Why PTC for SLM?
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The document discusses the importance of Service Lifecycle Management (SLM) in increasing customer value, retention, and service profits, highlighting various statistics related to service revenue opportunities and customer satisfaction. It emphasizes the need for improved connectivity within service networks to enhance operational efficiency and reduce service costs through optimization of service operations. The document also outlines PTC's SLM strategies and solutions to better support organizations in managing service delivery and product support effectively.
Why PTC for SLM?
- 2. Service Executive’s Priorities SLM Service Lifecycle Management INCREASE CUSTOMER VALUE An increase in customer retention of 5% can lead to profit gains of 35% to 125%.(1) INCREASE SERVICE PROFIT Aftermarket services represent ~24% of total revenues and between 40% to 80% of profit. (2) INCREASE SERVICE REVENUE Manufacturers on average capture only 25% of total service opportunity available(3) 2
- 3. Service Lifecycle Management Can Yield Big Benefits Technical Information Warranty and Contract Management Service Parts 38% 80% decrease in time to resolution for customer support1 more likely to achieve higher parts profitability5 43% 40-80% increase in customer satisfaction score1 of all company profit can be directly attributed to aftermarket parts sales6 Field Service 90% annual contract renewal rate2 40-60% Supplier recovery can reach new rates7 Contact Center <30% 41% reduction in service costs and increase in field service productivity3 Decrease in volume of inbound customer support calls1 99% 92% First time fix rates 7 customer satisfaction rating achieved4 Sources: Referenced in Notes Page 3
- 4. Today’s Service Network Customer Support Service Information is often fractured Parts Depot Owner / Operator Service Network Field Technician and has its Challenges Warranty Claims 4
- 5. Today’s Service Network Parts ACCURACY Owner/Operator PRODUCTIVITY Customer RESOLUTION Install & Maintain Identify & order accurate part(s) Register warranty Record usage Service tickets Initiate service call Analyze parts Resolve issues Log issue Analyze support Claims OPTIMIZATION Field EFFECTIVENESS Execute service Analyze service Register products Record product issues Process claims Analyze warranty 5
- 6. Service Organizations Are Underachieving in the Service Lifecycle Service Knowledge Mgt Technical Info Service is reactionary Functions are disparate Silos of information Disconnected processes Field Service Mgt Service Network Mgt Poor operational efficiency and uptime Higher cost over system lifecycle Inconsistent analysis Difficult to identify areas for most meaningful improvements Service Parts Info Warranty & Contract Mgt Service Missed Service Improvement Depot opportunities Mgt Harder to do more with less Service Parts Mgt 6
- 7. Connect the Service Network To Provide a Single View of Service For Continuous Improvement Service Knowledge Management Field Service Operations Technical & Service Content Service Logistics Warranty & Service Contracts Service Parts Planning & Management 7
- 8. PTC SLM Strategy Deliver Multiple Levels of Differentiation & Value to its Customers System for Service Best-in-Class Cross-solution visibility of entire service environment to enable optimization of all service operations Service specific set of products and services that address business problems or opportunities Product & Service Advantage Total product lifecycle visibility to maximize product performance, customer loyalty and thru-life product revenue 8
- 9. How PTC SLM solutions enable product support Support Planning Service Execution Operations Management • Depot repair • MRO integration ILS Processes • Tech Info • Parts Information • Parts Provisioning Contract Management • Warranty • Supplier recovery • FRACAS Operations Management • Inventory + Supply Chain Management © 2013 PTC 9
- 10. PTC can support your organization: • New systems and products will require a design, build & support strategy • Existing systems and products will require In service support before and after Tech inserts or refresh. • The # of suppliers (thousands) and amount of engineering data and information for the program is immense. – Challenges or questions from that are: • How do you take that data and create & deliver something consumable to Your customer • How do you ensure the engineering data and parts data is accurate in the field or on the water? • How can manage all of the parts information and data? • How do you ensure the right level of parts are stocked on the ship prior to delivery 10
- 11. Suggested next steps • Deeper dive on PTC and our products • Process mapping • Potential areas of focus • Support building of your business case • Identify low hanging fruit • Scope solution and services by phase • Reach out to get started, please contact me • Tom Kenslea 617-448 5951 tkenslea@ptc.com 11
Editor's Notes
- #3: Loyalty Effect – 1996 Fred Reichheld of the consulting firm Bain & CompanyGartner SLM Maturity Model – March 2011(3) Accenture 2011 - The Service Value Chain Driving High Performance in Service and Spare Parts
- #4: Sources: 1Aberdeen: Technical Communications as a Profit Center; 2-Aberdeen Warranty & Contract Management; 3-Accenture; 4-State of Service Management, Aberdeen; 5-Oracle; 6-Gartner; 7-PTC Customer Business Assessments; 8- New Service Frontier, Blumberg;
- #5: To open – describe the complexities of service – that it’s not sequential or “predictable” – but depends on the organization of people – dealers and partners - , tools, technical information, the foreign countries and languages, parts, devices – and even the products themselves to make sure that service is meeting customer expectationsAdd to that – service processes have mostly grown up around the specific service functional areas – not traditionally working in combinationService ends up being reactionary, with disparate functions and silos of information which than creates disconnected processes and inconsistent analysis. Manufacturers cannot identify areas for most meaningful improvements which then creates poor dealer and customer experiences and low value outcomes.Service revenue growth and profit opportunities do not materialize
- #6: In today’s service network, the roles that touch the product are disconnected and have their own interests to satisfy.The owner/operator wants to use the equipment as much as possible keep it up and productive.Service/Repair is trying to do efficient repairs and happening at minimal cost and increasing contracts.The parts counter is concerned with making more parts revenue and are efficient from a parts delivery stand point.Warranty is busy managing warranty claims. And the contact center is interested in resolving calls as efficiently as possible.
- #9: A Purpose-Built System that Provides a Single View Into Service