All companies stress the importance of information systems in facilitating their service delivery. In three of the five cases the assets were connected to the organization (e.g. through telematics),...

All companies stress the importance of information systems in facilitating their service delivery. In three of the five cases the assets were connected to the organization (e.g. through telematics), which allows the provider to be both reactive and proactive towards the upkeep of the asset. With servitised products AerCo use real-time data provided by telemetry fitted to the asset to monitor the system in-use. AerCo can predict with approximately 95% accuracy, to a 2-year time horizon, the point at which it will require repair or overhaul. This allows scheduling of a slot in its Maintenance, Repair and Overhaul (MR&O) facility in addition to generating an order within AerCo’s enterprise resource planning (ERP) system to deliver parts on a JIT basis using Supply chain event management (SCEM) techniques. SCEM in this context is defined as ‘‘systems that monitor events within the supply chain and react according to predefined rules’’. AerCo also use the information flows from the system to monitor usage patterns. This data informs the customer-facing business units of the organization—to determine whether the charges levied on the contracts are correct—and the engineering unit—to improve future versions of the products. TransCo also use telematics to remotely monitor products and as with AerCo use this data to trigger orders within their ERP system. They also use Product Lifecycle Management software to manage the design, manufacture and support of their systems and products. At NuCo all critical processes are monitored in real-time allowing increased visibility of potential risks and facilitating the predictive maintenance of safety critical items. In NuCo’s case as the asset base is fixed, telemetry is not used, NuCo also apply SCEM techniques for the ordering of inventory for maintenance operations. The remaining two case companies also used IT to facilitate service delivery but this was not performed automatically. With FleetCo a proprietary IT system holds all vehicle-related data and is used to compare each vehicle to industry standards with exception reports generated, and customers contacted, if there is variation. Fleet managers that use FleetCo’s services gain access to an online portal, which allows them to obtain quotes for, and order, new vehicles and facilitates the analysis and optimization of the usage of the vehicle fleet. Fleetco’s portal also allows fleet vehicle drivers to determine whether the vehicle they are driving requires maintenance or taxing. CraneCo use a central IT system to schedule maintenance, which is updated manually and used to schedule servicing and the ordering of parts for maintenance.

Task: Explain the applications of information flow management covered in the case above.