ARCHIVE FOR THE ‘service-management’ CATEGORY

New levels of customer service performance are now the norm and it’s about time we all realised this,  writes Bill Pollock, President, Strategies for Growth

Until only recently, the Services Lifecycle Management (SLM) solutions purchase/acquisition cycle was a fairly closed-loop, highly structured, and oftentimes formal process. Potential users obtained most of their decision-making data and informational input directly from the vendors, sought the recommendations of published buyer’s guides and directories, and picked up on the latest “buzz” at industry trade shows or via services trade publications – all historically serving as powerful and rich resources.

This was the way SLM solution decisions had been supported and made for decades. But then, the LinkedIn, blogs and social media changed everything – including the means by which information is gathered, reviewed, and analysed; how potential vendors are evaluated and selected; and even the way in which customers position themselves as potential buyers in a largely buyer’s market.

The White House Office of Consumer Affairs has reported that dissatisfied customers will tell between nine and 15 people about their negative experience, with roughly 13 percent (i.e., or about one-in-eight) telling more than 20 people. Satisfied customers, on the other hand, will only tell about four to six people about their positive experience.

 

Therefore, according to the report, customer service failures are likely to be communicated two-and-a-half times more often than customer service successes. As a result, services organisations need to maintain a ratio of roughly 2.5-to-1 satisfied vs. dissatisfied customers just to break even in terms of word-of-mouth customer service feedback.

In all likelihood, customers will become even more critical – and communicative – about their service experiences in the future, based on the widespread usage of social media tools and technology devices. This presents a new front for services organisations to address in an increasingly social media-influenced marketplace; however, there are still many other challenges that must also be addressed.

The three most uniquely daunting challenges faced by services organisations over the past few decades have included the following:

 

• Transforming themselves from manufacturer/OEM cost centers to strategic lines of business (i.e., with their own executive-level management and P&L responsibility).
• Shifting their operational focus from company-centric to customer-centric, whereby the customer represents the focal point of their universe.
• Learning how to treat their business-to-business (B2B) accounts with the same high level of service and support that other vendors use to treat their business-to-consumer (B2C) customers.

Surely there have been other equally daunting challenges facing the services industry throughout this period, as well, including:

• The globalization of business operations.
• An uncertain cycle of volatile economic upturns and downturns.
• The proliferation of new technologies and applications.
• The continuing shakeout of marginal performers, and the resultant consolidation within the supply side sectors.
• The widespread growth of social media for business purposes.

However, while each of these business game-changers ultimately impacts all business segments, the three challenges outlined in the top list above focus uniquely on the services sector.

 

It is no longer good enough to tell your customers that your organisation is “no worse” than any of its competitors (the “like-company” comparison); because, if you do, you will risk hearing something in return such as, “I understand that. But what I don’t understand is why you can’t process my order as accurately as Amazon.com or QVC, or handle my return – and process my credit – as quickly as American Express!”

Companies like Amazon.com and QVC are maximizing their use of the Internet’s communications capabilities by making not only the purchasing process easy – but the returns process as well. For example, you might purchase an item from one of these vendors via telephone, laptop, iPhone, tablet or other handheld device. Once you obtain a customer number, it’s all very easy to place an order.

The overall customer experience is then heightened even further by the high level of communications provided to the consumer (i.e., the receipt of a near-instant e-mail confirmation of the order; the subsequent follow-up e-mails when the item is shipped; notification of when an item is on backorder; etc.). Even the return process is easy: if the item isn’t what you thought it would be (e.g., wrong color or size, you already got one for your birthday – whatever!) you can simply return it in the same packaging used for the initial shipping along with the supplied return mailing label, and a return receipt and credit notification will be forwarded to you (typically) in a matter of days – if not hours! By comparison, can your organisation match these industry-leading practices with respect to its parts sales?

By simply delivering (or promising) the same-old, same-old treatment to your existing customers, you are guaranteed to continue treating them as “just another business account” (i.e., the “B” in B2B). However, your customers are quickly becoming accustomed to being treated better as “C’s” by some of the most successful B2C vendors. They are also increasingly being empowered by the Internet; a seemingly unending number of new technologies, apps and devices; and the ongoing explosion of social media tools.

The time has come for your organisation to recognize that these “new” levels of customer delivery performance are now the norm – and that its customers will increasingly settle for nothing less than the best.

 

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This excellent infographic created by field service software provider  The Service Manager  exploring the benefits of field service software which they have kindly allowed us to share with you...

Tecalemit is a leading UK supplier of vehicle servicing equipment. It first began using Tesseract’s service management software in 1999 and has been pursuing increased automation, greater efficiency and better service ever since assisted by its growing and developing relationship with Tesseract.

Tecalemit Garage Equipment Company Ltd is one of the most recognised brands in the automotive industry, both in the UK and worldwide, and has been operating for nearly a century. The company and its partners design, manufacture, supply and maintain a huge range of vehicle servicing equipment and MOT testing equipment, such as roller brake testers, vehicle lifts and emissions testers.

In the UK, equipment is stocked in two main warehouses and sold to Tecalemit’s ever-expanding network of customers across the country. They range from small and independent vehicle garages and workshops to major national and international car and motorcycle companies.

Once the equipment is sold, Tecalemit have a team of  60 factory trained and accredited engineers in charge of maintaining the equipment, from planning maintenance and servicing to remedying faults and breakdowns.

The customer  service centre is based in Plymouth and handles 500 calls a day from more than 50,000 customer sites across the country. With such an extensive customer bases, it is important for  Tecalemit to have an efficient service management system in place.[quote float="left"]The customer service centre handles 500 calls a day from more than 50,000 customer sites across the country.

 

Tesseract: the early days

Back in 1999, the Millennium Bug was a popular fear for businesses relying on computers and software throughout the world and Tecalemit harboured growing concerns about their own Unix-based service management system. It was not particularly user-friendly or efficient and bore some functionality aches. The fear was that it was going to crash when the year 2000 hit. Therefore, Tecalemit opted to implement something new and browser-based, with much greater functionality and
flexibility.

Tesseract was shortlisted along with three other systems, and eventually selected on the basis of cost, user-friendliness and powerful functionality. Tecalemit incorporated Tesseract’s core system which managed the logging of calls, stored immediately accessible data, and gave Tecalemit the ability to generate countless reports, providing much greater visibility.

Moving into the 21st century

Development and evolution at Tesseract is constant and Tecalemit have benefited from evolving with them, regularly adding new software components. This development has been particular comprehensive in the last five years, with a move from paper-based systems to electronic ones.

For example, Tecalemit have replaced a paper-based diary system with Tesseract’s electronic diary. This gives them much greater visibility over what is going on with service activities, and receives regular upgrades. Another paper-based system that has been replaced with an electronic syustem is stock-taking, which is now faster and more accurate.

One of the most recent implementations is the Quote Centre, which enables and manages the generation of quotes and converts them easily into customer contracts.

Field service management overhaul

The biggest development, however, has been the overhaul of Tecalemit’s field service management system, thanks to the implementation of Tesseract’s Remote Engineer Access module (REA).

 

Tecalemit began using Remote Engineer Access (REA) in January 2014. Before this, Tecalemit's  allocation of jobs and deployment of  engineers to customer sites was a largely manual process. Tecalemit would receive a call, log it on the Tesseract system, and the office would fax, phone or post details of the job to the relevant engineer. Once a job was complete, the engineer would fill in a paper job sheet and post it to the office.  There was no visibility, no instant data, and processes such as parts ordering and invoicing took a lot longer.

“We wanted to streamline the system,” says David Monteith, the Service Office Supervisor for Tecalemit. “We wanted faster invoicing, faster ordering of parts, better visibility, and we wanted to be able to see jobs through to completion directly and with all the relevant information to hand. REA has totally delivered on all those counts.”

REA has allowed engineers to generate live reports, order parts, close down jobs and raise same-day invoices from their tablet devices. They can input their data into the Tesseract system – data which is then fed back to the office directly and instantaneously. In addition, REA has a useful offline function. This means engineers can input data even when they are working at sites with minimal or no communications signal: that data is sent through to Tecalemit as soon as the signal is restored.

Tecalemit has also started to use Tesseract's contract management system, which raises planned maintenance tasks for equipment that has been installed at customer sites. In total, the system raises approximately 500 planned maintenance tasks each month. These jobs are assigned to the engineers, who then use REA when carrying out and completing the job.

 

Next step: automatic job allocation

However, there is one undertaking that remains predominantly manual and is still part of this process, but it’s one that Tecalemit are looking to automate: deciding which engineer should attend to which job.  Currently the service controller decides who to assign, looking at skill set and geographical location, among other factors. The service controller then notifies the relevant engineer using the REA system. In all, this is a time consuming process with scope for human error.

Tecalemit are planning to incorporate Tesseract’s Diary Assist scheduling system to automate this task. It will assign engineers to particular jobs based on skill set, availability, travel time, work time and shift patterns, call response time and customer site cover times.[quote float="right"]We can see Diary Assist saving us a lot of time

 

“We can see it saving us a lot of time,” said David Monteith. “We plan to integrate it with our contract management system. That system will raise the calls, then Diary Assist will take over and allocate the call logically and geographically sensibly. Then we have REA to cover the job itself. It is just another step towards automating and streamlining what we do.”

The future is bright

Tecalemit have watched their processes develop, their efficiency rise and their service to customers improve since they welcomed Tesseract into the fold.

“We now have faster, more accurate information,” says Monteith. “We have cut down on admin, including paperwork and postage, and we can now respond to customers more efficiently. Our staff has better visibility as regards service history, what equipment they’ve got and what needs doing and,  with less admin requirements, can concentrate more on their overall role. We will continue to look at what Tesseract offers, too, because they are very good at driving change and there is always room for improvement.”

 

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The Cloud. Can you really avoid it? The cloud market is expected to grow to $121 billion dollars in 2015, a 26% compound annual growth rate from 2010’s $37 billion[1].

Such growth is set to continue, with research showing that 81% of organisations forecast a move to the cloud for 50% of their future transactions.

Indeed field service news research at the beginning of this year identified that whilst the shift to cloud based computing for service management software solutions hasn’t been as prevalent as say CRM systems there is a growing ground swell as companies establish an appetite for the cloud when it comes to the next generation of their service management software.

So what are the drivers for the growth in the cloud market?

With 60% of CIOs stating that their number one priority is cloud computing[2], a major driver has been the adoption of Software as a Service (SaaS) technology.

By 2017, SaaS is set to generate almost 60% of cloud revenues[3]. The move to SaaS is primarily driven by its ability to offer greater scalability, higher efficiencies with no loss of functionality, and reduced application costs, with a move to the cloud offering annual savings of over 20%.

However, there are of course additional benefits to the cloud as well as the SaaS model which whilst in the short term can make software more affordable in the long term can sometimes become the more costly option across a period of 3 years or more.

One significant benefit that the Cloud brings is that by it’s very nature it comes with disaster recovery essentially built in. Unlike an on premise system, should any significant problems hit your office such as fire, flooding or theft, if your core operating systems are Cloud based there will be no direct impact on your ability to continue work the next day.

Also we are now finally seeing fears around Cloud security being put to bed. Whilst amongst the general populace and in consumer computing the risk remains somewhat and the perception of this risk is amplified by security breaches of high profile consumer systems such as Apple’s iCloud, in the world of enterprise Cloud security is far more protected.

It is no coincidence that companies such as Axeda and Amazon Web Services have become dominant within the enterprise cloud sector and that both have an excellent reputation for understanding and delivering complex security solutions that meet the demands of their marketplace.

How are these trends reflected in the Service Management market?

IDC Research sponsored by Axios highlighted that every second company that now uses on-premise IT Service Management software plans to launch a cloud-based version within the next two years[4]. For many organizations, cloud has already become mainstream and their ITSM solution may be the 3rd or 4th major application that they have moved to the cloud.

The uptake of Microsoft’s Exchange365 in particular has increased businesses faith in cloud provision and allowed them to concentrate on their core business while cloud providers look after the infrastructure. Similarly, whilst some 15 years ago the likes of SAP and IBM were openly questioning and even mocking the likes of Salesforce.com and their cloud based infrastructure now there is something of a race amongst the slumbering IT giants to try and catch the tail of the wave and make out they were their all along.

Commenting on the research Scott Leckie, CTO at Axios Systems, said

“We’re seeing a shift in the market, with SaaS gaining substantial traction over the past year. Why is Service Management so suitable for cloud? For us, the move has been driven by a significant increase in user mobility and range of devices from which users require access to technology, anywhere and at any time. SaaS technologies fully support this, and provide compliance without sacrificing on functionality or standards for data security or speed.”

Tasos Symeonides, CEO at Axios Systems, went further adding

“Here at Axios, we’re seeing a 25% compound annual growth rate in the uptake of SaaS, which reflects the current trends in the cloud industry as a whole. IT leaders are seeing the benefits of moving to the cloud, allowing them to be more agile and responsive to business needs. Ultimately this drives greater efficiencies.

Our IT Service Management solution, assyst, provides the technology you need over the web, without any of the application management overheads. All you require is a browser-enabled desktop, laptop, tablet or smartphone. That means no new infrastructure, no server application, no desktop installs, no upgrade projects. No hassle.”

<em><strong>[1]</strong></em><em> Cloud Computing Market: Global Forecast (2010 – 2015), October 2010: </em><span style="text-decoration: underline;"><span style="color: #0000ff; text-decoration: underline;"><a href="http://www.marketsandmarkets.com/Market-Reports/cloud-computing-234.html"><span style="color: #0000ff; text-decoration: underline;"><em>http://www.marketsandmarkets.com/Market-Reports/cloud-computing-234.html</em></span></a></span></span>

<em><strong>[2]</strong></em><em> CloudTweaks ‘Demystifying the Cloud’ Infographic, January 2014: </em><span style="text-decoration: underline;"><span style="color: #0000ff;"><a href="http://cloudtweaks.com/wp-content/uploads/2014/01/demystifying-the-cloud.jpg"><span style="color: #0000ff;"><em>http://cloudtweaks.com/wp-content/uploads/2014/01/demystifying-the-cloud.jpg</em></span></a></span></span>

<em><strong>[3]</strong></em><em> Worldwide and Regional Public IT Cloud Services 2013–2017 Forecast, August 2013: </em><span style="color: #0000ff;"><span style="text-decoration: underline;"><a href="http://www.idc.com/getdoc.jsp?containerId=242464"><span style="color: #0000ff; text-decoration: underline;"><em>http://www.idc.com/getdoc.jsp?containerId=242464</em></span></a></span><em><span style="text-decoration: underline;"> </span> </em></span>

[4] IT Service Management in Deutschland 2014, ITSM im Spannungsfeld von Cloud Computing und Enterprise Mobility, Mark Alexander Schulte for IDC, February 2014:: http://idc.de/de/research/multi-client-projekte/it-service-management-in-deutschland-2014

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Surrey Based service management software provider are selected by nationwide building materials company and announce a new improvements to their Service Desk solution…

Specialist Service Management software Sunrise Software have recently been selected by the Nicholls and Clarke Group as they move to improve their customer service standards through the implementation of an improved IT infrastructure. With a team of over 550 employees based within 24 offices nationwide, the Nicholls and Clarke Group are recognised as leaders within the building materials sector operating as manufacturer, distributor and retailer. With a diverse range of activities and locations within the organisation it is of course imperative that their back office systems are robust and that integration between divisions is as seamless as possible to allow operations to remain effective.

In acknowledgement of this Nicholls and Clarke have already established an impressive approach to IT Service Management and ITIL best practice and the addition of Sunrise ITSM will further enhance this effort.

Narendra Joshi, Head of IT at Nicholls and Clarke explained “Previously we used a home grown Service Desk system. However, in an ITIL compliant environment like ours, where all IT staff are ITIL trained, we felt that we needed to make the investment in a platform that would rise to meet our operational standards and grow with us into the future.”

The decision to work with Sunrise followed on from an extensive review of the solutions available
Before selecting Sunrise based on a blend of their technology, people and also the company’s pragmatic and understated approach.

“We liked the flexibility that the software platform’s modular approach presented to us,” added Joshi. “It means that we can take a phased approach and grow across the business. The browser based interface is ideal for our environment and, coupled with the software’s integration with social media, showed Sunrise to be a really forward thinking company.”

A phased service management implementation:

The implementation will initially begin in the IT department, where Sunrise ITSM is providing a comprehensive Service Desk solution that will be especially beneficial in supporting the group’s ITSM best practice approach. The system will provide support for each of the 100+ merchant trade account, desktop, manufacturing, distribution, ERP and financial systems that need to be maintained across the 24 sites.

Nicholls & Clarke then plan to create a software Asset Management system heavily based around ITIL best practice to support the creation and management of a group-wide software library so that the IT team will be able to track and manage software versions, license management and renewals planning by using Sunrise ITSM’s reporting functions.

The next step will include extending the rollout to the customer services team; providing a support desk infrastructure to track and monitor operational and business issues ranging from pricing enquiries to business processes, order queries and web order support.

Geoff Rees, Sales Director at Sunrise Software commented “organisations like Nicholls & Clarke that have seen strong organic expansion often out-grow their existing software systems. The business benefits of moving to a fully integrated Service Management Platform that can span all service and customer facing functions, without the overhead of maintaining an in-house developed system, are wide-reaching; enabling the business to operate more efficiently, provide better customer service and better information to support commercial business decisions.”

New iteration of ‘Wall-board’ Service Management Software

Meanwhile the Surrey based software company have also released an improved version of their web-based portal, which includes improved visual displays and trends analysis of key performance data

The latest version of ‘Sunrise Wallboard’, which displays metrics for Service Desk performance, includes improvements to the display of critical operational KPIs as well as a simplified, easier to use interface.

It has been updated to include new FusionCharts libraries enabling animated and interactive data displays, new chart types for enhanced data visualisation, and has improved compatibility with Microsoft Internet Explorer 8 to meet customer demand. Also included within the new version is an enhanced aggregation engine to enable multiple data sets to be compared over time to enable trends analysis - for example tracking the volume of Incidents logged by month according to severity and displaying this on a chart.

Sunrise Software’s Product Director at Neil Penny, commented:

“Visual Service Desk metrics are critical to an organisation when providing real-time data on which to base informed decisions. We have enhanced Wallboard, which is available across all our Service Management products, making it easier for our customers to use it to its full capacity, supporting decision making and efficiency. This latest version has been designed with the user in mind, with increased capabilities for data analysis and providing more choice for how data is displayed. It puts more control into the hands of the Service Desk, enabling them to fully interrogate, analyse and display critical performance data.”

 

Paul Adams, Marketing and development manager at Solarvista looks at why no two field service companies are ever quite the same and what that means when choosing service management software...

 'At Solarvista, we have implemented hundreds of service management and workforce mobilisation systems over the years. And the biggest thing we have learned over that time is that everyone in service management does everything differently… even in the same industry sectors!

This issue became quite a big problem for us. We’d be approached by a prospective user in the same industry sector as current customers (they were often referred to us by them) and we’d think, “Great, we have a service management solution off the shelf for you”. Then, we’d find out that they did just about everything differently! Ouch.

We’d pitch modifications that required the use of developers going into the core product and making changes to meet those needs. In itself, quite a workable proposition and we’d done this successfully for many years. But as we grew, managing this code change became more costly to us, and sometimes to the customer. And it’s fair to say that developers don’t come cheap.

The ‘gaps’ that we normally address with specific modifications or code usually are categorised as:

1. Missing functionality
2. Integration to legacy systems
3. Logic or business logic modifications/additions

 

To our customers, these gaps needed to be filled to ensure a successful, efficient solution was implemented. But, deep down, it often felt risky to them… they couldn’t see what they were getting until the latter stages of the project, when maximum resource exposure occurred. It doesn’t matter how good we are as developers, it’s only natural to feel anxious about such risks.

We needed to do something that enabled us to address the (mostly) totally different needs of each customer without resorting to changing or modifying our product.

I’ve written in previous articles about our R&D effort in cloud based services and some of the answers came as a result of this research. In cloud systems, one of the key cost reduction drivers is “one version of software for all customers”. But we knew that this was contra to what service management systems need. After some deep thinking by our best developers, we managed to find a solution.

Firstly, we re-architected many parts of our software to offer, what we call, Extensibility. This means that we can add completely new client-side features, 100% integrated with the core product, without needing to modify a single line of the underlying product code. In other words, one version of software BUT with new functionality added specifically for the customer needs, which operates as if it’s part of the existing product (the user wouldn’t realise). Not only that, the feature can be added in (literally) hours or days (not weeks) and with no requirement to regression test the underlying product. This enabled us to address Missing Functionality and Business Logic Change issues.

This didn’t solve the problem of connecting to ever increasing legacy and partner systems however. Often we would need to read customer data from a corporate system, or update a third-party system of a partner company. In fact, we often built 30+ interfaces in one system! How could we do this without needing expensive development?

The answer came again from our R&D into cloud architecture. We thought about power supply adapters and how they could be “plugged” together to achieve a whole unit. From this we built something we call a Dynamic Adapter operating via our Service Bus system that allows us to connect as many systems together without needing to code a single line. Once again, one version of software, but implemented doing very (very) different things.

The results have been impressive. In fact, we have recently addressed the service management needs of a very famous coffee shop company using Extensibility and Bus/Adapter technology alone without needing any core changes to our products. Another, in the automotive sector, that had pulled out of a service management project with a competitor, has had 35 ‘gaps’ filled with this same technology.

Service management software is often standard. But this doesn’t mean you cannot have exactly what you want.

 

Nick Frank, a specialist service management consultant with Noventum Service Management continues his series of case studies outlining best practices in field service...

Previous case studies showed some of the steps companies can take to understand the value of service to their business. Companies have deep dived into their customer’s journey, gained insight into what the customer’s perceive as value, as well as determined what their own corporate strategy is to make money. Secure in this understanding they are ready to implement their GO To market strategy. And the first step is to develop and deploy service propositions that speak to the customer.

What is he talking about you may be asking yourself?  Go look at your website or those of your competitors and see how the services propositions are described. I looked at a company I used to work for and found what is typical for many. Descriptions of what they do!

If you are an engineer or product guy, it kind of makes sense, because its what we do! But think from the customer’s perspective. Managers are interested in outcomes. In most commercial organisations this is how they are paid and what they do.

So if you are really a customer led organisation should you not also focus on the outcomes? This is what Yokogawa did. In our previous blog we talked about how they developed a clear view of the value their customer’s perceived they could offer. Well they took this view and designed their propositions around it.

They literally tried to design service propositions that would speak to their customers.

So if you look at their vigiplant (http://www.yokogawa.com/vps/vps-index-en.htm) service offering, you will notice that the language they use to describe their portfolio has a very marked customer orientation. They group their services in terms of outcomes:

• Opportunity Identification Services
• Solution Implementation Services
• Lifecycle Effectiveness Services[/unordered_list]

They try to use a language that describes the value. In other words they talk of ‘Production Excellence’, rather than how it is might be delivered through ’Software Products’.

Now this is quite a different approach and one that took me a long time to really appreciate. That the words we use are a reflection of our own values. So if we look at how companies describe their services, what we see is their true culture and attitudes towards their customers and clients.

At Noventum we call this ‘Service Thinking’. To learn more about this and how to successfully deliver service propositions that really speak to your customers, why not look at this case study on Service Thinking (http://www.noventum.eu/cases/believe-in-service-thinking)

Nick Frank is a service specialist with Noventum Service Management

Read part one of Nick's series here

Read part two of Nick's series here

Read part three of Nick's series here

In the first part of this two part feature Glyn Dodd, Managing director of Centrex Services discussed how with the current economic business pressure, reducing costs in the service management supply chain without compromising customer satisfaction is a challenge which must be faced head on...

Now in the concluding part of this feature Glyn outlines why Big Data isn’t the answer to solve all the service management industries issues, why failure is a good thing, and why true Business Intelligence is perhaps the key to unlocking a successful future for service management…

Big data is not the answer

The final element of deriving complete business intelligence is the data. The arrival of complex data analytics may seem to be the answer to such issues, but I believe that the data alone is not enough to improve the current state of the service supply chain.

There is a widely held belief that generating ever increasing amounts of data is the answer to all our service supply chain needs, but alone it is irrelevant if not turned into useful information. It’s the business intelligence transforming this into relevant information which is vital for the creation of an efficient, integrated service supply chain, abolishing the silos that plague the current model.

Companies such as Centrex Services source business intelligence from reason code data and apply a layer of diagnostics. The codes detail the circumstances that have caused the code to be raised and the associated completion code. Rather than just documenting each code and applying the same reasoning to each circumstance, the business identifies repetitive causes and designs a solution to resolve the issue, without it reoccurring.

This intelligence was applied when we identified a recurring problem on the point of sale system at a fast food outlet. A plastic part of the POS hardware was continuing to break, causing the same reason code in the majority of the support calls. When the business analysed the fault, they found the operators were leaning on the part of this hardware during use. The plastic was simply not robust enough. By tooling a metal replacement part, the problem was resolved permanently.

Delivering customer satisfaction is a critical part of any business and deriving intelligence plays a large part in the experience. Diagnostics of reason codes is therefore vital, yet many do not see the long term benefits which have an adverse affect on customer satisfaction within the service supply chain.

If businesses diagnose the reason codes, business intelligence can be created, which in turn can be used to offer improved SLA’s, rather than accepting a failure rate.

Why should we plan to fail?

In addition to the people, processes and data, the service supply chain is heavily reliant on service level agreements. We need to  question the current ethos in place throughout the service supply chain, claiming some companies are in fact preparing for failure.

There are circumstances where SLA’s are not being met as a direct result of people and processes being deployed without applying context to the data which has been sourced. I also question why SLA agreements are being signed allowing up to a 15 per cent failure rate when the deployment of business intelligence can realistically create a network in which success is inevitable.

The need for such change was identified in a business intelligence not utilising business intelligence, which resulted in an SLA being missed.

A client of ours works closely with a very well known American diner chain and have in place an agreement which states once a call has been made to report a technical fault, there must be a field-service engineer on-site to resolve the issue within four hours.

The issue here was, these calls can come in at any time of the day and the mentality was that the SLA must be met at all costs. So, when a call reporting faulty point of sales systems was placed at 1.00pm, processes were set in motion to guarantee an engineer was on-site by 5.00pm.

However, once they arrived, they were turned away, as the restaurant was unable to accommodate the work during their busiest period as this would result in a decline in productivity which in turn can lead to a loss of custom. Ultimately, the SLA was not met.

This demonstrates just how vital it is that the service supply chain changes, as had business intelligence been utilised, there is no way an engineer would have been sent to a restaurant during such a busy time.

Business intelligence is the future

Efficient communication, processes and correct analytics provides the business intelligence needed to simplify the fragmented supply chain. Simplification leads to more efficient service delivery, guaranteed SLA’s, greater customer satisfaction and ultimately transforms the service supply chain for competitive advantage.

Now is the time for senior decision makers to challenge all elements of the chain; without constant innovation and new thinking the industry will continue to be perceived as a laggard – a disparate set of fragmented, commoditised services that fail to meet the required standard.

 

 

 

When talking about service, we often hear senior managers asking the question, ’But where do you start?’

It would be lovely to call out, ‘At the beginning!’, but most of us know that is a bit simplistic. The thing is that successful service companies align all aspects of their business to their goal. But business is complex and to address change on a wide front is costly and risky.  Instead business leaders understand where their priorities are, address these first and then move on to the next part of the puzzle. Effective decision making means defining priorities within the context of an overall vision or blue print of how their services business should operate.

We thought it would be worthwhile sharing a series of blog articles based on real life experiences to help paint this picture. The blogs will illustrate 4 key areas to get right![ordered_list style="decimal"]

1. Understand the Value you can deliver to the customer and your own business
   
2. An effective GO-TO Market strategy that defines what service offerings you need to develop and how to sell them
3. Efficient  Service Delivery to ensure profitability
4. Have a Plan

Lets first look at a good way to improve your understanding of Value by analysing your Customer’s Journey to your services. We are not just talking about how they came to choose your product. We start way before that activity and move all the way through to the touch points of the service delivery model.

Many of you will recognise the customer journey map below as being similar for the lifecycle of your equipment.  It is a high level summary of just one part of a customer journey scenario that was mapped out for the premier manufacturer of injection moulding systems, Husky SA. It shows how a customer perceives the brand at different stages through the product life cycle within different touch-points and activities.

But why bother mapping out what seems intuitively obvious. In this case it allowed cross functional teams from Husky Service & Sales to understand what were the critical points in the products lifecycle at which they:

a)    Had to work together: For example in the selling process, especially where negotiations revolved around total cost of ownership commitments.

b)    Where the service organisation could have a significant impact on the customer satisfaction and loyalty. For example by reacting quickly to start up issues, a difficult situation for the customer could be turned around to be a positive experience, if solved quickly and professionally.

c)     Where the use of 3^rd party contractors for providing the service might be appropriate.

d)    To identify systems that could be targeted for different refurbishment and upgrades, so as to maximise revenues through the product lifecycle.

Detail can be added to this high level journey. For example Husky decided that all calls for all technologies should come into the same call centre. By drilling down into more detail at the call centre level and looking at how the customer journey through the organisation changed for different customers, the organisation was able to design a more effective process, to communicate appropriately with its customers and ensure the correct level of training for its employees.

From these examples we can see that being intimate with your customer’s journey is so important to understanding the value they might be seeking from us. Why not look at  www.noventum.eu for more ideas and discussions on the Customer Journey.

In our next blog in this series, we will look a how service change dramatically slows, when we make the wrong decisions in the profit centre / cost centre debate, because we have not understood how are business wants to make money.

Read Part two of this series: Ouch! getting the profit/cost centre call wrong in your service business here

Read part three of this series:  Finding nuggets of customer gold here