- Integrate services into the development process. Manufacturers are looking to augment revenues by bundling products and services to create complete customer solutions. They must also manage the portfolio of solutions across channels and partners to maximize revenue and profit. Are the most-profitable customer segments well defined? Is there the capability to manage complex pricing terms and discounts across multiple contract types? For manufacturers to be able to do this, they must have integration between product development, sales, manufacturing, installation, and service/maintenance. This integration allows sales teams to identify profitable service offerings and gives field service personnel the ability to cross-sell and up-sell.
- Drive revenue through the market-to-revenue lifecycle. Sales teams need the tools and training to deliver these new solutions to the customer. Manufacturers are scaling pay-per-use services, performance-based service contracts, and other measurable, premium-price support services. While robust contract management processes are critical to effectively administer services, inability to access or assess entitlement information in a timely manner can cause delays in identifying resolution options, scheduling field technicians, identifying depot repair lead times, or committing to resolution dates. Limited access to time-sensitive information can also undermine a manufacturer’s ability to bill in a timely and accurate manner, complete entitlement verifications, and deliver superior service. With real-time visibility into equipment usage and service-level-agreement performance, manufacturers can optimize revenue accruals, labor utilization, and profitability throughout the entire service lifecycle.
- Optimize solution planning. As new and more-complex solutions are developed and sold, planning the delivery and ongoing support of these offerings becomes increasingly critical to the success of the transformation. Companies need project management and resource planning capabilities to ensure timely and cost-effective delivery. Planning of sometimes-costly service and replacement parts for new, more-complex solutions also needs to be coordinated to ensure optimal product performance. In addition, real-time monitoring of key solution-operating metrics provides the ability to predict failures before they occur, enabling proactive service transformation and improved solution performance.
- Differentiate solution delivery. Today’s most-successful manufacturers are differentiating their brands, boosting their revenues, and satisfying their customers by bringing exceptional equipment installation, maintenance, parts delivery, and repair services to market. By implementing consistent service management processes and developing an integrated systems infrastructure, service executives can effectively manage service operations and differentiate delivery capabilities. This provides added value to customers, generating more recurring revenue, higher satisfaction, customer loyalty, and even cost savings by avoiding inefficiencies and redundant efforts.
- Develop an adaptable solution foundation. Usage-based services present new paradigms in managing service operations for manufacturing companies. With execution focused on maximizing asset availability, manufacturers are changing the way they deliver installation, maintenance, warranty, parts shipping, reverse logistics, in-house repair services, and finance offerings. Companies must be able to track and optimize service inventory and spare parts stock across the entire services value chain. Orchestrating these closed-loop activities across a multiple-service value chain requires an integration architecture that automates, monitors, coordinates, and optimizes service operations.
- Measure service performance for continuous improvement. For manufacturers to continuously improve the performance of their service operations, it is essential for them to implement a scalable business intelligence (BI) foundation using powerful BI tools that support best-practice applications for financial and operational analytics. BI tools will illuminate patterns about how the service was marketed, utilized, and received by the customer. Is the service being delivered profitably and cost effectively? Which service bundles go with which market segments? Did the service generate up-sell and cross- sell opportunities? Ultimately, BI tools will give manufacturers insight that will increase profitability in service operations, optimize the sales and marketing strategy, and allow them to more effectively manage customers.
Benefits of a Service transformation Solution
Manufacturers with a service transformation focus can significantly improve visibility across their global services value chain and proactively adapt to changing customer requirements. With robust service-specific applications, tight integration, and advanced analytics for predicting product performance and service profitability, manufacturers are able to design solutions to optimize service profitability, enable remote monitoring of product performance, measure the performance of assets to achieve service- level agreements, and more proactively manage equipment uptime.
Best-in-class manufacturers looking to transform service operations can expect a better-performing service chain, wider profit margins, and more-efficient marketing and sales campaigns. They will be able to improve workforce productivity and the profitability of service operations. Most importantly, they will be able to provide outstanding service to their customers, who will return time and time again.
In today’s market, growing service revenue is table stakes for industrial manufacturing companies. Many customers are looking to transform their businesses from product-centric to service-centric, and need processes and tools to drive this change.