INNOVATION CRITIC
What are the strengths of the idea?
Long term leasing. We have many times talked about pursuing this avenue, but have never done so because of the financial constraints of capital costs.
- We already have technical expertise in this area.
- We manufacture equipment that could be incorporated into the lease, and expendables that must be purchased to get things going.
- It will make money.
- The entire power generation market is moving to an asset management style and this would play directly into that.
- This could be developed into a complete compliance strategy / package and with the help of SAIC could be developed into a multi media solution as well.
- What are the weaknesses of the idea?
How do we distinguish this department from our Rentals group?
We haven't had a lot of success maintaining our own on-line system. How will this be different?
We need to expend some big bucks on new assets. Long term leases (from competitors) usually incorporate new assets.
How can we maintain the high level of success at rentals and still pull a person or two from it, and into the new leasing group?
I’m not sure how much we currently know about capitol acquisition and lease back.
- What are the key issues for success?
Good planning.
Leasing leadership hired from the outside (we don't know a thing about the leasing business).
Dedicated team members.
A clear and very defined set of boundaries from corporate in determining what success is and what is not success, including a time frame.
Making sure we don’t loose site of this as a leasing business and not get bogged down on the technical aspects i.e. selling to top management not the doers at the plant level.
- What suggestions would you make to improve the idea?
Get engineering services buy-in. Ideally, they are involved in the set up and maintenance on site.
Get John Chapman and Don Allen involved. See if John is up for a new challenge… he and Don work well together. Currently the only way to do that would be to incorporate the leasing idea into rentals, which may or may not be ideal. Don Allen is a significant part of Rentals (as is JC), and the loss of both would potentially be devastating.
Move this operation off site.
Maybe not useCleanAirpersonnel at all, buy the "system" and lease it out. Remember this is a money business .
- What are the overall chances for success for this idea?
90% (We already know it will work! The only hitch is the "on-line" part. We can make that part optional.)
Not much if it is part of any existing group, this is a complete paradigm shift forCleanAir