How Operating Model for Industrial Services Are Changing

Over the course of the last two years, businesses that provide industrial services have made significant modifications to the ways in which they sell, provide, and profit from their services. These modifications have had significant implications for their business and operational models.

Many employee-based operations are open to automation because of the widespread adoption of modern technology. The future of established businesses is still unclear, including how they will operate, develop their workforce, and provide for their customers.

The new operating model for the industrial service sector calls for cutting-edge ways of thinking, digital innovation, lean administration, and a laser-like concentration on the requirements of the client base. Let us examine how firms and corporations might modify their strategies to accommodate this quick shift.

The Remote Digital Overtake

The pandemic made people turn towards a new way of working. Employees now expect better remote working facilities.

A remote-first approach will include creating a list of contactless self-service options led by the Internet of Things (IoT). Real-time tracking and seamless integration of online and offline services are necessary to ensure the success of a new operating model for industrial services.

Currently, over 80% of CEOs claim to have started digitising their businesses. The majority expect a significant transformation in operating models within the next three years. Both service providers and receivers have begun to respond positively to this new digitised regime.

Using technology to your benefit

Integrating technology is crucial for businesses to stay competitive. GrowthJockey emphasizes the importance of leveraging technology to enhance business operations and customer engagement. Today, more than 65% of businesses feel confident about their capacity to adjust to technological change during the next three years.

You can use technology to boost your business effectively in several ways. By building a digital connection to the customer base, you can employ the three steps – data collection, management, and analysis – to create an information base. This real-time information at the employees' fingertips allows them to share relevant information rapidly and improve the impact on their audience.

Technology can allow additional benefits to the company through dynamic dispatching, real-time remote support and faster solutions to problems through the presence of an online expert. AI can take over menial tasks such as data entry. AI adoption will give employees additional time to undertake more meaningful and cognitive job roles.

Employee demands and necessities

Businesses need to take advantage of the younger workforce's new ideas and enthusiasm by hiring young people as part of their strategy.

Demand for new technical skills is constantly increasing. The industry operating model stands to fail if this demand is not fulfilled, and employee satisfaction is the only way to achieve this. GrowthJockey ensures that with a robust operational model for businesses in place, you can be sure that your personnel is getting equal attention, just like your revenue structure.

While clients continue to be the source of income, backend personnel should benefit financially and professionally while delivering the industrial services that a firm is proud of. Having done this, your business may feel confident that its technological expertise will be protected.

Customer-centric model

With the rise of a new service regime, businesses must develop advanced, customized service offerings to meet the evolving needs of customers. A service can no longer be generic – it must be customised. For example, we at GrowthJockey use a portfolio-management system of services we offer each client. This helps us build a business identity exclusive to their requirement and clientele identity.

Using digital services, a company platform can achieve simplicity, personalisation, and interactivity, setting a high bar for consumer experience.

Front-end customer satisfaction should come alongside a backend change in operations. Employee management and positive manipulation of the workplace culture will result in efficient and enhanced results. This will generate a streamlined, consistent customer experience rather than a collection of disconnected encounters. As a result, you can ensure a sustainable, lasting change and bring in rich rewards.

Above-average customer satisfaction from a company tends to give almost a 4x growth in value for the company over ten years when compared to a below-average customer experience.

Regenerating the Revenue Generation Model

A customer-centric service will need you to adopt a product-centric operational lens. This method will drastically reduce expenses by reducing the amount of technology and the number of service levels used. The procedure's importance lies in the amount of income it will free up for the business.

By implementing a usage-based pricing module, the business may provide its services without requiring users to pay for the full product in advance. This will reduce customer costs and create a more significant return customer base, ensuring more sales.

Depending on industry dynamics, competitive positions of companies, and customer needs, revenue generation models may vary across businesses. However, the major transformation would come through technological empowerment of the workspace, contactless service options, increased advanced service offerings and matching expectations floating in the consumer space.

Additional Adaptability

One of the primary options is transforming the service provision process to a closed-loop one. Integrating the 3 R's – Reuse, Reduce, Recycle – within the production cycle will reduce overall resource costs and increase revenue. This will also establish the operation of the company as carbon-conscious.

Another method that can accommodate adaptability is the asset-sharing model of service-providing companies like Airbnb and Uber. The asset owners and the service-providing companies share revenue-generating assets, like homes and cars. This frees up revenue for the company and reduces entry barriers into the industry for new members. A supply chain can also share assets across some or all of its processes to make its integrated services faster and better.

Such adaptations across all platforms for the company can create newer, improved operating models. Changes like these will not only clean up the systems of working for the employees and the customers but also create a healthier image of the company in the marketplace.

Critical factors for a successful operational model

At GrowthJockey, we believe that a successful operational model is supported by three key enablers: workforce, digitalization, and data analytics.

Talent

Many organisations face a digital and analytics skills mismatch. We realise that attracting and keeping the proper personnel is crucial, but recruitment alone will not fix the issue in a supply-constrained labour market.

Instead, businesses must master people management and increase the development of skills that will aid in the evolution of their present staff.

Adapting to the digital age

Executives are investing money into digitising and automating the company's processes.

The most important thing to take away from this is that the change cannot be completed all at once but requires consistent work. With GrowthJockey, you can ensure that this will pay off in the form of enhanced efficiency, more business agility, and, eventually, the generating of new value for personnel, clients, and shareholders.

Information and analytics

The expansion of data collecting, data management, and analytic capacity is another top executive objective. The first stage is establishing a digital link to the installed base, which varies significantly by product offering and industrial environment.

Depending on unique use cases and the current data infrastructure, we help businesses take different approaches to increase data gathering and administration. However, these working techniques should be considered necessary expenditures that allow future commercial models while mitigating the danger of consumption of present value pools.

Personnel, digitalisation, and data and analytics are necessary to support a succeeding operating model for industries and near-term expansion. Deloitte discovered in a 2019 poll that organisations with good cultural orientation, data-driven analytics and decision-making were two times more likely to have considerably exceeded business targets.

Many businesses cannot erase their operational backlog based merely on the capability and availability of technology. Together, the facilitators may increase capacity via upskilling, increase the efficiency of service procedures, or eliminate their needs thereof.

Therefore, the facilitators should not just be considered as operational factors but also as a means to unlock more significant revenue.

To Sum Up

A new model in business is beneficial for companies looking to revamp their working modules and boost their business. Ensuring to meet customer needs, company possibilities, and growth opportunities will lead to a new business model with new revenue streams.

GrowthJockey offers services to businesses for faster growth, efficient operations and creating strategies of execution. With our team of innovators, you can increase your performance quickly and turn your dreams into reality. Stay focused on your core business while we build out-of-the-box solutions for rapid growth and better performance, customised for your business and working culture.

At GrowthJockey, we are fully committed to developing customised operating models that effectively address the critical challenges faced by our clients across various industries. Irrespective of your company's size, whether it's a small-scale enterprise or a large corporation, you can now benefit from our tailored solutions. Take the decisive step towards unlocking the next level of growth for your brand by reaching out to us today!