An analysis across 30 industries revealed that earnings-before-interest-and-taxes from aftermarket services was an impressive 25%, compared to a dismal 10% from equipment sales.*
The face of product lifecycle management is witnessing a sea of change, while the global manufacturing sector is being influenced by disruptive megatrends. Product success now hinges on many components that extend beyond traditional best practices and manufacturing excellence.
Welcome to the era where the accent is on aftermarket services, thanks to exacting customer demands and the massive revenue-generation potential. At the end of the day, customer experience is what determines the trajectory of a product in the marketplace. Digitization lays the foundation for growth and success in this brave new world. It also makes and keeps every single piece in the service ecosystem connected, transparent and efficient.
A proactive approach that drives efficiency and delights customers
As an industry that has a long history, manufacturing has remained focused on products since time immemorial. Understandably, the function of services had taken a back seat. As a result, it had to work on a reactive model where the potential for growth remained inhibited.
Set-backs of the proactive approach:
- Low first-time fix rate since parts were neither available nor suitable one-fourth of the time.
- Service errors due to lack of updates in the available information.
- Reduced field worker productivity due to complexities in finding the right information and parts.
- Product driven culture that does not offer the support that services function deserves.
- Frequent downtime of equipment resulting in loss of new and loyal customers.
A proactive service model that optimizes ‘connected products’ is imperative for surmounting these challenges and remaining competitive in today’s dynamic global marketplace. In other words, manufacturing companies have to adopt Connected Services, and also strengthen their aftermarket service capabilities.
Core benefits of leveraging Connected Services
Going forward, success in the aftermarket space is feasible only through seamless digitization in the value chain. A well-implemented Connected Services strategy should help automate incidents with data/insights from IoT-enabled equipment. It should also provide a 360-degree view of the asset performance. Powered by SOA & Cloud Integration, IoT, Smart Phone Technology and Analytics, a sound Connected Services solution is based on an effective engagement model. The recommended model starts with the business case and technology selection, moves to solution build and culminates in maintenance & support.
A 360-degree Connected Services solution usually features the following – Asset Management Solution, AR-assisted Field Service Solution, Remote Equipment Monitoring Solution, Cloud Assisted Field Service Solution and Service Infobase Solution. Spanning self-service, assisted service and field service, an ideal Connected Services solution packs the following features.
- Seamless access to relevant information on equipment and parts.
- Remote access facility for diagnosis and service of equipment.
- AR/call center-assisted self/field service management.
- Field service assistance with right product information/instruction.
Business benefits at a glance:
- Smarter service delivery through better spare parts planning, remote access and field force optimization.
- Better customer service through improved visibility, proactive maintenance and faster time to service.
- OEMs and partners benefit by increased transparency and reduced time to learn.
- The organization benefits by higher brand equity, efficiency and profitability.
The ITC Infotech Advantage
As a specialized global technology solutions provider, ITC Infotech enables clients in the manufacturing space to differentiate and disrupt their businesses in a positive manner. Our Connected Services suite, based on a proactive service model, gives them the edge to optimize their processes and make the most of the aftermarket space. We also combine our practitioner’s approach and technology partnerships to drive this transformation through digitization.