Case study

DeLaval

November 2020 – September 2022

DeLaval is the worldwide leader in dairy equipment, ensuring milk quality and animal health while at the same time providing their customers with solutions for sustainable food production. The company develops, manufactures and markets equipment and complete diary systems to a global market as well as provides their customers with service and spare parts.

DeLaval origins from the Swedish company AB Separatorer, a company founded in 1883 by Gustaf de Laval who had just patented the milk separator. Today DeLaval employs more than 4500 people in over one hundred countries worldwide, and has headquarters in Tumba, Sweden. Together with the companies Tetra Pak and Sidel, DeLaval form the Tetra Laval group.

Contact person for Cordial assignment: Mr. Kieran Fitzgerald, Vice President Commercial Offering, Digital Services. Mr. Fitzgerald has been working at DeLaval since 2011 and at DeLaval Digital Services with digital service development since 2021.

Starting Point

When Cordial joined DeLaval in November 2020 a new organizational unit called DeLaval Digital Services had been launched six months earlier. DeLaval Digital Services was primarily created to build a complementary business around digital services via a new cloud-based platform where customers can consume the service. The main reason for adding digital services to DeLaval’s already world leading portfolio of dairy systems is to protect their market position and being able to offer their customers and value network even better insights, service and support as well as business improvements.

Initially DeLaval reached out to Cordial in search for a business model innovation training. After a few meetings, the parties agreed that an advisory approach was more appropriate. DeLaval wanted support in assessing and establishing capabilities needed to support developing and launching digital services while making sure the digital offer would be appreciated by customers and partners, and to get a framework in place to manage the structures created.

Desired position

DeLaval wants to keep their world leading market position and grow their business by adding digital offerings to their current dairy system portfolio. When Cordial joined DeLaval in 2020, DeLaval had formulated their strategy and together we developed a set of plans to accelerate the inception of DeLaval Digital Services.

We used an agile approach to digital transformation, where the foundation for the joint work was business architecture. The scope for the Cordial engagement evolved during the two years long project to ensure that DeLaval would reach their desired position.

Actions to reach desired position

Solution

Along the journey the Cordial team has been working in various roles depending on the customer need, in both leading and challenging advisory roles as well as producing roles.

Reaching desired position, DeLaval and Cordial has together been working with:

▶ Implementing business architecture to link business strategy and business models to business execution.

▶ Understanding and establishing needed capabilities as a tool to define what we need to do and developed business processes to design how we do it.

▶ Establishing business process management for new digital services.

▶ Designing the customer journey, which is now utilized in all digiphysical development and anchored across the entire DeLaval organization.

▶ Creating joint understanding of the effort required to incept digital services in a capital goods company and designing how DeLaval is working with launching digital services by developing and establishing an operating model for digiphysical products.

▶ Getting development and commercial teams working together to launch MVP digital services in a systematic, yet agile, way using business events based on the customer journey.

The Cordial team

During the two yearlong commitment several Cordial employees has been of the assignment contributing with their different expertise.

▶ Marcus Melkersson. 2020.11-2022.09. Business advisor and client lead.

▶ Torbjörn Matton. 2020.11-2021.12. Client lead.

▶ Elin Lundqvist. 2021.01-2021.04. Process management and product owner.

▶ Emelie Peippo. 2021.04-2021.07. Process management.

▶ Stina Nilsson Helander. 2021.02-2021.12. Process management.

▶ Anna Erkén. 2021.08-2022.09. Process- and capability management.

▶ Johanna Hedin. 2021.08-2022.09. Process- and capability management.

Result

During the two yearlong collaboration between DeLaval and Cordial, a lot of progress has been made, and DeLaval has now the foundation and business architecture knowledge needed to continue independently. The ongoing journey is a cultural transformation about moving the entire business model from product to offering logic. In the end it is all about people that needs to make these shifts: mentally, structurally, and how to operate. This transformation means going from:

▶ Selling products on a local and global level to having a continuous relationship and business across the entire DeLaval organization

▶ Launching big, entire diary systems, to complementing with a de-risked partial scale up

▶ Having a revenue model based on physical dollars, paid upfront adding additional revenue streams

During the years of joint work, the mental shift and way of working has been supported by following collaboration results:

▶ A business architectural foundation consisting of anchored knowledge, and fundamental architectural components developed and implemented to link business strategy, business models and business execution.

▶ Capabilities are mapped and have a development and maturity plan laid out, and all business processes covers E2E perspective.

▶ A business process centric development model for new digital service is implemented, also covering the digiphysical perspective to meet the DeLaval offer portfolio.

▶ The customer journey is used as core for everything DeLaval Digital Services do, from creating new digital offers to the local and global communication and launching of these offers.

▶ Deeper knowledge through entire organization about the effort required to incept digital services in a capital goods company. Higher level of understanding and collaboration between old and new part of the company, on both a local and a global level.

▶ Several digital offers launched using an agile, scale up approach.

About the cooperation

Why did you choose Cordial as your cooperation partner?
“We looked for a partner who could help us build structure capital in the form of business architecture, as well as the transformation journey support ranging from framework to actual implementation. Cordial proved to have the tools and competencies that match our need and the reputation with reference persons to go beyond power point to roll up their sleeves to do the actual transformation work. They delivered both competence and resources to support the work to start up the transformation journey.”

– Maria Karlsson,
Business Model Architect at DeLaval Digital Services

Please describe Cordial as a cooperation partner
“It is too easy to slip comfortably into a disconnect between business architecture and enterprise architecture but in our transformation from manufacturer to service delivery it is vital to understand the interdependencies and Cordial’s holistic view of business development has been extremely important and helpful for us. The Cordial consultants we have worked with have proven to be valuable members of the extended DeLaval team and contributed their expertise with professionalism. There has always been room for disagreement and rational, albeit it passioned, discussion during our time together and this has certainly contributed to achieving mutual respect and with that significant progress in our ability to meet our business objectives. We’ve also had a lot of fun on the way.”

– Kieran FitzGerald
Vice President Commercial Offering, Digital Services at DeLaval

Advisory

Learning

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