WindProvider

Case Study 1
Service Engineering Operations and Management

Gabriela Gomes 1090530

Maria Pinho 1090529
 WindProvider Product-Service Offerings
WindProvider “traditionally manufactured its products and has seen the need to incorporate services
capabilities in their organization design”.
● According to Arnold Tukker it can be classified as product-oriented service system “the
business model is still mainly geared towards sales of products, but some extra services are
added”.

The type of service that is provided can be classified as “Product-related service” since the service that
is yielded to the customer (maintenance contract) is “needed during the use phase of the product”.
 Transformation Through Servitization
Benefits of transforming through servitization:
● Differentiate itself from the competitors → competitive advantages.
● Increase margins, by creating intangible added value, WindProvider makes the clients willing to
pay more, which increases WindProvider’s profitability.
● Opportunity to get closer to the customers and understand their needs better, this can lead to an
increase of the speed of innovation and client loyalty.
● Increase market attractiveness by offering a non-traditional type of solution
● Throughout the contracts of maintenance, the company can reduce the operational uncertainty,
improve maintenance efficiency and effectiveness and improve efficiency and innovation of their
own manufacture through the monitoring after the use of their products.
 Transformation Through Servitization
Main challenges of transforming through servitization:
● It requires top-to-bottom changes, eg: aligning their servitization strategy with their organizational
culture, marketing, production, high investment resources and enhancing ability and enabling
space for service innovation thus, making it highly challenging for organizations to shift to a
servitization business model.
● For a manufacturing company, it's very hard to understand how the service department should
work. It cannot be managed as the previous departments.
● Need to consider service design: discovering the best way to put the service available and
choosing the best indicators (KPIs) for service performance. The company can no longer think
about this as tangible items, Wind Provider will need to think differently and take into account
customer satisfaction.
 Transformation Through Servitization
Main challenges of transforming through servitization:
● If WindProvider has poor service culture and lack of support from decision-makers it could result
in central challenges when moving to a service-centric approach.
● Parts of the delivery or production system cannot be copied easily or performed by other parties
(unique relationships with clients, unique technologies, etc.)
● Relationship-based value creation increases the human resources needed to interact with the
customer and meet their demands.
● Some additional material and human resource costs.
● Lack of communication/feedback channels with the customer.
● Lack of training and educational facilities for staff.
● Lack of profitability due to inconsistent or fragmented information.
Building the Customer
WindProvider Customers are mainly owners of wind turbines.
Our persona is based on the biggest Portuguese wind turbine companies:
Finerge, Iberwind, ENOP, EDF and Acciona Energia
Modeling description parameters
Customer Journey Map
 Customer Journey Map
To better understand the customer’s experience and feelings during the process we built a customer
journey map showing the current situation for a client in contact with WindProvider.
Customer Journey Map
Customer Journey Map
Customer Journey Map
 Customer Journey Map - What Is
Happening?
There are 3 possible scenarios that can happen when the customer is
requiring maintenance for the wind turbines, in which we identified
parts of that process that may lead to customer dissatisfaction or even to
the customer leaving the company.

● Scenario 1 - lack of feedback but maintenance is done

● Scenario 2 - maintenance not performed and change of contract

needed

● Scenario 3 - in which everything runs smoothly

 Customer Journey Map - What Is Happening?
Scenario 1 - lack of feedback but maintenance is done:

Maintenance is executed but

there is no feedback about it,
might not leave the company
but is surely dissatisfied
 Customer Journey Map - What Is Happening?
Scenario 2 - maintenance not performed and change of contract needed:

No need of the client is

fulfilled, they might leave
the company.
 Customer Journey Map - What Is Happening?
Scenario 3 - in which everything runs smoothly:

All good! No risks of

losing the client in this
scenario.
Service Blueprint
 Service Blueprint
In order to better understand the entire process of service delivering employed by WindProvider we
built the Service Blueprint of the actual status.

Through this powerful tool we were able to identify several problems in the WindProvider’s service-
delivering system.
Service Blueprint - Problem Identification
The elaboration of the products and
the maintenance contracts is done
only by the Product Sales
Department.
➔ The Services Department
should be part of the process
since they are the ones
knowledgeable about
technicalities of the
maintenance and its limitations.
Service Blueprint - Problem Identification

Doesn’t make sense to call the one contact person

of the Product Sales Department to ask for
maintenance.

That person doesn't have the knowledge about

product failures and maintenance .

➔ Some redundant tasks could disappear if the

customer calls directly to the service
department.
Service Blueprint - Problem Identification
Research and preparation of the
maintenance would be easier and
smoother if the contact between the
customer and the Service Department
department was direct.
➔ With direct contact, the detection
of the type of failure will be easier
and it will help the Service
Department employees to schedule
their maintenance jobs and
prioritize better the maintenance
works to be done.
 Service Blueprint - Problem Identification
The other main problem is also related to the one contact person since
it’s their responsibility to give feedback to the customer.
When maintenance is not performed, there is a huge lack of
communication between departments.
➔ The client does not receive feedback about the maintenance work
which can lead to dissatisfaction or even to the client leaving the
company and this scenario could be easily avoided.
 Service Blueprint - Problem Identification
The service Sales Department never takes place in the service delivery system, which can be an indicator
of the inutility of that department.
Service Blueprint - Solutions

● End of the one contact person for the whole delivering

system and carry a new system of one contact person
but just inside each department of communication with
the customer (with that when the customer needs
maintenance it will call to service department).

● End of the service sales department and join the old

department with product sales department creating the
new department: Sales department which will be
responsible for the sales of products and maintenance
like the product sales department already did it.
Service Blueprint -
Solutions
● Elaboration of product and
maintenance contracts is now
carried out by the service
department and the sales
department.
 Service Blueprint - Solutions
● Introduction of new tasks related to the
monitorization of customer satisfaction:
○ The service department is responsible to
send forms after the maintenance for
measuring the customer satisfaction related
to that part.
○ The sales department is responsible for
monthly based contacts with the customer
to monitor their satisfaction and also could
present some additional services and
products.
Service Blueprint - Solutions
Maintenance Process: Before and After
 Service Blueprint - Solutions
Improved service blueprint after changes implementation
 Other Problems Identified and Possible Solutions

Lack of communication between departments:

● Implementation of an internal communication system (already implemented in the service
blueprint)

Dissatisfaction showed by the employees:

● Offer training actions.
● Implementation of forms between the employees to understand their needs and measure their
satisfaction.
● Besides that, the implementation of a continuous improvement system could be beneficial to
improve employees' satisfaction since they could have the opportunity to give their own opinion
about the delivery process and could help to improve the efficiency of that process. (Improve the
sense of belonging).
 Other Problems Identified and Solutions
Dissatisfaction showed by the employees:
● Implementation of team buildings (could also have a significant impact on communication
between departments).
● Changes in the KPI of measuring staff, instead of employing the % of total production ability of
every wind turbine that is up and running, choose KPIs like well-performed work, evaluations by
the customers, total % of sales agreed and others.
WindProvider’s Future
 WindProvider’s Future
The revenue the company got through services showed an increase.

● WindProvider should consider taking a bigger step onto the

servitization journey.
○ This could be done by moving the current business to a
result-oriented base strategy. To support that kind of strategy
we can investigate the Rolls Royce case, in which the
company decided not to sell the product itself but its
performance allied to the services related to its maintenance.
 WindProvider’s Future
WindProvider has shown great KPIs of total production ability. Every wind
turbine installed shows no faults or defects
➔ Since the performance of their product is close to flawless that should
be their major selling point.

Selling the results can also work to dodge the company’s faults in the
information flow and even on customer satisfaction, considering that
WindProvider would ensure that the performance of the wind turbines would
be constantly at the promised level.
 Bibliography
● Finerge produtor de energia renovável em Portugal. (n.d.). Finerge produtor de energia renovável em Portugal. Retrieved 13 June 2023, from

https://www.finerge.pt/pt/

● Home. (n.d.). Ventient Energy. Retrieved 13 June 2023, from https://www.ventientenergy.com/

● New energy for a better planet | ACCIONA Energía |. (n.d.). Retrieved 13 June 2023, from https://www.acciona.com/

● Wind energy database. (n.d.). Retrieved 13 June 2023, from https://www.thewindpower.net/

● [1] Tukker, A. (2004). Eight types of product–service system: Eight ways to sustainability? Experiences from SusProNet. Business Strategy and the

Environment, 13(4), 246–260. https://doi.org/10.1002/bse.414

● [2] Kamal, M. M., Sivarajah, U., Bigdeli, A. Z., Missi, F., & Koliousis, Y. (2020). Servitization implementation in the manufacturing organisations:

Classification of strategies, definitions, benefits and challenges. International Journal of Information Management, 55(C).

https://ideas.repec.org//a/eee/ininma/v55y2020ics0268401219314355.html

● [3] Annarelli, A., Battistella, C., & Nonino, F. (2019). The Road to Servitization: How Product Service Systems Can Disrupt Companies’ Business

Models. https://doi.org/10.1007/978-3-030-12251-5
Thank you for
the attention!