Customer stories
This is a translation of an article published in “CIO Sweden” Nr 1, March 2010. Download the full article (pdf).
GE Healthcare Life Sciences
Sells More With 3D Designs |
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The Problem
A complex product that was tough to sell in “customer specific configurations”. The Solution
The sales force began working with 3D models where they can configure the product together with the customer. The Challenge
How do you offer your customer specific configurations of advanced technical equipment? How do you ensure that the data being used is up to date? The Players
GE Healthcare Life Sciences Animech Technologies Business Statement |
GE Healthcare Life Sciences |
Thirty percent higher average order value, 10 percent better gross margin, decrease in service costs and more satisfied customers – these were the results when GE Healthcare Life Sciences invested in a 3D based, visual sales configurator.
Sales personnel at GE Healthcare Life Sciences worked hard with engineers to configure client specific solutions. This in turn led to an increase in the time it took to present a proposal. Service technicians went around with the trunk full of binders, constantly concerned they didn’t have the most up to date information.
The time and technology was ripe for a near complete switchover to digitally distributed and visualized information. All manuals and sales brochures were collected in databases. The component CAD drawings formed the basis for the 3D visualization that has now all but replaced the previously written information.
So what do you sell at GE Healthcare Life Sciences? The product involved is a liquid chromatography system called ÄKTA. This technology is used by laboratories and pharmaceutical manufacturers worldwide, and ÄKTA is the flagship of GE Healthcare Life Sciences. With the implementation of a total 3D environment in the sales personnel’s computers the sales process has changed completely.
Today liquid chromatography is made up of modules, which according to regulations for acceptable configurations, can now be visualized in 3D. Now the sales representative can focus on customer needs without having to worry about what is technologically possible. If it is possible to make a 3D model, then it’s also possible in real life. Configuration and price are dynamically updated during the sales process.
Peter Ehrenheim“Customers can customize their system directly at the point of sale. This has strongly contributed to our having built up customer confidence, and thanks to the sales configurator our average price per order has increased from 100,000 to 130,000 dollars,” says Peter Ehrenheim, President and CEO of GE Healthcare Life Sciences.
This modular thinking was in part a result of the visualization process. The result is that production has become more efficient.
“Previously, each client was unique in the production chain. Now we manage them in a much more standardized and efficient manner at the assembly plant, so the total number of defective configurations has dramatically declined. Together, this has improved the gross margin of our approximately 16 million dollars in revenue by 10 percent, “said Peter Ehrenheim.
“You could say that we have outsourced our engineer’s knowledge of manufacturing out to the sales representatives who are often biochemists,” says product manager Mikael Johansson.
3D Affects Are Everywhere
The transition to visual presentation techniques is the result of a long collaboration with supplier Animech Technologies.
“Animech Technologies caught our attention when the company made a presentation of some interactive sales material for a product launch,” says Mikael Johansson.
The first project was to convert ÄKTA’s service manuals to a visual 3D version.
“Today our service technicians have the complete manual loaded into their computer which allows them to find the information they need. You get simulation for disassembly and assembly operations that you can follow step by step, “says Stefan Eriksson service specialist.
The success of the service manuals got the attention of sales with this new way of working.
“We were able to make use of a number of 3D models already in the service applications when we wanted to have our sales configurator,” says Mikael Johansson.
This vast amount of visual material has also reduced translation costs.
“With our 3D manuals, we have eliminated the language barrier,” says Stefan Eriksson.
“Now before a new launch, we can send 3D content to our technicians so they can train even before the product has been manufactured.”
All this has proved so effective that the same distribution method is now used even for non-configurable products.
“This controlled updating of information ensures that product managers can organize exactly what goes out and what needs to be updated,” says Mikael Johansson.
