WELCOME
Weekly selected highlights in flow control, treatment and combustion from the
many McIlvaine publications.
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Lowest Total Cost of Ownership of Municipal Wastewater Products and Services to
be Discussed on March 28
In addition to providing some "Advanced Forecasting of the municipal wastewater
products and services, a webinar next week will also use aeration blowers as an
example as to how suppliers can create Lowest Total cost of Ownership Validation
for their products and services.
The concept is explained below.
More information on Municipal Wastewater Decisions is shown at
Municipal Wastewater Decisions
To register for the February 28 webinar at 10:00AM central time click on
Advanced Forecasting of Combust, Flow and Treat Products for the Chemical
Industry
Due to the widely varying processes in the chemical industry McIlvaine is
offering advanced forecasting of the combust, flow and treat products in each
major sub segment and also forecasts of purchases by each of the major
purchasers. So for a company such
as BASF there would be forecasts created for all the specific products offered
by a participating vendor with totals for all plants plus segmentation by
product such as MDI, chlorine etc. for more information on this contact
Bob McIlvaine at
rmcilvaine@mcilvainecompany.com
847-784-0012 ext. 112
Lowest Total Cost of Ownership Validation (LTCOV) will be Essential for High
Performance Combust, Flow and Treat Products and Services Success
The sea change in the market route for combust, flow and treat companies has
been assessed at
www.mcilvainecompany.com .
One aspect is that IIoT and data analytics will be providing vast amounts
of data on total cost of ownership.
Current data will be available to the corporate specialists who increasingly
will be making the major purchasing decisions.
These corporate specialists will have not only current TCO's on each product but
they will have the knowledge of their processes and the unique TCO parameters.
These will not be people easily persuaded by a standard sales presentation or
even a comprehensive analysis which does not take into account unique TCO
parameters for the process in question.
TCO has long been a desired but expensive, time consuming and difficult basis
for decision making. As a result
initial price has had unwarranted influence on purchasing decisions for high
performance products. More than
half of the combust, flow and treat products are in the high-performance
category. This includes both
critical and severe service where performance has a bigger impact than initial
price.
The most important navigation tool for this sea-change in the route to market
will be the Lowest Total Cost of Ownership Validation (LTCOV).
The obvious question is how does the LTCOV differ from the common "white
paper". Here are the differences:
·
The LTCOV addresses the unique process parameters for a specific purchase
·
Validation is achieved by the input of Subject Matter Ultra Experts (SMUES)
·
The unique process parameters and cost factors are supported by decision systems
with case histories, analyses and economic tables.
·
The LTCOV is kept current
·
The LTCO is further validated by addressing criticisms of third parties
including competitors
·
This input from third parties is implemented through the decision systems.
The digital generation with access to data analytics and the Industrial Internet
of Wisdom" will be leading the way in the market sea-change.
The LTCOV will be a primary navigation tool. Therefore, those suppliers
who have the best products and can validate LTCO will be the most successful.
How can a supplier address this sea-change and provide the desired
LTCOV's? Here is the step by step recommendation.
1.
Use "Advanced Forecasting" to prioritize industries, processes and even all the
major individual prospects
2.
Start with the most potentially lucrative segment and create an LTCOV for it.
3.
The LTCOV process steps are
a.
Select a vendor to coordinate the LTCOV.
McIlvaine would be one of the consulting companies to consider
b.
Understand the process as well as the process operator does.
c.
Gather all the cost data relevant to the application of your product or service
relative to that process
d.
Support that data with case histories, customer testimony. and verifiable
analyses
e.
Validate the LTCO with the input from one or more Subject Matter Ultra Experts
f.
Disseminate the LTCOV to the potential purchasers
g.
Provide open on-line discussions of the LTCO
h.
Support decision systems covering the process and all the relevant products and
services
i.
Provide continuous review and updating of the LTCO
j.
Encourage the development of subject matter ultra-experts both within the
organization and without
k.
Interconnect all the people within the supplier organization to improve and
leverage the LTCO market approach.
This sea-change will not only impact market shares but margins, R&D and the
fundamental building blocks for success. Those companies who leverage TCO
information to develop better products will find ready acceptance. The result
will be faster process improvement and higher profit margins to those companies
who divert more funds from promotion to R&D.
A five-step program to address the sea change is found at
www.mcilvainecompany.com
For more information on a consulting program to coordinate the LTOV contact Bob
Mcilvaine at
rmcilvaine@mcilvainecompany.com
847-784 0012 ext. 112.