This document provides an overview of PTC's Service Lifecycle Management (SLM) strategy and portfolio. It discusses how PTC SLM solutions can help organizations transform their service business by improving profitability, increasing revenue, and growing customer value. The document outlines challenges currently faced by service leaders and how PTC SLM addresses these challenges through specialized solutions that are product-smart and service-smart. It also provides examples of how specific PTC solutions have helped organizations like Trane and GE Aviation improve their service operations.

1. PTC SLM Strategy &
Portfolio Overview

2. Delivering Product and Service Advantage
Technology solutions
that transform the way
you create, operate and
service products

3. “The world is in the midst of a paradigm shift in
manufacturing one that integrates diverse sets of
ideas, products and services globally.”
2013 Global Manufacturing Competitiveness Index
Deloitte Touche Tohmatsu Limited, U.S. Council on Competitiveness November 2012

4. PTC SLM Enables Service Business Priorities
SLM
Service Lifecycle
Management
TRANSFORMING SERVICE
“More than 50% of 2nd service
calls caused by technician not
having the right parts on hand.”
– Aberdeen Group 2012
“Only 51% of respondents
surveyed achieved profit
goals.”
– Aberdeen Group 2013
“Manufacturers on average
capture only 25% of total
service opportunity available.”
– Accenture 2011
GROW CUSTOMER VALUE IMPROVE PROFITABILITY INCREASE REVENUE

5. of all company
revenues come
from aftermarket
services
~25%
of profit comes
from Services
40-80%

6. TRANE Climate Systems

7. TRANE Intelligent Services ®
Total Lifecycle Management for High Performance Buildings
Comfort, Energy Efficiency and Higher Productivity
~25% Revenue
From New Innovative Product-based Services
and growing
~32% Revenue
From Service and Parts
and growing

8. GE Aviation Aircraft Engines

9. GE Aviation Next Generation Services
Productivity and Efficiencies
1% Fuel Burn Reduction
=$10M Savings to Airline
1 Hr Increased Utilization of Aircraft
=$100M Additional Productivity Gains
5% Annual Productivity
Increase of GE Services
=$15M Cost Savings for GE

10. PRODUCT MODEL SERVICES MODEL

11. Smart, Connected Products and Services
Internet of Things

12. Internet of Things  Disruption
50 Billion Connected Devices by
2020
Between $900B and $2.3T in
Annual Cost Savings for
Manufacturers by 2025
- McKinsey

13. Impact of Smart Connected Products on Service
Service
Provider
Customer
Occasional, Inconsistent
Limited to Human
Communication
Respond If/ When
Contacted
Customer
Constantly
Almost Limitless
Information
Respond Pro-Actively
Service
Provider
Old Model
Model with Connected Products

14. PTC Service Lifecycle Management and IoT
Solving for Service Leadership Challenges

15. 17
Current Challenge for Service Leaders
Service
Knowledge
Mgt
Technical
Info
Warranty
& Contract
Mgt
Service
Parts
Info Service
Parts
Mgt
Service
Parts
Pricing
Field
Service
Mgt
Service
Network
Mgt

16. 18
Service Leader’s Business Challenges
Fragmented Service
Organization
• Silos of people,
processes and
technologies
• Increasing product and
service complexity
Internal
Pressures
• Demands for revenue
growth and profitability
• New sources of long
term competitive
differentiation
• Competition for
executive mindshare
• Talent retention and
management
Immature Service IT
Infrastructure
• Disconnected data &
processes
• Homegrown systems lack
scale and innovation
• Service extensions from
other enterprise systems
(e.g., ERP+) - lacks
specialized technology
for service
External
Pressures
• Global economic
difficulties
• Customer expectations
for faster, better service
experience
• Increasing product and
service competition
globally
• Smart, Connected
Products

17. PTC Service Lifecycle Management Strategy
Deliver Multiple Levels of Differentiation & Value for Service
Organizations
SLM System
SOLUTIONS THAT ENABLE
SERVICE TRANSFORMATION
Cross-solution interoperability
of entire service environment to
enable optimization across
service operations Product & Service
Advantage
CONNECTING PRODUCT & SERVICE
Total product lifecycle visibility to maximize
product performance, customer loyalty and
through-life product revenue
Best-in-Class
Solutions
PURPOSE-BUILT SOLUTIONS
Service specific set of products and
services that address functional
business problems and opportunities
in key service processes

18. PTC SLM Best in Class Solutions
PTC Technical
Information
PTC Service
Parts
Management PTC Service
Parts Pricing
PTC Warranty
& Contract
Management
PTC Service
Parts
Information
PTC Field Service
Management
PTC Service Knowledge
Management
Product-smart
Solutions that understand the
products being serviced
Service-smart
Solutions built for the specific needs
of service processes
PTC Service
Network
Management

19. Service & Product Smart
Build For Service, Understands Your Product
Service - Smart
Product - Smart
• Machine specific service information & parts identification
filtering
• Always accurate through integrated product development
change management
• Integrated 3D design data improves service efficiency
• Built from the ground up for service, leverages enterprise
systems’ data
• Addresses unique challenges of planning for service
wherever your products are used

20. PTC SLM is Specialized for Service
Best-in-Class Solutions Working Together as a System for Service
SERVICE CIOCTO
CEO
SALES CFO COO
ERPPLM SLMCRM
A System for Service +
PTC solutions are ‘purpose built’ to solve functional problems
Parts Planning &
Pricing
Field Service
Contact Center
/SKM
Warranty
Management
Tech Info
Service Parts Info
PTC Field
Service
Management
PTC
Service
Parts Mgt
PTC
Technical
Information
PTC Service
Knowledge
Management
PTC Service
Parts
Information
PTC Warranty
& Contract
Mgt
PTC
Service Parts
Pricing
Service
Logistics
PTC Service
Network
Management

21. PEOPLE
PRODUCT
DEVELOPMENT PRODUCTS
ENTERPRISE &
EXTENDED NETWORK
SERVICE PROCESSES
A Holistic Approach to Service Technology

22. SERVICE PROCESSES
A Holistic Approach to Service Technology
ENTERPRISE &
EXTENDED NETWORK
PRODUCT
DEVELOPMENT PRODUCTS
PEOPLE
CONNECTED PEOPLE
Customer
Role Based Mobile & Web User Experiences
Field
Service
Contact
Center
Dealers and
Partners
Service
Management
Service
Planner
Enterprise Interoperability
CONNECTED ENTERPRISE
Enterprise Resource
Planning (ERP)
Customer Relationship
Management (CRM)
Extended Service
Network
EngineeringClosedLoop
CONNECTED
PRODUCT
DEVELOPMENT
• Design for Serviceability
• Change Management
• Closed-loop for
Continuous Improvement
CONNECTED
PRODUCTS
PTC SLM System
Product-smartService-smart

23. Smart Connected Products

24. Connect Existing Solutions
Connected Field Service Management
Connected Service Knowledge Management
Leverage real time machine information to assist during
interactive diagnostics
Connected Service Parts Planning
Optimize parts inventory by assess the current and to-be
state of your install base, rather than historical trend
analysis.
Automatically create service tickets, monitor your install
base, and provide real time machine data to technicians.
Fast to Market with ThingWorx Enabled Existing Solutions
Remote Monitoring
Automatically create service tickets, monitor your install
base, and provide real time machine data to technicians.

25. An Example of How it All Comes Together
SLM: Service Automation Opportunities
3) SLM Knowledge Base,
Diagnostics Rules, and
maintenance schedules
are used to identify
required action for
situation
2) ThingWorx application
monitors sensor data and
determines that problem
or other conditions exist
that trigger SLM events
6) Field Service ticket is
automatically opened
and a technician is
scheduled
5) Required parts are
identified and ordered
via optimal inventory
location
7) Required service
information is located
and attached to service
order for technician
1) Sensor data gathered
from a connected asset
8) Proactive service is
performed, restoring
asset to proper
condition
4) Warranty management
determines service
entitlement & ensures
compliant product usage
Product & Service
Advantage

27. 29
And Industry Proof Points
Solutions

28. 30
PTC Technical Information Solution
…achieve high-performance teaming
• Increase service productivity and capacity
• Maximize product up-time and productivity
• Improve customer satisfaction and retention
An enterprise solution to…
• Create structured and illustrated content for
content reuse and improved localization
• Manage product-centric content and change
management
• Deliver configuration-specific, graphical
information across the service ecosystem
Before
Struggling with ineffective and/or poor quality
information across the service network
After
Provide easy-to-find and trustworthy information
to the service networkDynamic, in-context,
trustworthy service information

29. 31
PTC Service Parts Information Solution
…increase service parts information
accuracy
• Reduce parts ordering errors
• Increase parts revenue
• Improve customer satisfaction and retention
An enterprise solution to…
• Leverage CAD and PLM to develop associative
service bill-of-materials (sBOM)
• Manage service parts content and change
management related to product applicability
• Deliver dynamic, up-to-date parts catalogs and
3D interactive parts list to the point of service
3D, interactive service parts information
Before
Struggling with accurate parts identification and
ordering due to outdated service parts
information
After
Maintain and provide real-time parts information
through one single system for service

30. 32
PTC Service Knowledge Management Solution
…increase accurate response times to
improve service performance
• Increase service call and dispatch avoidance
by 20%+
• Reduce diagnostic steps per call by 40%
• Reduce cost of warranty by 25%
• Reduce inbound call volumes
• Increase first-time fix rate
• Increase technician productivity
An enterprise solution to…
• Interactively diagnose service issues at self-
service, contact center, field service, and depot
operations
• Coordinate and audit diagnostics as issues
transfer among technicians, partners, and
service groups
• Author and refine knowledge with workflows
supporting KCS (Knowledge-Centered Support)
methodology and regulatory standards
Capture and distribute knowledge across
the service network
Before
Ineffective and uncoordinated issue diagnosis at the
points of service, resulting in unnecessary dispatches
and high rate of no fault found
After
Precision, real-time problem resolution at the point of
service within global operations accessible by the
contact center, field technician and owner / operator
(self-diagnosis)

31. 33
PTC Field Service Management Solution
…realize SLA improvement and cost
reduction
• Improve dispatch avoidance and first-time-fix rates
up to 20% with skills, parts, incentive alignment
• 30-50% less dispatchers
• 8-20% reduced drive miles
• 5-10% reduced call volumes
• 10-20% improvement in “on time arrival”
An enterprise solution to…
• Integrate schedules for break-fix and project-
based activities
• Automate dispatching, paired with manage-by-
exception workflows, to reduce service variance
• Enable operational coordination with mobile
applications and knowledge, parts, and supply
chain workflows
Field service workforce optimization
Before
Reactively managing field operations,
vulnerable to technician, parts, and knowledge
availability
After
Planning, scheduling, and optimizing your
break-fix and project-based field service
workforce

32. 34
PTC Service Parts Management Solution
…increase service level and decrease cost
• Increase part availability up to 30%
• Reduce inventory up to 50%
• Increase service level agreement compliance
• Reduce repair, ordering, and expediting costs
An enterprise solution to…
• Forecast demand for spare parts
• Optimize inventory globally across stocking
locations
• Strategic and Tactical planning to mitigate
excess and shortage conditions
• Simulation/KPI analysis to measure and tune
the model
Service parts planning and optimization
Before
Inefficient service parts planning causing high
inventory investment, low customer service levels,
high excess and obsolescence and expedite costs
After
Service parts network optimized, low inventory
investment, high customer service levels, low
excess, obsolescence and expedite costs

33. 35
Before
Service parts pricing processes are manual and
cost-plus; resulting in lost margin when prices
are too low or lost sales when too high
After
Process automation to optimize prices to reflect
form/fit/function, interrelated and/or superseded
parts, and competitive pressures
PTC Service Parts Pricing Solution
…balance gross profit and market share
goals with optimized parts pricing
• Improve service profit margins
• Increase service parts revenues
• Increase customer value with right priced
service parts
An enterprise solution to…
• Simulate and identify the optimal price for every new
and existing service part
• Rationalize global service parts prices based on all the
ways parts relate given form, fit, function, grade,
supersession, size and equipment
• Position prices against competing market prices from
other OEMs and aftermarket competitors
• Determine customer sensitivity to price changes
throughout the lifecycle changes. Identify parts that can
be priced with elasticity
Profit-driven service parts pricing

34. 36
AFTER
Automate warranty & service processes to generate performance
as a strategic service initiative
BEFORE
Dealing with high warranty costs and low service contract
performance
An enterprise solution to…
– Standardize warranty coverage and
business rules with product-centric
approach
– Manage warranty claims, returns, and
supplier recovery centrally
– Enable closed-loop warranty analytics to
automate feedback for continual
improvement
…realize warranty & service contract
optimization
– Lower service and warranty costs
– Improve contract performance
– Improve customer satisfaction and
retention
PTC Warranty & Contract Management Solution
OPTIMIZED WARRANTY
MANAGEMENT

35. 37
Before
Large array of partners, systems and data managed in
silos; Lack of end-to-end visibility and an inability to
measure inventory by owner, condition, cost in an
outsourced network
After
Track and manage orders, inventory, returns and repair,
and logistics in a single system to view of orders and
inventory from all partners
PTC Service Network Management Solution
…enable global service supply chain
visibility
• Improve global inventory availability while
lowering costs
• Reduce service pipeline inventories by 3% to 5%
• Reduce service fulfillment costs by 20-30%
• Increase process efficiency by 40%
An enterprise solution to…
• Expand inventory visibility to enterprise
departments including engineering, technical
support, etc.
• Orchestrate orders across yours and your
partners depots based on non-deterministic
result events
• Monitor and analyze service network
performance in real-time, including Service
Partners, for continual improvement
Real-time service network visibility
* Focused on Electronics & High Tech OEMs

36. 38
Dell improves business outcomes and processes with PTC Service
Parts Management solution
S o l u t i o n
• PTC Service Parts Management
I n i t i a t i v e s
• Meet more than 2 million service
level agreements
• Need a seamless integration with
existing inventory systems
• Increase customer service levels
• Rapidly identify excess parts
inventory
• Require minimal IT resources
• Scale globally
R e s u l t s
• Plan for 200,000 part-location pairs
• Improved customer service levels
• Reduced inventory expenses
• Successfullymanage 200,000+
same-day service level agreements
Dell is a global information technology company that offers its
customers a range of solutions and services delivered
directly by Dell and through other distribution channels.

37. 39
Dell improves business outcomes and processes with PTC’s Service
Parts Management solution
Dell is a global information technology company that offers its
customers a range of solutions and services delivered
directly by Dell and through other distribution channels.
“The good news at Dell is – on the
product lines that we are using PTC –
we have 100% service levels and 0%
excess inventory.”
“PTC, with their visionary approach,
serves as Dell’s partner as we build a
strategy that optimizes service
operations to maximize the customer
experience.”
Doug Schmidt, Dell Corporation

38. 40
Service Parts
Information
Technical
Information
Service Parts
Management
Service
Knowledge
Warranty &
Contract Mgt
Field Service
Management
Unmatched Expertise Across the Service Lifecycle
SLM Solutions Aligned with Industry Verticals
Service Parts
Pricing

39. 41
Automotive /
Transportation
Aerospace &
Defense
Industrial
Electronics
& High Tech
Medical
Retail &
Consumer
Unmatched Depth in SLM Across Industries
PTC Service Lifecycle Management
Airlines