Earning money with remote services

Earning money with remote services –strategies of commercialization in B2BMartin Stiegler – Rotterdam 15.05.19

intranet.siemens.com/digitalbusinessUnrestricted © Siemens AG 2019

Unrestricted © Siemens AG 201915.05.2019 Steam Turbine Service @ Siemens – Martin Stiegler

Martin Stiegler• Global Head of Marketing & Customer

Services for Steam Turbines & Generators < ~200 MW

• >20 years with Siemens • >15 years involvement in Digital Services• Born in Hamburg• Austrian national• Wife & 3 kids• Current office in Nürnberg

PL & Reg

Unrestricted © Siemens AG 201915.05.2019 Industrie Dampfturbinen Service @ Siemens – Martin Stiegler

Agenda

1 Short introduction

2 Product and commercialization at Steam Turbines

3 Recommendation for your commercialization


Market and competitive environment for Industrial Steam Turbine Services

Mechanical engineering

Equipment CAPEX between 0.3 and 10 MEUR.


Market Enviromnet for Service on Industrial Steam Turbines (mainly OPEX)

PowerplantsBiomassSugar & EthanolPetrochemical

Waste incerationSteelChemicalsPulp & Paper

World Market roughly € 5.000.000.000

Many many more


Competitive environment for Steam Turbine Service


Agenda




Remote Diagnostic Service for Steam Turbines & GeneratorsRDS 4.0

intranet.siemens.com/digitalbusinessRestricted © Siemens AG 2017

Turbine Trains covered with remote diagnostics

get on average +0.9% availability


Daily monitoring ensures maximum

availability

Remote Diagnostic Service @ IST 4.0RDS – Service Illustrated

Unrestricted © Siemens AG 201915.05.2019 Steam Turbine Service @ Siemens – Martin Stiegler

Remote Diagnostic Service @ IST 4.0RDS Value Proposition for Industrial Steam Turbines and Generators

+

+( )A

B

C


Remote Diagnostic Service @ IST 4.0Special Offer with Satisfaction Guarantee

C Increased reliability due to prognosticsMore than 50% of issues are predictable and often avoidable

AIncreased availability due to fast reactionMore than 50% of trips can be solved remotely. Almost all trips and issues can be solved faster if supported by Remote Diagnostic Service

DOperational adviseBased on our global experience Siemens can give advise on where on how to operate the turbine (e.g. start-up procedures, part load operation, etc.)

Identify a potential failure before it impacts operation, it really works. With our prognostic we can see things you cannot see in your control room.

B Turbine specific outage planningMove from time based to condition based maintenance


• Inefficient operating of the turbine was recognized and resolved in a early stage.• Root cause for loss of performance was determined.• Detailed recommendations for reliable and high efficient turbine operations were given.

Your Benefits

• The RDS fact finding was confirmed by an periodic borescope inspection.• Detailed recommendations for steam quality were given to the customer.• Washing of the steam path was recommended to remove the existing deposits.

Our Solution

• During daily monitoring and long time observation it was recognized that the “Inlet Section of Steam Path Logic” increased. That behavior in combination with the characteristic of the “Flow capacity Logic” let to the conclusion that salt deposits were formed on the HP blades. The impact of salt deposits is a loss of turbine performance.

Project Situation

Installation: Industrial Power Plant

Country: Italy

Driver: SST-300 Generator Drive

We can detect issues which are not visible in the controls Room.

Remote Diagnostic Service @ IST 4.0Reference – Early Detection of Deposits – It Really Works!


Context of data from installed basis

Installed products, systems, processes, and sensors

Domainknow-how

+Context

know-how

+Analytics

know-how

• Manage the performance of energy assets and plants

• Lower operation and maintenance costs

• Reduce failure rates

• Operate plants to achieve the highest return on investment

= Digital Services powered by MindSphere

Customer valueOptions for actionInformationData analysisData

Data as an AssetFrom Data to Insights to Customer Value


How to commercializeRemote Services?


Provide it for free to promote equipment sales & gather data

+ Easy to explain+ Relatively simple to „sell“

- „if it is free it has no value“- Problem of perceived data ownership(„this is my data“) & security- Does not fit with Trusted Partner Approach- Increases product cost


Provide data as a service

- „everyone can do this“- Problem of perceived data ownership(„this is my data“) & security- Does not fit with Trusted Partner Approach

+ Easy to explain+ Clarity on Cost and Revenue

1


Combine with extra services

- Difficult consultative selling

+ Clear customer value+ „Improvement“ of service qualitythrough remote services

5e.g.• 24 / 7 support• Operational advise (you can get more

power if you do this)


Improve the competitivness of your product

- Difficult consultative selling

+ Focus on the value of the customer+ Protection from commoditization+ Competitive advantage compared to others

20


Competitive offerings

Mechanical engineering

Equipment CAPEX between 0.3 and 10 MEUR.


Agenda





Recommendation


• Explain why you offer it now• Digitalisierung• Automatisierung• Affordability

1. Take your customers the fear of remote services

Explain why now

• Use your references & pilots• References to other industries

Explain that many others are already doing it


2. Combine the price with the value of the product and the competition

Customer value

AvailabilityCompetition


3. Decide upon your commercialization strategy


Thank you for your attention!Disclaimer

”SIEMENS AG AND ITS AFFILIATES DISCLAIM ALL WARRANTIES WHETHER EXPRESS, IMPLIED OR STATUTORY, OF RELIABILITY, ACCURACY OR COMPLETENESS WITH REGARDS TO THE INFORMATION CONTAINED IN THIS PRESENTATION. THIS PRESENTATION SHOULD NOT BE CONSTRUED AS BUSINESS ADVICE AND THE INSIGHTS ARE NOT TO BE USED AS THE BASIS FOR INVESTMENT OR BUSINESS DECISIONS OF ANY KIND WITHOUT YOUR OWN RESEARCH AND VALIDATION. ALTHOUGH EVERY EFFORT HAS BEEN MADE TO PROVIDE DEPENDABLE AND ACCURATE INFORMATION OF SIEMENS REMOTE DIAGNOSTIC SERVICES PRODUCT OFFERING AT THE TIME IT WAS GENERATED, THIS PRESENTATION ONLY PROVIDES GENERIC INFORMATION AND DOES NOT REPLACE INDIVIDUAL AND CUSTOMER SPECIFIC ADVICE. SIEMENS AG AND ITS AFFILIATES, THEREFORE, MAKE NO REPRESENTATION THAT THE INFORMATION CONTAINED HEREIN IS TOTALLY ACCURATE AND COMPLETE OR THAT THE USE OF ANY OR ALL OF THE INFORMATION CONTAINED HEREIN WILL NOT REQUIRE LICENSES OR RIGHTS FROM ONE OR MORE THIRD PARTIES. SIEMENS AG AND ITS AFFILIATES PROVIDE NO WARRANTY FOR THE INFORMATION, PRODUCTS, OR SERVICES OFFERED BY ANY ENTITY THAT IS NAMED OR REFERENCED IN THIS PRESENTATION.”

Earning money with remote services

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