Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Service Technology Investments: Building the Case Mike Woodard [email_address] 610.742.4701
Service Technology Investments  <ul><li>My objective </li></ul><ul><ul><li>Educate - Validate </li></ul></ul><ul><ul><li>C...
Service Technology Investments  <ul><li>My background </li></ul><ul><ul><li>Strategy Development –  Service Consultant </l...
<ul><li>Today’s most *beneficial technologies </li></ul><ul><li>Mobile Field Service – work order management, dispatch, pa...
Service Technology Investments <ul><li>Service Technology Solutions </li></ul><ul><li>SMB Service Industry research </li><...
Service Technology Investments <ul><li>Today’s climate </li></ul><ul><li>“ A stiff investment headwind with opportunity at...
Service Technology Investments <ul><li>So, how do you make a convincing argument to justify the required the required doll...
Service Technology Investments <ul><li>What is a formal business case? </li></ul><ul><li>A formal business case is a writt...
Service Technology Investments <ul><li>Business case components </li></ul><ul><li>Background </li></ul><ul><li>Project des...
Service Technology Investments <ul><li>Business case components - example </li></ul><ul><li>Background of the project  -  ...
Service Technology Investments <ul><li>Business case components – example cont’d </li></ul><ul><li>Costs </li></ul><ul><ul...
Service Technology Investments <ul><li>An Actual Business Case </li></ul>
Service Technology Investments <ul><li>Project  Background </li></ul><ul><li>5,000 service technicians – assigned territor...
Service Technology Investments <ul><li>Project  Background </li></ul>Productivity Busters <ul><li>Paperwork Time </li></ul...
Service Technology Investments <ul><li>Project  Description </li></ul><ul><li>Mobile Service Solution – project goals </li...
Service Technology Investments <ul><li>Business Benefits </li></ul><ul><li>Target Benefits  (Benefits in red were quantifi...
Service Technology Investments <ul><li>Business Benefits </li></ul><ul><li>Target Benefits   (Cont’d) </li></ul><ul><li>Ca...
Service Technology Investments <ul><li>Business Case Highlights </li></ul><ul><li>$30M+ investment over 5 years </li></ul>...
Service Technology Investments <ul><li>Business Case Detail – Business Factors </li></ul>
Service Technology Investments <ul><li>Business Case Detail – Savings Opportunity </li></ul>
Service Technology Investments <ul><li>Business Case Detail – Savings Opportunity </li></ul>
Service Technology Investments <ul><li>Business Case Detail – Savings Opportunity </li></ul>
Service Technology Investments <ul><li>Business Case Detail – Savings Opportunity </li></ul>
Service Technology Investments <ul><li>Business Case Detail – Solutions Cost  </li></ul>
Service Technology Investments <ul><li>Cost & Net Financial Benefit Schedule </li></ul>
Service Technology Investments <ul><li>Cost & Net Financial Benefit Schedule </li></ul>
Service Technology Investments <ul><li>Building a business case - lessons learned </li></ul><ul><li>Benchmark your technol...
Service Technology Investments <ul><li>Building a business case – key points </li></ul><ul><li>Business case generation sh...
Service Technology Investments <ul><li>What I do for companies…… </li></ul><ul><li>I help companies optimize all aspects o...
Service Technology Investments Questions?
Service Technology Investments Thank You! Mike Woodard [email_address] www.strategydevelopment.org Blog:  http://strategyd...
Upcoming SlideShare
Loading in …5
×

Service Technology Investments: Building the Case

774 views

Published on

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.

Published in: Technology, Business
  • Be the first to comment

Service Technology Investments: Building the Case

  1. 1. Service Technology Investments: Building the Case Mike Woodard [email_address] 610.742.4701
  2. 2. Service Technology Investments <ul><li>My objective </li></ul><ul><ul><li>Educate - Validate </li></ul></ul><ul><ul><li>Create an appetite for action </li></ul></ul><ul><li>Your expectations? </li></ul>
  3. 3. Service Technology Investments <ul><li>My background </li></ul><ul><ul><li>Strategy Development – Service Consultant </li></ul></ul><ul><ul><li>IKON Office Solutions – 20 years; VP Service, North America; VP Service Strategy; VP Service Operations </li></ul></ul><ul><ul><li>Xerox Corporation – 18 years; District Service Manager, Financial Planning & Analysis Manger, Field Service Manager, Customer Service Technician. </li></ul></ul>
  4. 4. <ul><li>Today’s most *beneficial technologies </li></ul><ul><li>Mobile Field Service – work order management, dispatch, parts management, real time data access, signature capture, communications </li></ul><ul><li>Scheduling and Routing </li></ul><ul><li>Remote Product Monitoring </li></ul><ul><li>Forecasting & Planning </li></ul><ul><li>Business Intelligence </li></ul><ul><li>* productivity enhancing </li></ul>Service Technology Investments
  5. 5. Service Technology Investments <ul><li>Service Technology Solutions </li></ul><ul><li>SMB Service Industry research </li></ul><ul><li>Best-in-class service organizations (top 20%) </li></ul><ul><ul><li>55% already made technology purchases </li></ul></ul><ul><ul><li>17% more will invest in next 12 months </li></ul></ul><ul><ul><li>More than twice as likely as all others to have embraced technology solutions – 55% vs 24% </li></ul></ul><ul><ul><li>Almost twice as likely to be using a mobile service solution </li></ul></ul><ul><li>Mobile service solution </li></ul><ul><ul><li>$10 avg reduction in cost per dispatch event </li></ul></ul><ul><ul><li>12% increase in service profitability </li></ul></ul>
  6. 6. Service Technology Investments <ul><li>Today’s climate </li></ul><ul><li>“ A stiff investment headwind with opportunity at hand” </li></ul>
  7. 7. Service Technology Investments <ul><li>So, how do you make a convincing argument to justify the required the required dollar investment? </li></ul><ul><li>Generate a formal business case </li></ul><ul><li>Moment of truth – now is the time to act……… </li></ul><ul><li>Narrow sighted organizations will cut IT budgets to “get through the hard times”. </li></ul><ul><li>Visionary organizations will invest in technologies that make sense and support goals of managing cost and preparing for long-term demand from customers. </li></ul>
  8. 8. Service Technology Investments <ul><li>What is a formal business case? </li></ul><ul><li>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. </li></ul>
  9. 9. Service Technology Investments <ul><li>Business case components </li></ul><ul><li>Background </li></ul><ul><li>Project description </li></ul><ul><li>Expected business benefits </li></ul><ul><li>Costs </li></ul><ul><li>ROI </li></ul><ul><li>Risks </li></ul><ul><li>“ Do nothing” option </li></ul>
  10. 10. Service Technology Investments <ul><li>Business case components - example </li></ul><ul><li>Background of the project - increase in low touch product base presents opportunity to move away from 100% assigned territories and optimize resource utilization. </li></ul><ul><li>Project description - implement a service “location intelligence” solution to optimize technician utilization through automated scheduling and routing </li></ul><ul><li>Expected business benefits </li></ul><ul><ul><li>Reduced response time (improved customer sat) </li></ul></ul><ul><ul><li>Increased tech productivity (reduced cost) </li></ul></ul><ul><ul><li>Reduced business miles (reduced cost) </li></ul></ul>
  11. 11. Service Technology Investments <ul><li>Business case components – example cont’d </li></ul><ul><li>Costs </li></ul><ul><ul><li>Software purchase/user fees/maintenance </li></ul></ul><ul><ul><li>IT support </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Hardware </li></ul></ul><ul><li>ROI – Net Benefit over defined time period </li></ul><ul><li>Risks </li></ul><ul><ul><li>Employee backlash (GPS, change, job satisfaction) </li></ul></ul><ul><ul><li>Customer dissatisfaction with loss of assigned technicians </li></ul></ul><ul><ul><li>Financial (cost reduction benefits not realized) </li></ul></ul><ul><li>“ Do nothing option” - lost opportunities (cost reduction, competitive differentiation) </li></ul>
  12. 12. Service Technology Investments <ul><li>An Actual Business Case </li></ul>
  13. 13. Service Technology Investments <ul><li>Project Background </li></ul><ul><li>5,000 service technicians – assigned territories, specialized </li></ul><ul><li>300 field service managers </li></ul><ul><li>3 customer call centers </li></ul><ul><li>18,000 customer facing events per day </li></ul><ul><li>Double digit productivity improvement – prior 4 years </li></ul><ul><li>Growing price pressure </li></ul><ul><li>Increasing margin pressure </li></ul><ul><li>Competition starting to invest in mobile service solutions </li></ul><ul><li>Imperative – differentiate and add value </li></ul><ul><ul><li>Reality – reluctance to invest in service </li></ul></ul><ul><li>Imperative - maintain or improve service margins </li></ul><ul><ul><li>Reality – increased productivity is biggest margin lever </li></ul></ul>
  14. 14. Service Technology Investments <ul><li>Project Background </li></ul>Productivity Busters <ul><li>Paperwork Time </li></ul><ul><ul><li>Daily Call Logs </li></ul></ul><ul><ul><li>Customer receipts </li></ul></ul><ul><ul><li>Daily time sheets </li></ul></ul><ul><ul><li>Mileage reporting </li></ul></ul><ul><ul><li>Asset inventory management </li></ul></ul><ul><li>Phone Time </li></ul><ul><ul><li>Technician </li></ul></ul><ul><ul><li>Call Center </li></ul></ul><ul><li>Data & Information Acquisition Time </li></ul><ul><ul><li>Parts availability </li></ul></ul><ul><ul><li>Service histories </li></ul></ul><ul><ul><li>Technical knowledge base </li></ul></ul><ul><ul><li>Customer entitlements </li></ul></ul>
  15. 15. Service Technology Investments <ul><li>Project Description </li></ul><ul><li>Mobile Service Solution – project goals </li></ul><ul><li>Equip all field technicians with state-of-the-art wireless application/hardware technology to increase productivity and improve customer satisfaction </li></ul><ul><li>Provide technicians with real-time access to business-critical data </li></ul><ul><li>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 </li></ul>
  16. 16. Service Technology Investments <ul><li>Business Benefits </li></ul><ul><li>Target Benefits (Benefits in red were quantified in Business Case) </li></ul><ul><li>Technicians/Dispatchers productivity gains – Reduced Telephone Transactions and Time </li></ul><ul><li>Reduction in telecommunications, Alpha Pager & dispatch software costs </li></ul><ul><li>Elimination of over 5 million documents (annual amount) and the time to administer them </li></ul><ul><li>Timely and accurate T&M Billing </li></ul><ul><li>Tech access to technical knowledge base – internal and external </li></ul><ul><li>Reduce purchases of books and technical publications </li></ul><ul><li>Broader, more accurate/timely visibility to available parts inventory </li></ul><ul><li>Improved Car Stock Accuracy </li></ul><ul><li>Improved First Call Effectiveness – know before you go </li></ul><ul><li>Reduced number of data entry errors </li></ul><ul><li>Improve meter read reporting accuracy and related Service billing </li></ul>
  17. 17. Service Technology Investments <ul><li>Business Benefits </li></ul><ul><li>Target Benefits (Cont’d) </li></ul><ul><li>Capture sales opportunities / competitive intelligence, communicate to Sales </li></ul><ul><li>Improve field management – Remote access & managing team activities </li></ul><ul><li>Comply with SOX requirements for document retention </li></ul><ul><li>Establish technical infrastructure/framework for future wireless users (sales, ops) </li></ul><ul><li>Increase communication effectiveness </li></ul><ul><li>Improve customer satisfaction & retention – view to critical account information </li></ul><ul><li>Real time capture & update of changes in account info (Address, Key Operator, Meter Admin) </li></ul><ul><li>Simplified / Automated Workflow (ie Payroll Time reporting) </li></ul><ul><li>Reduced Hardware Expense (Leverage one device for both Dispatch Device and Laptop Device) </li></ul>
  18. 18. Service Technology Investments <ul><li>Business Case Highlights </li></ul><ul><li>$30M+ investment over 5 years </li></ul><ul><li>12% service tech productivity opportunity </li></ul><ul><li>15% call center productivity opportunity </li></ul><ul><li>20 month ROI </li></ul>But, is this business case relevant to a typical dealer service organization?
  19. 19. Service Technology Investments <ul><li>Business Case Detail – Business Factors </li></ul>
  20. 20. Service Technology Investments <ul><li>Business Case Detail – Savings Opportunity </li></ul>
  21. 21. Service Technology Investments <ul><li>Business Case Detail – Savings Opportunity </li></ul>
  22. 22. Service Technology Investments <ul><li>Business Case Detail – Savings Opportunity </li></ul>
  23. 23. Service Technology Investments <ul><li>Business Case Detail – Savings Opportunity </li></ul>
  24. 24. Service Technology Investments <ul><li>Business Case Detail – Solutions Cost </li></ul>
  25. 25. Service Technology Investments <ul><li>Cost & Net Financial Benefit Schedule </li></ul>
  26. 26. Service Technology Investments <ul><li>Cost & Net Financial Benefit Schedule </li></ul>
  27. 27. Service Technology Investments <ul><li>Building a business case - lessons learned </li></ul><ul><li>Benchmark your technology solution against the competition </li></ul><ul><li>Brainstorm potential benefits and savings </li></ul><ul><li>Engage finance leadership early on </li></ul><ul><li>Make your IT department your new best friend </li></ul><ul><li>Identify and fully engage cross functional stakeholders </li></ul><ul><li>Build a conservative business case </li></ul><ul><li>No need to reinvent the wheel </li></ul>
  28. 28. Service Technology Investments <ul><li>Building a business case – key points </li></ul><ul><li>Business case generation should not be viewed as a mechanical exercise – the case must demonstrate that: </li></ul><ul><ul><li>issues have been thought through </li></ul></ul><ul><ul><li>benefits are realistic and attainable </li></ul></ul><ul><ul><li>technical aspects have been evaluated and costed </li></ul></ul><ul><ul><li>outcomes will be tracked and evaluated to determine success </li></ul></ul><ul><li>A sound business case is the foundation of any project charter; without it, there is no valid argument to justify the project. </li></ul>
  29. 29. Service Technology Investments <ul><li>What I do for companies…… </li></ul><ul><li>I help companies optimize all aspects of their service operations by advising them on critical success factors: </li></ul><ul><ul><li>Target service metrics and goals </li></ul></ul><ul><ul><li>Performance management </li></ul></ul><ul><ul><li>Technology application </li></ul></ul><ul><ul><li>Service growth strategies </li></ul></ul><ul><ul><li>Compensation and incentive plans </li></ul></ul><ul><li>I also provide Leadership & Management training designed for the service professional. </li></ul>
  30. 30. Service Technology Investments Questions?
  31. 31. Service Technology Investments Thank You! Mike Woodard [email_address] www.strategydevelopment.org Blog: http://strategydevlopmentinc.blogspot.com 610.742.4701

×