How can the transparency of strategic decisions be increased?
hpo Practical Case Mobility
Since 2005, the number of passenger kilometers traveled by rail in Switzerland each year has increased by 13 percent to almost 21 billion. The Federal Office of Transport predicts a further increase by 2040 despite the temporary slump due to the pandemic.
Managing this demand is becoming a major challenge for railway transport companies. The transported customers continuously make high demands and attach great importance to punctuality and a modern and high-quality standard of the rolling stock.
The industry model creates transparency in strategic outsourcing decisions.
Aim of the project
In one specific case, hpo was commissioned to investigate the possible advantages and disadvantages of outsourcing the maintenance activities of a Swiss utility company. What would be the short and long-term effects?
Together with the customer, hpo evaluated three possible outsourcing options:
- the outsourcing of the entire maintenance to a third-party provider;
- the outsourcing of heavy maintenance only;
- the takeover of the entire maintenance by a jointly newly founded company (joint venture).
With the help of the industry model, hpo was able to show the client possible synergy and conflict potentials of the individual outsourcing variants in a transparent and clearly understandable way. Other criteria which were part of the evaluation included:
- the complexity of the control system;
- the dependency on potential suppliers;
- the possible cultural challenges and tensions at the interfaces between the railway transport company and outsourcing partner;
- possible effects on the reputation of our client.
The analyses enabled our customer to draw on a much broader information base and thus make an informed decision about the future of maintenance.
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