Rolls Royce Aerospace is one of the best current industrial examples of how a company has turned data into profits. Over the past 10 years they have fundamentally changed their business model from break fix based charged by time and materials, to offering a managed service that delivers power from an engine. The corner stone of this transformation has been the development of very sophisticated remote/telematics technology to provide real time data on engine performance, and then align the complete organization including R&D and Service behind the customer’s need of engine power when they need it.
This transformation has led to Rolls Royce this year declaring that more than 50% of their revenues now come from services. Quite surprising for one of the UK’s most well known global manufacturing businesses. This has been no accident, but a conscious decision to change Rolls Royce from a product/technology company selling engines, to delivering ‘Total Care’ that improves their customers operations.