Where does service fit into this integrated approach?
In the future, the customer's eye will not just be on engine power. He will be looking for a source of driving power or energy that is durable, reliable, and can be accessed around-the-clock at any location in the world. So service will no longer be a 'nice-to-have' accessory, but form an integral and indispensable part of the type of solutions we're offering. Long-term service agreements or what are known here as 'Value Care Agreements', similar to those we recently sealed with Hitachi, are set to become the rule. In Hitachi's case, we didn't just supply the drive systems, but guaranteed their availability for almost thirty years. This trend is principally being driven by digitalization, and our future is going to depend on our ability to interweave the latest digital knowhow with our advanced engineering capabilities. We want to use digitalization to provide new service offerings and new sources of value creation that will help us capture new customer groups and markets.
What stage would you say Rolls-Royce Power Systems has reached in its digital development?
We've made tremendous headway since last year and will be injecting even more pace into digitalization as we move forward. To deal with customer issues, we now have five Customer Care Centers around the world whose experts are on standby across the time zones, 365 days a year. These experts work closely with our Digital Solutions team, which we're planning to expand from 60 to 80 members of staff over the next few months. Its mission is to drive the ongoing digital transformation of our business by digitally integrating all mtu engines and systems and developing digital products and services with tangible customer benefits. It recently created for example the digital tools mtu Go Act and mtu Go Manage, which are currently proving themselves out in the field. Big Data and Analytics are also set to play a bigger role for us, and will underpin everything we do in terms of digital value creation and the development of innovative business concepts and models that help us move into hitherto unfamiliar customer groups and markets.
How important are strategic partnerships and cooperation to the PowerSystems 2030 strategy?
Competition on our markets is getting fiercer all the time – especially since industry outsiders with high digital expertise started moving into the arena. So when it comes to our core business and expertise, we have to keep our nose to the grindstone. At the same time, we need to make smart choices in partnerships that let us develop in the direction we want and improve our market position. That means using more external expertise, for example, in R&D. Joint Ventures are another important tool for leveraging our potential on the global growth markets. Take a look at MTU Yuchai Power in China and Goa Shipyard Limited in India which have delivered very pleasing outcomes.
How will our new strategy influence the RRPS portfolio?
We will continue to build diesel engines. But they will be even cleaner and feature more smart technologies. And we will devote more of our energy to meeting ever-growing demands for hybrid solutions, the electrification of drive systems, and the use of alternative fuels and gas power. With our Green and High-Tech program, we have shown that we have a progressive vision on how to meet the huge challenges of the energy turnaround and new trends in mobility.
Could you elaborate on that?