In a servitization scenario they rather listen to the message that comes from the client’s manufacturing processes to offer them throughput rather than hardware to obtain it, efficiency rather than software to achieve it


THE RECIPE

PART III

If software is the syntax of the new relational model within the offer-demand network, the servitization claim in footwear implies mastering all the ingredients of the technological recipe: Mechanics Electronics Identification, tracking and handling Chemistry ( of materials, compounds and substances)

Sergio DULIO ATOMLab November 16th, 2013


ATOMLAB : THE CHALLENGE

PART III

At the end of 2012 the ATOM Group took the strategic decision to restructure and further enhance the Group activity in the area of Research and Innovation with the creation of a new, dedicated R&I Business Unit , ATOMLab.

Sergio DULIO ATOMLab November 16th, 2013


MISSION Its mission is to collaborate with ATOM’s key customers all over the world, in technological and process reengineering projects, in a new form of “innovation management” partnership.

PART III

ATOMLab will act as a “bridge” between the customers’ research teams and the R&D staff of the Group, experimenting also new schemes that lay the foundations for the evolution of the Group towards servitization

Sergio DULIO ATOMLab November 16th, 2013


STAFF

PART III

ATOMLab will have team of “innovators� with a staff of 3 by the end of this year and plans to further grow next year. Members are university graduates with specialization in process automation and robotics, material science (polymers), electronics and computer science.

Sergio DULIO ATOMLab November 16th, 2013


FACILITIES The research work ATOMLab does together with its partners, relies on two specific infrastructures:

The Injection Moulding and Material Lab (IMMLab), with specialization in injection moulding processes, research on materials and testing Sergio DULIO ATOMLab November 16th, 2013

PART III

The Robotic lab (ROBOLab) with specialization in advanced robotic applications, robot programming and interfacing, electronics, RFid


ATOMLab APP

PART III

The APP (Automated Pilot Plant) will complete ATOMLab infrastructures and will be fully operational at the beginning of 2014; it is a robotized pilot plant for injection moulding

Sergio DULIO ATOMLab November 16th, 2013


ATOMLab APP ‌ as well as a test rig for the development of advanced

PART III

automation and robotic concepts

Sergio DULIO ATOMLab November 16th, 2013


A SERVITIZATION LAB

PART III

ATOMLab is more than a « simple » R&I laboratory; it will also be a servitization test bed to experiment new schemes of client-supplier relational schemes

Sergio DULIO ATOMLab November 16th, 2013


BUILD, OPERATE AND TRANSFER BOT contracts; servitization at work The system is BUILT by the provider according to the specifications defined in the MOU and a specific SLA

MOU

BUILD

The system is OPERATED by the provider in the location agreed with the customer

OPERATE

Eventually (at the expiration of the agreed operating time frame) the system is TRANSFERRED to the customer Sergio DULIO ATOMLab November 16th, 2013

TRANSFER

PART III

A Memorandum of Understanding (MOU) is signed between the parties


CONCLUSIONS The future and the heritage of the past

We are the heritage of our past

PART III

But we see our future as the pioneers of “cloud manufacturing “ Sergio DULIO ATOMLab November 16th, 2013


Contact person: DULIO Sergio – Head of R&I unit sergio.dulio@atom-lab.org Mobile . +39 335 6664251

This presentation was prepared with the valuable contribution of Carlo Alberto CARNEVALE MAFFE’, strategy Professor at BOCCONI UNIVERSITY-ITALY whom I want to sincerely thank

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Uitic 18th congress session 5 2 sergio dulio presentation