Service Technology Investments:*Building the Case

50 %
50 %
Information about Service Technology Investments:*Building the Case
Technology

Published on October 9, 2009

Author: ImagingNetwork

Source: slideshare.net

Description

Today’s most *beneficial technologies include Mobile Field Service – work order management, dispatch, parts management, real time data access, signature capture, communications also includes Scheduling and Routing, Remote Product Monitoring, Forecasting & Planning, Business Intelligence.

Service Technology Investments: Building the Case Mike Woodard [email_address] 610.742.4701

Service Technology Investments My objective Educate - Validate Create an appetite for action Your expectations?

My objective

Educate - Validate

Create an appetite for action

Your expectations?

Service Technology Investments My background Strategy Development – Service Consultant IKON Office Solutions – 20 years; VP Service, North America; VP Service Strategy; VP Service Operations Xerox Corporation – 18 years; District Service Manager, Financial Planning & Analysis Manger, Field Service Manager, Customer Service Technician.

My background

Strategy Development – Service Consultant

IKON Office Solutions – 20 years; VP Service, North America; VP Service Strategy; VP Service Operations

Xerox Corporation – 18 years; District Service Manager, Financial Planning & Analysis Manger, Field Service Manager, Customer Service Technician.

Today’s most *beneficial technologies Mobile Field Service – work order management, dispatch, parts management, real time data access, signature capture, communications Scheduling and Routing Remote Product Monitoring Forecasting & Planning Business Intelligence * productivity enhancing Service Technology Investments

Today’s most *beneficial technologies

Mobile Field Service – work order management, dispatch, parts management, real time data access, signature capture, communications

Scheduling and Routing

Remote Product Monitoring

Forecasting & Planning

Business Intelligence

* productivity enhancing

Service Technology Investments Service Technology Solutions SMB Service Industry research Best-in-class service organizations (top 20%) 55% already made technology purchases 17% more will invest in next 12 months More than twice as likely as all others to have embraced technology solutions – 55% vs 24% Almost twice as likely to be using a mobile service solution Mobile service solution $10 avg reduction in cost per dispatch event 12% increase in service profitability

Service Technology Solutions

SMB Service Industry research

Best-in-class service organizations (top 20%)

55% already made technology purchases

17% more will invest in next 12 months

More than twice as likely as all others to have embraced technology solutions – 55% vs 24%

Almost twice as likely to be using a mobile service solution

Mobile service solution

$10 avg reduction in cost per dispatch event

12% increase in service profitability

Service Technology Investments Today’s climate “ A stiff investment headwind with opportunity at hand”

Today’s climate

“ A stiff investment headwind with opportunity at hand”

Service Technology Investments So, how do you make a convincing argument to justify the required the required dollar investment? Generate a formal business case Moment of truth – now is the time to act……… Narrow sighted organizations will cut IT budgets to “get through the hard times”. Visionary organizations will invest in technologies that make sense and support goals of managing cost and preparing for long-term demand from customers.

So, how do you make a convincing argument to justify the required the required dollar investment?

Generate a formal business case

Moment of truth – now is the time to act………

Narrow sighted organizations will cut IT budgets to “get through the hard times”.

Visionary organizations will invest in technologies that make sense and support goals of managing cost and preparing for long-term demand from customers.

Service Technology Investments What is a formal business case? A formal business case is a written document that enables management to determine if a proposed project is of value to the business and objectively measures the business case’s benefits.

What is a formal business case?

A formal business case is a written document that enables management to determine if a proposed project is of value to the business and objectively measures the business case’s benefits.

Service Technology Investments Business case components Background Project description Expected business benefits Costs ROI Risks “ Do nothing” option

Business case components

Background

Project description

Expected business benefits

Costs

ROI

Risks

“ Do nothing” option

Service Technology Investments Business case components - example Background of the project - increase in low touch product base presents opportunity to move away from 100% assigned territories and optimize resource utilization. Project description - implement a service “location intelligence” solution to optimize technician utilization through automated scheduling and routing Expected business benefits Reduced response time (improved customer sat) Increased tech productivity (reduced cost) Reduced business miles (reduced cost)

Business case components - example

Background of the project - increase in low touch product base presents opportunity to move away from 100% assigned territories and optimize resource utilization.

Project description - implement a service “location intelligence” solution to optimize technician utilization through automated scheduling and routing

Expected business benefits

Reduced response time (improved customer sat)

Increased tech productivity (reduced cost)

Reduced business miles (reduced cost)

Service Technology Investments Business case components – example cont’d Costs Software purchase/user fees/maintenance IT support Training Hardware ROI – Net Benefit over defined time period Risks Employee backlash (GPS, change, job satisfaction) Customer dissatisfaction with loss of assigned technicians Financial (cost reduction benefits not realized) “ Do nothing option” - lost opportunities (cost reduction, competitive differentiation)

Business case components – example cont’d

Costs

Software purchase/user fees/maintenance

IT support

Training

Hardware

ROI – Net Benefit over defined time period

Risks

Employee backlash (GPS, change, job satisfaction)

Customer dissatisfaction with loss of assigned technicians

Financial (cost reduction benefits not realized)

“ Do nothing option” - lost opportunities (cost reduction, competitive differentiation)

Service Technology Investments An Actual Business Case

An Actual Business Case

Service Technology Investments Project Background 5,000 service technicians – assigned territories, specialized 300 field service managers 3 customer call centers 18,000 customer facing events per day Double digit productivity improvement – prior 4 years Growing price pressure Increasing margin pressure Competition starting to invest in mobile service solutions Imperative – differentiate and add value Reality – reluctance to invest in service Imperative - maintain or improve service margins Reality – increased productivity is biggest margin lever

Project Background

5,000 service technicians – assigned territories, specialized

300 field service managers

3 customer call centers

18,000 customer facing events per day

Double digit productivity improvement – prior 4 years

Growing price pressure

Increasing margin pressure

Competition starting to invest in mobile service solutions

Imperative – differentiate and add value

Reality – reluctance to invest in service

Imperative - maintain or improve service margins

Reality – increased productivity is biggest margin lever

Service Technology Investments Project Background Productivity Busters Paperwork Time Daily Call Logs Customer receipts Daily time sheets Mileage reporting Asset inventory management Phone Time Technician Call Center Data & Information Acquisition Time Parts availability Service histories Technical knowledge base Customer entitlements

Project Background

Paperwork Time

Daily Call Logs

Customer receipts

Daily time sheets

Mileage reporting

Asset inventory management

Phone Time

Technician

Call Center

Data & Information Acquisition Time

Parts availability

Service histories

Technical knowledge base

Customer entitlements

Service Technology Investments Project Description Mobile Service Solution – project goals Equip all field technicians with state-of-the-art wireless application/hardware technology to increase productivity and improve customer satisfaction Provide technicians with real-time access to business-critical data Use new technology to support multiple uses: streamline dispatch calls, call de-briefing, inventory control, time automation, point of service sales and field communication functions

Project Description

Mobile Service Solution – project goals

Equip all field technicians with state-of-the-art wireless application/hardware technology to increase productivity and improve customer satisfaction

Provide technicians with real-time access to business-critical data

Use new technology to support multiple uses: streamline dispatch calls, call de-briefing, inventory control, time automation, point of service sales and field communication functions

Service Technology Investments Business Benefits Target Benefits (Benefits in red were quantified in Business Case) Technicians/Dispatchers productivity gains – Reduced Telephone Transactions and Time Reduction in telecommunications, Alpha Pager & dispatch software costs Elimination of over 5 million documents (annual amount) and the time to administer them Timely and accurate T&M Billing Tech access to technical knowledge base – internal and external Reduce purchases of books and technical publications Broader, more accurate/timely visibility to available parts inventory Improved Car Stock Accuracy Improved First Call Effectiveness – know before you go Reduced number of data entry errors Improve meter read reporting accuracy and related Service billing

Business Benefits

Target Benefits (Benefits in red were quantified in Business Case)

Technicians/Dispatchers productivity gains – Reduced Telephone Transactions and Time

Reduction in telecommunications, Alpha Pager & dispatch software costs

Elimination of over 5 million documents (annual amount) and the time to administer them

Timely and accurate T&M Billing

Tech access to technical knowledge base – internal and external

Reduce purchases of books and technical publications

Broader, more accurate/timely visibility to available parts inventory

Improved Car Stock Accuracy

Improved First Call Effectiveness – know before you go

Reduced number of data entry errors

Improve meter read reporting accuracy and related Service billing

Service Technology Investments Business Benefits Target Benefits (Cont’d) Capture sales opportunities / competitive intelligence, communicate to Sales Improve field management – Remote access & managing team activities Comply with SOX requirements for document retention Establish technical infrastructure/framework for future wireless users (sales, ops) Increase communication effectiveness Improve customer satisfaction & retention – view to critical account information Real time capture & update of changes in account info (Address, Key Operator, Meter Admin) Simplified / Automated Workflow (ie Payroll Time reporting) Reduced Hardware Expense (Leverage one device for both Dispatch Device and Laptop Device)

Business Benefits

Target Benefits (Cont’d)

Capture sales opportunities / competitive intelligence, communicate to Sales

Improve field management – Remote access & managing team activities

Comply with SOX requirements for document retention

Establish technical infrastructure/framework for future wireless users (sales, ops)

Increase communication effectiveness

Improve customer satisfaction & retention – view to critical account information

Real time capture & update of changes in account info (Address, Key Operator, Meter Admin)

Simplified / Automated Workflow (ie Payroll Time reporting)

Reduced Hardware Expense (Leverage one device for both Dispatch Device and Laptop Device)

Service Technology Investments Business Case Highlights $30M+ investment over 5 years 12% service tech productivity opportunity 15% call center productivity opportunity 20 month ROI But, is this business case relevant to a typical dealer service organization?

Business Case Highlights

$30M+ investment over 5 years

12% service tech productivity opportunity

15% call center productivity opportunity

20 month ROI

Service Technology Investments Business Case Detail – Business Factors

Business Case Detail – Business Factors

Service Technology Investments Business Case Detail – Savings Opportunity

Business Case Detail – Savings Opportunity

Service Technology Investments Business Case Detail – Savings Opportunity

Business Case Detail – Savings Opportunity

Service Technology Investments Business Case Detail – Savings Opportunity

Business Case Detail – Savings Opportunity

Service Technology Investments Business Case Detail – Savings Opportunity

Business Case Detail – Savings Opportunity

Service Technology Investments Business Case Detail – Solutions Cost

Business Case Detail – Solutions Cost

Service Technology Investments Cost & Net Financial Benefit Schedule

Cost & Net Financial Benefit Schedule

Service Technology Investments Cost & Net Financial Benefit Schedule

Cost & Net Financial Benefit Schedule

Service Technology Investments Building a business case - lessons learned Benchmark your technology solution against the competition Brainstorm potential benefits and savings Engage finance leadership early on Make your IT department your new best friend Identify and fully engage cross functional stakeholders Build a conservative business case No need to reinvent the wheel

Building a business case - lessons learned

Benchmark your technology solution against the competition

Brainstorm potential benefits and savings

Engage finance leadership early on

Make your IT department your new best friend

Identify and fully engage cross functional stakeholders

Build a conservative business case

No need to reinvent the wheel

Service Technology Investments Building a business case – key points Business case generation should not be viewed as a mechanical exercise – the case must demonstrate that: issues have been thought through benefits are realistic and attainable technical aspects have been evaluated and costed outcomes will be tracked and evaluated to determine success A sound business case is the foundation of any project charter; without it, there is no valid argument to justify the project.

Building a business case – key points

Business case generation should not be viewed as a mechanical exercise – the case must demonstrate that:

issues have been thought through

benefits are realistic and attainable

technical aspects have been evaluated and costed

outcomes will be tracked and evaluated to determine success

A sound business case is the foundation of any project charter; without it, there is no valid argument to justify the project.

Service Technology Investments What I do for companies…… I help companies optimize all aspects of their service operations by advising them on critical success factors: Target service metrics and goals Performance management Technology application Service growth strategies Compensation and incentive plans I also provide Leadership & Management training designed for the service professional.

What I do for companies……

I help companies optimize all aspects of their service operations by advising them on critical success factors:

Target service metrics and goals

Performance management

Technology application

Service growth strategies

Compensation and incentive plans

I also provide Leadership & Management training designed for the service professional.

Service Technology Investments Questions?

Service Technology Investments Thank You! Mike Woodard [email_address] www.strategydevelopment.org Blog: http://strategydevlopmentinc.blogspot.com 610.742.4701

Add a comment

Related presentations

Presentación que realice en el Evento Nacional de Gobierno Abierto, realizado los ...

In this presentation we will describe our experience developing with a highly dyna...

Presentation to the LITA Forum 7th November 2014 Albuquerque, NM

Un recorrido por los cambios que nos generará el wearabletech en el futuro

Um paralelo entre as novidades & mercado em Wearable Computing e Tecnologias Assis...

Microsoft finally joins the smartwatch and fitness tracker game by introducing the...

Related pages

Security services that protect your security investments ...

Our security services provide a comprehensive portfolio of services for security ... Building Technologies Building Technologies. Language Current language ...
Read more

CASE | BIM consulting & Building Information Modeling services

The contributions CASE made to transform the building industry would not have been possible without every single person who walked through our doors and ...
Read more

REPUBLIC OF THE PHILIPPINES A. BOARD OF INVESTMENTS ...

BOARD OF INVESTMENTS . Industry and Investments Building ... on a case to case basis, ... Technology (DOST) stating that ...
Read more

Determinants of the continued use of self-service ...

Determinants of the continued use of self-service technology: The case of ... This study focuses on buyers’ continued use of self-service technology ...
Read more

help.case.edu - Information Technology Services - Case ...

help.case.edu. CONTACT US. LIVE CHAT ... Information Technology Service ... will perform maintenance to the Case Western Reserve University email system ...
Read more

IT Case Studies | TEKsystems

Our online library of information technology case studies is only a sample of our capabilities. ... Support Services; Technology Deployment; Managed IT ...
Read more

I-1 Acceptable Use of Information Technology Policy (AUP ...

Information Technology Services. Home; Service Status. ... Users of information technology resources at Case Western Reserve University are subject to ...
Read more

Services Management Marketing:The Case of Mobile Phone ...

Services Management Marketing: The Case of Mobile Phone Technology in India Services pertain to economic activities involving “the provision of human ...
Read more

Building blocks: The case for a modular approach to ...

SUBMIT YOUR CASE STUDY. IN DEPTH. FEATURES; RESEARCH; OPINION; GUEST BLOGS. APPLE MATTERS; ... The case for a modular approach to technology services ...
Read more