INSIGHT 3.1 Rolls-Royce and Fit PARTNERSHIP WORKING In 2018 Rolls Royce Holdings and the Finnish state-owned ferry Sperator Finfrries began collaborating On rosearch project called SVAN (Safer Vessel with Autonomous Navigation), implementing the Findings from on ‘earlior Advanced Avionomous Waterbome Applications [AAWA) research project, whick had been funded by Business Finland {a government research-funding agency). SVAN sow the cor ferry Falco [which already had Rolls-Royce engines) ited with a range of Rolls-Royce Ship Intelligence technologies. Loter that same year, ale some 400 hours of sea trials, the ferry successfully completed a show-case voyage with some BO VIPs in the Turku archipelago of Finland, The entire voyage was conducted under remote conirol ond without human intervention, “ha Falco was equipped with «range of advanced sensors which, combined with arificial intelligence, ollowed: “ita build up # deteiled pichia of ts surroundings, in reo ime ond with o degree of accuracy beyond that ofthe fuman eye. Tis wat layed a Finferiee’ operations centre, soma 50 kilomottes away in the city of Turky, where ‘c coptoin monitored the autonomous operations ond could have token contol ofthe vessel if necaxsory. The _cutonomous navigation systemincludes an oulomaticcolsion aveidance and on automatic berthing systom, which “cutomatcally cers course and speed when approciching the quay allowing the ship o dock sfaly, again wihout humon intorvention. Visitthe website: www rolls-royce.com Qbestions:CASE INSIGHT 3.3 Roe erc ent Beles PRODUCT/SERVICE AND BUSINESS MODEL INNOVATION, The aero-engine manufecurbr Rolls-Royce i known forthe quality ofis engines ond the excllonce oft aftr- soles service tis also known fr the innovations i has nkodueed ints engine designs, particulary wih fs newer ‘Teor-burn’ and ‘nlligen” engines, with sonsors. that predict when inervention is aquired ~ a service or the replacemen of prs This is beamed bock so tha parts con be delivered in acvance ceric apart where he svork can be undetioken. Inthe past his might have been underiskon by the aitine or another service provider, priced on o ime and material boss “The intoducion ofthe Rolls-Royce TotoICere programme was « radical Innovaion that changed the notre of watthe company was sling —from a prodvetto a service. lesiond of buying aje! engine ond o service packoge, RollsRoyeeenfrs int « contact with he eine bosod upon @ fae for every hour the engine uns. Customers poy forengine power es hey vsed it Rell-Rayes then monitors the cata fom the sensor bull nt the engine ro deter~ rine the need for service or paris eplacement, which Rolls-Royce then arranges: They effoctvely uaraniee engine ‘lloiiy Tho oie i buying a save rahe hon « produc, allowing itto mors frm investing significant Fixed costs in engine mainlenance to avariable cos! ~ a business model hat now dominates the industry and aciicted the grow of low-cost ctines For Rol-Royes, the TetaiCare programme efecvely‘locks:in’customor to the Conpeny end securing sports busines ~a-win-winstvation forthe company ond is cstomers “fis new business made olso had beneficiol consequences forthe environment ether han minimizing th in tial engine cs, i crated a srong incenive for tho company to re-engineer is ongines so as to miniize thee ot Heine cost. That cam meon factoring in higher quoly so as to minimize service and repair ime. Becowse the engines olways belong to Rol-Royee, it oso mecns tht they can design them :0 oo maximize the pots for reuse when the ToaiCare corroct comes o on end and, okimately,racycing when the engines comet the end of thelr economic life. The TetelCare programme has proved so successul that most of Rois Royés’s income now comes from ihe service, rather han the dee sole of engines. Vii the webste: www.rollssoyce.com feats ee