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Danelec Marine pioneers new servitization concept in maritime industry

by Marine NewsWire on 6 Jun 2016
Danelec Marine Danelec Marine
Danelec Marine has published a White Paper calling for adoption of a servitization business model for maritime industry manufacturers.

Servitization is a concept that is rapidly gaining traction in the world of business. It describes a transformative process in which manufacturing companies shift from a product-centric orientation to an integrated product-services focus.

While many companies around the world are adopting servitization strategies, the marine industry has been slow to accept this new business model, according to Hans Ottosen, CEO of Danelec Marine.

”Most manufacturers of shipboard systems today still follow a traditional silo approach in which the product development, engineering, manufacturing, marketing and sales functions are separated from the service department,” Ottosen observed. “Adopting a servitization strategy for products on commercial ships sailing global routes across 24 time zones presents unique challenges, but we have demonstrated that these can be surmounted.”

The White Paper describes how Danelec Marine has embraced a comprehensive servitization strategy in its new-generation Voyage Data Recorders (VDR) and Electronic Chart Display and Information Systems (ECDIS). This involved all phases of designing for serviceability, upgrading the service network, automating the service process, as well as creating a suite of remote access solutions for configuring and trouble-shooting product issues.

“Servitization has important benefits for all parties on the sell side and buy side,” said Ottosen. “For the manufacturer it provides competitive differentiation, deeper relationships with customers, enhanced customer satisfaction and loyalty, and a source of recurring revenues. For the customer it provides more value for the money and lower cost of ownership, in addition to faster and better after-sale service and support.”

The White Paper, “The Servitization Revolution Comes to the Shipping Industry,” is available here.
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