Shifting the Business Mind Set from Asset Management to Customer Value (Part 3)
Author: Chris Stevens | Managing Partner
A new mind set and approach is needed.
Fundamental organisational change is a leadership challenge
Adaptive organisations reflect the traits of leadership that envision the future, inspire and shape the characteristics of the organisation to achieve its purpose - the culture is often ‘by design’. Our observations show though that the path to fundamental organisational change is not just about having a model and a strategy. Above all else it is a leadership challenge and one that requires courageous and visionary leadership. Without such leadership, the fundamental changes often needed cannot occur.
Extracting more value from assets, both for customer value and business value
What was once considered to be only concrete and steel, possibly integrated with some form of control system logic (e.g. a car park or a train station) should no longer be considered as a just a fixed asset. The introduction of sensors, WiFi, centralised control systems and real-time automation has now enabled a new means to extract more value from these assets. If we assume that an asset must perform more than its basic function (e.g. a space for cars to be parked), it must now play a role in contributing to both customer value and business value.
From a customer value viewpoint, the value from a car park, as an example, may include that it is easily found online when searching for parking options, has ease of access, wide parking bays, competitive pricing, vacant space indicators, valet service, car wash service etc. Knowing what customers value requires measurement and analysis.
Similarly, from an asset perspective, measuring utilisation levels, yield, maintenance and renewal costs help determine the level of value the asset contributes. Looking at assets in the context of supporting the customer journey (directly and indirectly), a new perspective of value can be determined that each asset should seek to fulfil.
The approach to maximising value from large assets is often left unaddressed or misunderstood. While the digital era has made it possible to use digital tools to connect, learn about and ultimately transact with customers, ironically, these newer digital tools and capabilities also enable organisations to extract more value from large assets.
The style of most large established organisations created in the industrial era is biased towards a 'control and operate' focus and many are yet to identify how to create new levels of business and customer value through leveraging newer digital business models in conjunction with their long-established business capabilities. Many of these capabilities are centred on asset operation and management.
For larger asset based businesses, extracting more value from assets, while at the same time addressing customer needs should be inextricably linked. When this alignment occurs, both customer value and business value can increase. When coupled with a more adaptive workforce model, driving even greater levels of business and customer value at greater speed is not just possible but should become the new business norm.