Manufacturers today operate in an increasingly complex environment marked by regional demand variability, global supply chain uncertainties and the constant pressure to outperform competition. Product sales alone do not deliver these results, and many manufacturers now turn to an otherwise underutilized after-sales area for revenues, customer satisfaction and profit growth.
As a recent McKinsey report across 30 industries suggests, the EBIT margin from services is 25% compared to the 10% achieved from equipment sales. Traditionally organizations have been more focused in areas related to design, manufacturing & quality to boost product sales, and after sales services to customers are often considered as an afterthought. As a result, organizations are unable to maximize opportunities for greater revenues and customer retention.
A service-centric approach will be a strategic differentiator and key to diversifying revenues and enhancing customer service experience for manufacturers.
ITC Infotech’s Connected Services Framework
A reactive service model has multiple challenges such as:
- Low first-time fix rate: ~72% first-time fix rate
- 25% of the time, service parts are not available or are wrong
- Service errors resulting from complex, outdated service information
- Low field worker productivity: ~56%
- Technicians struggle to identify the correct technical information and parts
- 40% of time looking for information
- Product Driven Culture: Historic cultural focus of organizations on products
- Loss for customers due to down time of the equipment
ITC Infotech’s Connected Services is a “Proactive Service Model” aimed at improving efficiency, profitability and customer satisfaction through seamless digitization of the value chain.
Connected Services enables the services team in the following areas:
- Automate service incidents based on inputs from IoT enabled equipment
- Dynamic Asset Performance – real time and historical view
- Context specific Service & Parts information
The key features of connected services include:
- Access to equipment specific Service and Parts information
- Remotely access, diagnose and service your equipment
- AR assisted self / field service management
- Assisted Service Management: Support context specific service and parts information to Call Center representative
- Work order assignment & scheduling for field service team
- Field Service Execution
The Connected Services Solution comprises of four major solution offerings that may be implemented independently or collectively by the organizations.
- Service and Parts Information
- Asset Monitoring (IIoT) & Augmented Reality
- CRM Service management
- Field Service management
- Improved Time to Service with better visibility and proactive maintenance
- Reduction in equipment break-down rates
- Increased Spare Parts revenue
- Improved First Time Fix Rate
- Better Field Force Utilization
- Availability of Support Knowledge base