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Unlock your Service potential Introducing serve2XL
Contents 09-01-10 © 2010  serve2XL  -  All rights reserved Introduction Who we are Our vision Our approach Value of servic...
Perspectives on Service Introduction 09-01-10 © 2010  serve2XL  -  All rights reserved
Serve2XL is your partner to improve and excel in service Lead Optimise Execute <ul><li>Show by example </li></ul><ul><li>M...
Service concepts are on the move Analysts predict continued focus on service With respect to the analysts we see the follo...
But what is service all about? <ul><li>Service as in  Maintenance </li></ul><ul><li>Call centre </li></ul><ul><li>Installe...
To address multiple business drivers Serve2XL  uses an integrated and holistic approach Our approach Action on multiple di...
Service value according to analysts € Value of Service <ul><ul><li>“ Avaya reduced its service parts inventory from $250 m...
Our demonstrated service value Value of Service <ul><li>Inventory cost </li></ul><ul><li>Logistics cost </li></ul><ul><li>...
Serve2XL portfolio <ul><li>Distribution network design </li></ul><ul><li>Parts management optimisation </li></ul><ul><li>R...
Serve2XL – Key Takeaways 09-01-10 © 2010 Serve2XL - All rights reserved More than ever service will contribute to a compan...
Contact information 09-01-10 © 2010  serve2XL  -  All rights reserved Maarten Pruijmboom 06 – 24 860 944 Coen Jeukens 06 –...
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Introduction to Serve2XL

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Introduction to Serve2XL

  1. 1. Unlock your Service potential Introducing serve2XL
  2. 2. Contents 09-01-10 © 2010 serve2XL - All rights reserved Introduction Who we are Our vision Our approach Value of service Our service portfolio
  3. 3. Perspectives on Service Introduction 09-01-10 © 2010 serve2XL - All rights reserved
  4. 4. Serve2XL is your partner to improve and excel in service Lead Optimise Execute <ul><li>Show by example </li></ul><ul><li>Manage organisational change </li></ul><ul><li>Manage projects </li></ul><ul><li>Coaching / Training </li></ul><ul><li>Reduce cost </li></ul><ul><li>Increase service revenue </li></ul><ul><li>Increase customer satisfaction and loyalty </li></ul><ul><li>Inspire service-thinking </li></ul><ul><li>Make Service a prominent business driver </li></ul><ul><li>Drive Service roadmap </li></ul>Identity Vision Value Serve2XL is a new consultancy firm specialised in all aspects of Service. We have over 15 years of service experience in High Tech, Consumer Electronics, Telecom and MRO Service is an inseparable part of your product. Service is present in all fibres of your value chain processes. Service requires understanding your customer. Approach We apply an integrated and holistic approach in optimising your service business to reach customer satisfaction and loyalty. Who we are 09-01-10 © 2010 serve2XL - All rights reserved
  5. 5. Service concepts are on the move Analysts predict continued focus on service With respect to the analysts we see the following trend This means service becomes a board room topic ... ... where it all starts with strategic service positioning You are not selling products anymore, not selling services but selling complete customer focussed solutions Past Future Product centric Break / fix Cost One size fits all Customer centric Proactive Revenue Differentiation Service for design Design for service Contract SLA Strategy Competence Organisation Supplier Stakeholder Customer Our vision 09-01-10 © 2010 serve2XL - All rights reserved Budget driven Revenue driven Cost Centre Dependent Business Unit Independent Business Unit Strategic Business Unit <ul><li>Provide services internally for others </li></ul><ul><li>Not independent </li></ul><ul><li>Budget driven operation </li></ul><ul><li>No own revenue </li></ul><ul><li>Provide services internally for other departments </li></ul><ul><li>Not independent </li></ul><ul><li>Performance based on Business Unit productivity </li></ul><ul><li>Independent unit </li></ul><ul><li>Own management </li></ul><ul><li>P&L responsibility </li></ul><ul><li>Focus on own product range </li></ul><ul><li>Management through top manager </li></ul><ul><li>Independent decisioin making of service portfolio and marketing </li></ul><ul><li>Service organisation leads product organisation </li></ul><ul><li>Service oriented pricing structure e.g. ‘Power by the hour’ </li></ul><ul><li>Multi vendor </li></ul>Service supports the product Service differen- tiates the product Service leads the product Service is the product Service Revenue Service Portfolio = Importance / Availability of Service Past Now Near Future 2012 Long Term 2012-2015 Deliver Tailor Ensure Operation Invent Ad hoc tech-nical services Financial services Service contracting Value added services Operating services
  6. 6. But what is service all about? <ul><li>Service as in Maintenance </li></ul><ul><li>Call centre </li></ul><ul><li>Installed base </li></ul><ul><li>Service logistics </li></ul><ul><ul><li>Inventory management </li></ul></ul><ul><ul><li>Order fulfilment </li></ul></ul><ul><ul><li>Parts delivery </li></ul></ul><ul><ul><li>Field service </li></ul></ul><ul><ul><li>Reverse logistics </li></ul></ul><ul><ul><li>LSP selection </li></ul></ul><ul><ul><li>Cross border & Du ty </li></ul></ul><ul><li>Repair </li></ul><ul><li>Life cycle management </li></ul><ul><li>Service as in </li></ul><ul><li>Additional Services </li></ul><ul><li>Service portfolio </li></ul><ul><li>Service Marketing & Sales </li></ul><ul><li>Relationship management </li></ul><ul><li>Cross & Up-selling </li></ul><ul><li>Service Level Agreement </li></ul><ul><li>Product customisation </li></ul><ul><li>Sustainability </li></ul><ul><ul><li>Waste collection </li></ul></ul><ul><ul><li>Dismantle </li></ul></ul><ul><ul><li>Remanufacturing </li></ul></ul><ul><ul><li>Installation & training </li></ul></ul><ul><li>Service as in </li></ul><ul><li>Customer Satisfaction </li></ul><ul><li>Customer intimacy </li></ul><ul><li>Customer experience </li></ul><ul><li>Customer bonding </li></ul><ul><li>User support </li></ul><ul><ul><li>Orientation </li></ul></ul><ul><ul><li>Buying </li></ul></ul><ul><ul><li>Delivery </li></ul></ul><ul><ul><li>Installation </li></ul></ul><ul><ul><li>Using </li></ul></ul><ul><ul><li>Disposal </li></ul></ul><ul><li>Corporate citizenship </li></ul>“ Service is the collection of all customer facing activities contribution to the value and obligations of a product” Our vision 09-01-10 © 2010 serve2XL - All rights reserved
  7. 7. To address multiple business drivers Serve2XL uses an integrated and holistic approach Our approach Action on multiple dimensions Customer Satisfaction improvement Revenue increase Cost reduction Processes Systems Knowledge Work instructions Assets Org. structure People Culture Reporting Internal alignment Business model Product portfolio Market positioning Image Innovation Sales channels Market expectations Alternatives Culture Vendors Logistics providers Service providers Competitors Legislation Environment Banks Shareholders Market watchers Driver 09-01-10 © 2010 serve2XL - All rights reserved Strategy Competence Organisation Supplier Stakeholder Customer Customer Satisfaction Service revenue Cost
  8. 8. Service value according to analysts € Value of Service <ul><ul><li>“ Avaya reduced its service parts inventory from $250 million to $160 million, Sun Microsystems saved $40 million in the first year, and Dell grew service revenues over 20% in one year.” </li></ul></ul><ul><ul><li>BusinessWeek </li></ul></ul><ul><ul><li>OEMs are drawing between 12% and 28% of their overall corporate revenues from post sales service activities </li></ul></ul><ul><ul><li>Aberdeen, “Driving Service Revenue” </li></ul></ul><ul><ul><li>It costs three times as much to process reverse logistics of new items as it did to process the forward logistics to sell it. According to Gartner, the percent net profits are reduced by improperly handled returns is 35%; it pays to get reverse logistics right. </li></ul></ul><ul><ul><li>Reverse Logistics Executive Council </li></ul></ul><ul><ul><li>More than $100 billion in products move through the reverse logistics pipeline each year in the US, with average return rates ranging from as 3% to as high as 40%, depending on the industry. </li></ul></ul><ul><ul><li>Forrester, “Taking Control Of Your Aftermarket Supply Chain” </li></ul></ul>Improved customer satisfaction Increased revenue Reduced cost <ul><ul><li>“ Well organized service businesses generate 40% to 50% of a manufacturing company’s profits and 25% of its annual revenue. The profit to revenue ratio in services is 2.6 times higher than in traditional products businesses” </li></ul></ul><ul><ul><li>AMR Research </li></ul></ul><ul><ul><li>“ Companies that develop effective retention management processes will reduce churn of profitable customers by at least 10 percent within six months.” </li></ul></ul><ul><ul><li>Gartner </li></ul></ul><ul><ul><li>“ Eighty percent of companies believe they deliver a superior customer experience, but only 8 percent of their customers agree” </li></ul></ul><ul><ul><li>Harvard Business School </li></ul></ul>09-01-10 © 2010 serve2XL - All rights reserved
  9. 9. Our demonstrated service value Value of Service <ul><li>Inventory cost </li></ul><ul><li>Logistics cost </li></ul><ul><li>Repair cost </li></ul><ul><li>Service engineer cost </li></ul><ul><li>Call centre cost </li></ul><ul><li>Satisfaction </li></ul><ul><li>Customer loyalty </li></ul><ul><li>Repeat sales </li></ul><ul><li>Brand image </li></ul><ul><li>Product revenue </li></ul><ul><li>Maintenance revenue </li></ul><ul><li>Additional services </li></ul><ul><li>Accessories </li></ul>The challenge is to optimise all three axes at the same time, not at the expense of each other <ul><ul><li>Customer satisfaction: >95% </li></ul></ul><ul><ul><li>Retention increase: 10 - 20% </li></ul></ul><ul><ul><li>Customer lock-in: 50 – 90% </li></ul></ul><ul><ul><li>Profitability increase: >10% </li></ul></ul><ul><ul><li>Repeat sales thru loyalty: 20 – 40% </li></ul></ul><ul><ul><li>Brand recognition: >80% </li></ul></ul><ul><ul><li>Customer turn ambassador: +10% </li></ul></ul><ul><ul><li><more> </li></ul></ul><ul><ul><li>Inventory reduction: 25 – 40% </li></ul></ul><ul><ul><li>Fill rates: 85 – 99% </li></ul></ul><ul><ul><li>Avoidance returns: 20 – 40% </li></ul></ul><ul><ul><li>Reduction time critical activities: 25% </li></ul></ul><ul><ul><li>Reduction NFF, MTTR, MTBF and TAT: 10 – 40% </li></ul></ul><ul><ul><li>Reduce call-fix cost: 10 – 50% </li></ul></ul><ul><ul><li>Increase first-time-fix: 10 – 30% </li></ul></ul><ul><ul><li>Reduce site visits: 10 – 30% </li></ul></ul><ul><ul><li>LSP cost reduction: 20%-50% </li></ul></ul><ul><ul><li>Warranty cost reduction: 20% - 50% </li></ul></ul><ul><ul><li>Remote service cost reduction: 20% </li></ul></ul><ul><ul><li><more> </li></ul></ul><ul><ul><li>Cross- and up-selling: 10 – 50% </li></ul></ul><ul><ul><li>Service revenue increase: 20 – 30% </li></ul></ul><ul><ul><li>Service profit increase: 10 – 20% </li></ul></ul><ul><ul><li>More sales opportunities: 10 – 30% </li></ul></ul><ul><ul><li>Increase up-time contracts: 10 – 20% </li></ul></ul><ul><ul><li><more> </li></ul></ul>09-01-10 © 2010 serve2XL - All rights reserved Customer Satisfaction Revenue Cost
  10. 10. Serve2XL portfolio <ul><li>Distribution network design </li></ul><ul><li>Parts management optimisation </li></ul><ul><li>Reverse logistics optimisation </li></ul><ul><li>Total landed costing </li></ul><ul><li>Service based costing </li></ul><ul><li>Service / Sales business model </li></ul><ul><li>Service Portfolio Management </li></ul><ul><li>Design for Service </li></ul><ul><li>Service branding </li></ul><ul><ul><li>Service awareness workshops </li></ul></ul><ul><ul><li>Benchmarking </li></ul></ul><ul><ul><li>Sandboxing </li></ul></ul><ul><ul><li>Service role playing </li></ul></ul><ul><ul><li>Inspire </li></ul></ul><ul><ul><li>Design / Improve </li></ul></ul><ul><ul><li>Strategy </li></ul></ul><ul><ul><li>Build </li></ul></ul><ul><ul><li>Measure </li></ul></ul><ul><ul><li>Customer value analysis </li></ul></ul><ul><ul><li>Service leakage scan </li></ul></ul><ul><ul><li>Dashboard creation </li></ul></ul><ul><ul><li>Service KPI integration </li></ul></ul><ul><ul><li>Project management </li></ul></ul><ul><ul><li>Interim management </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Coaching </li></ul></ul><ul><li>Service & operations planning </li></ul><ul><li>Business process reengineering </li></ul><ul><li>Service process integration </li></ul><ul><li>Remote service </li></ul><ul><li>LSP selection </li></ul><ul><li>Service software selection </li></ul>Our service portfolio 09-01-10 © 2010 serve2XL - All rights reserved <ul><ul><li>Implement </li></ul></ul>Customer satisfaction Revenue Cost
  11. 11. Serve2XL – Key Takeaways 09-01-10 © 2010 Serve2XL - All rights reserved More than ever service will contribute to a company’s revenue. Having a differentiated service portfolio becomes more and more important. Serve2XL uses its integrated holistic approach to design and embed service companywide. Serve2XL tries to seek the optimum service value; a trade off between customer satisfaction, service revenue and related costs. Service revenue Cost Customer Satisfaction Strategy Competence Organisation Supplier Stakeholder Customer Service Revenue Service Portfolio = Importance / Availability of Service Past Now Near Future 2012 Long Term 2012-2015 Deliver Tailor Ensure Operation Invent Ad hoc tech-nical services Financial services Service contracting Value added services Operating services
  12. 12. Contact information 09-01-10 © 2010 serve2XL - All rights reserved Maarten Pruijmboom 06 – 24 860 944 Coen Jeukens 06 – 46 408 444 Dennis Bisschops 06 – 25 460 181 [email_address] www.serve2xl.nl Heer Arendstraat 34 3401 ZP IJsselstein

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