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Unlock your Service potential Introducing serve2XL
Unlock your Service potentialIntroducing serve2XL
Contents
Introduction
Who we are
Our vision
Our approach
Value of service
Our service portfolio
08-04-232© 2010 serve2XL - All rights reserved
Perspectives on Service
Introduction
08-04-233© 2010 serve2XL - All rights reserved
Serve2XL is your partner to improve and excel in service
Lead Optimise Execute
• Show by example• Manage organisational change
• Manage projects• Coaching / Training
• Reduce cost• Increase service revenue
• Increase customer satisfaction and loyalty
• Inspire service-thinking• Make Service a prominent business driver
• Drive Service roadmap
IdentityIdentity
VisionVision
ValueValue
Serve2XL is a new consultancy firm specialised in all aspects of Service. We have over 15 years of service experience in High Tech, Consumer Electronics, Telecom and MRO
Serve2XL is a new consultancy firm specialised in all aspects of Service. We have over 15 years of service experience in High Tech, Consumer Electronics, Telecom and MRO
Service is an inseparable part of your product.Service is present in all fibres of your value chain processes.Service requires understanding your customer.
Service is an inseparable part of your product.Service is present in all fibres of your value chain processes.Service requires understanding your customer.
ApproachApproach We apply an integrated and holistic approach in optimising your service business to reach customer satisfaction and loyalty.We apply an integrated and holistic approach in optimising your service business to reach customer satisfaction and loyalty.
Who we are
08-04-234© 2010 serve2XL - All rights reserved
Analysts predict continued focus on serviceAnalysts predict continued focus on service
Service concepts are on the moveWith respect to the analysts we see the following trendWith respect to the analysts we see the following trend
This means service becomes a board room topic ...This means service becomes a board room topic ... ... where it all starts with strategic service positioning... where it all starts with strategic service positioning
You are not selling products anymore, not selling services but selling complete customer focussed solutions
You are not selling products anymore, not selling services but selling complete customer focussed solutions
Past Future
Product centric
Break / fix
Cost
One size fits all
Customer centric
Proactive
Revenue
Differentiation
Service for design Design for service
Contract SLA
Budgetdriven
Revenuedriven
Cost CentreCost CentreDependent
Business UnitDependent
Business Unit
Independent Business UnitIndependent Business Unit
Strategic Business Unit
Strategic Business Unit
• Provide services internally for others
• Not independent• Budget driven
operation• No own revenue
• Provide services internally for other departments
• Not independent• Performance based on
Business Unit productivity
• Independent unit• Own management• P&L responsibility• Focus on own product
range
• Management through top manager
• Independent decisioin making of service portfolio and marketing
• Service organisation leads product organisation
• Service oriented pricing structure e.g. ‘Power by the hour’
• Multi vendorService supports
the product
Service supportsthe product
Service differen-tiates the product
Service differen-tiates the product
Service leads the product
Service leads the product
Service is the product
Service is the product
ServiceRevenue
ServicePortfolio
= Importance / Availability of Service
PastPast NowNow Near Future2012
Near Future2012
Long Term2012-2015
Long Term2012-2015
DeliverDeliver
TailorTailor
Ensure OperationEnsure Operation
InventInvent
Ad hoc tech-nical servicesAd hoc tech-nical services
Financial services
Financial services
Service contracting
Service contracting
Value added services
Value added services
Operating services
Operating services
StrategyStrategy
CompetenceCompetence OrganisationOrganisation
SupplierSupplier StakeholderStakeholder
CustomerCustomer
Our vision
08-04-235© 2010 serve2XL - All rights reserved
But what is service all about?
Service as in Maintenance
•Call centre•Installed base•Service logistics
• Inventory management• Order fulfilment• Parts delivery• Field service• Reverse logistics• LSP selection• Cross border & Duty
•Repair•Life cycle management
Service as in Maintenance
•Call centre•Installed base•Service logistics
• Inventory management• Order fulfilment• Parts delivery• Field service• Reverse logistics• LSP selection• Cross border & Duty
•Repair•Life cycle management
Service as in Additional Services
•Service portfolio•Service Marketing & Sales•Relationship management•Cross & Up-selling•Service Level Agreement•Product customisation•Sustainability• Waste collection• Dismantle• Remanufacturing• Installation & training
Service as in Additional Services
•Service portfolio•Service Marketing & Sales•Relationship management•Cross & Up-selling•Service Level Agreement•Product customisation•Sustainability• Waste collection• Dismantle• Remanufacturing• Installation & training
Service as in Customer Satisfaction
•Customer intimacy•Customer experience•Customer bonding•User support• Orientation• Buying• Delivery• Installation• Using• Disposal
•Corporate citizenship
Service as in Customer Satisfaction
•Customer intimacy•Customer experience•Customer bonding•User support• Orientation• Buying• Delivery• Installation• Using• Disposal
•Corporate citizenship
“Service is the collection of all customer facing activities contribution to the value and obligations of a product”
Our vision
08-04-236© 2010 serve2XL - All rights reserved
To address multiple business drivers Serve2XL uses an integrated and holistic approach
Our approach
Action on multiple dimensions
Customer Satisfaction improvement
Customer Satisfaction improvement
Revenue increaseRevenue increase
Cost reductionCost reduction
StrategyStrategy
CompetenceCompetence OrganisationOrganisation
SupplierSupplier StakeholderStakeholder
CustomerCustomer
ProcessesSystemsKnowledgeWork instructionsAssets
Org. structurePeopleCultureReporting Internal alignment
Business modelProduct portfolioMarket positioningImageInnovation
Sales channelsMarket expectationsAlternativesCulture
VendorsLogistics providersService providersCompetitors
LegislationEnvironmentBanksShareholdersMarket watchers
Driver
Customer Satisfaction
Service revenue
Cost
08-04-237© 2010 serve2XL - All rights reserved
€Service value according to analysts
Value of Service
“Avaya reduced its service parts inventory from $250 million to $160 million, Sun Microsystems saved $40 million in the first year, and Dell grew service revenues over 20% in one year.”
BusinessWeek
“Avaya reduced its service parts inventory from $250 million to $160 million, Sun Microsystems saved $40 million in the first year, and Dell grew service revenues over 20% in one year.”
BusinessWeek
OEMs are drawing between 12% and 28% of their overall corporate revenues from post sales service activities
Aberdeen, “Driving Service Revenue”
OEMs are drawing between 12% and 28% of their overall corporate revenues from post sales service activities
Aberdeen, “Driving Service Revenue”
It costs three times as much to process reverse logistics of new items as it did to process the forward logistics to sell it. According to Gartner, the percent net profits are reduced by improperly handled returns is 35%; it pays to get reverse logistics right.
Reverse Logistics Executive Council
It costs three times as much to process reverse logistics of new items as it did to process the forward logistics to sell it. According to Gartner, the percent net profits are reduced by improperly handled returns is 35%; it pays to get reverse logistics right.
Reverse Logistics Executive Council
More than $100 billion in products move through the reverse logistics pipeline each year in the US, with average return rates ranging from as 3% to as high as 40%, depending on the industry.
Forrester, “Taking Control Of Your Aftermarket Supply Chain”
More than $100 billion in products move through the reverse logistics pipeline each year in the US, with average return rates ranging from as 3% to as high as 40%, depending on the industry.
Forrester, “Taking Control Of Your Aftermarket Supply Chain”
Improvedcustomer
satisfaction
Improvedcustomer
satisfaction
Increasedrevenue
Increasedrevenue
Reducedcost
Reducedcost
“Well organized service businesses generate 40% to 50% of a manufacturing company’s profits and 25% of its annual revenue. The profit to revenue ratio in services is 2.6 times higher than in traditional products businesses”
AMR Research
“Well organized service businesses generate 40% to 50% of a manufacturing company’s profits and 25% of its annual revenue. The profit to revenue ratio in services is 2.6 times higher than in traditional products businesses”
AMR Research
“Companies that develop effective retention management processes will reduce churn of profitable customers by at least 10 percent within six months.”
Gartner
“Companies that develop effective retention management processes will reduce churn of profitable customers by at least 10 percent within six months.”
Gartner
“Eighty percent of companies believe they deliver a superior customer experience, but only 8 percent of their customers agree”
Harvard Business School
“Eighty percent of companies believe they deliver a superior customer experience, but only 8 percent of their customers agree”
Harvard Business School
08-04-238© 2010 serve2XL - All rights reserved
Our demonstrated service value
Value of Service
• Inventory cost• Logistics cost• Repair cost• Service engineer cost• Call centre cost
• Satisfaction • Customer loyalty• Repeat sales• Brand image
• Product revenue• Maintenance revenue• Additional services• Accessories
CustomerSatisfaction
Revenue
Cost
The challenge is to optimise all three axes at the same time, not at the expense of each other
The challenge is to optimise all three axes at the same time, not at the expense of each other
• Customer satisfaction: >95%• Retention increase: 10 - 20%• Customer lock-in: 50 – 90%• Profitability increase: >10%• Repeat sales thru loyalty: 20 – 40%• Brand recognition: >80%• Customer turn ambassador: +10%• <more>
• Customer satisfaction: >95%• Retention increase: 10 - 20%• Customer lock-in: 50 – 90%• Profitability increase: >10%• Repeat sales thru loyalty: 20 – 40%• Brand recognition: >80%• Customer turn ambassador: +10%• <more>
• Inventory reduction: 25 – 40%• Fill rates: 85 – 99%• Avoidance returns: 20 – 40%• Reduction time critical activities: 25%• Reduction NFF, MTTR, MTBF and
TAT: 10 – 40%• Reduce call-fix cost: 10 – 50%• Increase first-time-fix: 10 – 30%• Reduce site visits: 10 – 30%• LSP cost reduction: 20%-50%• Warranty cost reduction: 20% - 50%• Remote service cost reduction: 20%• <more>
• Inventory reduction: 25 – 40%• Fill rates: 85 – 99%• Avoidance returns: 20 – 40%• Reduction time critical activities: 25%• Reduction NFF, MTTR, MTBF and
TAT: 10 – 40%• Reduce call-fix cost: 10 – 50%• Increase first-time-fix: 10 – 30%• Reduce site visits: 10 – 30%• LSP cost reduction: 20%-50%• Warranty cost reduction: 20% - 50%• Remote service cost reduction: 20%• <more>• Cross- and up-selling: 10 – 50%
• Service revenue increase: 20 – 30%• Service profit increase: 10 – 20%• More sales opportunities: 10 – 30%• Increase up-time contracts: 10 – 20%• <more>
• Cross- and up-selling: 10 – 50%• Service revenue increase: 20 – 30%• Service profit increase: 10 – 20%• More sales opportunities: 10 – 30%• Increase up-time contracts: 10 – 20%• <more>
08-04-239© 2010 serve2XL - All rights reserved
Serve2XL portfolio
• Distribution network design• Parts management optimisation• Reverse logistics optimisation• Total landed costing• Service based costing
• Service / Sales business model• Service Portfolio Management• Design for Service• Service branding
• Service awareness workshops• Benchmarking• Sandboxing• Service role playing
InspireInspire Design / ImproveDesign / Improve
StrategyStrategy
BuildBuildMeasureMeasure
• Customer value analysis• Service leakage scan• Dashboard creation• Service KPI integration
• Project management• Interim management• Training• Coaching
• Service & operations planning• Business process reengineering• Service process integration• Remote service• LSP selection• Service software selection
ImplementImplement
Customer satisfaction
Revenue
Cost
Our service portfolio
08-04-2310© 2010 serve2XL - All rights reserved
Serve2XL – Key Takeaways
08-04-2311© 2010 Serve2XL - All rights reserved
More than ever service will contribute to a company’s revenue. Having a differentiated service portfolio becomes more and more important.
Serve2XL uses its integrated holistic approach to design and embed service companywide.
Serve2XL tries to seek the optimum service value; a trade off between customer satisfaction, service revenue and related costs.
Service revenue
Cost
Customer Satisfaction
StrategyStrategy
CompetenceCompetence OrganisationOrganisation
SupplierSupplier StakeholderStakeholder
CustomerCustomer
ServiceRevenue
ServicePortfolio
= Importance / Availability of Service
PastPast
NowNow Near Future
2012
Near Future2012 Long Term
2012-2015
Long Term2012-2015
DeliverDeliver
TailorTailor
Ensure OperationEnsure Operation
InventInvent
Ad hoc tech-nical services
Ad hoc tech-nical services
Financial servicesFinancial services
Service contractingService contracting
Value added servicesValue added services
Operating servicesOperating services
Contact information
08-04-2312© 2010 serve2XL - All rights reserved
Maarten Pruijmboom 06 – 24 860 944Coen Jeukens 06 – 46 408 444Dennis Bisschops 06 – 25 460 181
Heer Arendstraat 343401 ZP IJsselstein
