Service Technology Investments:Building the Case
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Service Technology Investments: Building the Case

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Today’s most *beneficial technologies include Mobile Field Service – work order management, dispatch, parts management, real time data access, signature capture, communications also includes ...

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.

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Service Technology Investments:Building the Case Service Technology Investments: Building the Case Presentation Transcript

  • 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?
  • 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.
    View slide
    • 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 View slide
  • 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 Investments
    • 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.
  • 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.
  • Service Technology Investments
    • 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)
  • 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)
  • Service Technology Investments
    • 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
  • 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
  • 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
  • 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
  • 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)
  • 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?
  • Service Technology Investments
    • Business Case Detail – Business Factors
  • Service Technology Investments
    • Business Case Detail – Savings Opportunity
  • Service Technology Investments
    • Business Case Detail – Savings Opportunity
  • Service Technology Investments
    • Business Case Detail – Savings Opportunity
  • Service Technology Investments
    • Business Case Detail – Savings Opportunity
  • Service Technology Investments
    • Business Case Detail – Solutions Cost
  • Service Technology Investments
    • Cost & Net Financial Benefit Schedule
  • Service Technology Investments
    • 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
  • 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.
  • 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.
  • Service Technology Investments Questions?
  • Service Technology Investments Thank You! Mike Woodard [email_address] www.strategydevelopment.org Blog: http://strategydevlopmentinc.blogspot.com 610.742.4701