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http://www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization
IMS Industrial Asset Optimization Intelligent OperationsSM
Design, transform and run intelligent industrial asset optimization operations to help
OEMs and operators enhance service revenues and reduce costs
Gianni Giacomelli
Senior Vice President
Head of Genpact Research Institute
Chief Marketing Officer
DESIGN • TRANSFORM • RUN 2© 2015 Copyright Genpact. All Rights Reserved.
We design, transform and run the intelligent enterprise
operations that strengthen our clients’ competitiveness
Genpact ► Overview
*US$22B is a cumulative figure since 2006
*Cumulative figure since 2006
Whatwedo
Help leaders of some of the largest enterprises
…design, transform and run
…business-critical operations including the very complex
and industry-specific
Howwedoit
Smart Enterprise Processes (SEPSM) crystallizes
operational and domain expertise, rigor inherited from GE
Achieve Intelligent OperationsSM through Systems of
EngagementTM, Core IT and Data-to-Action AnalyticsSM
The strength of a large company, but flexible solutions; top
management directly involved with clients
Unbiased and agile solutions limit upfront costs, reach
results faster and enhance adaptability
Our impact
We make clients
more competitive:
• More efficient,
effective
• Able to better
manage costs,
risks, regulations,
and support growth
The results:
US$22B*+ of impact
for 800 global clients
DESIGN • TRANSFORM • RUN 3© 2015 Copyright Genpact. All Rights Reserved.
Domain + Technology + Analytics + Operations =
Reimagine processes, build Intelligent Operations
Genpact Intelligent OperationsSM
EXECUTE
ACTIONS
EXECUTE
ACTIONS
Smart Processes
Design, transformation and
operations support generate real
impact by aligning tightly to
measurable business outcomes
thanks to proprietary SEPSM
framework
Smart Decision Services
Genpact Data-to-Action AnalyticsSM
leverage Intelligent Process Insight
EngineSM and advanced
organizational delivery models
Smart Technology
Genpact Digital harnesses effective,
agile technology including Genpact
Systems of EngagementTM and
effective Core IT services
Genpact Intelligent OperationsSM
DESIGN • TRANSFORM • RUN 4© 2015 Copyright Genpact. All Rights Reserved.
Industry challenges
Solution
Impact
Case studies
DESIGN • TRANSFORM • RUN 5© 2015 Copyright Genpact. All Rights Reserved.
OEMs face financial and operational challenges in the
absence of an effective industrial asset optimization program
Industrial asset optimization ► Industry challenges ► OEM
Difficult service
monetization
• Difficult to transition from product- to service-centric organization
• Inaccurate installed base data and inadequate analysis limits service contract
sale/renewal causing losses of up to 20% of services revenues
Higher service
costs
• Inadequate remote monitoring/diagnostics leads to high field fixes,
suboptimal field force scheduling and skill set matching
• Limited parts/tools availability due to inaccurate service forecasts, unplanned
shutdown, limited triage across warehouses etc.
Lower asset
uptime
• Unscheduled asset downtime impacts end-customer satisfaction and OEM’s
market share
Undifferentiated
products
• OEMs find it hard to create differentiation without strong value and
performance engineering to create more reliable machines
Increasing
regulatory
oversight
• OEMs and operators need to overcome increasing number of environment
(e.g. for oil & gas) and operational (e.g. NERC* for energy equipment)
regulations
*North American Electric Reliability Corporation
DESIGN • TRANSFORM • RUN 6© 2015 Copyright Genpact. All Rights Reserved.
Operators face revenue and margin pressures due to asset
downtime, expensive servicing and stringent regulations
Industrial asset optimization ► Industry challenges ► Operators
Asset downtime
Unscheduled asset downtime results in overall productivity loss (e.g. oil &
gas, wind energy) and revenues (e.g. healthcare, transportation)
Higher service
costs
Limited analytics of remotely monitored operational data results in non-
coordinated preventive maintenance activities, non-availability of spare
parts in inventory and higher than desirable operational disruption
Data security
and compliance
issues
Equipment operation data is regarded “sensitive” by end-customer/ operators
and requires adequate data security measures
Suboptimal
contract
negotiation
Absence of operational data insights and SLA violations, results in higher
costs getting agreed and paid
Increasing
regulatory
oversight
Operators need to overcome increasing number of environment (e.g. for oil &
gas) and operational (e.g. NERC* for energy equipment) regulations
*North American Electric Reliability Corporation
DESIGN • TRANSFORM • RUN 7© 2015 Copyright Genpact. All Rights Reserved.
Intelligent OperationsSM to minimize revenue volatility,
maintenance cost and improve controllership
Industrial asset optimization ► Solution ►Intelligent OperationsSM
Continuous learning
• Suggest changes to data input
to minimize error
• Alter maintenance schedules
• Modify confidence intervals for
cost and revenue projections
4
4
Gather
feedback
Consolidate,
Report
Analyze
Run data-to-insight
• Master data preparation
• Analysis of deviation
• Domain driven identification
of contextual root causes
(e.g. material tagging)
• Formalize hundreds of
business rules to prevent
incorrect inputs
2
Aviation engine contract analytics:
Data-to-ActionSM process
EXECUTE
ACTIONS
Operate
Measure
• Identify target
outcome
Revenue volatility,
maintenance cost,
unplanned
downtime
• Identify metrics:
Data quality, cost
estimates
accuracy
1
ILLUSTRATIVE
SIMPLIFIED
Correct
Strategy and
Targets
Improve execution practices
• Determine data entry error patterns
• Implement industrial internet
platform to flag future issues and
enable continuous learning
• Change management reduces
systematic issues
3
Implement
DESIGN • TRANSFORM • RUN 8© 2015 Copyright Genpact. All Rights Reserved.
An industrial asset optimization portfolio that enhances asset
uptime and reduces revenue leakage and service costs
Industrial asset optimization ► Solution ►Portfolio
Structured
Unstructured
+
Automated connectivity
monitoring
Data
Customer
internal
network
IP sec tunnel
Internet
Customer network
server
Customer
provides public
routable IP for
connection via
VPN tunnel
Firewall
Internal network
Performance engineering
Reliability based
failure forecasting
Failure mode analysis
Early wear and tear
detection
DW
ETL
Big data?
Data quality, collation and
segregation
End client utilization
Algorithms, rules, alerts
Model free/model based
Self learning model/rule
Test and monitor connectivity
Connect Collect Compute
Build robust and secure
infrastructure for data
gathering, rule based
filtering and storage
Utilize big data protocols to
gather, filter and store data
Derive actionable insights
from data
Remote monitoring
and diagnostics
Prognostics
Service cost
optimization
• Field service
management
• Parts management
Service revenue
enhancement
• Installed base
management
• Service contract
management
• New service lines
Asset reliability
• Reduce unplanned
downtime
• Reduce financial
and operational risk
• Lower product
failure rates
Enable proactive maintenance,
engineering interventions and
streamlined operating practices
Control
DESIGN • TRANSFORM • RUN 9© 2015 Copyright Genpact. All Rights Reserved.
Value
drivers
Areas of
improvement
• Proactive part
replacement
• Better installed base
coverage
• Higher contract renewals
and win rates
• Field service optimization
• Contact center
centralization
• Parts inventory
management
• Returns optimization
• Remote monitoring
• Reliability based failure
forecasting
• Lower time to repair
• Field force optimization
• New service offerings
• New contract revenues
• Existing contract
revenues
• Field operations
• Contact center
• Parts and warranty
management
• Planned downtime
• Unplanned downtime
Significant operational and financial impact
Industrial asset optimization ► Impact
What can be
achieved
12 - 15%
More revenue
8 - 10%
Lower cost
6 - 8%
More asset
uptime
Revenue
leakage
Cost escalation
Risk
management
DESIGN • TRANSFORM • RUN 10© 2015 Copyright Genpact. All Rights Reserved.
Genpact’s industrial asset optimization solutions help
clients realize measurable impact
Industrial asset optimization ► Case studies
ImpactChallenge Solution
High levels of unscheduled
maintenance and low
uptime and efficiency of
gas turbines
Seamless remote
monitoring infrastructure
setup and preventive and
ongoing maintenance
support
10% improvement in asset
uptime, and improvement
in gas turbine efficiency
Global gas
turbine
manufacturer
Global
aerospace
OEM
Incorrect contract pricing
leading to revenue
leakage, failure prediction
solution outdated
Sophisticated contract
analytics solution,
supported by a reliability
life data analysis for failure
prediction
US$10B in service
contract pricing for all
long-term contracts being
delivered to the client
Power
generation
OEM
High cost of maintenance
during service contract
lifecycle
Advanced service contract
process to identify and
categorize failure types,
and analytics to minimize
cost of maintenance
Reduction in maintenance
costs by 10%, and more
accurate prediction of
failure events
DESIGN • TRANSFORM • RUN 11© 2015 Copyright Genpact. All Rights Reserved.
About Genpact
Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex
and specific to a set of chosen industries. The result is advanced operating models that support growth and manage cost, risk, and compliance across a range
of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization.
Our Smart Enterprise Processes (SEPSM) proprietary framework helps companies reimagine how they operate by integrating effective Systems of
EngagementTM, core IT, and Data-to-Action AnalyticsSM. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have
grown to over 68,000 people in 25 countries with key management and a corporate office in New York City. Behind our passion for process and operational
excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years.
For more information, visit www.genpact.com.
Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube.
© 2015 Copyright Genpact. All Rights Reserved.
Genpact Research Institute
The Genpact Research Institute is a
specialized think tank harnessing the
collective intelligence of Genpact – as
the leading business process service
provider worldwide - its ecosystem of
clients and partners, and thousands of
process operations experts. Its
mission is to advance the “art of the
possible” in our clients’ journey of
business transformation and adoption
of advanced operating models.
www.genpact.com/research-institute

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Design, transform and run intelligent industrial asset optimization operations

  • 1. DESIGN ∙ TRANSFORM ∙ RUN EXECUTE ACTIONS EXECUTE ACTIONS EXECUTE ACTIONS http://www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization IMS Industrial Asset Optimization Intelligent OperationsSM Design, transform and run intelligent industrial asset optimization operations to help OEMs and operators enhance service revenues and reduce costs Gianni Giacomelli Senior Vice President Head of Genpact Research Institute Chief Marketing Officer
  • 2. DESIGN • TRANSFORM • RUN 2© 2015 Copyright Genpact. All Rights Reserved. We design, transform and run the intelligent enterprise operations that strengthen our clients’ competitiveness Genpact ► Overview *US$22B is a cumulative figure since 2006 *Cumulative figure since 2006 Whatwedo Help leaders of some of the largest enterprises …design, transform and run …business-critical operations including the very complex and industry-specific Howwedoit Smart Enterprise Processes (SEPSM) crystallizes operational and domain expertise, rigor inherited from GE Achieve Intelligent OperationsSM through Systems of EngagementTM, Core IT and Data-to-Action AnalyticsSM The strength of a large company, but flexible solutions; top management directly involved with clients Unbiased and agile solutions limit upfront costs, reach results faster and enhance adaptability Our impact We make clients more competitive: • More efficient, effective • Able to better manage costs, risks, regulations, and support growth The results: US$22B*+ of impact for 800 global clients
  • 3. DESIGN • TRANSFORM • RUN 3© 2015 Copyright Genpact. All Rights Reserved. Domain + Technology + Analytics + Operations = Reimagine processes, build Intelligent Operations Genpact Intelligent OperationsSM EXECUTE ACTIONS EXECUTE ACTIONS Smart Processes Design, transformation and operations support generate real impact by aligning tightly to measurable business outcomes thanks to proprietary SEPSM framework Smart Decision Services Genpact Data-to-Action AnalyticsSM leverage Intelligent Process Insight EngineSM and advanced organizational delivery models Smart Technology Genpact Digital harnesses effective, agile technology including Genpact Systems of EngagementTM and effective Core IT services Genpact Intelligent OperationsSM
  • 4. DESIGN • TRANSFORM • RUN 4© 2015 Copyright Genpact. All Rights Reserved. Industry challenges Solution Impact Case studies
  • 5. DESIGN • TRANSFORM • RUN 5© 2015 Copyright Genpact. All Rights Reserved. OEMs face financial and operational challenges in the absence of an effective industrial asset optimization program Industrial asset optimization ► Industry challenges ► OEM Difficult service monetization • Difficult to transition from product- to service-centric organization • Inaccurate installed base data and inadequate analysis limits service contract sale/renewal causing losses of up to 20% of services revenues Higher service costs • Inadequate remote monitoring/diagnostics leads to high field fixes, suboptimal field force scheduling and skill set matching • Limited parts/tools availability due to inaccurate service forecasts, unplanned shutdown, limited triage across warehouses etc. Lower asset uptime • Unscheduled asset downtime impacts end-customer satisfaction and OEM’s market share Undifferentiated products • OEMs find it hard to create differentiation without strong value and performance engineering to create more reliable machines Increasing regulatory oversight • OEMs and operators need to overcome increasing number of environment (e.g. for oil & gas) and operational (e.g. NERC* for energy equipment) regulations *North American Electric Reliability Corporation
  • 6. DESIGN • TRANSFORM • RUN 6© 2015 Copyright Genpact. All Rights Reserved. Operators face revenue and margin pressures due to asset downtime, expensive servicing and stringent regulations Industrial asset optimization ► Industry challenges ► Operators Asset downtime Unscheduled asset downtime results in overall productivity loss (e.g. oil & gas, wind energy) and revenues (e.g. healthcare, transportation) Higher service costs Limited analytics of remotely monitored operational data results in non- coordinated preventive maintenance activities, non-availability of spare parts in inventory and higher than desirable operational disruption Data security and compliance issues Equipment operation data is regarded “sensitive” by end-customer/ operators and requires adequate data security measures Suboptimal contract negotiation Absence of operational data insights and SLA violations, results in higher costs getting agreed and paid Increasing regulatory oversight Operators need to overcome increasing number of environment (e.g. for oil & gas) and operational (e.g. NERC* for energy equipment) regulations *North American Electric Reliability Corporation
  • 7. DESIGN • TRANSFORM • RUN 7© 2015 Copyright Genpact. All Rights Reserved. Intelligent OperationsSM to minimize revenue volatility, maintenance cost and improve controllership Industrial asset optimization ► Solution ►Intelligent OperationsSM Continuous learning • Suggest changes to data input to minimize error • Alter maintenance schedules • Modify confidence intervals for cost and revenue projections 4 4 Gather feedback Consolidate, Report Analyze Run data-to-insight • Master data preparation • Analysis of deviation • Domain driven identification of contextual root causes (e.g. material tagging) • Formalize hundreds of business rules to prevent incorrect inputs 2 Aviation engine contract analytics: Data-to-ActionSM process EXECUTE ACTIONS Operate Measure • Identify target outcome Revenue volatility, maintenance cost, unplanned downtime • Identify metrics: Data quality, cost estimates accuracy 1 ILLUSTRATIVE SIMPLIFIED Correct Strategy and Targets Improve execution practices • Determine data entry error patterns • Implement industrial internet platform to flag future issues and enable continuous learning • Change management reduces systematic issues 3 Implement
  • 8. DESIGN • TRANSFORM • RUN 8© 2015 Copyright Genpact. All Rights Reserved. An industrial asset optimization portfolio that enhances asset uptime and reduces revenue leakage and service costs Industrial asset optimization ► Solution ►Portfolio Structured Unstructured + Automated connectivity monitoring Data Customer internal network IP sec tunnel Internet Customer network server Customer provides public routable IP for connection via VPN tunnel Firewall Internal network Performance engineering Reliability based failure forecasting Failure mode analysis Early wear and tear detection DW ETL Big data? Data quality, collation and segregation End client utilization Algorithms, rules, alerts Model free/model based Self learning model/rule Test and monitor connectivity Connect Collect Compute Build robust and secure infrastructure for data gathering, rule based filtering and storage Utilize big data protocols to gather, filter and store data Derive actionable insights from data Remote monitoring and diagnostics Prognostics Service cost optimization • Field service management • Parts management Service revenue enhancement • Installed base management • Service contract management • New service lines Asset reliability • Reduce unplanned downtime • Reduce financial and operational risk • Lower product failure rates Enable proactive maintenance, engineering interventions and streamlined operating practices Control
  • 9. DESIGN • TRANSFORM • RUN 9© 2015 Copyright Genpact. All Rights Reserved. Value drivers Areas of improvement • Proactive part replacement • Better installed base coverage • Higher contract renewals and win rates • Field service optimization • Contact center centralization • Parts inventory management • Returns optimization • Remote monitoring • Reliability based failure forecasting • Lower time to repair • Field force optimization • New service offerings • New contract revenues • Existing contract revenues • Field operations • Contact center • Parts and warranty management • Planned downtime • Unplanned downtime Significant operational and financial impact Industrial asset optimization ► Impact What can be achieved 12 - 15% More revenue 8 - 10% Lower cost 6 - 8% More asset uptime Revenue leakage Cost escalation Risk management
  • 10. DESIGN • TRANSFORM • RUN 10© 2015 Copyright Genpact. All Rights Reserved. Genpact’s industrial asset optimization solutions help clients realize measurable impact Industrial asset optimization ► Case studies ImpactChallenge Solution High levels of unscheduled maintenance and low uptime and efficiency of gas turbines Seamless remote monitoring infrastructure setup and preventive and ongoing maintenance support 10% improvement in asset uptime, and improvement in gas turbine efficiency Global gas turbine manufacturer Global aerospace OEM Incorrect contract pricing leading to revenue leakage, failure prediction solution outdated Sophisticated contract analytics solution, supported by a reliability life data analysis for failure prediction US$10B in service contract pricing for all long-term contracts being delivered to the client Power generation OEM High cost of maintenance during service contract lifecycle Advanced service contract process to identify and categorize failure types, and analytics to minimize cost of maintenance Reduction in maintenance costs by 10%, and more accurate prediction of failure events
  • 11. DESIGN • TRANSFORM • RUN 11© 2015 Copyright Genpact. All Rights Reserved. About Genpact Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex and specific to a set of chosen industries. The result is advanced operating models that support growth and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our Smart Enterprise Processes (SEPSM) proprietary framework helps companies reimagine how they operate by integrating effective Systems of EngagementTM, core IT, and Data-to-Action AnalyticsSM. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have grown to over 68,000 people in 25 countries with key management and a corporate office in New York City. Behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years. For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube. © 2015 Copyright Genpact. All Rights Reserved. Genpact Research Institute The Genpact Research Institute is a specialized think tank harnessing the collective intelligence of Genpact – as the leading business process service provider worldwide - its ecosystem of clients and partners, and thousands of process operations experts. Its mission is to advance the “art of the possible” in our clients’ journey of business transformation and adoption of advanced operating models. www.genpact.com/research-institute