Across numerous industries, effective service management has become increasingly important to companies’ ability to achieve high performance for a number of reasons.
One is simply that the opportunities to wring value from traditional supply chain improvement initiatives are becoming more scarce, thus driving companies to find other areas to pursue.
Another is that in many sectors, products are becoming commoditized, making service the key competitive differentiator that is difficult to duplicate.
Furthermore, in today’s multi-polar world, organizations increasingly find themselves supporting a fragmented, diverse and globally dispersed customer base with more complex requirements and increased demand for new solutions—which heightens the need for companies to find better ways to deliver and manage service.
Finally, the usual overriding pressures on businesses to improve margins, find new revenue streams and increase capital effectiveness have led to increased scrutiny of all areas of the business, especially those that, like service management, represent a sizable portion of a company’s profit and loss statement.
Service management represents, in many ways, “uncharted territory” in the pursuit of high performance. In fact, Accenture believes that most companies have only scratched the surface of what is possible in building distinctive service management capabilities that contribute to competitive differentiation and stronger profitable growth.
By adopting leading practices, companies can optimize all elements of the service supply chain—labor, parts and material—to build a service management function that is a robust source of high-margin revenue and a strong driver of the kind of customer loyalty that is critical to high performance in today’s hypercompetitive global economy.