Industrial Products & Capital Goods

Defining a Menu-Based Pricing Model for Operations and Maintenance (O&M) in Wind Energy

Client Challenge

Our client, a market leader in wind turbines with a global presence across Asia, Australia, Europe, Africa, North and South America, has built and consolidated its presence in 19 countries over the past two decades. The company provides end-to-end integrated services, from site selection and front-end engineering design to the manufacturing of wind turbines and components, as well as construction, installation, commissioning, and long-term operations and maintenance (O&M) of wind farms.

The client sought to evaluate the feasibility of providing menu-based O&M services for customers, as opposed to their current integrated end-to-end O&M services. The objective was to determine the suitable customer segments, understand the best practices in O&M globally and within India, and identify the models being followed by other players in the industry.

Our Approach

  • Context Building:
    • Initiated the project by understanding the client’s current objectives and strategic intent for offering menu-based O&M services.
  • Stakeholder Engagement:
    • Prepared detailed discussion guides and identified key stakeholders, including customers, competitors, and independent service providers in the industry.
  • Global Practices Analysis:
    • Conducted in-depth discussions with the client’s various country heads to establish the global practices adopted in offering O&M services.
  • Feasibility Assessment:
    • Conducted detailed primary and secondary research to assess the feasibility of offering menu-based O&M services to specific customer segments.
    • Evaluated capabilities being built by various customer segments and their willingness to pay a premium for value-added services.
    • Identified risks associated with various menu options that could be offered to customers in the market.

Our Impact

  • Market Sizing:
    • Estimated the overall windmill O&M market size in India.
  • Menu Definition:
    • Defined various menu options that could be offered to different customer segments.
  • Best Practices:
    • Compiled the practices adopted by various global players in the O&M market.
  • Feasibility and Timing:
    • Determined the feasibility of offering menu-based O&M services in India, identifying suitable customer segments and appropriate timeframes.

This strategic evaluation provided the client with a clear understanding of the potential and practical implementation of menu-based O&M services, allowing them to tailor their offerings to specific market needs and enhance customer satisfaction.