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September 18, 2024 | 2 Mins Read

Lessons in Servitization: Combining Historical Success with Continual Innovation

September 18, 2024 | 2 Mins Read

Lessons in Servitization: Combining Historical Success with Continual Innovation

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Episode 283

In this session from Future of Field Service Live in Cologne, host Sarah Nicastro talks with Joern Lindstaedt, VP of Global Customer Service at Rolls Royce Power, about the company’s famous “power by the hour” innovation and how an early start at Servitization translates to a culture of continual innovation.

Joern brings over 20 years of experience in customer and product support across aviation, transportation, and power generation. He has vast experience leading global, cross-functional teams and driving the development and implementation of worldwide service support strategies and MRO networks.

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Watch the Podcast Video here:

Episode Highlights:

  • [02:21] - Rolls-Royce's success with its innovative "power by the hour" concept was driven by listening to customer needs and adapting to meet them. The company's first deal in 1962 with a business jet client reflected this customer-focused approach, offering peace of mind with fixed maintenance costs despite the lack of advanced technologies like trend monitoring. Understanding their clients and developing long-term service agreements allowed Rolls-Royce to build a model that transformed the way maintenance and services are delivered, creating lasting customer loyalty and reshaping the aviation industry with its outcome-based approach.
  • [10:01] - Building a successful service business requires laying a strong foundation before making big promises to customers. While the behind-the-scenes work may seem unexciting, like setting up ticketing systems, building operation centers, or gathering customer feedback, it's essential for long-term success. You can't skip this step if you want to meet customer demands and deliver consistent outcomes. Be transparent with customers about your capabilities and work together to address any challenges.
  • [26:38] - When tackling change management challenges, having a sponsor at the C-level is vital. Resistance is inevitable; different departments may hesitate to change, especially when they benefit from the status quo. Involving stakeholders early and making them part of the solution helps overcome these obstacles. Change management can take longer than building the technical capability, but it's necessary to secure buy-in from everyone involved. Combining sales, services, and even engineering teams ensures a better understanding of customer needs, fostering smoother collaboration and long-term success.
  • [32:30] - In the next five years, the service landscape will be shaped by technology that enables greater scalability and customer-focused solutions. AI will play a key role in managing complexity, while hybrid roles allow more flexibility, like troubleshooting from home. However, the key is to keep the human touch, ensuring that technology enhances the customer and employee experience without becoming impersonal.