Machine-Oriented Services

Challenge

The customer is a one-stop supplier of heavy construction equipment. Many of the machines have telematics components installed that can measure actual data related to the vehicle’s consumption, positioning, loads, etc. The information is used to create machine-oriented services for fleet/vehicle owners and drivers. The company has a number of soft products, which are additional to the machine itself. Products based on telematics belong to this category. The problem was that existing processes and IT system support had been developed for spare parts and were not suitable for managing soft products.

The challenge faced by the company involved producing an operations-driven definition of requirements with a level of detail that enabled continued implementation of IT and business aspects of new processes and IT support systems for managing soft products. The objectives of the project were for soft products to represent 50% of the vehicle’s life cycle revenues, to avoid unmanageable administrative growth when volumes rise and to offer support for unique service offers. The project was based on standardized parts, and aimed to improve monitoring of soft products from a cost and reporting perspective, adapt the product development process to include soft products and create a library of active and inactive soft products.

Implementation

The project worked from en existing business model for soft products, and focused on three perspectives: processes, soft products and information.

Several process were identified as needing to be changed to manage soft products, for example product development, planning, invoicing, cost control and financial reporting, order management, subscriptions and pricing. The processes were adjusted and developed using Enhanced Telematics Operation Map (eTom) and ITIL standard processes.

All of the information domains that had bearing on the processes above were modeled. The model contained concepts, definitions and descriptions of information objects, relationships between different information objects, related attributes and list values. Existing structures were also simplified, for example for product types where the number was reduced to cut down on the number of variants.

From the perspective of soft products, the focus included requirements methodology and tool support for developing soft products, product strategies with business logic, driving forces for bundling products and pricing.

Result

Structures for creating customer-specific solutions for soft products associated with machines. A foundation consisting of business logic for categorizing soft products, common processes for management and administration of all soft products and information models for soft products, main data and machine data.

The project also resulted in models being implemented in the Enterprise Architect tool for resources, processes, information architecture and IT architecture. Report of the different soft product types that were defined, gap analysis and method for continued work.