3 July 2018

Customer Value Co-Creation to drive and scale Digital

The combination of our customer’s business ambition, Siemens’ leading domain and technology expertise and Value Co-Creation methods enables us to generate new business with our customers. One such customer, B.Grimm Power, had the ambition to create more transparency on their fleet operations in order to reduce the overall cost of ownership – we partnered with them to design and build a new product that does just that.

Customer Value Co-Creation to generate new business

At Siemens we increasingly seek to leverage the unique advantages of digital technologies to innovate new value driving solutions through joint R&D projects with our customers. That’s especially the case in seeking to further optimize the use of our rotary equipment in their operations by identifying new value-driving use cases. It’s just what we did with B.Grimm Power, a leading Southeast Asia private power producer focused on consistently providing high-quality electricity to industrial operators.

With more than 70 Siemens turbines operating across 30 power plants, B.Grimm sought ways to maximize their utilization and availability in order to improve operating margins and net profits. With that goal in mind, we brought together their executive and operations management, plus operational personnel, with Siemens executives, subject matter experts and software programmers for a facilitated, three-day workshop.

We used a proven methodology called Customer Value Co-Creation to first identify specific operational challenges and value drivers. The workshop drew on B.Grimm’s operational expertise and experience in using our turbines in their own operations, and combined that with our product expertise and global experience in the inherent operational performance degradation of rotary equipment and its effects on capacity. Then we applied agile development rapid prototyping to jointly create actual working software.

Taking rotating equiptment optimization to the next level, leveraging customer and product expertise

Diving deeper into the details, we together developed software to help the company’s teams visualize the B.Grimm fleet’s Equivalent Operating Hours (EOH) and Equivalent Operation Cycles (EOC) counter values as well as machine specific KPIs. This way, the economic consequences of planned operation on machine performance and maintenance planning could be more transparent and available to the operations planning team on a daily basis.

To achieve this, we combined existing sensor signals in our Remote Diagnostics Service platform with our own internal turbine performance simulator. This enables the software to calculate new “sensor” values that can then be delivered to turbine operators in the myHealth application. It’s a secure, remotely accessible, web-based portal that provides a dashboard overview of operational KPIs, sensor data from key instrumentation, plus notifications and reports, all to provide greater insights machine-specific degredation and performance.

With these insights and knowledge of available machine capacity, B.Grimm’s operations teams can better plan their operations and optimize their fleet dispatch. The customer is piloting the software prototype across six turbines in a single industrial park. Once approved, the application can easily scale to cover the entire fleet. Two other software deliverables are in development.

During the Co-Creation Workshop – we met with the operations teams onsite to discuss their pain points and understand the challenges we were working to solve. Their feedback provided the necessary insight to succeed.

Trimming months or more from development time, with little risk and much less cost

The B.Grimm-Siemens Co-Creation workshop cut months, or more, off the time — and attendant costs — of a more traditional software development approach. With the workshop, everyone who mattered was literally in the same room to compress these cycles into just days, with Siemens programmers in Europe making changes overnight for review the next day.

the team could make smaller, more rapid iterations and test if the value in the solution exists — before committing to deploying it at scale.

So, instead of having to build large enterprise systems and risking large investments to evaluate a solution’s value logic, the team could make smaller, more rapid iterations and test if the value in the solution exists — before committing to deploying it at scale.

Learn more about how your company can benefit from the Siemens Customer Value Co-Creation methodology to start and accelerate your digitalization journey with little cost or risk, feel free to contact me.

Related Tags