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Utveckling av Kundfinansieringslösning för Atlas Copco Tools and Assembly Systems

Nilsen, Jens and Wernersson, Martin (2008) MIO920
Production Management
Abstract
Background In a competitive market place a competing company has to focus on continuous improvements and effectiveness, something that can be achieved by investing in product resources which then generates a need of capital. The need of capital can be financed through direct financing or external financing such as leasing where the leasing company offers the customer capital support. Since 1999, Atlas Copco has been offering customers financing solutions including different forms of leasing. The business of customer finance within Atlas Copco has grown and today more than one hundred deals are made yearly in over 50 countries. The customer finance solutions have been especially successful within two, out of three, business areas -... (More)
Background In a competitive market place a competing company has to focus on continuous improvements and effectiveness, something that can be achieved by investing in product resources which then generates a need of capital. The need of capital can be financed through direct financing or external financing such as leasing where the leasing company offers the customer capital support. Since 1999, Atlas Copco has been offering customers financing solutions including different forms of leasing. The business of customer finance within Atlas Copco has grown and today more than one hundred deals are made yearly in over 50 countries. The customer finance solutions have been especially successful within two, out of three, business areas - Compressor Technique (CT) and Construction and Mining Technique (CMT) - while the financial penetration within Industrial Technique (IT) is very low. It is in Atlas Copco’s interest to increase the number of financed affairs.

Purpose The main objective of this thesis is to identify key factors regarding customer finance as a competitive tool; how and to what extent these factors influence the financing model and how the factors affect the sales process within Industrial Technique. Focus is on identifying the reasons behind the defaulted success of customer finance within IT and to specify guidelines for development of successful customer finance solution.

Method Since the main purpose with this thesis spans over a large theoretical and practical area, the authors decided to point out indications rather than delivering statistical evidence of factors and events that affects the development of a successful customer finance solution. Atlas Copco was in need of general knowledge within the area and a stabile platform to work from.

Conclusions Business processes are seldom well defined and well documented and it can be difficult for the employers to follow them. The problem with the sales process within Atlas Copco is not the activities that make up the process, nor is it the people that perform these activities. The problem is rather the structure of the process. Instead of focusing on the isolated steps within the process, focus should be on changing the particular process and to improve the process definition and make it faster. An important step in the process transformation is to transform specialists into generalists. It is further required to attain knowledge of customer finance as a competitive tool in order to be able to sell customer finance solutions. The results from the studies performed as a part of this thesis shows that a total solution including product, full service and financing is the main competitive factor with a customer finance solution. An optimized level of service results in increased productivity. Production utlization is a fundamentally important part of the total solution and increases the value for the customer. Financing is then not the second most important factor, subsequent to the product, when selling functional rent solutions. Instead financing can be used as the first bargain aid and as another alternative to offer the customer. (Less)
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author
Nilsen, Jens and Wernersson, Martin
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Functional rent, sales process, process change, customer finance, leasing, product, service, competitive tool and need
other publication id
08/5298
language
Swedish
id
1979579
date added to LUP
2011-06-17 13:41:39
date last changed
2011-06-20 11:09:18
@misc{1979579,
  abstract     = {Background 	In a competitive market place a competing company has to focus on continuous improvements and effectiveness, something that can be achieved by investing in product resources which then generates a need of capital. The need of capital can be financed through direct financing or external financing such as leasing where the leasing company offers the customer capital support. Since 1999, Atlas Copco has been offering customers financing solutions including different forms of leasing. The business of customer finance within Atlas Copco has grown and today more than one hundred deals are made yearly in over 50 countries. The customer finance solutions have been especially successful within two, out of three, business areas - Compressor Technique (CT) and Construction and Mining Technique (CMT) - while the financial penetration within Industrial Technique (IT) is very low. It is in Atlas Copco’s interest to increase the number of financed affairs.
 
Purpose 	The main objective of this thesis is to identify key factors regarding customer finance as a competitive tool; how and to what extent these factors influence the financing model and how the factors affect the sales process within Industrial Technique. Focus is on identifying the reasons behind the defaulted success of customer finance within IT and to specify guidelines for development of successful customer finance solution.  

Method 	Since the main purpose with this thesis spans over a large theoretical and practical area, the authors decided to point out indications rather than delivering statistical evidence of factors and events that affects the development of a successful customer finance solution. Atlas Copco was in need of general knowledge within the area and a stabile platform to work from.   

Conclusions 	Business processes are seldom well defined and well documented and it can be difficult for the employers to follow them. The problem with the sales process within Atlas Copco is not the activities that make up the process, nor is it the people that perform these activities. The problem is rather the structure of the process. Instead of focusing on the isolated steps within the process, focus should be on changing the particular process and to improve the process definition and make it faster. An important step in the process transformation is to transform specialists into generalists. It is further required to attain knowledge of customer finance as a competitive tool in order to be able to sell customer finance solutions. The results from the studies performed as a part of this thesis shows that a total solution including product, full service and financing is the main competitive factor with a customer finance solution. An optimized level of service results in increased productivity. Production utlization is a fundamentally important part of the total solution and increases the value for the customer. Financing is then not the second most important factor, subsequent to the product, when selling functional rent solutions. Instead financing can be used as the first bargain aid and as another alternative to offer the customer.},
  author       = {Nilsen, Jens and Wernersson, Martin},
  keyword      = {Functional rent,sales process,process change,customer finance,leasing,product,service,competitive tool and need},
  language     = {swe},
  note         = {Student Paper},
  title        = {Utveckling av Kundfinansieringslösning för Atlas Copco Tools and Assembly Systems},
  year         = {2008},
}