Warranty Management: 3 questions ; 1 answered, 2 to go
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This document discusses how to ensure optimal value is harvested from warranty management programs through a three-phase process: 1) Find Value - identify where value will come from and how it will be created; 2) Design Value - ensure solutions are value-focused and embed value realization; 3) Capture Value - start capturing, measuring, and reporting value. Illustrative examples are provided for how to plan, prepare, capture, and track value generated in a warranty transformation project.
Warranty Management: 3 questions ; 1 answered, 2 to go
- 1. 2012 ®
- 2. ® “Warranty Management: 3 questions ; 1 answered, 2 to go” Gary Dietz, Principal Sudripto De, Principal
- 3. Today’s Discussion ® • 3 Warranty Management Questions • Finding And Harvesting The Value • When • Why • What • Summary • Questions • Infosys Today
- 4. Three Basic Warranty Questions That Need Answers ® • When did the problem occur? • Why did the problem occur? ? • What corrective actions are needed? ? New Question: Where is the value? ? Do we clearly understand how decisions made in our processes, policies, procedures throughout our product lifecycle before, during, and after the sale have impacted warranty and VALUE?
- 5. In Our Experience, Making Business Value A Priority Is The First Step To Ensuring The Success Of Warranty Transformation Programs ® Business Challenges How to Address Value is not clearly • Quantify value potential understood prior to and • Determine business processes to focus on through the program • Identify changes needed to drive results • Prioritize high value business requirements Value does not drive solution • Conduct cost benefit analysis on program design projects • Ensure value driven projects are tracked in a Value is overlapping across mutually exclusive manner programs • Create constant feedback loop to assess if project value is on target • Align metrics with individuals • Secure stakeholder agreement and adoption of No clear accountability for how the program will be measured achieving business results • Support program goals with data from value analyses • Ensure program value is monitored post- Value is not tracked launch throughout the program • Establish metrics agreed upon by all stakeholders
- 6. A 3 Phase Process To Ensure Optimal Value Is Harvested Can Be Used: Find Value, Design Value, And Capture Value ® Phase I Phase II Phase III Find Value Design Value Capture Value Ensure the solution is value focused and embed Clearly identify where value will come from and Start capturing, measuring and reporting the RATIONALE the realization of the value within the business how it will be created value strategy • What are the objectives of this • What are the optimal “to-be” transformation? • Are we on track to achieve value? processes and systems? QUESTIONS • What needs to change to be more • How best to track, report and • How to make implementation more TO BE competitive? resolve issues? efficient and pain free? ANSWERED • What is the business case? • How to provide feedback for • How do processes translate to subsequent roll-outs? • What are the process metrics? changes in systems and people? Incorporate the value levers into the Develop detailed business case, value Setup performance reporting and benefits OUTPUT strategic agendas & detail how the value diagrams & gain key stakeholder buy-in management will be realize Value Realization The structured approach applied across the Domain Warranty Processes will yield the greatest results.
- 7. An Example Brings To Life How A Tangible Business Impact Can Be Achieved By Focusing On Warranty Processes And Metrics ® 1 2 Financial Business Detailed Value Case Diagrams and Process Impacts Defining process level 3 pain points, metrics, and fit / gap 3 Business Objective/ Level 0 Business Level 1 Business Level 3 Process Metric Value Financial Objective Pain point Process As-Is To-Be Target Value Process Impacted Problem Part Return Lead Long Lead Part Time Reduce 23-46 Reduce Detection & Time Problem Claims Process Return Leadtime Warranty Warranty Cost Elimination 30-60 7-14 Resolution Process 50-75% $ Days Process days days 4 And translating the value-focused process analysis into… System Configuration Logic Process Design Requirements – Business Initiatives, KPI Prioritization and Rapid Prototyping Alignment. Organizational Alignment, Target Setting 7
- 8. “W’ Factor-1: When Transactional Information ® The picture that now emerges is 1. Incomplete 2. Uncertain We need better understanding and visibility of our performance
- 9. When –Visibility Is Gained By Analyzing And Defining Our Processes, Policies, Systems, Data, Metrics ® Your Warranty Processes • Transaction detected late in lifecycle (IDC CMM Level 0,1) • Little process definition, integration, and analytics to understand root cause • Value is realized by the customer and the dealer • OEM cannot harvest remaining value due to lack of deeper understanding and visibility of warranty performance
- 10. “W’ Factor -2: Why Analysis & Forecasting ® Unanswered 2 The size of the data is huge… but the techniques are 1. Complex 2. Non-Standard We have better understanding and visibility, but lack consistency and best practices
- 11. Why –Structured Data Analysis Of Historical Trends, Predictive Models, and Diagnostic Device Integration Begin To Help Us Understand Why ® Your Warranty Processes • Some warranty process standardization and integration (IDC CMM Level 1,2) • Establishing some best practices and metrics • Value is realized by the customer and the dealer • Additional value is realized by OEM in pockets of excellence • Lack of systemic and sustainable resolution • Value is not timely and sustainable
- 12. “W’ Factor -3: What Intelligence & Knowledge Base ® Unanswered 3 What The picture which now evolves is 1. Holistic 2. Clear We have better understanding, visibility, and best practices, but now need to manage the business proactively (CPI)
- 13. What –Development Of Structured Knowledge, New Business Rules, Mining Unstructured Data, Improves Our Ability To Manage Proactively ® Your Warranty Processes • Warranty processes standardized and integrated across lifecycle (IDC CMM Level 3,4) • Advanced process analytics allow harvesting of both internal and external data • Value is realized by the customer and the dealer • OEM can optimally harvest remaining value across warranty ecosystem due to process standardization, integration, analytics, KPIs, governance • Entire value chain is now driven by warranty intelligence, and best practices • Sustainable improvement realized
- 14. The Answer To The Questions! Find and Harvest The True Value Across The Entire Warranty Value Chain ® Why Analysis & Forecasting 1.Structured Data Analysis of historical trends 2.Predictive Models 3.Diagnostic device integration Intelligence & Knowledge What 1.Structured Knowledge Bank When Transaction Effectiveness 2.Unstructured Data-mining 3.Business rules Redesign 1.Systems Integration & 4.Dynamic logic adaptation Automation 5.Master Data Governance 2.Data-flow traceability 3.Data-source & data-model completeness 4.Collaboration Platform 5.Business Process Streamlining; Outsourcing Enterprises need to define and measure their warranty performance by first understanding those processes, policies, procedures that define the most value for them
- 15. In Summary, A Structured Process Can Help You Ensure That True Value is Being Achieved: Find Value, Design Value, and Capture Value ® Phase I Phase II Phase III Find Value Design Value Capture Value Ensure the solution is value focused and embed Clearly identify where value will come from and Start capturing, measuring and reporting the RATIONALE the realization of the value within the business how it will be created value strategy • What are the objectives of this • What are the optimal “to-be” transformation? • Are we on track to achieve value? processes and systems? QUESTIONS • What needs to change to be more • How best to track, report and • How to make implementation more TO BE competitive? resolve issues? efficient and pain free? ANSWERED • What is the business case? • How to provide feedback for • How do processes translate to subsequent roll-outs? • What are the process metrics? changes in systems and people? Incorporate the value levers into the Develop detailed business case, value Setup performance reporting and OUTPUT strategic agendas & detail how the diagrams & gain key stakeholder buy-in benefits management value will be realize Value Realization This structured type of approach applied across the Domain Warranty Processes will yield the greatest results.
- 16. Illustrative Examples For a Project Team to Plan, Prepare, Capture and Track the Value Generated in a Warranty Transformation… ® Phase I Phase II Phase III Find Value Design Value Capture Value Value Scan Metrics Management Identifies Defines the opportunities performance framework Benefits Tracking Tracks and Business Case reports Decision Framework benefits Quantifies Prioritizes benefits vs. initiatives costs Value Audit Value Diagram Value-enabled Solution Design Audits and benchmarks Simulates process Provides benefits of value line of sight change for business savings Enterprises and project teams should adopt and/or create the appropriate templates that customize and fit their situations
- 17. Contacts Gary Dietz, Principal Gary_Dietz@infosys.com Sudripto De, Principal Sudripto_De@infosys.com